Document:

itrm-ex1019_639.htm

 

EXHIBIT 10.19

 

ITERUM THERAPEUTICS US LIMITED

 

October 25, 2021 

Sailaja Puttagunta

39 Buell Hill Road

Killingworth, Ct. 06419

 

Re:Employment Terms

 

Dear Sailaja:

On behalf of Iterum Therapeutics US Limited (the “Company”), I am pleased to offer you employment at the Company on the terms set forth in this offer letter agreement (the “Agreement”). As discussed, the terms of this Agreement govern with respect to your employment, which shall commence on or before January 28, 2022 (the “Start Date”).

IT IS HEREBY AGREED as follows:

	
1.
	
EMPLOYMENT BY THE COMPANY

	
1.1.
	
Position. You will serve as the Company’s Chief Medical Officer. During the term of your employment with the Company, you will devote your best efforts and substantially all of your business time and attention to the business of the Company, except for approved vacation periods and reasonable periods of illness or other incapacities permitted by the Company’s general employment policies. 

	
1.2.
	
Duties and Location. You will perform those duties and responsibilities as are customary for the position of Chief Medical Officer and as may be directed by the Chief Executive Officer of Iterum Therapeutics plc (the “Parent”), to whom you will report. Your primary office location will be in the Company’s offices in Old Saybrook, Connecticut. Notwithstanding the foregoing, the Company reserves the right to reasonably require you to perform your duties at places other than your primary office location from time to time, and to require reasonable business travel. The Company may modify your job title and duties as it deems necessary and appropriate in light of the Company’s needs and interests from time to time.

	
2.
	
BASE SALARY AND EMPLOYEE BENEFITS

	
2.1.
	
Salary. You will receive for services to be rendered hereunder base salary paid at the rate of $475,000 per year, less standard payroll deductions and tax withholdings. Your base salary will be paid on the Company’s ordinary payroll cycle. As an exempt salaried employee, you will be required to work the Company’s normal business hours, and such additional time as appropriate for your work assignments and position, and you will not be entitled to overtime compensation.

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2.2.
	
Benefits. As a regular full-time employee, you will be eligible to participate in the Company’s standard employee benefits (pursuant to the terms and conditions of the benefit plans and applicable policies), including but not limited to: paid holidays; paid sick time; vacation (provided that in no event will you be eligible to accrue more than four (4) weeks of vacation per year (accrued on a payroll-to-payroll basis as you perform work)) and other health and welfare benefits that the Company may make available to its full-time regular employees.

	
3.
	
ANNUAL BONUS

	
3.1.
	
Commencing with calendar year 2022, you will be eligible to earn an annual performance and retention bonus of up to forty five (45%) of your base salary rate (the “Annual Bonus”). The Annual Bonus will be based upon the Chief Executive Officer of the Parent’s (the “Parent CEO”) assessment of your performance and the Company’s attainment of written targeted goals as set by the Parent CEO in its sole discretion. Bonus payments, if any, will be subject to applicable payroll deductions and tax withholdings. Following the close of each calendar year, the Parent CEO together with the Compensation Committee of the Board of Directors of the Parent (the “Parent Board”) will determine whether you have earned an Annual Bonus, and the amount of any such bonus, based on the achievement of such goals. No amount of Annual Bonus is guaranteed, and you must be an employee on the Annual Bonus payment date to be eligible to receive an Annual Bonus; no partial or prorated bonuses will be provided. The Annual Bonus, if earned, will be paid no later than March 15 of the calendar year after the applicable bonus year.

	
3.2.
	
You will receive an initial bonus payment of $86,000 (the “Initial Bonus”), subject to applicable payroll deductions and tax withholdings, within thirty (30) days of the Start Date (the “Initial Bonus Payment Date”), conditional upon your continuing employment with the Company on the Initial Bonus Payment Date.  In the event of either (i) a Qualifying Termination (as defined in Section 9.1 below) or (ii) a termination of this Agreement by the Company in advance of the Start Date, in each case in connection with a Change in Control (as defined in Section 15 below) that occurs at any time between the date of this Agreement (the “Signing Date”) and the Initial Bonus Payment Date, you will be paid the full amount of the Initial Bonus on the effective date of the Change in Control.

	
3.3.
	
You will receive a subsequent bonus payment of $86,000 (the “6-Month Bonus”), subject to applicable payroll deductions and tax withholdings, within thirty (30) days of the six-month anniversary of the Start Date (the “6-Month Bonus Payment Date”), conditional upon your continuing employment with the Company on the 6-Month Bonus Payment Date. In the event of either (i) a Qualifying Termination (as defined in Section 9.1 below) or (ii) a termination of this Agreement by the Company in advance of the Start Date, in each case in connection with a Change in Control (as defined in Section 15 below) that occurs at any time between the Signing Date and the 6-Month Bonus Payment Date, you will be paid the full amount of the 6-Month Bonus on the effective date of the Change in Control. 

	
4.
	
EXPENSES

	
4.1.
	
The Company will reimburse you for reasonable travel, entertainment or other expenses incurred by you in furtherance or in connection with the performance of your duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time.

	
5.
	
EQUITY COMPENSATION

	
5.1.
	
Subject to approval by the Compensation Committee of the Parent Board, the Parent will grant you an option (the “Stock Option”) to purchase 1,800,000 of the Parent’s ordinary 

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shares (subject to appropriate adjustment for stock splits, stock dividends, combinations, recapitalizations and similar transactions affecting the ordinary shares of the Parent after the date hereof) under the Parent's 2021 Inducement Equity Incentive Plan (the “Inducement Plan”), at an exercise price equal to the fair market value per share of the ordinary shares of the Parent on the date of grant, as determined by the Parent Board.  The Stock Option will vest over four years, with 25% of the shares subject to the Stock Option vesting on the first anniversary of the commencement of your employment, subject to your continuing employment with the Company, and the remaining shares vesting monthly thereafter over the subsequent 36 months, in equal amounts, subject to your continuing employment with the Company.  The option will be subject to all of the terms and conditions set forth in the Inducement Plan and in the option award agreement covering the Stock Option, which must be executed to affect the grant of any option. The Stock Option will be granted as an inducement grant pursuant to the inducement grant exception under Nasdaq Stock Market Rule 5635(c)(4) under the Inducement Plan as an inducement that is material to your employment with the Company.  In the event of either (i) a Qualifying Termination (as defined in Section 9.1 below) or (ii) a termination of this Agreement by the Company in advance of the Start Date, in each case that occurs either within three (3) months before or within twelve (12) months following the closing of a Change in Control (as defined in Section 15 below), in each case, the vesting and exercisability of any then-unvested portions of the Stock Option shall be accelerated in full. 

	
5.2.
	
Subject to approval by the Compensation Committee of the Parent Board, the Parent will grant you 500,000 Restricted Stock Units (the “RSUs”) under the Inducement Plan. The RSUs will vest over four years, with 25% of the RSUs vesting on each one-year anniversary of the Start Date, subject to your continuing employment with the Company. The RSUs will be subject to all of the terms and conditions set forth in the Inducement Plan and in the Restricted Stock Unit Grant Notice covering the RSUs, which must be executed to affect the grant of the RSUs.  The RSUs will be granted as an inducement grant pursuant to the inducement grant exception under Nasdaq Stock Market Rule 5635(c)(4) under the Inducement Plan as an inducement that is material to your employment with the Company.  In the event of either (i) a Qualifying Termination (as defined in Section 9.1 below) or (ii) a termination of this Agreement by the Company in advance of the Start Date, in each case that occurs either within three (3) months before or within twelve (12) months following the closing of a Change in Control (as defined in Section 15 below), the vesting of any then-unvested RSUs shall be accelerated in full.

	
5.3.
	
Additionally, you may be eligible for future equity awards, at the discretion of the Parent Board, which will be governed by the terms and conditions of the Parent’s equity incentive plan then in effect and the applicable grant documents.

	
6.
	
CONFIDENTIALITY AND COMPANY POLICIES

	
6.1.
	
As a condition of employment, you agree to sign and comply with the Company’s Employee Confidential Information and Inventions Assignment Agreement (the “Confidentiality Agreement”), attached hereto as Exhibit A. In addition, you are required to abide by the Company’s policies and procedures, as modified from time to time within the Company’s discretion; provided, however, that in the event the terms of this Agreement differ from or are in conflict with the Company’s general employment policies or practices, this Agreement shall control.

	
7.
	
PROTECTION OF THIRD PARTY INFORMATION

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7.1.
	
In your work for the Company, you will be expected not to make any unauthorized use or disclosure of any confidential or proprietary information, including trade secrets, of any former employer or other third party to whom you have contractual obligations to protect such information. Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. You represent that you are able to perform your job duties within these guidelines, and you are not in unauthorized possession of any unpublished documents, materials, electronically-recorded information, or other property belonging to any former employer or other third party to whom you have a contractual obligation to protect such property. In addition, you represent and warrant that your employment by the Company will not conflict with any prior employment or consulting agreement or other agreement with any third party, that you will perform your duties to the Company without violating any such agreement(s), and that you have disclosed to the Company in writing any contract you have signed that may restrict your activities on behalf of the Company.

	
8.
	
AT-WILL EMPLOYMENT RELATIONSHIP

	
8.1.
	
Your employment relationship with the Company is at-will. Accordingly, you may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying the Company; and the Company may terminate your employment at any time, with or without Cause or advance notice.

	
9.
	
SEVERANCE

	
9.1.
	
If, at any time, the Company terminates your employment without Cause (other than as a result of your death or disability) or you resign for Good Reason (either such termination referred to as a “Qualifying Termination”), provided such termination or resignation constitutes a Separation from Service (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), then subject to Sections 11 and 12 below and your continued compliance with the terms of this Agreement (including without limitation Section 6 above), the Company will provide you with the following severance benefits (the “Severance Benefits”):

	
 
	
9.1.1.
	
Cash Severance. The Company will pay you, as cash severance, nine (9) months of your base salary in effect as of your Separation from Service date, less standard payroll deductions and tax withholdings; provided, however, in the event of a Qualifying Termination that occurs either within a month before or within twelve (12) months following the closing of a Change in Control (as defined below), the Company will instead pay you, as cash severance, twelve (12) months of your base salary and 100% of your target Annual Bonus in effect as of your Separation from Service date, less standard payroll deductions and tax withholdings (either such amount, the “Severance”). The Severance will be paid in installments in the form of continuation of your base salary payments and prorated amounts for your target Annual Bonus payments, if applicable, paid on the Company’s ordinary payroll dates, commencing on the Company’s first regular payroll date that is more than sixty (60) days following your Separation from Service date, and the first payment shall include any  amount that would have been paid had the cash severance payments commenced on the Separation from Service Date.

	
 
	
9.1.2.
	
COBRA Severance. As an additional Severance Benefit, the Company will continue to pay the cost of your health care coverage in effect at the time of your Separation 

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from Service for a maximum of twelve (12) months, either under the Company’s regular health plan (if permitted), or by paying your COBRA premiums (the “COBRA Severance”). The Company’s obligation to pay the COBRA Severance on your behalf will cease if you obtain health care coverage from another source (e.g., a new employer or spouse’s benefit plan), unless otherwise prohibited by applicable law. You must notify the Company within two (2) weeks if you obtain coverage from a new source. This payment of COBRA Severance by the Company would not expand or extend the maximum period of COBRA coverage to which you would otherwise be entitled under applicable law. Notwithstanding the above, if the Company determines in its sole discretion that it cannot provide the foregoing COBRA Severance without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to you a taxable monthly payment in an amount equal to the monthly COBRA premium that you would be required to pay to continue your group health coverage in effect on the date of your termination (which amount shall be based on the premium for the first month of COBRA coverage), which payments shall be made on the last day of each month regardless of whether you elect COBRA continuation coverage and shall end on the earlier of (x) the date upon which you obtain other coverage or (y) the last day of the twelfth (12th) calendar month following your Separation from Service date and which payments would be reduced by applicable taxes and withholdings.

	
10.
	
RESIGNATION WITHOUT GOOD REASON; TERMINATION FOR CAUSE; DEATH OR DISABILITY

	
10.1.
	
If, at any time, you resign your employment without Good Reason, or the Company terminates your employment for Cause, or if either party terminates your employment as a result of your death or disability, you will receive your base salary accrued through your last day of employment, as well as any unused vacation (if applicable) accrued through your last day of employment as well as any unpaid business expense reimbursements pursuant to the Company’s standard practice. Under these circumstances, you will not be entitled to any other form of compensation from the Company, including any Severance, other than rights to which you are entitled under the Company’s benefit programs.

	
11.
	
CONDITIONS TO RECEIPT OF SEVERANCE

	
11.1.
	
Prior to and as a condition to your receipt of the Severance described above, you shall execute and deliver to the Company an effective separation and release of claims agreement in a form acceptable to the Company, which shall include, among other things, a release of all releasable claims in favor of the Company, as well as non-disparagement and cooperation obligations, and reaffirmation of your continuing obligations under the Confidentiality Agreement  (the “Release”), within the timeframe set forth therein, but not later than forty-five (45) days following your Separation from Service date, and allow the Release to become effective according to its terms (by not invoking any legal right to revoke it) within any applicable time period set forth therein (such latest permitted effective date, the “Release Deadline”).

	
12.
	
RETURN OF COMPANY PROPERTY

	
12.1.
	
Upon the termination of your employment for any reason, as a precondition to your receipt of the Severance (if applicable), within five (5) days after your Separation from Service Date (or earlier if requested by the Company), you will return to the Company all Company documents (and all copies thereof) and other Company property within your possession, custody or control, including, but not limited to, Company files, notes, financial and operational 

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information, customer lists and contact information, product and services information, research and development information, drawings, records, plans, forecasts, reports, payroll information, spreadsheets, studies, analyses, compilations of data, proposals, agreements, sales and marketing information, personnel information, specifications, code, software, databases, computer-recorded information, tangible property and equipment (including, but not limited to, computers, facsimile machines, mobile telephones, tablets, handheld devices, and servers), credit cards, entry cards, identification badges and keys, and any materials of any kind which contain or embody any proprietary or confidential information of the Company, and all reproductions thereof in whole or in part and in any medium. You further agree that you will make a diligent search to locate any such documents, property and information and return them to the Company within the timeframe provided above. In addition, if you have used any personally-owned computer, server, or e-mail system to receive, store, review, prepare or transmit any confidential or proprietary data, materials or information of the Company, then within five (5) days after your Separation from Service date you must provide the Company with a computer-useable copy of such information and permanently delete and expunge such confidential or proprietary information from those systems without retaining any reproductions (in whole or in part); and you agree to provide the Company access to your system, as requested, to verify that the necessary copying and deletion is done.

	
13.
	
OUTSIDE ACTIVITIES

	
13.1.
	
Throughout your employment with the Company, you may engage in civic and not-for-profit activities so long as such activities do not interfere with the performance of your duties hereunder or present a conflict of interest with the Company. Subject to the restrictions set forth herein and with the prior consent of the Parent Board, you may serve as a director of other corporations and may devote a reasonable amount of your time to other types of business or public activities not expressly mentioned in this paragraph. The Parent Board may rescind its consent to your service as a director of all other corporations or participation in other business or public activities, if the Parent Board, in its sole discretion, determines that such activities compromise or threaten to compromise the Company’s business interests or conflict with your duties to the Company.

	
13.2.
	
During your employment by the Company, except on behalf of the Company, you will not directly or indirectly serve as an officer, director, stockholder, employee, partner, proprietor, investor, joint venturer, associate, representative or consultant of any other person, corporation, firm, partnership or other entity whatsoever known by you to compete with the Company (or is planning or preparing to compete with the Company), anywhere in the world, in any line of business engaged in (or planned to be engaged in) by the Company; provided, however, that you may purchase or otherwise acquire up to (but not more than) one percent (1%) of any class of securities of any enterprise (but without participating in the activities of such enterprise) if such securities are listed on any national or regional securities exchange.

	
14.
	
DATA PROTECTION

	
14.1.
	
All personal information which the Company holds about you is protected by data protection laws.  The Parent and its subsidiaries (including the Company) will collect and process personal data relating to employees in accordance with the privacy notice which is attached at Exhibit B.

	
15.
	
DEFINITIONS 

	
15.1.
	
For purposes of this Agreement, the following terms shall have the following meanings:

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15.1.1.
	
“Cause” for termination will mean your: (a) commission or conviction (including a guilty plea or plea of nolo contendere) of any felony or any other crime involving fraud, dishonesty or moral turpitude; (b) your commission or attempted commission of or participation in a fraud or act of dishonesty or misrepresentation against the Company; (c) material breach of your duties to the Company; (d) intentional damage to any property of the Company; (e) misconduct, or other violation of Company policy that causes harm; (f) your material violation of any written and fully executed contract or agreement between you and the Company, including without limitation, material breach of your Confidentiality Agreement, or of any Company policy, or of any statutory duty you owe to the Company; or (g) conduct by you which in the good faith and reasonable determination of the Company demonstrates gross unfitness to serve. The determination that a termination is for Cause shall be made by the Company in its sole discretion;

	
 
	
15.1.2.
	
you shall have “Good Reason” for resigning from employment with the Company if any of the following actions are taken by the Company without your prior written consent: (a) a material reduction in your base salary, which the parties agree is a reduction of at least 10% of your base salary (unless pursuant to a salary reduction program applicable generally to the Company’s similarly situated employees); (b) a material reduction in your duties (including responsibilities and/or authorities), provided, however, that a change in job position (including a change in title) shall not be deemed a “material reduction” in and of itself unless your new duties are materially reduced from the prior duties; or (c) relocation of your principal place of employment to a place that increases your one-way commute by more than fifty (50) miles as compared to your then-current principal place of employment immediately prior to such relocation. In order to resign for Good Reason, you must provide written notice to the Parent Board within 30 days after the first occurrence of the event giving rise to Good Reason setting forth the basis for your resignation, allow the Company at least 30 days from receipt of such written notice to cure such event, and if such event is not reasonably cured within such period, you must resign from all positions you then hold with the Company not later than 30 days after the expiration of the cure period; and 

	
 
	
15.1.3.
	
“Change in Control” shall mean: (1) a merger or consolidation in which the Parent is a constituent party (or of a subsidiary of the Parent is a constituent party and the Parent issues shares of its capital stock pursuant to such merger or consolidation), other than a merger or consolidation in which the voting securities of the Parent outstanding immediately prior to such merger or consolidation continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation, or (2) any transaction or series of related transactions in which in excess of 50% of the Parent voting power is transferred, other than the issue by the Parent of shares in transactions the primary purpose of which is to raise capital for the Parent’s operations and activities, or (3) a sale, lease, exclusive license or other disposition of all or substantially all (as determined by the Parent Board in its sole discretion) of the assets of the Parent other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Parent to an entity, more than 50% of the combined voting power of the voting securities of which are beneficially owned by shareholders of the Parent in substantially the same proportions as their beneficial ownership of the outstanding voting securities of the Parent immediately prior to such sale, lease, exclusive license or other disposition.

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16.
	
COMPLIANCE WITH SECTION 409A

	
16.1.
	
It is intended that the Severance set forth in this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended, (the “Code”) (Section 409A, together with any state law of similar effect, “Section 409A”) provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulations 1.409A-2(b)(2)(iii)), your right to receive any instalment payments under this Agreement (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each instalment payment hereunder shall at all times be considered a separate and distinct payment. Notwithstanding any provision to the contrary in this Agreement, if the Company (or, if applicable, the successor entity thereto) determines that the Severance constitutes “deferred compensation” under Section 409A and you are, on the date of your Separation from Service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code (a “Specified Employee”), then, solely to the extent necessary to avoid the incurrence of adverse personal tax consequences under Section 409A, the timing of the Severance shall be delayed until the earliest of: (i) the date that is six (6) months and one (1) day after your Separation from Service date, (ii) the date of your death, or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation. Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments or benefits deferred pursuant to this Section 16 shall be paid in a lump sum or provided in full by the Company (or the successor entity thereto, as applicable), and any remaining payments due shall be paid as otherwise provided herein. No interest shall be due on any amounts so deferred. If the Severance benefits are not covered by one or more exemptions from the application of Section 409A and the Release could become effective in the calendar year following the calendar year in which you have a Separation from Service, the Release will not be deemed effective any earlier than the Release Deadline. The Severance benefits are intended to qualify for an exemption from application of Section 409A or comply with its requirements to the extent necessary to avoid adverse personal tax consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly.  No payments hereunder may be accelerated or deferred unless permitted or required by Section 409A.  In no event shall the Company (or the successor entity thereto, as applicable) have any liability to you or to any other person with respect to the application of Section 409A to the payments and benefits that may be payable hereunder.

	
17.
	
SECTION 280G; PARACHUTE PAYMENT

	
17.1.
	
If any payment or benefit you will or may receive from the Company or otherwise (a “280G Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment provided pursuant to this Agreement (a “Payment”) shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the greatest economic benefit 

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for you. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).

	
17.2.
	
Notwithstanding any provision of subsection (a) above to the contrary, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A that would not otherwise be subject to taxes pursuant to Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for you as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without Cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A.

	
17.3.
	
Unless you and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the Change in Control transaction shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control transaction, the Company shall appoint a nationally recognized accounting or law firm to make the determinations required by this Section 17. The Company shall bear all expenses with respect to the determinations by such accounting or law firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting or law firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to you and the Company within fifteen (15) calendar days after the date on which your right to a 280G Payment becomes reasonably likely to occur (if requested at that time by you or the Company) or such other time as requested by you or the Company.

	
17.4.
	
If you receive a Payment for which the Reduced Amount was determined pursuant to clause (x) of Section 17(a) and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, you agree to promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of Section 17(a)) so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) of Section 17(a), you shall have no obligation to return any portion of the Payment pursuant to the preceding sentence.

	
18.
	
DISPUTE RESOLUTION

	
18.1.
	
To ensure the timely and economical resolution of disputes that may arise in connection with your employment with the Company, you and the Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this Agreement, your employment, or the termination of your employment, including but not limited to statutory claims (including but not limited to any claim pursuant to any law prohibiting discrimination or any wage and hour law), will be exclusively resolved to the fullest extent permitted by law by final, binding and confidential arbitration, by a single neutral arbitrator, in Chicago, Illinois unless otherwise agreed to by you and the Company, conducted by JAMS, Inc. (“JAMS”) under the then-applicable JAMS rules (available at the following web address: http://www.jamsadr.com/rulesclauses, and which will be provided to you on request). The arbitrator shall be selected by the Employee and the Company in accordance with JAMS 

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rules. By agreeing to this arbitration procedure, both you and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding. (Notwithstanding the foregoing, however, nothing herein shall be interpreted to mean that you are precluded from filing a charge with a fair employment practices agency, provided, however, that that you acknowledge that you may not recover any monetary benefits in connection with such a charge.)  Further, you and the Company agree that all disputes brought against each other will be arbitrated on an individual basis only, and not in a class action arbitration, a collective action arbitration, or any other group, representative, consolidated, or joint basis. You will have the right to be represented by legal counsel at any arbitration proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall be authorized to award any or all remedies that you or the Company would be entitled to seek in a court of law. The Company shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required of you if the dispute were filed in a court of law. Nothing in this letter is intended to prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction.

	
19.
	
MISCELLANEOUS 

	
19.1.
	
This offer is contingent upon a background check clearance, reference checks clearance, and satisfactory proof of your identity and right to work in the United States. This Agreement, together with your Confidentiality Agreement, forms the complete and exclusive statement of your employment agreement with the Company. It supersedes any other agreements or promises made to you by anyone, whether oral or written. Changes in your employment terms, other than those changes expressly reserved to the Company’s or the Parent Board’s discretion in this Agreement, require a written modification approved by the Company and signed by a duly authorized officer of the Company. This Agreement will bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination shall not affect any other provision of this Agreement and the provision in question shall be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible under applicable law. This Agreement shall be construed and enforced in accordance with the laws of the State of Delaware without regard to conflicts of law principles. Any ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Agreement, or rights hereunder, shall be in writing and shall not be deemed to be a waiver of any successive breach or rights hereunder. This Agreement may be executed in counterparts which shall be deemed to be part of one original, and facsimile and electronic image copies of signatures shall be equivalent to original signatures.

 

Please sign and date this Agreement and the enclosed Confidentiality Agreement and return them to me on or before October 28, 2021 if you wish to accept employment at the Company under the terms described above. The offer of employment herein will expire if I do not receive this signed letter by that date. I would be happy to discuss any questions that you may have about these terms.

 

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We are delighted to be making this offer and the Company looks forward to your favorable reply and to a productive and enjoyable work relationship.

Sincerely,

 

ITERUM THERAPEUTICS US LIMITED:

 

By: /s/ Corey Fishman

Name: Corey Fishman

Title: Chief Executive Officer

Date: October 27, 2021

Reviewed, Understood, and Accepted:

 

/s/ Sailaja Puttagunta

Sailaja Puttagunta

Date: 27 October 2021

11

 

 

EXHIBIT A

 

CONFIDENTIALITY AGREEMENT 

12

 

 

 

ITERUM THERAPEUTICS US LIMITED

EMPLOYEE CONFIDENTIAL

INFORMATION AND INVENTIONS

ASSIGNMENT AGREEMENT

In consideration of my employment or continued employment by ITERUM THERAPEUTICS US LIMITED, a Delaware corporation (the “Company”), and the compensation paid to me now and during my employment with the Company, I agree to the terms of this Agreement as follows:

1. CONFIDENTIAL INFORMATION PROTECTIONS.

1.1 Nondisclosure; Recognition of Company’s Rights. At all times during and after my employment, I will hold in confidence and will not disclose, use, lecture upon, or publish any of Company’s Confidential Information (defined below), except as may be required in connection with my work for Company, or as expressly authorized by the Chief Executive Officer at the direction of the Board of Directors (each an “Officer”) of Iterum Therapeutics plc. I will obtain the Officer’s written approval before publishing or submitting for publication any material (written, oral, or otherwise) that relates to my work at Company and/or incorporates any Confidential Information. I hereby assign to Company any rights I may have or acquire in any and all Confidential Information and recognize that all Confidential Information shall be the sole and exclusive property of Company and its assigns.

1.2 Confidential Information. The term “Confidential Information” shall mean any and all confidential knowledge, data or information related to Company’s business or its actual or demonstrably anticipated research or development, including without limitation (a) trade secrets, inventions, ideas, processes, computer source and object code, data, formulae, programs, other works of authorship, know-how, improvements, discoveries, developments, designs, and techniques; (b) information regarding products, services, plans for research and development, marketing and business plans, budgets, financial statements, contracts, prices, suppliers, and customers; (c) information regarding the skills and compensation of Company’s employees, contractors, and any other service providers of Company; and (d) the existence of any business discussions, negotiations, or agreements between Company and any third party.

1.3 Third Party Information. I understand that Company has received and in the future will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During and after the term of my employment, I will hold Third Party Information in strict confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection with their work for Company) or use, Third Party Information, except in connection with my work for Company or unless expressly authorized by an officer of Company in writing.

1.4 No Improper Use of Information of Prior Employers and Others. I represent that my employment by Company does not and will not breach any agreement with any former employer, including any noncompete agreement or any agreement to keep in confidence or refrain from using information acquired by me prior to my employment by Company. I further represent that I have not entered into, and will not enter into, any agreement, either written or oral, in conflict with my obligations under this Agreement. During my employment by Company, I will not improperly make use of, or disclose, any information or trade secrets of any former employer or other third party, nor will I bring onto the premises of Company or use any unpublished documents or any property belonging to any former employer or other third party, in violation of any lawful agreements with that former employer or third party. I will use in the performance of my duties only information that is generally known and used by persons with training and experience comparable to my own, is common knowledge in the industry or otherwise legally in the public domain, or is otherwise provided or developed by Company.

13

 

 

2. INVENTIONS.

2.1 Definitions. As used in this Agreement, the term “Invention” means any ideas, concepts, information, materials, processes, data, programs, know-how, improvements, discoveries, developments, designs, artwork, formulae, other copyrightable works, and techniques and all Intellectual Property Rights in any of the items listed above. The term “Intellectual Property Rights” means all trade secrets, copyrights, trademarks, mask work rights, patents and other intellectual property rights recognized by the laws of any jurisdiction or country. The term “Moral Rights” means all paternity, integrity, disclosure, withdrawal, special and any other similar rights recognized by the laws of any jurisdiction or country.

2.2 Prior Inventions. I have disclosed on Exhibit A a complete list of all Inventions that (a) I have, or I have caused to be, alone or jointly with others, conceived, developed, or reduced to practice prior to the commencement of my employment by Company; (b) in which I have an ownership interest or which I have a license to use; and (c) that I wish to have excluded from the scope of this Agreement (collectively referred to as “Prior Inventions”). If no Prior Inventions are listed in Exhibit A or if I have not completed Exhibit A, I warrant that there are no Prior Inventions. I agree that I will not incorporate, or permit to be incorporated, Prior Inventions in any Company Inventions (defined below) without Company’s prior written consent. If, in the course of my employment with Company, I incorporate a Prior Invention into a Company process, machine or other work, I hereby grant Company a non-exclusive, perpetual, fully-paid and royalty-free, irrevocable and worldwide license, with rights to sublicense through multiple levels of sublicensees, to reproduce, make derivative works of, distribute, publicly perform, and publicly display in any form or medium, whether now known or later developed, make, have made, use, sell, import, offer for sale, and exercise any and all present or future rights in, such Prior Invention.    

2.3 Assignment of Company Inventions. Inventions assigned to the Company or to a third party as directed by the Company pursuant to the subsection titled Government or Third Party are referred to in this Agreement as “Company Inventions.” Subject to the subsection titled Government or Third Party, I hereby assign and agree to assign in the future (when any such Inventions or Intellectual Property Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to Company all my right, title, and interest in and to any and all Inventions (and all Intellectual Property Rights with respect thereto) made, conceived, reduced to practice, or learned by me, either alone or with others, during the period of my employment by Company. Any assignment of Inventions (and all Intellectual Property Rights with respect thereto) hereunder includes an assignment of all Moral Rights. To the extent such Moral Rights cannot be assigned to Company and to the extent the following is allowed by the laws in any country where Moral Rights exist, I hereby unconditionally and irrevocably waive the enforcement of such Moral Rights, and all claims and causes of action of any kind against Company or related to Company’s customers, with respect to such rights. I further acknowledge and agree that neither my successors-in-interest nor legal heirs retain any Moral Rights in any Inventions (and any Intellectual Property Rights with respect thereto).

2.4 Obligation to Keep Company Informed. During the period of my employment and for one year after my employment ends, I will promptly and fully disclose to Company in writing (a) all Inventions authored, conceived, or reduced to practice by me, either alone or with others, and (b) all patent applications filed by me or in which I am named as an inventor or co-inventor.

2.5 Government or Third Party. I agree that, as directed by the Company, I will assign to a third party, including without limitation the United States, all my right, title, and interest in and to any particular Company Invention.

2.6 Enforcement of Intellectual Property Rights and Assistance. During and after the period of my employment and at Company’s request and expense, I will assist Company in every proper way, including consenting to and joining in any action, to obtain and enforce the United States and foreign Intellectual Property Rights and Moral Rights relating to Company Inventions in all countries. If the Company is unable to secure my signature on any document needed in connection with such purposes, I hereby irrevocably designate and appoint Company and its duly authorized officers and agents as my 

14

 

 

agent and attorney in fact, which appointment is coupled with an interest, to act on my behalf to execute and file any such documents and to do all other lawfully permitted acts to further such purposes with the same legal force and effect as if executed by me.

2.7 Incorporation of Software Code. I agree that I will not incorporate into any Company software or otherwise deliver to Company any software code licensed under the GNU General Public License or Lesser General Public License or any other license that, by its terms, requires or conditions the use or distribution of such code on the disclosure, licensing, or distribution of any source code owned or licensed by Company except as expressly authorized by the Company or in strict compliance with the Company’s policies regarding the use of such software.

3. RECORDS. I agree to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that is required by the Company) of all Inventions made by me during the period of my employment by the Company, which records shall be available to, and remain the sole property of, the Company at all times.

4. NON-COMPETITION AND NON-SOLICITATION.

4.1 Additional Activities. I agree that during the term of my employment by Company, I will not, without Company’s express written consent, engage in any employment or business activity that is competitive with, or would otherwise conflict with my employment by, Company.

4.2 Non-Solicitation. I agree that during the term of my employment or consulting relationship with the Company, and for six months following the termination of my relationship with the Company for any reason, I will not directly or indirectly solicit, induce, recruit, hire or encourage any of the Company’s employees or consultants to terminate their relationship with the Company, or attempt any of the foregoing, either for myself or any other person or entity.

4.3 Non-Competition. I agree that for six months following the termination of my relationship with the Company for any reason, I will not, without the Company’s prior written consent, directly or indirectly work on any products or services that are competitive with products or services (a) being commercially developed or exploited by the Company during my employment or consultancy and (b) on which I worked or about which I learned Confidential Information during my employment or consultancy with the Company. I further agree that for six months following termination of my relationship with the Company for any reason, I shall not solicit any licensor to or customer of the Company or licensee of the Company’s products, that are known to me, with respect to any business, products or services that are competitive to the products or services offered by the Company or under development as of the date of termination of my relationship with the Company.

 

5. RETURN OF COMPANY PROPERTY. Upon termination of my employment or upon Company’s request at any other time, I will deliver to Company all of Company’s property, equipment, and documents, together with all copies thereof, and any other material containing or disclosing any Inventions, Third Party Information or Confidential Information and certify in writing that I have fully complied with the foregoing obligation. I agree that I will not copy, delete, or alter any information contained upon my Company computer or Company equipment before I return it to Company. In addition, if I have used any personal computer, server, or e-mail system to receive, store, review, prepare or transmit any Company information, including but not limited to, Confidential Information, I agree to provide the Company with a computer-useable copy of all such Confidential Information and then permanently delete and expunge such Confidential Information from those systems; and I agree to provide the Company access to my system as reasonably requested to verify that the necessary copying and/or deletion is completed. I further agree that any property situated on Company’s premises and owned by Company is subject to inspection by Company’s personnel at any time with or without notice. Prior to the termination of my employment or promptly after termination of my employment, I will cooperate with Company in attending an exit interview and certify in writing that I have complied with the requirements of this section.

15

 

 

6. NOTIFICATION OF NEW EMPLOYER. If I leave the employ of Company, I consent to the notification of my new employer of my rights and obligations under this Agreement, by Company providing a copy of this Agreement or otherwise.

7. GENERAL PROVISIONS.

7.1 Governing Law and Venue. This Agreement and any action related thereto will be governed and interpreted by and under the laws of the State of Delaware, without giving effect to any conflicts of laws principles that require the application of the law of a different country. I expressly consent to personal jurisdiction and venue in the courts for the county in which Company’s principal place of business is located for any lawsuit filed there against me by Company arising from or related to this Agreement.

7.2 Severability. If any provision of this Agreement is, for any reason, held to be invalid or unenforceable, the other provisions of this Agreement will remain enforceable and the invalid or unenforceable provision will be deemed modified so that it is valid and enforceable to the maximum extent permitted by law.

7.3 Survival. This Agreement shall survive the termination of my employment and the assignment of this Agreement by Company to any successor or other assignee and shall be binding upon my heirs and legal representatives.

7.4 Employment. I agree and understand that nothing in this Agreement shall give me any right to continued employment by Company, and it will not interfere in any way with my right or Company’s right to terminate my employment at any time, with or without cause and with or without advance notice provided I am a United States based employee.

7.5 Notices. Each party must deliver all notices or other communications required or permitted under this Agreement in writing to the other party at the address listed on the signature page, by courier, by certified or registered mail (postage prepaid and return receipt requested), or by a nationally-recognized express mail service. Notice will be effective upon receipt or refusal of delivery. If delivered by certified or registered mail, notice will be considered to have been given five business days after it was mailed, as evidenced by the postmark. If delivered by courier or express mail service, notice will be considered to have been given on the delivery date reflected by the courier or express mail service receipt. Each party may change its address for receipt of notice by giving notice of the change to the other party.

7.6 Injunctive Relief. I acknowledge that, because my services are personal and unique and because I will have access to the Confidential Information of Company, any breach of this Agreement by me would cause irreparable injury to Company for which monetary damages would not be an adequate remedy and, therefore, will entitle Company to injunctive relief (including specific performance). The rights and remedies provided to each party in this Agreement are cumulative and in addition to any other rights and remedies available to such party at law or in equity.

7.7 Waiver. Any waiver or failure to enforce any provision of this Agreement on one occasion will not be deemed a waiver of that provision or any other provision on any other occasion.

7.8 Export. I agree not to export, reexport, or transfer, directly or indirectly, any U.S. technical data acquired from Company or any products utilizing such data, in violation of the United States export laws or regulations.

7.9 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall be taken together and deemed to be one instrument.

7.10 Entire Agreement. If no other agreement governs nondisclosure and assignment of inventions during any period in which I was previously employed or am in the future employed by Company as an independent contractor, the obligations pursuant to sections of this Agreement titled 

16

 

 

Confidential Information Protections and Inventions shall apply. This Agreement is the final, complete and exclusive agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior communications between us with respect to such matters. No modification of or amendment to this Agreement, or any waiver of any rights under this Agreement, will be effective unless in writing and signed by me and the Chief Executive Officer of Company. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement.

17

 

 

 

This Agreement shall be effective as of the first day of my employment with Company.

	
COMPANY:

	
 

	
ACCEPTED AND AGREED

	
 

	
ITERUM THERAPEUTICS US LIMITED

	
 
	
 

	
By:
	
 
	
/s/ Corey Fishman

	
 
	
 
	
Name:  Corey Fishman
	
 
	
 

	
 
	
 
	
Title:  CEO
	
 
	
 

	
 
	
 

	
             Address: 200 S. Wacker

Suite 2550

Chicago IL 60606
	
 
	
 

	
 
	
 
	
 

 

 

	
 
	
 
	
 

	
 

 

 

 

EMPLOYEE:

	
 

	
I HAVE READ, UNDERSTAND, AND ACCEPT THIS AGREEMENT AND HAVE BEEN GIVEN THE OPPORTUNITY TO REVIEW IT WITH INDEPENDENT LEGAL COUNSEL.

 

	
 

	
/s/ Sailaja Puttagunta

	
(Signature)

	
 

	
Sailaja Puttagunta

	
Name

	
 

	
27 October 2021

	
Date

	
Address:    

39 Buell Hill Road

Killingworth, CT 06419
	
 
	
 

 

 

 

 

18

 

 

 

EXHIBIT A

INVENTIONS

Prior Inventions Disclosure. The following is a complete list of all Prior Inventions (as provided in Subsection 2.2 of the attached Employee Confidential Information and Inventions Assignment Agreement, defined herein as the “Agreement”):

 

	
x
	
  
	
None

	
 
	
 

	
☐
	
  
	
See immediately below:

	
 
	
  
	
 

	
 
	
  
	
 

	
 
	
  
	
 

	
 
	
  
	
 

	
 
	
  
	
 

	
 
	
  
	
 

 

 

 

 

19

 

 

 

EXHIBIT B

 

DATA PRIVACY NOTICE

20

 

 

 

 

 

Workplace Privacy Notice

 

	
1
	
What is the purpose of this document?

	
	
This Privacy Notice describes how we collect and use personal data about you during and after your working relationship with us, in accordance with data protection law.  This Privacy Notice applies to all employees, former employees, interns, agency workers and contractors.

 

[reserved]

We use personal data that we receive as part of the recruitment and on-boarding processes, together with additional personal data we receive throughout the course of our working relationship with you (e.g. so we can pay salaries, participation in benefit schemes, performance reviews, disciplinary processes etc.).  The personal data we receive is mostly processed for managing our workforce, performance of employment contracts and to comply with our legal obligations as an employer.  

	
	
This Privacy Notice sets out the information that we must provide to you in accordance with Irish data protection laws, including the General Data Protection Regulation (EU) 2016/679 (“GDPR”) and the Data Protection Acts 1988 to 2018, as these laws may be amended  and supplemented from time to time (“data protection law”).  You have certain rights in respect of your personal data, which are described in this Privacy Notice.

 

This Privacy Notice does not form part of any contract of employment or other contract to provide services.  

It is important that you read and retain this Privacy Notice, together with any other privacy notice we may provide on specific occasions when we are collecting or processing personal data about you, so that you are aware of how and why we are using that information and what your rights are under data protection law.

	
2
	
Who does this Privacy Notice apply to?

	
	
This Privacy Notice applies to individuals who work for us, whether they are employees, interns, contractors and/or agency workers.  It covers personal data of former employees, and also third parties whose information you provide to us in connection with the employment relationship (e.g. your emergency contacts’ and beneficiaries’ personal data).

 

	
3
	
The types of personal data we receive about you
	
 

	
	
“Personal data” means any information about an individual from which that person can be identified.  It does not include data where the identity has been removed (anonymous data).

There are certain types of personal data which require a higher level of protection under data protection law, such as information about a person's health, ethnicity, religious beliefs, and trade union membership.  

Throughout this Privacy Notice we use the term "processing" to refer to all activities involving your personal data, including collecting, handling, storing, sharing, accessing, using, transferring, erasing and disposing of it.

 

We will receive and process the following categories of personal data about you:

 

21

 

 

 

	
	
•Recruitment / Selection Data personal data contained in your job application; CV; record of interview; verification documentation; copies of right to work documentation; copy passport or other identification, work history, references and other personal data included in a cover letter, communications or as part of the application and selection process.

•Professional Qualifications such as colleges attended, professional qualifications and memberships, professional and/or academic transcripts.

•Identity and Contact Data such as your name, title, date of birth, addresses, telephone numbers, personal email addresses, and national identification number.

•Your Personal Image by way of photographs taken at business social events you attend; photographs included on our intranet, email and website; and photographs for marketing materials/communications. 

•Emergency Contact Data such as the name and telephone number of your next of kin or the emergency contact(s) you nominate.

•Dependent Data such as civil/marital status, marriage certificate and dependants.

•Work Details such as work contact details; location of employment or workplace; employee number; job title; job description; reporting lines; working hours; your terms and conditions of employment; notification of relationship with a colleague and other personal data held for other legitimate purposes consequent to your employment/engagement with us.

•Employment Records such as start date and, if different, the date of your continuous employment; leaving date and your reason for leaving; holidays taken; training records; compensation history; termination arrangements (e.g. exit interview).

•Remuneration and Benefits Data such as salary, annual leave, pension and benefits information, participation in share or other work schemes; PPS number, PRSI number, VAT number (for certain contractors), bank account details, payroll records, time keeping records, tax status information and third party benefit recipient information.

•Performance Management Data such as performance assessments (including probationary assessments), feedback, appraisals, outputs from talent programs and performance management processes, and, where relevant, executive objective forms.

•ICT Data such as personal data related to your use of our information and communications systems including email and internet; your use of timekeeping systems and other information obtained through electronic means such as system login and access records; download and print records.

•CCTV Data namely your image and time of recording as captured by CCTV operated by the landlord of our business premises in and outside our business premises.

•Access Control Data namely access and security logs when you use any access control cards/fobs to gain entry to our offices.

•Workplace Health and Safety Data such as personal data obtained pursuant to safety audits, risk assessments and incident reports.

•Disciplinary and Grievance Data such as personal data contained in records (including correspondence, minutes of meetings, and reports) of allegations, investigations and proceedings, and their outcomes.

 

We may also receive and process special categories of personal data about you:

	
	
Special categories of personal data is personal data that reveals racial or ethnic origin, political opinions, religious or philosophical beliefs or trade union membership; genetic data; biometric data for the purpose of uniquely identifying a natural person; or data concerning health or a natural person’s sex life or sexual orientation.

We limit the collection of this kind of personal data from you.  Typically, we will only receive the following types: 

•Incapacity Data such as personal data contained in your absence records, medical forms or certificates and records relating to any medical treatment, disability and workplace adjustments or accommodations.

•Pre-employment Screening Data namely the results of any mandatory pre-employment drug testing following a formal job offer but prior to commencing employment.

•Intoxicant Data namely the results of any mandatory intoxicant and/or drugs testing conducted during your employment/engagement with us.

22

 

 

 

 

In some cases, providing your personal data is necessary to enter into your employment contract with us, or to comply with applicable law.  If you do not provide us with this personal data, we may not be able to perform our contract with you. 

You may sometimes provide us with personal data relating to third parties, such as your spouse, partner, dependents and other family members, for purposes of Human Resources administration and management, including the administration of benefits and to contact your next-of-kin in case of an emergency.  Before giving us this information please inform those third parties that you intend to disclose their personal data to us, the purposes for this disclosure, and that their personal data will be used by us in accordance with this Privacy Notice. 

 

	
4
	
How we collect your personal data

We receive your personal data as part of the recruitment and on-boarding process.  Typically, we receive your personal data from the following sources:

	
	
•You, as a job candidate (e.g. through employment related web forms and other direct communications with you)

•Recruitment agencies

•Your named referees

•Persons who recommend you for employment

•The landlord of our business premises, if you visit our business premises and if we request from our landlord a copy of any security recordings containing CCTV Data for the purposes described in paragraphs 5 and 6 below

•Third parties who conduct pre-employment drug tests on our behalf

 

Once you are working with us, we receive personal data from the following sources:

	
	
•You, the employee, intern, contractor or agency worker, in the course of job-related activities throughout the period of you working with us.  For example, you will typically provide your personal data directly to your manager(s) or Human Resources contact, or through any Human Resources systems we operate, your participation in Human Resource processes, emails you send, and through written attendances from meetings you attend;

•From your colleagues and other personnel in the course of job-related activities and processes throughout the period of you working with us;

•From external third parties such as clients, business partners or regulatory bodies; medical reports and intoxicant and/or drugs tests reports from external professionals; tax authorities, insurance or benefit providers;

•Through access system and security logs when you use any of our information and communications systems, access control cards/fobs; time and attendance recording systems we operate; and

•The landlord of our business premises, if we request from our landlord a copy of any security recordings containing CCTV Data for the purposes described in paragraphs 5 and 6 below.

23

 

 

 

 

	
5
	
Purposes for using your personal data

We will only use your personal data when the law allows or requires us to.  In the majority of cases, the processing of your personal data will be justified for the legal grounds set out further below.  In any event, to process your personal data, we will be relying on at least one of the following legal bases:

	
 
	
•
	
processing is necessary to give effect to your contract of employment (for example, collecting bank account details to pay your salary, creating your information and communications systems access rights so you can carry out your duties, responding to grievances, managing beneficiary details, administering termination of employment and exit interviews);

	
 
	
•
	
processing is necessary for us to comply with a legal obligation (e.g. administering mandatory benefits, reviewing eligibility for work, creating an employee record (including absences), addressing occupational health issues, managing professional qualifications, managing information and communications systems’ security, disclosing tax data to government authorities or salary information to a national insurance scheme);

	
 
	
•
	
processing is in our legitimate interests as a business and as your employer/contracting customer and our interests are not overridden by your interests, fundamental rights or freedoms (e.g. assessing new job opportunities, managing and securing information and communications systems’ security; reviewing your performance at work, managing litigation or other legal requests). 

The processing of special categories of personal data may be necessary in certain limited circumstances.  To process a special category of personal data concerning you, we will rely on one of the following legal bases:

	
 
	
•
	
In limited circumstances, your explicit consent;

	
 
	
•
	
Where the processing is necessary for the purposes of exercising or performing any right or obligation which is given or imposed by law on an employer or the worker in connection with employment law or social welfare law; 

	
 
	
•
	
In respect of health related personal data only, the processing is necessary and proportionate for an occupational pension, retirement annuity contracts or any other pension arrangement;

	
 
	
•
	
Where the processing is necessary for the purposes of preventive or occupational medicine and/or the assessment of your working capacity; 

	
 
	
•
	
Less commonly, we may process special categories of personal data where it is needed in relation to legal claims or where it is needed to protect your interests (or someone else's interests) and you are unable to give your consent, or where you have already made the information public.

	
6
	
Legal bases for using your personal data

We have set out below a description of the ways we use your personal data, and which of the legal bases we rely on to do so.  We have also identified what our legitimate interests are, where applicable.  We may process your personal data for more than one lawful ground depending on the specific purpose for which it is necessary to use your personal data.  

24

 

 

			
	
Purpose/activity
	
Type of personal data
	
Lawful basis for processing your personal data

	
To respond to your job application and to manage the recruitment process (e.g. assess your skills, qualifications and suitability for the role; checking you are legally entitled to work in Ireland; communicate with you about the recruitment process; communicate with your referees; keep records related to our hiring processes; comply with legal or regulatory requirements; to provide appropriate facilities and adjustments for your attendance at any interview; to obtain pre-employment drug test reports).
	
•Recruitment/ Selection Data

 

•Professional Qualifications

 

•Identity and Contact Data

 

•Incapacity Data

 

•Pre-employment Screening Data

 

 
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary for our legitimate interests (for running our business and to assess suitability of candidates).

(c) Necessary to comply with a legal obligation.

(d) Necessary for performance of an obligation which is imposed by law on an employer in connection with employment law.

(e) Necessary for the assessment of working capacity.

	
Human resource management and management of our relationship with you (e.g. on-boarding staff; administering the contract we have entered into with you; recording notifications of relationship with a colleague; managing professional certifications / licenses and liaising with regulatory bodies on your behalf; education, training and development requirements; business reorganisations and corporate transactions; organising and running staff social events).

 
	
•Recruitment/ Selection Data

 

•Professional Qualifications

 

•Identity and Contact Data

 

•Emergency Contact Data 

 

•Dependent Data

 

•Your Personal Image

 

•Work Details

 

•Employment Records

 

•Remuneration and Benefits Data

 

•Performance Management Data

 

•ICT Data

 

•Access Control Data

 

•Incapacity Data

 

•Workplace Health and Safety Data

 

•Disciplinary and Grievance Data

 

•Intoxicant Data

 
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary for our legitimate interests (for running our business and to ensure a positive, enjoyable and effective working environment for staff).

(c) Necessary to comply with a legal obligation.

(d) Necessary for performance of an obligation which is imposed by law on an employer in connection with employment law.

(e) Necessary for the assessment of working capacity.

(f) Necessary to protect the vital interests of a data subject or of another natural person where the data subject is physically or legally incapable of giving consent.

 

25

 

 

			
	
Administering payroll; paying your salary, and reimbursable expenses and bonuses; if you are an employee or deemed employee for tax purposes, deducting tax and other contributions; to administer benefits including statutory maternity pay, statutory sick pay, pensions and related family/dependant benefits,  and permanent health insurance

 
	
•Identity and Contact Data

 

•Work Details

 

•Remuneration and Benefits Data

 

•Incapacity Data

 

•Disciplinary and Grievance Data

 

•Dependent Data

 
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary to comply with a legal obligation.

(c) Necessary for performance of an obligation which is imposed by law on an employer in connection with employment law.

(d) Necessary for the assessment of working capacity.

 

	
Providing and administering pension, insurance, share plans and other benefits to you; enrolling you in pensions and other benefits; liaising with the trustees or managers of a pension arrangement, your pension provider and any other provider of staff benefits 

 
	
•Identity and Contact Data

 

•Work Details

 

•Remuneration and Benefits Data

 

•Dependent Data

 

•Incapacity Data

 
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary to comply with a legal obligation.

(c) Necessary and proportionate for an occupational pension, retirement annuity contract or any other pension arrangement.

26

 

 

			
	
Business management and planning, including accounting and auditing; conducting performance reviews; managing performance and determining performance requirements; making decisions about salary reviews and compensation; assessing qualifications for a particular job or task, including decisions about promotions; and managing headcount

 
	
•Identity and Contact Data

 

•Work Details

 

•Employment Records

 

•Remuneration and Benefits Data

 

•Performance Management Data

 

•Workplace Health and Safety Data

 

 

•Disciplinary and Grievance Data

 
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary for our legitimate interests (for running our business and strategic planning).

(c) Necessary to comply with a legal obligation.

 

	
Securing our information and communication systems and networks; securing our business premises and the persons and property inside our business premises and/or on surrounding areas; creating employee records on our Human Resources IT systems; creating IT and building access rights; monitoring use of our information and communication systems to ensure compliance with our IT and other policies (including those specified in our employee handbook); ensuring network and information security, including preventing unauthorised access to our computer and electronic communications systems and preventing malicious software distribution and cyber attacks

 
	
•Identity and Contact Data

 

•ICT Data

 

•CCTV Data

 

•Access Control Data

 

 

 
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary for our legitimate interests (for running our business and to protect our property, assets, staff and others; and ensuring compliance with our employment handbook, IT and other policies).

(c) Necessary to comply with a legal obligation.

 

27

 

 

			
	
Marketing and business development including inclusion of your photograph in social media postings, publications and corporate websites 

 
	
•Your Personal Image

 

•Work Details
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary for our legitimate interests (for running our business and developing new business).

 

	
Creating and maintaining records relating to your absence from work (including for sickness, parental leave, discretionary leave, sabbaticals etc.)

 
	
•Identity and Contact Data

 

•Work Details

 

•Incapacity Data

 

•Emergency Contact Data

 

•Dependent Data

 

•Workplace Health and Safety Data

 
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary to comply with a legal obligation.

(c) Necessary for performance of an obligation which is imposed by law on an employer in connection with employment law.

(d) Necessary for the assessment of working capacity.

	
Ensure your health and safety in the workplace and to assess your fitness to work, to provide appropriate workplace adjustments; ascertaining your fitness to work; complying with health and safety obligations; manage health and safety at work and report on incidents

 
	
•Identity and Contact Data

 

•Work Details

 

•Incapacity Data

 

•Intoxicant Data

 

•Workplace Health and Safety Data

 
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary to comply with a legal obligation.

(c) Necessary for performance of an obligation which is imposed by law on an employer in connection with employment law.

(d) Necessary for the assessment of working capacity.

 

	
Contacting family/next of kin in case of emergency 

 
	
•Identity and Contact Data

 

•Emergency Contact Data

 

•Incapacity Data

 

•Dependent Data
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary for our legitimate interests (for running our business and protecting the interests and safety of staff).

(c) Necessary to comply with a legal obligation.

(d) Necessary to protect the vital interests of a data subject or of another natural person where the data subject is physically or legally incapable of giving consent.

 

28

 

 

			
	
Responding to and resolving grievances; investigate and respond to complaints from clients/customers/partners; conducting disciplinary and grievance processes; gathering evidence for possible grievance or disciplinary hearings; making decisions about your continued employment or engagement; making arrangements for the termination of working relationships
	
•Identity and Contact Data

 

•Work Details

 

•Employment Records

 

•ICT Data

 

•CCTV Data

 

•Access Control Data

 

•Workplace Health and Safety Data

 

•Incapacity Data

•Intoxicant Data

 

•Disciplinary and Grievance Data
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary for our legitimate interests (for running our business and dealing effectively with grievances and disciplinary matters).

(c) Necessary to comply with a legal obligation.

(d) Necessary for performance of an obligation which is imposed by law on an employer in connection with employment law.

(e) Necessary for the assessment of working capacity.

	
Dealing with legal disputes involving you, or other employees, workers and contractors, including accidents at work; to prevent fraud; conduct or assist with internal, government, law enforcement and other investigations

 
	
•Recruitment/ Selection Data

 

•Professional Qualifications

 

•Identity and Contact Data

 

•Work Details

 

•Employment Records

 

•Remuneration and Benefits Data

 

•Performance Management Data

 

•Workplace Health and Safety Data

 

•Disciplinary and Grievance Data

 

•ICT Data

 

•Dependent Data

 

•CCTV Data

 

•Access Control Data

 

•Intoxicant Data

 

 
	
(a) Performance of a contract with you, or in order to take steps at your request prior to entering into a contract.

(b) Necessary for our legitimate interests (for running our business and to protect our property, assets, workforce and others).

(c) Necessary to comply with a legal obligation.

(d) Necessary for the establishment, exercise or defence of legal claims.

 

29

 

 

 

 

We may operate projects or arrangements in respect of which our workforce may be invited to participate.  In exceptional circumstances, depending on the nature of the project or arrangement, it may be necessary to process your personal data in respect of which we need your consent.  If your consent is needed, we will ask you for this separately to ensure that your consent is freely given, informed and explicit.  Information regarding processing based on your consent will be provided to you at the time that consent is requested, along with details of any consequences of not providing consent.  

We will only use your personal data for the purposes for which we collected it, unless we reasonably consider that we need to use it for another reason and that reason is compatible with the original purpose.  If we need to use your personal data for an unrelated purpose, we will notify you and we will explain the legal basis which allows us to do so.  Please note that we may process your personal data without your knowledge or consent, in compliance with the above rules, where this is required or permitted by law.

	
7
	
Disclosures of your personal data

	
	
We may have to share your personal data with third parties, including third-party service providers and with other companies that are in the same corporate group as us (e.g. our holding company and our subsidiaries, and subsidiaries of our holding company).  We require third parties to respect the security of your personal data and to treat it in accordance with applicable data protection law.

 

Except as set out in this Privacy Notice, we do not disclose to any third party personal data that we collect or you provide to us.  We will share your personal data with third parties where required by law, where it is necessary to administer the working relationship with you or where we have a legitimate interest or other lawful reason for doing so.

We may have to share your personal data with the parties set out below for the purposes set out in the table in paragraphs 5 and 6 above. 

	
	
•Internal third parties: We will share your personal data with other companies that are in the same corporate group as us: 

(i)for global Human Resources planning and decision making, we will share some of your personal data with Iterum Therapeutics US Limited in the United States, which will be a joint controller of your personal data;  

(ii)for the purposes of administering the Iterum employee share option plan, we will share some of your personal data with our parent company, Iterum Therapeutics plc;  

(iii)for the provision of senior executive and management services, we will share your personal data with Iterum Therapeutics US Limited in the United States who provides us with the following senior executive and management services: Human Resources management; 

(iv)for the provision of information and communications systems, maintenance and support and hosting of data, for example we will share your personal data with Iterum Therapeutics US Limited who provide us with the following services: IT services; hosting, access management, security and support of desktop applications, email services and other information and communication systems we make available to you; 

(v)for certain Human Resources, payroll, benefits and administrative purposes.  For example, we will share your personal data with Iterum Therapeutics US Limited who provides us with the following services in respect of our workforce’s personal data: payroll and financial administration services; staff training; administration of staff pensions and benefits; Human Resource support; and

(vi)in the context of a business reorganisation or a restructuring exercise.

•External third parties: We may share some of your personal data with professional advisors and companies that provide products and services to us.  For example, the following activities are carried out by professional advisors and third-party service providers, which may involve their processing of your personal data in respect of the service they provide: pension administration and consultancy; benefits provision and administration; health insurance; IT services; cloud hosting services; employee share option plan administration; transfer agency services; payroll services; and legal and accounting services. Further, if you undergo a mandatory intoxicant and/or drugs test during your employment/engagement with us we will share your personal data with third parties who conduct these tests on our behalf.  

•Public and Government Authorities: We may need to share your personal data with a regulator or to otherwise comply with the law.  This may include making returns to Revenue.

•Corporate activity: We may share your personal data with other third parties in the context of the possible sale or restructuring of the business.  In this circumstance we will, so far as possible, share anonymised data with the other parties before the transaction completes.  Once the transaction is completed, we will share your personal data with the other parties if and to the extent required under the terms of the transaction.

30

 

 

 

 

We require all third parties to whom we disclose personal data to respect the security of personal data and to treat it in accordance with the law.  We do not allow our service providers to use your personal data for their own purposes and only permit them to process your personal data for specified purposes and in accordance with our instructions.  Unless prevented by applicable law, we will notify you when your personal data may be provided to third parties in ways other than explained above, and you may have the option to prevent this sharing at the time that we notify you.

	
8
	
International transfers

	
	
As a multinational organisation there are times we will transfer your personal data outside the European Economic Area.  If we do, you can expect a similar degree of protection in respect of your personal data.

 

We will transfer the personal data we collect about you to the United States, which is outside of the European Economic Area, for the purposes described in paragraphs 5 and 6 and to the recipients described in paragraph 7. There is not an adequacy decision by the European Commission in respect of 

31

 

 

the United States. This means that the United States is not deemed to provide an adequate level of protection for your personal data. However, to ensure that your personal data does receive an adequate level of protection we have put in place appropriate measures, namely the European Commission approved model contractual clauses, to ensure that your personal data is treated by those third parties in a way that is consistent with and which respects data protection law.  If you require further information about this protective measure you can request it from Privacy@iterumtx.com.  

	
9
	
Data security

	
	
We have put in place measures to protect the security of your personal data.  Details of these measures are available upon request.  Third party service providers will only process your personal data on our instructions and where they have agreed to treat the information confidentially and to keep it secure.

 

We have put in place appropriate security measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed.  In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know.  Whilst we take appropriate security measures to protect all personal data, no data transmission or security system can be guaranteed to be 100% secure. Service providers will only process your personal data on our instructions and they are subject to obligations of confidentiality.  All our third-party service providers are required to take appropriate security measures to protect personal data.  

We have put in place procedures to deal with any suspected personal data breach and will notify you and the Data Protection Commission of a suspected breach where we are legally required to do so.  If you have reason to believe that any of your personal data is no longer secure, please notify Privacy@iterumtx.com immediately. 

You also have an important role to play in protecting the security of your personal data, and you should take care about disclosing personal data, and how you protect your communications and devices.  Please refer to the employee handbook and all data protection and security policies notified to you from time to time for more information about your responsibilities and ensure you attend all mandatory data protection and data security training sessions allocated to you. 

	
10
	
How long we keep your personal data

	
	
We will only retain your personal data for as long as necessary to fulfil the purposes we collected it for, including for the purposes of satisfying any legal, accounting, or reporting requirements.

 

To determine the appropriate retention period for personal data, we consider the amount, nature, and sensitivity of the personal data, the potential risk of harm from unauthorised use or disclosure of your personal data, the purposes for which we process your personal data and whether we can achieve those purposes through other means, and the applicable legal requirements. 

In some circumstances we may anonymise your personal data so that it can no longer be associated with you, in which case we may use such information without further notice to you. Once you are no longer an employee, worker or contractor of the company we will retain and securely destroy your personal data in accordance with applicable laws and regulations.

	
11
	
Automated decision-making

	
	
Automated decision-making takes place when an electronic system uses personal data to make a decision without human intervention.

 

You will not be subject to decisions that will have a significant impact on you based solely on automated decision-making, unless we have a lawful basis for doing so and we have notified you.  We do not envisage that any decisions will be taken about you using automated means, however we will notify you if this position changes.

 

32

 

 

 

	
12
	
Your legal rights

Under certain circumstances, by law you have the right to:

	
	
Request access to your personal data (commonly known as a "data subject access request").  This enables you to request a copy of the personal data we hold about you and to check that we are lawfully processing it.

Request correction of the personal data that we hold about you.  This enables you to have any incomplete or inaccurate personal data we hold about you corrected.  

Request erasure of your personal data.  This enables you to ask us to delete or remove personal data where there is no good reason for us continuing to process it.  You also have the right to ask us to delete or remove your personal data where you have exercised your right to object to processing (see below). 

Object to processing of your personal data where we are relying on a legitimate interest (or those of a third party) to process your personal data and there is something about your particular situation which makes you want to object to us processing your personal data on this legal ground.  

Request restriction of processing of your personal data.  This enables you to ask us to suspend the processing of your personal data in the following scenarios: (a) if you want us to establish the data's accuracy; (b) where our use of the personal data is unlawful but you do not want us to erase it; (c) where you need us to hold the personal data even if we no longer require it as you need it to establish, exercise or defend a legal claim; or (d) you have objected to our use of your personal data but we need to verify whether we have overriding legitimate grounds to use it. 

Request the transfer of your personal data to you or to a third party.  We will provide to you, or a third party you have chosen, your personal data in a structured, commonly used, machine-readable format.  Note that this right only applies to automated information which you initially provided consent for us to use or where we processed the personal data to perform a contract with you. 

Right to withdraw consent: In the limited circumstances where you may have provided your consent to the collection and processing of your personal data for a specific purpose, you have the right to withdraw your consent for that specific processing at any time. To withdraw your consent, please contact Privacy@iterumtx.com. Once we have received notification that you have withdrawn your consent, we will no longer process your personal data for the purpose or purposes you originally agreed to, unless we have another legitimate basis for doing so in law.

 

	
13
	
Exercising your rights 

To exercise one or more of your rights in respect of your personal data, please contact Privacy@iterumtx.com.  You will not have to pay a fee to access your personal data (or to exercise any of the other personal data legal rights).  However, we may charge a reasonable fee if your request for access is clearly unfounded or excessive.  Alternatively, we may refuse to comply with the request in such circumstances.

	
14
	
[reserved]

	
15
	
Updating your personal data 

It is important that the personal data we hold about you is accurate and current.  Please keep us informed if your personal data changes during your working relationship with us.

	
16
	
Changes to this Privacy Notice  

We reserve the right to update this Privacy Notice at any time.  We will notify current employees in advance about any changes to this Privacy Notice that are material or may impact you.  

	
17
	
Who to contact?

33

 

 

		

If you have any questions about this Privacy Notice, including any requests to exercise your legal rights, please contact a member of our Privacy Team at Privacy@iterumtx.com.

34EXHIBIT 10.1

 

Deed
of Trust

 

	Section
    	 	Subject
    	 	Page
    
	Deed
    of Trust	 	
	1	 	Introduction,
    Definitions and Interpretation	 	3
	2	 	Issuance
    of Bonds; Terms of Issue; Equal Rank	 	11
	3	 	Purchase
    of Bonds by the Company and/or an Affiliate and Performing Distributions	 	12
	4	 	Issue
    of Additional Bonds	 	14
	5	 	Company’s
    Undertakings	 	17
	6	 	Securing
    the Bonds	 	37
	7	 	Early
    Redemption 	 	76
	8	 	Right
    to Call for Immediate Repayment	 	80
	9	 	Claims
    and Proceedings by the Trustee	 	93
	10	 	Trust
    of Proceeds	 	94
	11	 	Authority
    to Demand Payment to Holders through Trustee	 	95
	12	 	Powers
    to Delay the Distribution of Funds	 	97
	13	 	Notice
    of Distribution	 	97
	14	 	Refraining
    from Payment for a Reason Which is not Dependent on the Company	 	98
	15	 	Receipt
    by Bondholders and Trustee	 	100
	16	 	Presentation
    of Bonds to the Trustee; Registration in Connection with Partial Payment 	 	100
	17	 	Investment
    of Funds	 	101
	18	 	Company’s
    Undertakings vis-a-vis Trustee	 	101
	19	 	Additional
    Liabilities	 	109
	20	 	Counsel
    	 	110
	21	 	Other
    Agreements	 	110
	22	 	Reports
    on Matters Relating to Trusteeship	 	110
	23	 	Wages
    and Coverage of Trustee’s Expenses	 	112
	24	 	Special
    Powers	 	112
	25	 	Trustee’s
    Power to Engage Agents	 	114

 

    	 	 	 

    	 

    

 

	26	 	Indemnification
    of the Trustee	 	114
	27	 	Notices	 	121
	28	 	Waivers,
    Compromises, and Changes to the Deed of Trust	 	122
	29	 	Register
    of Bondholders	 	123
	30	 	Release	 	124
	31	 	Appointment
    of the Trustee, Roles of the Trustee, Powers of the Trustee and Termination of Trustee’s Office	 	124
	32	 	Bondholders’
    Meetings	 	127
	33	 	Applicable
    Law	 	127
	34	 	Exclusive
    Jurisdiction	 	127
	35	 	General	 	131
	36	 	Trustee’s
    Liability	 	132
	37	 	Addresses	 	132
	38	 	Authorization
    to MAGNA	 	132
	First
    Addendum to the Deed of Trust - Bond Certificate (Series B)	 	134
	The
    Terms Listed on the Overleaf	 	137
	1	 	General	 	137
	2	 	The
    Bonds	 	138
	3	 	Terms
    of Bonds (Series B)	 	138
	4	 	Payments
    of Principal and Interest of the Bonds (Series B)	 	140
	5	 	Postponement
    of Dates	 	141
	6	 	Securing
    the Bonds	 	141
	7	 	Refraining
    from Payment for a Reason Which is not Dependent on the Company	 	141
	8	 	Register
    of Bondholders	 	141
	9	 	Splitting
    Bond Certificates	 	141
	10	 	Transfer
    of Bonds	 	142
	11	 	Early
    Redemption	 	143
	12	 	Purchase
    of Bonds by the Company and/or an Affiliate	 	143
	13	 	Waivers;
    Compromises, and Changes to the Deed of Trust	 	143
	14	 	Bondholders’
    Meetings	 	143
	15	 	Receipt
    from Bondholders	 	143
	16	 	Right
    to Call for Immediate Repayment	 	143
	17	 	Notices	 	143
	18	 	Governing
    Law and Jurisdiction	 	143
	19	 	Order
    of Priorities	 	143
	Second
    Addendum of the Deed of Trust - Bondholders’ Meetings 	 	144
	Third
    Addendum to the Deed of Trust - Urgent Representation for Bondholders	 	154
	Appendix
    23 - Trustee’s Fee	 	159

 

    	 	 	 

    	 

    

 

Deed
of Trust 

 

Entered
into and executed in Tel Aviv on April 23, 2018

 

Between:

 

Strawberry
Fields REIT Ltd. (Company Number: 1863501)

A
foreign company in the British Virgin Islands whose registered office in the British Virgin Islands is:

Blenheim
Trust (BV) Limited 

P.O.
Box 3483

Road
Town, Tortola

British
Virgin Islands

Whose
address in Israel for the purpose of this Deed and the service of legal process (subject to Section 5.7 of this Deed) is:

c/o
Fischer Behar Chen Well Orion & Co.

3
Daniel Frisch Street, Tel Aviv 6473104

Tel:
03-6944249

Fax:
03-6944157

(the
“Company”)

 

Of
the first part;

 

and
between:

 

Mishmeret
Trust Services Company Ltd.

48
Menachem Begin Ave., Tel Aviv

Telephone:
03-6374351

Fax:
03-6374344

(the
“Trustee”)

 

Of
the second part;

 

	Whereas:
    	The
    Company’s board of directors resolved to approve the issuance of Bonds (Series B) under the Shelf Prospectus and Shelf
    Offer Report, as defined below; and 
	 	 
	Whereas:
    	On
    March 7, 2018, Standard & Poor’s Maalot Ltd. announced the determination of a preliminary rating of ilA+ for the
    issuance of the Bonds (Series B) of the Company, in a total scope of NIS 340 million par value; and 

 

    	 	1	 

    	 

    

 

	Whereas:
    	The
    Company declares that as of the signature of this Deed, the Company meets all of the conditions of the rating agency (as the
    term is defined below) for rating the series of Bonds with the rating set forth above; and
	 	 
	Whereas:
    	The
    Trustee is a private company limited by shares that is incorporated in Israel under the Companies Law, 5759-1999, whose main
    purpose is to engage in trusteeship; and 
	 	 
	Whereas:
    	The
    Trustee has declared that there is no impediment under the Securities Law, 5728-1968 or any other law for its engagement with
    the Company under this Deed of Trust and that it meets the requirements and conditions of eligibility set forth under the
    Securities Law for the Trustee to serve as a trustee for holders of bonds (Series B) offered under the Shelf Prospectus and
    Shelf Offer Report; and
	 	 
	Whereas:
    	The
    Trustee has no personal interest in the Company and the Company has no material interest in the Trustee; and 
	 	 
	Whereas:
    	The
    Company declares that there is no impediment under any law (whether in Israel or abroad) and/or agreement for the performance
    of an issue of the Bonds and/or its engagement with the Trustee under this Deed of Trust and has received all of the approvals
    under any law (in Israel or outside of Israel) and/or an agreement for the execution of the issuance under this Deed; and
	 	 
	Whereas:
    	In
    the framework of the Shelf Prospectus and Shelf Offer Report, the Company intends to issue Bonds (Series B) as set forth in
    Section ‎2 
	 	 
	Whereas:
    	The
    Bonds (Series B) will be listed for trade in the stock exchange, as defined below; and
	 	 
	Whereas:
    	The
    Company is a reporting corporation as defined below; and
	 	 
	Whereas:
    	The
    Company has requested that the Trustee to serve as a trustee for the Holders of the Bonds (Series B) and the Trustee has agreed
    to sign this Deed of Trust and act as a trustee for the bondholders, all subject to and in accordance with the terms of this
    Deed of Trust; and

 

Therefore
it is agreed, declared and stipulated between the Parties as follows:

 

    	 	2	 

    	 

    

 

	1.	Introduction,
    Definitions and Interpretation

 

	 	1.1	The
    preamble to this Deed of Trust and the appendices attached hereto constitute integral and substantial parts hereof.
	 	 	 
	 	1.2	The
    division of this Deed of Trust into sections and the titles of the sections are provided for the sake of convenience and orientation
    alone, and should not be used for the purpose of interpretation.
	 	 	 
	 	1.3	All
    of the provisions of this Deed in the plural form shall imply the singular and vice-versa, and all of the provisions in the
    masculine form shall imply the feminine form and vice-versa, and all of the provisions relating to an individual shall imply
    a corporation as well, all provided that there is no explicit provisions of this Deed to the contrary.
	 	 	 
	 	1.4	In
    the event of any matter connected to the terms of the Bonds (Series B) that is omitted from this Deed and in any event of
    a conflict between the provisions of the law which cannot be conditioned upon and this Deed of Trust, the parties will act
    in accordance with the provisions of Israeli law that cannot be conditioned upon. In any event of a conflict between the provisions
    set forth in the Shelf Prospectus and/or the Shelf Offer Report in connection with this Deed and/or the bonds, the provisions
    of this Deed will prevail. It should be clarified that to the best of the Company’s knowledge, as at the date of the
    Shelf Offer Report, there is no conflict between the provisions of Israeli law and the provisions of the Deed of Trust and
    there is no conflict between the provisions in connection with the Bonds described in the Shelf Offer Report and the provisions
    of the Deed of Trust and the accompanying documents. 
	 	 	 
	 	1.5	In
    this Deed of Trust and in the bonds, the following expressions shall have the meanings set forth beside them:

 

	 	1.5.1	“Bonds
    (Series B)” or the “Bonds” – the Bonds (Series B) that are issued by the Company in accordance
    with the Shelf Prospectus and Shelf Offer Report, as well as additional bonds (Series B) issued by the Company, if any;

 

    	 	3	 

    	 

    

 

	 	1.5.2	The
    “Stock Exchange” – the Tel Aviv Stock Exchange Ltd.; 
	 	 	 
	 	1.5.3	“Controlling
    Shareholders”: Moshe Gubin and Michael Blisko; 
	 	 	 
	 	1.5.4	“Financial
    Statements” – annual or quarterly financial statements, audited or reviewed, that the Company is required
    to publish in accordance with the Securities Law and the regulations thereunder; 
	 	 	 
	 	1.5.5	“Shelf
    Offer Report” - the shelf offer report dated ____, published by the Shelf Prospectus as defined below, based
    on which the Bonds (Series B) are offered;
	 	 	 
	 	1.5.6	“2017
    Periodic Report” - the periodic and annual report for 2017, published by the Company on March 1, 2018 (reference
    no.: 2018-01-016911);
	 	 	 
	 	1.5.7	“Dollars”
    - US Dollars (USD); 
	 	 	 
	 	1.5.8	“Rating”
    – Rating by the rating company, as defined below;
	 	 	 
	 	1.5.9	“Special
    Resolution” – a resolution passed in a general meeting of Bondholders (Series B), who are present themselves
    or by their agent whose Bonds represent at least 50% of the balance of the par value of the Bonds (Series B), or in an adjourned
    meeting attended by the Bondholders (Series B), themselves or by their agent, who hold at least 20% of the balance of the
    par value as stated, and which is passed (whether in the original meeting or adjourned meeting) with a majority of at least
    two thirds (2/3) of the balance of the par value of the Bonds (Series B) represented in the vote, excluding abstentions;
	 	 	 
	 	1.5.10	“Ordinary
    Resolution” – a resolution passed in a meeting of Bondholders convened under Section 35l13 and 35l14(a) of
    the Securities Law, passed (whether in the original or adjourned meeting) with a majority of at least fifty percent (50%)
    of all of the votes of the participants in the vote, excluding abstentions; 

 

    	 	4	 

    	 

    

 

	 	1.5.11	The
    “Pledged Assets” or the “Liened Assets” – (1) the same assets from those listed
    in Section 6.2.1 below that the Company shall pledge pursuant to this Deed of Trust, and (2) those of the assets that can
    be pledged as collateral (as defined below), if actually pledged to secure the rights of the holders of the Bonds (Series
    B) under this Deed of Trust, all as long as the same assets are actually pledged by the Company and will be pledged to secure
    the rights of the Bondholders as stated;
	 	 	 
	 	1.5.12	“Assets
    that can be Pledged as Collateral” - assets that can be pledged in accordance with the provisions of this Deed of
    Trust to secure the rights of the Bondholders (Series B), which can be any of the following:

 

	 	1.5.12.1	“Pledged
    Real Estate Asset” and “Pledged Real Estate Assets” - ownership rights and/or lease rights and/or
    contractual rights of the Company and/or a subsidiary under the Company’s control (directly or indirectly) in connection
    with real estate assets that are income-generating real estate assets in the United States used as medical institutions, as
    this term is defined in the 2017 Periodic Report (excluding land and assets under construction that are not income-generating),
    which will be pledged, from time to time, if pledged, under this Deed and the pledge agreements hereunder;
	 	 	 
	 	1.5.12.2	“Financial
    Securities” - cash, cash deposits, government securities which are due for repayment prior to the final payment
    date of the Bonds, short-term loans which are payable before the final payment date of the Bonds, and bank guarantees deposited
    in the Trust Account, as defined below;
	 	 	 
	 	1.5.12.3	“Bank
    Guarantees” - autonomous, unconditional, irrevocable, and independent guarantees of Bank of Israel or an insurance
    company in Israel, included in the five largest banks/insurance companies (as applicable) in Israel, rated by a rating agency
    with a rating that is no less than a rating of Aa2 by Midroog or a parallel rating thereto, which will be provided from time
    to time (if at all) in favor of the Trustee by the Company under the terms of this Deed. Bank guarantees, if provided, will
    be in force up to 30 days after the final payment date of the Bonds;

 

    	 	5	 

    	 

    

 

	 	1.5.13	“Rating
    Company” or the “Rating Agency”– Standard and Poor’s Maalot Ltd. (“Maalot”)
    and/or Midroog Ltd. (“Midroog”) or another rating company that is registered under the Regulation of the
    Activities of Credit Rating Companies, 5714-2014; 
	 	 	 
	 	1.5.14	 “Associated
    Company” and “Joint Control” – as defined in the Securities Regulations (Annual Financial
    Statements), 5770-2010 and in the acceptable accounting rules;

 

	 	1.5.15	The
    “Nominee Company” – the Nominee Company of Mizrahi Tfahot of Israel Ltd. or any other nominee company
    that shall replace it, provided that all the Company’s securities will be registered under its name;
	 	 	 
	 	1.5.16	The
    “Law” or the “Securities Law” – the Securities Law, 5728-1968 and the regulations
    thereunder, as they may be from time to time; 
	 	 	 
	 	1.5.17	The
    “Companies Law” – the Companies Law, 5759-1999 and the regulations thereunder, as they may be from
    time to time;

 

    	 	6	 

    	 

    

 

	 	1.5.18	“Trust
    Account” - an account opened by the Trustee and managed in the Trustee’s name, in trust for the Bondholders
    (Series B), in one of the five largest banks in Israel, in which the issuance consideration will be deposited until its release
    to the Company, as well as the Financial Securities, if provided, until their release in accordance with the provisions of
    this Deed, and the Trustee will have the exclusive signing rights in the Trust Account. The Company’s rights in the
    Trust Account will be pledged for the benefit of the Trustee. The fund management policy in this account and its execution
    will be determined at the exclusive discretion of the Company, provided that the investment will be in accordance with the
    provisions of Section 17 below (the “Investment”).

 

The
Trustee may not object to the investment policy and will not be liable vis-a-vis the Bondholders (Series B) and/or the Company
for any damage and/or loss sustained due to this policy;

 

	 	1.5.19	“Trading
    Day” – a day on which transactions are performed in the stock exchange;
	 	 	 
	 	1.5.20	“Business
    Day” or “Bank Business Day” – any day on which the clearing house of the stock exchange
    and most of the banks in Israel are open for the performance of transactions;
	 	 	 
	 	1.5.21	“Loan
    to Collateral Ratio” – the total equal to the unpaid balance of the principal of the Bonds (Series B) only
    in addition to interest accrued until the date of the inspection, as it appears in the Company’s audited or reviewed
    financial statements, published before the relevant inspection date, divided by the amount equal to the collateral value of
    the Pledged Assets, as set forth in Section 6.3 below.
	 	 	 
	 	1.5.22	“Holder”
    and/or “Bondholder” - as this term is defined in the Securities Law;

 

    	 	7	 

    	 

    

 

	 	1.5.23	“The
    Tender”: The auction on the fixed annual interest rate to be borne by the Bonds (Series B) that will be issued by
    the Company in accordance with the Shelf Prospectus and Shelf Offer Report;
	 	 	 
	 	1.5.24	“Register
    of Bondholders” and/or the “Register” – a register of bondholders, as set forth in Section
    ‎29 of this Deed; 
	 	 	 
	 	1.5.25	“Trustee”:
    Mishmeret - Trust Services Company Ltd. and/or anyone who will serve from time to time as trustee of the bondholders under
    this Deed;
	 	 	 
	 	1.5.26	“Principal
    Amount” – the par value amount of the Bonds that are not yet paid;
	 	 	 
	 	1.5.27	“Opposing
    Interest” – shall mean as defined in Section 9.3 of the Second Addendum of this Deed; 
	 	 	 
	 	1.5.28	“The
    Group” – the Company and its subsidiaries;
	 	 	 
	 	1.5.29	“This
    Deed” or “Deed of Trust” – this Deed of Trust, including the appendices attached hereto
    and constituting an integral part hereof;

 

	 	1.5.30	 “Known
    Rate” - The exchange rate of the US dollar as of a certain date determined by Bank of Israel before the same date,
    provided that during a period in which Bank of Israel does not set a representative exchange rate, the Known Rate will be
    the rate last determined by the Minister of Finance together with the Governor of the Bank of Israel for government bonds
    linked to the US dollar rate;
	 	 	 
	 	1.5.31	“Payment
    Rate” - The rate known on the payment date. However, if the Payment Rate is lower than the Base Rate, the Payment
    Rate will be the Base Rate;

 

    	 	8	 

    	 

    

 

	 	1.5.32	“Reporting
    Corporation” – As defined in the Securities Law;
	 	 	 
	 	1.5.33	“Bond
    Certificate” - a certificate of the Bonds in the form attached as the First Addendum to this Deed; 
	 	 	 
	 	1.5.34	“Reporting
    Regulations” – the Securities Regulations (Periodic and Immediate Reports), 5730-1970;
	 	 	 
	 	1.5.35	The
    “Prospectus” and/or the “Shelf Prospectus” – a shelf prospectus of the Company
    dated July 6, 2016;
	 	 	 
	 	1.5.36	In
    this Deed of Trust and the Bonds, the Rating of the Bonds will have the meanings set forth in the table below:

 

	 	“A
    plus”	ilA+
    rated by Maalot or A1 when rated by Midroog or a rating parallel to the aforesaid ratings that will be determined by another
    rating company that rates or will rate the Bonds (Series B).
	 	 	 
	 	“A”	ilA
    rated by Maalot or A2 when rated by Midroog or a rating parallel to the aforesaid ratings that will be determined by another
    rating company that rates or will rate the Bonds (Series B).
	 	 	 
	 	“A
    minus”	ilA-
    rated by Maalot or A3 when rated by Midroog or a rating parallel to the aforesaid ratings that will be determined by another
    rating company that rates or will rate the Bonds (Series B).
	 	 	 
	 	“BBB
    Plus”	ilBBB+
    rated by Maalot or Baa1 when rated by Midroog or a rating parallel to the aforesaid ratings that will be determined by another
    rating company that rates or will rate the Bonds (Series B).

 

    	 	9	 

    	 

    

 

	 	“BBB”	ilBBB
    rated by Maalot or Baa2 when rated by Midroog or a rating parallel to the aforesaid ratings that will be determined by another
    rating company that rates or will rate the Bonds (Series B).
	 	 	 
	 	“BBB
    Minus”	ilBBB-
    rated by Maalot or Baa3 when rated by Midroog or a rating parallel to the aforesaid ratings that will be determined by another
    rating company that rates or will rate the Bonds (Series B).
	 	 	 
	 	“BB
    Plus”	ilBB+
    rated by Maalot or Ba1 when rated by Midroog or a rating parallel to the aforesaid ratings that will be determined by another
    rating company that rates or will rate the Bonds (Series B).

 

	 	1.6	As
    long as the Bonds are listed for trade on the Stock Exchange, in any event in which the rules and guidelines of the Stock
    Exchange apply or will apply to any operation under this Deed of Trust, the operation dates as stated and the manner of performance
    will be determined in accordance with the rules and guidelines of the Stock Exchange. It is clarified that the performance
    of actions as stated (including if bylaws and guidelines of the Stock Exchange are modified) will not derogate from the agreements
    of the parties under this Deed.
	 	 	 
	 	1.7	In
    any event of a conflict between the Deed of Trust and the accompanying documents, the provisions of the Deed of Trust will
    govern. 
	 	 	 
	 	1.8	In
    the event of termination of the issuance of the Bonds for any reason, the validity of this Deed of Trust will be concluded.
    
	 	 	 
	 	1.9	Any
    reference in this Deed of Trust to a number of sections in the Law will be adjusted, mutatis mutandis, to changes occurring
    in the Law, if any. 
	 	 	 
	 	1.10	The
    Trustee’s actions are valid even if a defect is discovered in his appointment or eligibility. 

 

    	 	10	 

    	 

    

 

	 	1.11	In
    any case in which this Deed of Trust or its appendices explicitly states that the Company will announce something in an immediate
    report, the report will take place on the date and based on the details required in the Reporting Regulations (whether the
    Company is subject to a reporting obligation under the Reporting Regulations or otherwise). The above will not derogate from
    the other reporting obligations of the Company under any law. 
	 	 	 
	 	1.12	The
    Trustee’s signature on the Trust Deed does not constitute an opinion by the Trustee as to the nature of the offered
    securities or the advisability of investment in these securities.

 

	2.	Issuance
    of Bonds; Terms of Issue; Equal Rank

 

	 	2.1	The
    Company will issue the Bonds (Series B) as described in the preamble of this Deed. The Bonds (Series B) that will be issued
    under the Shelf Prospectus and the Shelf Offer Report (if any are issued) will be listed for trade on the Stock Exchange and
    the Company will act to the best of its ability so that the Bonds (Series B) will be traded on the Stock Exchange until they
    are fully repaid.
	 	 	 
	 	2.2	The
    terms of the Bonds (Series B) that are issued under the Shelf Prospectus and Shelf Offer Report will be as follows:

 

The
Bonds (Series B), offered to the public in consideration for their par value, are registered, repayable (principal) in three payments
– on March 31 of each of the years 2020, 2021, and 2022, such that each of the first two payments on account of the principal
will be 10% of the principal total par value of the Bonds (Series B) and the third and last payment on account of the principal
will constitute 80% of the total principal par value of the Bonds (Series B)). The Bonds (Series B), bearing annual interest in
a fixed rate as set forth in the Tender, which will not exceed the maximum interest rate as set forth below, linked (principal
and interest) to the increase of the US dollar rate (as set forth in Section 2.5 below), and that is payable on March 31 and September
30 of each of the years 20181 to 2022 (inclusive) (the first interest payment will be made on March 31, 2018 and the
last interest payment will be made on March 31, 2023, together with the payment of the principal of the Bonds) for the period
of the six months ending on the date before the payment date (the “Interest Period”). The interest rate which
will be paid for a particular interest period (other than the first interest period as defined below) (meaning, the period which
begins on the payment day of the prior interest period and ending on the last day before the payment date immediately after the
commencement date) will be calculated as the yearly interest rate divided by two. The first interest payment will be made on September
30, 2018, for the period beginning on the first trading day after the date of the Tender of the Bonds (Series B) and ending on
September 29, 2018 (the “First Interest Period”), calculated on the basis of 365 days per year, based on the
number of days in this period, and the last interest payment will be made on March 31, 2022. The payments on account of the principal
and/or the interest in respect of the Bonds will be paid to those whose names will be registered in the Register of the Bondholders
on the effective date as set out in section ___ of the Shelf Offer Report. Notwithstanding the foregoing, the final payment of
the principal and the interest shall be made against delivery of the bond certificates to the Company at the Company’s registered
office or at any other place that it announces, provided that such notice shall be given by the Company no later than five business
days prior to the date set for making the last payment.

 

Subject to adjustments in the event of a change in the Rating of the Bonds (Series B) and/or deviation from the financial covenants
as set forth in Sections ‎5.2 and ‎5.3 below and/or eligibility for arrears interest (as defined in Section 4(a) of the
overleaf conditions that are in the First Addendum of this Deed), the interest rate that the Bonds (Series B) will bear will not
exceed __% per year (the “Maximum Interest Rate”).

 

 

1 It
is clarified that on March 31, 2018, no interest payment will be made.

 

    	 	11	 

    	 

    

 

	 	2.3	The
    Company reserves the right to perform early repayment of the Bonds upon the fulfillment of the terms set forth in Section
    ‎5 of this Deed. 
	 	 	 
	 	2.4	The
    Bonds (Series B) will all have equal rank pari-passu, among themselves, in connection with the Company’s obligations
    under the Bonds (Series B), and without priority or preference of one over the other.
	 	 	 
	 	2.5	The
    principal amount of the Bonds (Series B) and the interest on the principal will be linked to the increase in the rate of the
    US dollar in the following manner:
	 	 	 
	 	 	If
    it is discovered on the payment date of any payment on account of the principal and/or interest that the Payment Rate as of
    the same date has increased compared to the Base Rate, the Company will make the same payment of principal and/or interest,
    when increased relative to the increase rate of the Payment Rate compared to the Base Rate. However, if it is discovered that
    the aforesaid Payment Rate is identical to the Base Rate or lower therefrom, the Payment Rate will be the Base Rate. In any
    event in which a payment date on account of a principal and/or interest amount payment applies on a day that is not a business
    day, the payment date will be postponed to the first business day thereafter, without any additional payment including interest
    or linkage. The linkage method will not be changed during the term of the Bonds (Series B).

 

	3.	Purchase
    of Bonds by the Company and/or an Affiliate and Performing Distributions

 

	 	3.1	The
    Company reserves the right, subject to any law that may not be conditional, to acquire the Bonds (Series B) at any time and
    from time to time, without derogating from the obligation to repay the Bonds (Series B) in circulation. In the event of a
    purchase as stated, the Company will issue an immediate report or inform the Trustee thereof in writing. In the event in which
    the Company acquires Bonds (Series B) during trading in the Stock Exchange, the Company will file a request to the clearing
    house of the Stock Exchange for the withdrawal of the Bonds Certificates acquired as stated.

 

    	 	12	 

    	 

    

 

	 	 	In
    the event of a purchase by the Company as stated above, the acquired Bonds (Series B) will expire automatically, will be voided
    and will be delisted from trade, and the Company may not reissue them. The provisions above will not harm the Company’s
    right to redeem the Bonds (Series B) in advance as stated in Section ‎7 below. 

 

	 	3.2	The
    Controlling Shareholder of the Company (directly or indirectly) and/or its relative (as the term is defined in the Securities
    Law) and/or a subsidiary of the Company and/or affiliated company and/or associated company of the Company and/or a corporation
    under the control of any of the above (directly or indirectly) (excluding the Company itself, regarding which the provisions
    of ‎3.1 above shall apply) (an “Affiliated Party”) may acquire and/or sell Bonds (Series B) at their
    discretion (and subject to any law), at any time and from time to time, including by way of the Company’s issuance of
    Bonds. In the event of an acquisition and/or sale as stated by a subsidiary of the Company and/or a corporation under its
    control, the Company will issue an immediate report with respect thereto. The Bonds (Series B) that are held as stated by
    an Affiliated Party will be considered to be an asset belonging to the Affiliated Party, and if they are listed for trade,
    they will not be delisted from trade in the Stock Exchange and will be transferrable as are the other Bonds (Series B). The
    Bonds (Series B) that are owned by an Affiliated Party will not grant to the Affiliated Party voting rights in a meeting of
    the Bondholders (Series B) and will not be counted for the purpose of determining a legal quorum required to commence such
    meetings. A meeting of Holders will take place based on the provisions of the Second Addendum of the Deed of Trust. An Affiliated
    Party will report to the Company, if required under law to do so, regarding an acquisition of Bonds (Series B) and the Company
    will provide the Trustee, at its request, with a list of Affiliated Parties and the quantities held thereby on the date requested
    by the Trustee, based on the reports received as stated from Affiliated Parties and that are reported in the MAGNA system
    by the Company. It is clarified that a report on the MAGNA system will be considered to be a report to the Trustee for the
    purposes of this Section.

 

    	 	13	 

    	 

    

 

	 	3.3	The
    provisions of this Section above alone will not obligate the Company, an Affiliated Party or the Bondholders (Series B) to
    purchase Bonds (Series B) and/or sell the Bonds (Series B) in their possession.

 

	4.	Additional
    Issuances

 

	 	4.1	Extending
    the series of Bonds (Series B)

 

The
Company may, from time to time, at any time, without requiring the consent of the Trustee and/or the Holders existing at the time,
issue additional Bonds (Series B) (whether in a private placement or in the framework of a prospectus and/or by an amendment to
a prospectus whether by a shelf offering or by any other means), including to an Affiliated Party (as defined in Section ‎3.2
above), under the terms that it sees fit (the terms of the additional bonds that are issued will be identical to the terms of
the Bonds (Series B) in circulation) provided that the total par value of the Bonds (Series B), after the expansion, will not
exceed NIS 500 million. The Company will refer to the Stock Exchange with a request to list for trade the additional Bonds (Series
B) as stated, when they are offered. 

 

Notwithstanding
the above, an additional issuance of Bonds (Series B) will be performed subject to receipt of confirmation of the Stock Exchange
and subject to all of the terms set forth below being fulfilled: (a) the additional issuance of the Bonds (Series B) as stated
will not be harmed by the Rating of the Bonds (Series B), as the Rating may be at the time (i.e. the Rating before the expansion
of the series will not change immediately after its expansion following the aforesaid expansion). For the purpose of this section,
it is clarified that in the event in which the Bonds (Series B) are rated by more than one Rating Company, the ratings test for
the purpose of this section will take place, at any time, based on the higher of the ratings; (b) On the date of the additional
issue, in accordance with the most recent financial statements published before the date of the additional issue, and after retroactively
taking into account the performance of the additional issue, the Company will meet the financial obligations set forth in Section
6.4 below; (c) Upon the expansion of the series, immediately after the execution of the expansion of the series, the Loan to Collateral
Ratio (which for the purpose of the calculation will also include assets that the Company has pledged within the expansion of
the series) will not exceed 65%; and (d) on the date of the additional issue there are no grounds for calling for the immediate
payment of the bonds as set forth in Section ‎8.1. 

 

    	 	14	 

    	 

    

 

The
Company will provide the Trustee, before actually performing the issue of the additional issue, written confirmation that is signed
by the CEO or a senior officer in the financial department of the Company regarding (in this subsection: “Confirmation”):
(1) the fulfillment of the aforesaid conditions on the date of the Confirmation (excluding the condition in subsection (a) above,
for which the Company shall provide the consent of the Rating Company as described below); (2) that on the date of the Confirmation
the Company is not in breach of any of its material obligations to the Bondholders (Series B); and (3) the expansion of the series
will not harm the solvency of the Company as to the Bonds (Series B).

 

In
any case of an additional issue as stated, the increase of the series in practice will occur subject to receipt of prior consent
from the Rating Company whereby the rating before the expansion of the series will not change immediately after its expansion
following the aforesaid expansion. Confirmation from the Rating Company will be published in an immediate report before the expansion
of the series. The Company will publish in an immediate report, even before the performance of the additional issue, whether the
additional issue meets all of the aforesaid terms, and that the Company’s board of directors has examined the impact of
the expansion of the series as stated, on the Company’s ability to meet its obligations to the Bondholders (Series B) before
the performance of the issuance as stated. 

 

    	 	15	 

    	 

    

 

This
right of the Company will not exempt the Trustee from examining the additional issue as stated, if such an obligation applies
to the Trustee under law, and will not derogate from the rights of the Trustee and the Bondholders under this Deed, including
their right to call for immediate repayment of the Bonds as stated in Section ‎8 below. 

 

For
the avoidance of doubt, it is clarified that in the case of a series expansion performed for the purpose of the use of a sale
mechanism during trading on the Stock Exchange (ATM), the Company shall deliver a confirmation as described above at the time
of the expansion, i.e. on the date of the issue of the additional bonds to the Company and/or to the Company’s subsidiary,
as relevant (creation of the “Cartridge”), and not at the time of publication of the offer of the additional
bonds or at the time of the execution of the sales in practice during trading. 

 

Subject
to the provisions of the Deed of Trust, the Trustee shall act as trustee for the Bonds (Series B) as they will be in circulation
from time to time, and this also in the event of a series expansion, and the consent of the Trustee for such service for the expanded
series will not be required. The Bonds (Series B) that will be in circulation before the expansion of the series and the additional
Bonds (Series B) which will be issued (if at all) as described in this section above, shall constitute (from the date of their
issue) one series for all purposes, and the Deed of Trust shall also apply to all of the abovementioned additional Bonds (Series
B) that the Company will issue. The additional Bonds (Series B) shall not grant the right for the payment and/or interest with
regard to Bonds (Series B) for which the effective date for their payment was prior to the date of their issue. In the case of
such expansion of the series, there will be tax consequences including with regard to calculation of the rate of deduction, if
required, as described in Section __ of the Shelf Offer Report and in accordance with the provisions of any law as they are on
the date of issue of the additional bonds. 

 

    	 	16	 

    	 

    

 

Without
derogating from the generality of the above, the Company reserves the right, subject to any law, to issue an additional series
of bonds at any time and from time to time (whether in a private placement or in the framework of a prospectus and/or by an amendment
to a prospectus whether by a shelf offering or by any other means) and without being required to receive the consent of the Bondholders
(Series B) and/or the consent of the Trustee, as applicable, and including an Affiliated Party (as defined in Section ‎3.2
above), and/or other securities as the Company sees fit and this without harming the Company’s repayment obligation under
this Deed of Trust. Notwithstanding the abovementioned, the Company undertakes that so long that the Bonds (Series B) have not
been fully repaid, it will not itself issue bonds outside of Israel and it will not assume directly other financial debt outside
of Israel. Notwithstanding the above, the Company will be permitted to assume credit frameworks and obligations (including outside
of Israel) for the purpose of currency hedging and to provide guarantees to lenders outside of Israel of companies under its control.

 

Without
derogating from the above, the aforesaid rights of the Company, will not prevent the Trustee from examining the implications of
the additional issue as stated, and will not derogate from the rights of the Trustee and the Bondholders under this Deed, including
their right to call for immediate repayment of the Bonds (Series B) as stated in Section ‎8 below.

 

Subject
to the provisions of any law, the Company will inform the Trustee regarding the additional issue before its performance. 

 

	5.	Undertakings
    of the Company

 

	 	5.1	The
    Company hereby undertakes to pay, on the dates prescribed, all of the amounts of principal and interest (including interest
    on arrears, insofar as such interest is borne) that will be paid under the terms of the Bond (Series B), and comply with all
    of the other terms and obligations imposed thereon under the terms of the Bonds (Series B) and under this Deed. Additionally,
    the Company undertakes to list the Bonds for trade in the Stock Exchange and ensure that the Bonds continue to be listed for
    trade in the Stock Exchange until the date of final payment.

 

    	 	17	 

    	 

    

 

	 	5.2	Adjustment
    of the interest rate due to a change in the rating of the Bonds (Series B):

 

For
the purpose of this section, it shall be clarified that in the event in which the Bonds (Series B) are rated by more than one
rating company, an examination of the rating for the adjustment of the interest rate to the change in the rating (if any such
change occurs) will take place based on the lower of the ratings.

 

The
interest rate that the Bonds (Series B) will bear will be adjusted for a change in the rating of the Bonds (Series B), as set
forth below in this section:

 

It
is clarified that if adjustment of interest is required in accordance with the mechanism described in this Section ‎5.2 above
and below, and based on the mechanism described in Section ‎5.3 below, in any event, the maximum additional interest rate
will not exceed 1.5% above the interest rate determined in the tender (the “Limitation of the Maximum Additional Interest
Rate”). 

 

In
this regard:

 

A
rating of A, A-, BBB+, BBB, BBB- and BB+ and BB – are as defined in the table in Section 1.5.34 above.

 

“Base
Rating” – a rating of ilA+ or equivalent.

 

“Additional
Interest Rate” – additional interest provided to the bondholders at a rate of 0.25% per year for each decrease
of a notch in the rating of Bonds below the Base Rating until a maximum interest addition of 1.25% per year at most (the “Limitation
on the Additional Interest Rate”).

 

    	 	18	 

    	 

    

 

	 	A.	If
    the rating of the Bonds (Series B) by the rating company (in the case of replacing a rating company, the Company shall transfer
    to the Trustee a comparison of the scale rating of the outgoing rating agency and the scale rating of the incoming rating
    agency) are updated during the any interest period, so that the rating to be determined to the Bonds (Series B) is lower by
    one or more notches (the “Reduced Rating”) below the Base Rating, the annual interest rate on the outstanding
    principal of the Bonds (Series B) will increase by the additional interest rate or in part thereof (as set out below), according
    to the steps set forth, and this is for the period that commences on the date of publication of the Reduced Rating by the
    rating agency until the earlier of (a) repayment in full of the outstanding principal balance of the Bonds (Series B) or (b)
    the date of the rating increase pursuant to Section 5.2 (e) below. If the interest rate was raised earlier in respect of deviations
    from financial covenants as stated in paragraph 5.3 below, then the rise in the interest rate due to a decline in rating as
    aforesaid will be limited according to the limit of the maximum interest rate increase.
	 	 	 
	 	B.	No
    later than the end of one business day from the receipt of a notice from the rating company regarding the lowering of the
    rating of the Bonds (Series B) to the Lowered Rating as defined in subsection (a) above, the Company will publish an immediate
    report, in which the Company states: (1) that the rating was lowered, the Lowered Rating, the rating report and the date on
    which the Lowered Rating of the Bonds (Series B) comes into effect (the “Date of Lowering the Rating”);
    (2) deviation / non-deviation from the financial covenants described in Section ‎5.3 below based on the most recent reviewed
    or audited consolidated financial statements of the Company published before the date of the immediate report, as well as
    whether a change has occurred to the interest for the deviation / non-deviation from the financial covenants as stated; (3)
    the precise interest rate that the balance of the Bonds (Series B) will bear for the period beginning on the current interest
    period and until the Date of Lowering the Rating (the interest rate will be calculated based on 365 days per year) (the “Original
    Interest” and the “Original Interest Period,” respectively); (4) the interest rate that the balance
    of the principal of the Bonds (Series B) will bear as of the Date of Lowering the Rating and until the actual next interest
    payment date, i.e.: the Original Interest in addition to the additional interest rate per year (the interest rate is calculated
    based on 365 days per year) (the “Updated Interest”), and this subject to the limitation on the maximum
    interest increase and the Limitation on the Additional Interest Rate (5) the weighted interest rate paid by the Company to
    the holders of Bonds (Series B) on the upcoming interest payment date, arising from the provisions of subsections (3) and
    (4) above; (6) the annual interest rate reflected from the weighted interest rate; (7) the annual interest rate and the semiannual
    interest rate (the semiannual interest will be calculated as the annual interest divided by the number of interest payments
    per year, i.e. divided by two) for the coming periods. 

 

    	 	19	 

    	 

    

 

	 	C.	If
    the date of the commencement of the rating of the Bonds (Series B) with the Lowered Rating occurs during the days beginning
    four days before the date set forth for payment of any interest and ending on the interest payment date that is closest to
    the date set forth above (the “Deferral Period”), the Company will pay to the holders of the Bonds (Series
    B), on the upcoming interest payment date, the Original Interest, before the change, alone, while if the interest rate is
    not increased prior thereto due to a deviation from the financial covenants as stated in Section 5.3 below, the interest rate
    arising from the additional interest in the rate equal to the rate of the additional annual interest during the Deferral Period
    (calculated based on 365 per year),will be paid on the following interest payment date and all subject to the maximum interest
    increase and the Limitation on the Additional Interest Rate. The Company will announce, in an immediate report, the precise
    interest rate for payment on the upcoming interest payment date.
	 	 	 
	 	D.	In
    the event of updating the rating of the Bonds (Series B) by the rating company, in a manner impacting the interest rate that
    the Bonds (Series B) will bear as stated in Section ‎5.2(a) or ‎5.2(f) below, the Company will inform the trustee
    thereof in writing within one business day from the publication of the immediate report as stated.

 

    	 	20	 

    	 

    

 

	 	E.	In
    the event that after the reduction of the rating in a manner that will impact the interest rate that the Bonds (Series B)
    will bear as stated in Section ‎5.2(a) above, the rating company will update the rating for the Bonds (Series B) upwards,
    the annual interest that the uncleared principal that the Bonds (Series B) will bear on the relevant date of payment of the
    interest will decrease at the additional interest rate or part thereof, in accordance with the abovementioned established
    levels, for the period in which the Bonds (Series B) were rated with the High Rating alone, such that the interest rate that
    the unpaid balance of the principal of the Bonds (Series B) will bear after the update of the rating upwards to a rating equal
    or higher to the Base Rating will be the interest rate determined in the tender, as published by the Company in an immediate
    report regarding the results of the issuance, without any addition for the reduction of the rating as stated in this Section
    5.2 (and in any event, the interest rate that the Bonds will bear will not be less that the interest rate determined in the
    tender). In such a case, the Company will act in accordance with the provisions of subsections (b) through (e) above, mutatis
    mutandis, arising from the High Rating instead of the Lowered Rating.
	 	 	 
	 	F.	If
    the Bonds (Series B) cease to be rated for a reason dependent on the Company (for example, but not only, due to non-fulfillment
    of the Company’s obligations vis-à-vis the rating company, including due to failure to provide payments and/or
    reports that the Company has undertaken to provide towards the rating company) for a period exceeding 21 trading days, before
    the final payment, the cessation of the rating will be considered a Lowered Rating below the Base Rating, such that the additional
    interest rate will amount to 1.25% (even if the interest rate increased in accordance with subsection (A) above prior to such
    date), even if the interest rate was increased prior thereto due to a deviation from the financial covenants as stated in
    Section ‎5.3 below (but subject to the limitation on the maximum interest increase), and the provisions of subsection
    (b) through (e) above will apply accordingly, without derogating from the provisions of Section 8.1.22 below. For the avoidance
    of doubt, it shall be clarified that if the Bonds (Series B) cease to be rated, before the final payment, for a reason independent
    of the Company, the above will not impact the interest rate as stated in Subsection (a) above and the provisions of this Section
    5.2 (f) will not apply.

 

    	 	21	 

    	 

    

 

	 	G.	In
    the case in which the rating company is replaced or the Bonds (Series B) cease to be rated by the rating company (even if
    the Bonds (Series B) are rated by several rating companies), the Company will publish an immediate report, within one trading
    day from the date of the change, in which the Company will announce the circumstances of the replacement of the rating company
    or the cessation of the rating, as applicable.
	 	 	 
	 	H.	For
    the avoidance of doubt, it is clarified that: (a) a change in the outlook for the rating of the Bonds (Series B) will not
    lead to a change in the interest rate that the Bonds (Series B) will bear as stated in this section above; (2) if the Bonds
    (Series B) are rated by more than one rating company and as long as they are rated by more than one rating company as stated,
    subsection (f) above will not apply, other than in a case in which all of the rating companies together cease to rate the
    Bonds (Series B), and the determination of the rating for the purpose of corresponding the interest rate to the change in
    the rating (if such a change occurs) shall be done, at any time according to the lowest rating among them. 
	 	 	 
	 	I.	In
    the case of a reduction of the rating, the Company will act in accordance with Subsection (b) above. If before the Date of
    Lowering the Rating, an increase occurs to the interest rate due to a deviation from one or more of the financial covenants
    based on the mechanism set forth in Section 5.4 below, the change that occurs to the interest for the adjustment mechanism
    set forth in this Section 5.2 above will be limited, according to the limitation on the maximum interest increase. 

 

    	 	22	 

    	 

    

 

	 	J.	The
    Company undertakes to act such that, to the extent that it is in its control, the Bonds (Series B) are Rated by at least one
    Rating Company during the entire duration of the Bonds (Series B), and for the same purpose, the Company undertakes, inter
    alia, to pay the Rating Company the payments that it has undertaken to pay to the Rating Company, and to provide the Rating
    Company with the reports and information required thereby in the framework of the engagement between the Company and the Rating
    Company. In this regard, the non-performance of payments that the Company has undertaken to pay to the Rating Company and
    the failure to provide the reports and information required by the Rating Company in the framework of the engagement between
    the Company and the Rating Company will be deemed to be reasons and circumstances that are under the Company’s control.
    In the event in which the Rating of the Bonds (Series B) ceases or the Rating Company is replaced, the Company will publish
    an immediate report thereof, and will state the reasons for the cessation of the rating or replacement of the Rating Company,
    as applicable. The Company does not undertake to refrain from replacing the Rating Company or to refrain from terminating
    the engagement therewith during the duration of the Bonds (Series B). In the event in which the Company replaces the Rating
    Company even if at the time of replacement it is not the only rating company that rates the Bonds (Series B) at the time of
    the replacement and/or terminates the work of a Rating Company (in the event in which it is not the only Rating Company),
    the Company undertakes to report the same in an immediate report and to inform the Trustee and the Bondholders thereof, and
    state the reasons for the change of the Rating Company in its notice, no later than one Trading Day from the date of the replacement
    as stated and/or the date of the decision to terminate the work of the Rating Company, whichever is earlier. It shall be clarified
    that the provisions above will not derogate from the right of the Company to replace the Rating Company or terminate the work
    of the Rating Company at any time (in the event in which it is not the only Rating Company), at its exclusive discretion and
    for any reason that it sees fit.

 

    	 	23	 

    	 

    

 

	 	5.3	Adjustment
    of the interest rate as a result of deviation from financial covenants:

 

The
interest rate that the Bonds (Series B) will bear will be adjusted due to a deviation from the financial covenants set forth below:

 

	 	(1)	In
    the event that the consolidated equity of the Company (excluding minority rights) is less than USD 150 million (this amount
    will not be linked to the index) (in this section 5.3: the “Equity Condition).
	 	 	 
	 	(2)	In
the event that the adjusted net financial debt to adjusted EBITDA ratio (as defined below) will exceed 12 (the “Covenant
of the Adjusted Net Financial Debt to Adjusted EBITDA Ratio”). 

 

For
the purpose of this subsection (1) alone:

 

“Adjusted
Net Financial Debt” – the total financial debt as it appears in the Company’s financial statements, less
cash, cash equivalents and short-term investments (not pledges, unless they are pledged to secure financial obligations that are
taken into account in the beginning of this section), all on the Basis of the Company’s consolidated statements, in addition
to relative consolidation of the adjusted net financial debt in the associated companies and companies under joint control. The
data regarding the adjusted net financial debt will be provided in the notes of the Company’s financial statements. 

 

“Adjusted
EBITDA” –the consolidated operating profit in addition to depreciation and reductions with neutralizing revaluation
gains/losses, in addition to relative consolidation of the adjusted EBITDA in associated companies and companies under joint control;
the Adjusted EBITDA will be calculated based on the data of the last four quarters in the aggregate, and will be listed in the
notes of the Company’s financial statements. 

 

It
shall be clarified that after the purchase or one or more income-generating assets is expressed in the balance sheet of the Company,
the calculation of the financial covenants as stated will take place while adding to the numerator of the Adjusted EBITDA the
Adjusted EBITDA that is attributed to the same asset, while amending the Adjusted EBITDA of the asset to the terms of a full year.

 

    	 	24	 

    	 

    

 

	 	(3)	If
    the consolidated equity of the Company (including minority rights) to the total consolidated balance sheet will be less than
    20% (in this Section 5.3: the “Equity to Balance Sheet Covenant” or the “Minimum Equity to Balance
    Sheet Ratio”). 
	 	 	 
	 	(4)	In
    the event that the Loan to Collateral Ratio exceeds 75% (in this section 5.3: the “Loan to Collateral Ratio Condition”).

 

The
Equity Covenant, covenant of the Adjusted Net Financial Debt to Adjusted EBITDA, the capital to balance sheet ratio condition,
and the Loan to Collateral Ratio Condition will each be referred to as: a “Financial Criterion” and together:
the “Financial Covenants.”

 

	It
    is clarified that if adjustment of interest is required in accordance with the mechanism described in this Section 5.3 above
    and below, and based on the mechanism described in Section 5.2 above, and pursuant to any other section in this Deed (if any),
    then in any event, the maximum aggregate rate of the additional interest rate will not exceed the maximum interest increase
    limitation (as defined in Section 5.2 above). Arrears interest, if applicable in accordance with Section 4(a) of the terms
    of the overleaf, will be added to the said rate and will not constitute part thereof.

 

In
this regard:

 

The
“Additional Interest Rate” - additional interest at a rate of 0.5% for a deviation from each of the financial
covenants.

 

    	 	25	 

    	 

    

 

The
increase of the interest rate will take place only once for each deviation from any of the Financial Covenants, if such a deviation
occurs, and the interest rate will not be increased again in the event that the deviation from any of the Financial Covenants
continues (in this regard, it shall be clarified that if the deviation from any of the Financial Covenants is remedied and thereafter
there is an additional deviation, the aforesaid addition will apply). It shall be emphasized that in the event in which due to
a decrease in the rating of the Bonds, the annual interest rate is increased in accordance with the provisions of Section 5.2
above, in any event, the additional interest rate under the same section, together with the additional interest rate under this
Section 5.3, for the deviation from the Financial Covenants, will not exceed the limitation on the maximum interest increase.

 

The
“Deviation Date” – the publication date of the financial statements that indicate the deviation.

 

	 	A.	If
    the Company deviates from any of the financial covenants under the Company’s reviewed or audited consolidated Financial
    Statements (the “Deviation”), the annual interest rate that the unpaid balance of the Bonds (Series B)
    will bear will be increased by the additional interest rate for the Deviation, above the interest rate as it was at the time,
    before the change, for the period that begins from the Deviation Date and until the earlier of the full repayment of the unpaid
    principal balance of the Bonds (Series B) or the date of the publication of the Company’s Financial Statements whereby
    the Company does not have a deviation from any of the financial covenants, all subject to the limitation on the maximum interest
    increase.

 

    	 	26	 

    	 

    

 

	 	B.	In
    the event in which a Deviation from any of the Financial Covenants occurs as stated, no later than the end of one business
    day from the publication of the Company’s audited or reviewed Financial Statements (as applicable) indicating a deviation,
    the Company will publish an immediate report in which the Company will state: (a) the aforesaid deviation, while specifying
    the financial covenants on the date of the publication of the financial report and whether there is a change to the interest
    rate following a change in the rating, if there is such a change as stated; (b) the updated rating of the Bonds (Series B)
    based on the most recent rating report published before the date of the immediate report; (c) the precise interest rate that
    the principal of the Bonds (Series B) will bear for the period beginning from the current Interest Period and until the Deviation
    Date (the interest rate will be calculated based on 365 days per year) ( the “Original Interest” and the
    “Original Interest Period”, respectively); (d) the interest rate that the balance of the principal of the
    Bonds (Series B) will bear as of the Deviation Date and until the upcoming actual interest payment date, i.e.: the Original
    Interest with the addition of the additional annual interest rate (the interest rate will be calculated based on 365 days
    per year) (the “Updated Interest”), and this subject to the limitation on the maximum interest increase.;
    (e) the Weighted Interest Rate that is paid by the Company to the Bondholders (Series B) on the upcoming interest payment
    date, arising from the provisions of Subsection (c) and (d) above; (f) and the annual interest rate reflected from the Weighted
    Interest Rate; (g) the annual interest rate and the semiannual interest rate (the semiannual interest will be calculated as
    the annual interest divided by the number of interest payments per year, i.e. divided by two) for the subsequent periods.

 

Should
the deviation linger after the first quarter of its occurrence, no later than one business day from the date of the Company’s
publishing its financial statements, audited or reviewed (as the case may be), which indicate the deviation is continued, the
Company shall publish an immediate report in which the details of this section above shall be displayed, according to the revised
interest rate, and in reference to the continued deviation as aforesaid in the definition of the term the “Additional Interest
Rate”.

 

    	 	27	 

    	 

    

 

	 	C.	In
    the event in which the Deferral Date occurs during the days beginning four days before the effective date for the payment
    of any interest and ending on the subsequent interest payment date (the “Deferral Period”), the Company
    will pay the Bondholders (Series B) on the subsequent interest date, the Original Interest of prior to the change only, while
    the interest rate arising from the addition of the interest in a rate equal to the additional annual interest rate during
    the Deferral Period will be paid on the following interest payment date. The Company will provide notice in an immediate report
    of the precise interest rate for payment on the following interest payment date.
	 	 	 
	 	D.	In
    the event of a deviation from any of the Financial Covenants in a manner that impacts the interest rate that the Bonds (Series
    B) will bear (as stated in Paragraph A or Paragraph E), the Company will inform the Trustee thereof in writing within one
    business day from the date of the publication of the Financial Statements as stated.
	 	 	 
	 	E.	It
    is clarified for the avoidance of doubt that in the event that after the Deviation the Company publishes its audited or reviewed
    Financial Statements (as applicable), based on which the Company has not deviated from any of the aforesaid Financial Covenants,
    the increase in the annual interest rate will be cancelled for the deviation (and due to the deviation being continued, to
    the extent of its continuing and as applicable) from any of the aforesaid Financial Covenants in a manner that annual interest
    rate that the bonds will bear will be reduced at the rate of the interest increase as aforesaid and this for the period in
    which the Company has not deviated from any of the Financial Covenants, which shall begin on the date of the publication of
    the Financial Statements that indicate non-deviation from the Financial Covenants, so that the interest rate that will be
    borne by the outstanding balance of the principal of the Bonds (Series B) shall be – if the interest rate has not previously
    been raised in respect of a decrease in the rating of the Bonds (Series B) as stated in Section 5.2 above and if there is
    no deviation from the other financial covenants – the interest rate that was determined in the Tender, (and in any event,
    the interest rate that the Bonds will bear will not be less than the interest rate determined in the Tender) or any other
    interest rate determined as a result of a decrease in the rating of the Bonds (Series B) as stated in section 5.2 above. In
    such a case, the Company will act in accordance with the provisions of Subsection (b) through (d) above, mutatis mutandis,
    as applicable and with respect to the Company’s non-deviation from the same Financial Covenants. It is clarified that
    in any case, the interest rate that the bonds will bear will not be lower than the interest rate established in the Tender.
    

 

    	 	28	 

    	 

    

 

	 	F.	The
    examination regarding the Company’s non-deviation from the financial covenants will be performed on the date of the
    publication of the Financial Statements by the Company and as long as the Bonds (Series B) exist in circulation with respect
    to the annual/quarterly Financial Statements that the Company is required to publish until the same date.

 

The
Company will specify within the notes of the financial statements in each financial report published, as applicable, the existence
of a deviation or lack of deviation from the financial covenants.

 

For
the avoidance of doubt, it shall be clarified that subject to the above and the limitation on the maximum interest increase, the
additional interest payments as a result of the Lowered Rating as stated in Section ‎5.2 above and/or as a result of the Company’s
non-compliance with any of the financial covenants as stated in this Section ‎5.3 above are aggregated. Therefore, in the
event that a Lowered Rating occurs, while in addition the Company deviates from any of the financial criterion, one or more, the
Bondholders (Series B) will be entitled to an increase in the interest rate as stated above, provided that the additional annual
interest does not exceed 1.5%.

 

    	 	29	 

    	 

    

 

	 	5.4	Interested
    party transactions 

 

The
Company undertakes that excluding the Exempt Transactions as defined below, Extraordinary Transactions (as defined in the Israeli
Companies Law) of the Company with its controlling shareholders, or Extraordinary Transactions of the Company with another person
in which the Controlling Shareholders have a personal interest, or the engagements of the Company with the Controlling Shareholders
or their relatives, directly or indirectly, including through a company under their control, including as well as if he is also
an officer in the Company ,inter alia – regarding the terms of his service and employment, and if he is an employee
of the Company and is not an officer thereof, inter alia – regarding his employment in the Company (in this Section
‎5.4 “Extraordinary Transactions”), shall be subject to the approval of the Bondholders of the Bonds (Series
B) by a Resolution with an ordinary majority. 

 

The
transactions set forth below (including the renewal and extension of their validity) will be considered “Exempt Transactions”
regarding which no approval of holders will be required as stated in this Section 5.4 above:

 

	 	(1)	The
    transfer of assets with positive fair value to the Company (including to companies held by the Company) for no consideration.
    In this regard, an allocation of shares alone will not be considered consideration;
	 	 	 
	 	(2)	The
    provision of funds to the Company in exchange for Company shares or in consideration for any other capital instrument that
    is deferred and inferior to the Company’s debt towards the Bondholders; 
	 	 	 
	 	(3)	Release
    of the controlling shareholders and/or interested parties from guarantees given in favor of third parties regarding assets
    owned by the Company and/or corporations that the Company owns directly or indirectly, provided that as a result of the release
    of guarantees as stated, no additional financial obligations are added to the Company, as well as an extension of the validity
    of the guarantees, securities and undertakings as stated without a material change to the terms thereof;

 

    	 	30	 

    	 

    

 

	 	(4)	The
    array of lease and transaction agreements set forth in Chapter 9 of the Shelf Prospectus and within Article 22 of Part D of
    the 2017 Periodic Report, as well as the lease agreements as aforesaid in Section 1.10 of the 2017 Periodic Report and Section
    9.2 of the Shelf Prospectus, including its update or renewal in the commercial terms that are identical in nature to those
    described in the Prospectus and Periodic Report;
	 	 	 
	 	(5)	(a)
    The lease agreements set forth within Article 22 of Part D of the 2017 Periodic Report and Section 9.2 of the Shelf Prospectus,
    including their updating or renewal, in commercial terms that are essentially identical or preferential from the Company’s
    perspective to those described above (“Existing Lease Agreements”), as well as (b) new lease agreements
    regarding new assets (including new tenants) in a format similar or preferential from the Company’s perspective to the
    terms of the existing lease agreements; and (c) a change of the lease fees in the existing lease agreements in the following
    manner: 

 

In
the case in which during the term of the relevant lease, one or more of the assets included in the existing lease agreement that
is a framework agreement is sold, the following terms shall apply: (a) the asset that is sold will be removed from the framework
agreement; (b) a reduction of the lease fees paid under the framework agreement will be performed, in the amount equal to the
EBITDAR attributed to the asset in the 12 months before the sale, attributed to the asset sold, according to the last appraisal.
In the event that the lessor decides to add an additional asset or assets to the framework agreement, the owner of the asset will
be added as a lessor (and if necessary, the relevant lessee will be added as well) and the lease fees will increase in the amount
of not less than 9.5% of the purchase price of the additional asset. For details regarding the terms of the aforesaid agreements
in subsections (4) and (5) above, see Section 9.2 of the Shelf Prospectus.

 

	 	(6)	Provide
    guarantees by the controlling shareholders (directly or indirectly) in favor of financial entities for the Company and/or
    corporations that the Company holds 
	 	 	 
	 	(7)	Special
transactions that meet the terms set forth in the Companies Regulations (Leniencies in Transactions with Interested Parties),
5760-2000;
	 	 	 
	 	(8)	Engagement
    in policies to insure assets of the Company and/or subsidiaries and affiliated companies against the customary risks, within
    the policies that cover the asset portfolio of the Company jointly with the assets of the controlling shareholders, if any
    whose beneficiaries may be, inter alia, the Company, subsidiaries or associated companies or controlling shareholders,
    as applicable (while the amounts of the premium are allocated by the insurance company for the various assets in a manner
    in which the Company does not bear a premium in excess of its relative share of the assets);
	 	 	 
	 	(9)	Granting
    Officer exemption from liability insurance and liability insurance in the Company, as they serve from time to time, including
    officers from among the controlling shareholders;
	 	 	 
	 	(10)	Granting
    letters of indemnity to the controlling shareholders and/or their relatives, as they may be from time to time, as set forth
    within Article 29a of Part D and Section 16 of the 2017 Periodic Report, as well as new letters of indemnify in the form as
    updated, if at all, in accordance with the Companies Law and Regulations thereunder, as they may be from time to time and
    entering into directors and officers insurance as accepted in Companies such as this.

 

The
Company will confirm within its period report or alternatively, provide the Trustee, in the end of March every year, with a description
from the Company’s CEO or the most senior financial officer in the Company of special transactions, if such were performed
for which consent was required from the Bondholders as stated in this Section ‎5.4 above (which are not Exempt Transactions
as stated in this Section ‎5.4), without providing the consent of the Bondholders (Series B) in advance as stated above.

 

    	 	31	 

    	 

    

 

	 	5.5	Interest
    Cushion

 

	 	A.	Of
    the proceeds of the net issue deposited in the trust account as stated in section 6.2.4 below, the Trustee will transfer to
    the bank account which will be opened by the Trustee in his name and under his ownership in a bank incorporated in Israel,
    in favor of the Bondholders of the Bonds (Series B) an amount that is equal to the amount of the next interest payment (as
    of that date) in respect of the Bonds (respectively: “the Interest Cushion Amount” and “the Interest
    Cushion Account”), where the amount of the interest cushion will serve as collateral for the holders of the Bonds
    (Series B) until the full redemption of the Bonds (Series B).
	 	 	 
	 	B.
    	The
    signature rights in the Interest Cushion Account will be the Trustee’s only. The funds deposited in the Interest Cushion
    Account will be transferred to the property of the Bondholders and will be managed by the Trustee in accordance with the provisions
    of Section 17 below.
	 	 	 
	 	C.	If
    on the morning of the fifth (5th) day of every calendar month after the end of each calendar quarter and if it
    is not a business day, then the following business day (“Cushion Completion Date”), the amount deposited
    in the Interest Cushion Account will be lower than the amount required for payment of the nearest interest payment of that
    date, including due to the Trustee’s use of the amount for proceedings under this Deed, the Company will transfer to
    the Interest Cushion Account on the date of completing the cushion (and if it is not a business day, then on the following
    business day) an amount that is equal to the amount required for the completion of the amount deposited in the Interest Cushion
    Account, on the date of completion of the cushion, to the amount of the near interest payment (together with The amount deposited
    at the time in the Interest Cushion Account: “the Current Cushion Amount”).

 

    	 	32	 

    	 

    

 

To
the extent that on the date of payment of the principal and/or interest in respect of the Company, the deposited amount in the
Interest Cushion Account exceeds the Current Cushion Amount (“the Excess Amount”), the Company shall be entitled
to instruct the Trustee to make use of the Excess Amount for making payments of principal and interest amounts that the Company
is liable to pay to the Bondholders of Bonds (Series B). Under this Deed and pursuant to the Company’s request, the Trustee
will transfer to the Nominee Company for payment on the date on which the payment is to be paid, up to the amount of the payment
that was offset by the Company’s notice or up to the amount of the Excess Amount, whichever is lower. At the final and last
redemption date of the Bonds (Series B), the Company may instruct the Trustee to make use of the Current Cushion Amount and the
Excess Amount as it will be deposited in the Interest Cushion Account for the purpose of any payment in respect of the Bonds or
transfer it to the Company (after full repayment of all the Bonds).

 

	 	D.	It
    is hereby clarified that if the series of bonds is increased or an additional interest rate applies as stated in sections
    5.2 and 5.3 above, the Company will deposit in the Interest Cushion Account the funds that will constitute the Interest Cushion
    Amount in respect of the increase or the updated interest rate within ten business days from the date of publication of the
    immediate report regarding the increase or the change in the interest rate as aforesaid, as the case may be.
	 	 	 
	 	E.	It
    is hereby clarified that the non-deposit of funds in the Interest Cushion Account within 10 business days from the date of
    completion of any interest, whether as part of the issue under this Shelf Prospectus and the Shelf Offer Report or following
    the occurrence of events as specified in this section, shall constitute grounds for calling for immediate repayment of the
    balance of the Bonds (Series B) in circulation, as stated in subsection 8.1.31 below.

 

    	 	33	 

    	 

    

 

	 	F.
    	For
    the avoidance of doubt, it is clarified that the Company’s undertaking to transfer the funds to the Interest Cushion
    Account is not guaranteed by a mechanism that will ensure the performance of this undertaking. In the event that the Company
    fails to meet its obligation to transfer the funds to the interest-rate account, the trustee will not be able to prevent the
    breach of this undertaking, but rather to take the measures at his disposal according to law and the deed of trust, to enforce
    on the Company to retroactively execute its undertaking.
	 	 	 
	 	G.
    	It
    is hereby clarified that the Interest Cushion Amount and the Current Cushion Amount will be held by the Bondholders and will
    be held by the Trustee for the Bondholders of the Bonds (Series B). The Company shall not have any rights or claims with respect
    to these sums, save for (A) the right to issue an instruction in respect of the Excess Amount and/or providing an instruction
    for the current cushion amount on the final and last repayment date of the Bonds (Series B), as stated in subsection D above,
    and (B) Determination of the money management policy in the Interest Cushion Account and its implementation, which shall be
    at the sole discretion of the Company, provided that the investment will be in investments as detailed in section 17 below.
    The Trustee may not object to the investment policy and will not be responsible vis-à-vis the Bondholders (Series B)
    and/or the Company for any damage and/or loss caused due to this policy.
	 	 	 
	 	H.	The
    Company undertakes that it will sign any document that will be required for executing such a decision to distribute to the
    Bondholders the funds in the Interest Cushion Account according to the provisions of this Deed.

 

    	 	34	 

    	 

    

 

	 	5.6	Expenses
    Cushion

 

Without
derogating from the provisions of Section 26 below, from the net issuance consideration a total in the amount of USD 200 thousand
(based on the exchange rate of the dollar, known on the day before the tender date) will be deposited in a special bank account
opened by the trustee and in its name in trust for the Bondholders, which will be used for payment of the ongoing expenses and
management expenses of the trustee (including for proceedings to reevaluate assets, if performed by the trustee), in the case
in which the Bonds (Series B) are called for immediate repayment and/or in the case in which the Company breaches a provision
that is not neglect of the Deed of Trust (respectively: the “Expenses Cushion Amount” and the “Expenses
Cushion Account”). As long as it is possible given by the law which applies on the Company, a collateral or lien will
be registered in favor of the Trustee, as applicable, on the bank account as aforesaid. The Expenses Cushion Amount will be held
until the date of the full and final payment of the Bonds (Series B). After receipt of approval from the senior officer in the
financial department at the Company or from the Chief Executive Officer of the Company, in the form to the Trustee’s satisfaction,
regarding full payment of the Bonds (Series B), any remaining amount, if any, in the Expenses Cushion Account (in addition to
all of the profits accrued) will be transferred to the Company in accordance with the details provided by the Company. In the
case in which the Expenses Cushion Amount is not sufficient to cover the expenses of the Trustee in connection with call for immediate
repayment of the Bonds (Series B) and/or a breach of the provisions of the Trust Deed by the Company, if any such event occurs,
the Trustee will act in accordance with the provisions of Section 26 below. For the purpose of this Section 5.6, “Proceedings
for the Revaluation of Assets” shall mean the appointment of an external and independent assessor selected by the Trustee
to examine the fair values of the Company’s real estate assets.

 

It
is noted that the signature rights in the Expenses Cushion Account will be granted to the Trustee exclusively; all of the costs
of opening in the Expenses Cushion Account, its management and closing will be borne by the Company. The policy of managing the
funds in the Expenses Cushion Account and its performance will be determined at the sole discretion of the Company, provided that
the investment is in investments as set forth in Section 17 below. The Trustee will not be liable vis-à-vis the Bondholders
(Series B) and/or vis-à-vis the Company for any loss caused due to the investments as stated.

 

The
above will not derogate from the obligations of the Company, the controlling shareholders and officers therein as set forth in
Section 34 below, which, for the avoidance of doubt, will also apply in connection with the Expenses Cushion Account. 

 

    	 	35	 

    	 

    

 

		5.7	Appointment
                                         of a Company Representatives in Israel

 

		5.7.1	By
                                         the full, final and precise payment date of the Bonds (Series B) under the terms of the
                                         Deed of Trust vis-à-vis the Bondholders, the Company undertakes that it will have
                                         a representative on its behalf in Israel, to which legal process can be served to the
                                         Company and/or officers thereof and/or the property companies instead of their service
                                         to the Company’s address overseas, set forth in the preamble to this Deed and/or
                                         the addresses of the property companies.

 

		5.7.2	As
                                         of the date of signing the deed, the Company’s representative in Israel is the
                                         law office of Fischer Behar Hen Well Orion & Co (whose address is as set forth in
                                         the preamble to this Deed) (the “Company’s Representative in Israel”).

 

		5.7.3	Service
                                         to the Company’s Israel Representative will be considered valid and binding service
                                         in connection with any claim and/or demand of the Trustee and/or the Bondholders (Series
                                         B) under this Trust Deed.

 

		5.7.4	The
                                         Company will be permitted to replace the Company’s Israel Representative from time
                                         to time but only if at the time of the replacement the Company shall report the details
                                         of the new Company representative in an immediate report and will deliver a notice to
                                         the Trustee.

 

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		5.7.5	In
                                         the case of the appointment of a new representative, the immediate report and notice
                                         to the Trustee will also include the date on which the appointment of the new representative
                                         enters into force. As long as the appointment of the new representative does not enter
                                         into force, the address of the replaced representative will be the address for the aforesaid
                                         service.

 

		5.7.6	A
                                         breach of this section will constitute a material breach of the provisions of the Deed
                                         of Trust.

 

	6.	Securing
                                         the Bonds and Transfer of the Issuance Consideration to the Company

 

		6.1	The
                                         Bonds (Series B) are secured by collateral as described in this section below. For details
                                         regarding the Company’s undertakings regarding the undertaking to avoid the creation
                                         of a general pledge of the Company’s assets and regarding the non-creation of additional
                                         pledges in the asset companies, see Section 6.9 of the Deed of Trust.

 

For
the avoidance of doubt, it is clarified that the Trustee is not subject to and will not be subject to an obligation to examine,
and in practice the Trustee has not examined and will not examine, the need to provide securities to secure the payments to the
Bondholders (Series B). The Trustee was not asked to conduct, and the Trustee did not conduct in practice and will not conduct,
a financial, accounting or legal due diligence as to the state of the Company’s business or the business of any of the property
companies. In its engagement in this Deed of Trust and the Trustee’s consent to serve as a trustee for the Bondholders (Series
B), the Trustee does not express an opinion, explicitly or implicitly, as to the ability of the Company to meet its obligations
vis-à-vis the Bondholders (Series B) under this Deed. The provisions above will not derogate from the Trustee’s obligations
under any law and/or the Deed of Trust, and will not derogate from the Trustee’s obligation (if such an obligation applies
to the Trustee under any law) to examine the impact of changes in the Company from the date of the Shelf Offer Report and thereafter,
if they may detrimentally impact the Company’s ability to meet its obligations under this Deed of Trust vis-à-vis
the Bondholders (Series B).

 

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		6.2	Pledging
                                         the Pledged Assets

 

		6.2.1.	To
                                         secure the Company’s undertakings to repay the Bonds (Series B) in full and on
                                         the dates set forth in this Deed of Trust, including principal, interest and arrears,
                                         should such apply (the “Secured Amounts”), the Company undertakes
                                         to create and record and/or cause the creation and recording in favor of the Trustee
                                         for the Bondholders, fixed, first ranking and single mortgages on all (100%) of the rights
                                         of the property companies in the following real estate assets, in whole or in part (subject
                                         to the terms of this section below):

 

(1)
253 Bradington Drive, LLC; (2) 911 South 3rd St Realty LLC; (3) 516 West Frech St, LLC; (4) 3090 Five Points Hartford Realty,
LLC; (5) 3121 Glanzman Rd Realty, LLC; (6) 620 West Strub Rd Realty, LLC; (7) 4250 Sodom Hutchings Road Realty, LLC; (8) 146 Buck
Creek Road, LLC; (9) 704 5th Avenue East, LLC; (10) 2501 River Road, LLC; (11) 140 Technology Lane, LLC; (12) 308 West Maple Avenue,
LLC; (13) 1900 North Park Ave, LLC; (14) 430 South Front St, LLC; (15) 1621 Coit Road Realty, LLC; (16) 8200 National Ave Realty,
LLC; (17) 2301 North Oregon Realty, LLC; (18) 601 Plum Creek Drive Realty, LLC; (19) 1155 Eastern Parkway, LLC; (20) 1585 Perry
Worth Rd, LLC (collectively: the “Asset Companies” and the “Mortgages” respectively).2
The Company warrants that as of the signing date of this Deed of Trust, registered on the Mortgaged Assets as defined above
mortgages as described in Section 16.4 of the 2017 Periodic Report. For additional details regarding the Pledged Assets, see Appendix
E of the Shelf Offer Report.

 

 

2
In the case of the sale of the Pledged Assets
as stated in Section 6.6 below, or refinancing of any of the assets from the Pledged Assets as stated in Section 6.7 below, the
assets from which the mortgage was removed in accordance with the same sections will not be included in the definition of the
“Mortgaged Assets,” and the Asset Companies holding only the same assets will not be included in the definition
of “Asset Companies.” In the case of the pledge of additional assets in accordance with the provisions of this
Deed, the assets pledged in the definition of “Mortgaged Assets” will be included and the Asset Companies holding
the same assets will be included in the definition of “Asset Companies.”

 

    	 	38	 

    	 

    

 

For
the sake of creating the mortgages under this section, the loans that are secured by the Existing Mortgages (as defined below)
will be repaid, by using the issuance proceeds, the registered mortgages will be removed on the Mortgaged Assets in a manner that
after the mortgages will be registered to the benefit of the Trustee all of the rights of the Property Companies in the Mortgaged
Assets will be pledged to the benefit of the Trustee to secure the Secured Amounts. According to the provisions of the pledge
agreements signed in connection with the creation of the aforesaid mortgages, all of the rights of the Property Companies that
are owed for or under the Pledged Assets, priority rights or other rights and/or any right to receive a cash flow arising from
the pledged asset and/or right to receive insurance payments, if any, will also be pledged for the benefit of the Trustee.

 

In
addition, the lien agreements will include provisions to ensure the existence and/or rehabilitation and proper operation of the
assets pledged by the lessees that operate them (the “Operation Companies”), while complying, inter alia, with
the provisions of the various laws relating to the operation of the assets and provisions that ensure the continued operation
of the pledged assets and the transfer of the cash flow deriving from the aforesaid operation to the Trustee, in the event of
an exercise event as defined below, by the operating companies.

 

It
is clarified that, as long as no event has transpired affording the Trustee and/or the Bondholders the right to immediate repayment
of the Bonds (Series B) and/or to the exercise of the securities, and as long as no resolution has been reached by the Trustee
or the holders with regards to the immediate repayment of the Bonds (Series B) and/or to the exercise of the sureties under the
terms of this Deed, according to the earlier of the two (an “Exercise Event”), subject to the mortgages and
the undertakings in this Deed of Trust, the balance of the rights of the Company and the Property Companies (directly and indirectly)
in the Mortgaged Assets by law, agreement or the articles of association shall not be impinged, and shall remain fully and exclusively
in its possession and/or the possession of the Property Companies.

 

    	 	39	 

    	 

    

 

It
is clarified that the Company does not undertake to pledge all of the assets set forth in this section above, but rather undertakes
to pledge a number of assets whose loan to Collateral Ratio does not exceed 65%. The assets that will be pledged from among those
listed in this section above as stated will be at the sole discretion of the Company (without a particular order), until compliance
with the loan to Collateral Ratio required, as stated. Notwithstanding the above, the initial assets pledged will be based on
the following order – (a) assets (8) to (11) above (located in Tennessee); (b) asset (19) above (located in Kentucky); (c)
asset (1) above (located in Illinois).

 

		6.2.2.	Creating
                                         the Mortgages

 

The
registration or creation, as applicable, of the mortgages, detailed in Section 6.2.1 hereto shall be performed by a closing proceeding
that was formulated in accordance with the memorandum of an attorney representing the Company and familiar with the relevant laws
in the United States that apply to the Property Companies and the Mortgaged Assets (an “American Attorney”),
as detailed in Section 6.2.3 hereunder and in accordance with the following documents, upon completion of the closing process
and producing all the documents to the Trustee3, in wording it finds satisfactory, the Mortgaged shall be seen as
“registered” and/or “created,” as applicable:

 

		A.	An
                                         opinion of the American Attorney or confirmation from an US title insurance company that
                                         will serve as the closing agent (the “Insurance Company”)4,
                                         addressed to the Trustee, to the effect that the Company and the Property Companies,
                                         as applicable, have adopted all of the resolutions required for the creation of the Mortgages,
                                         and that the parties competent to sign in the Company’s name have signed on all
                                         of the required documents for the purposes the Mortgages and/or their registration.

 

 

3 It is noted that
for the purpose of the closing process, the Trustee will be represented by an American attorney.

4 The insurance
company in the first issue of the Bonds will be Chicago Title Insurance Company.

 

    	 	40	 

    	 

    

 

		B.	Confirmation
                                         from a senior officer in the Company and/or in the Property Companies, as applicable
                                         (Officer Certificate) confirming the resolutions required for the purpose of registering
                                         the Mortgages have been adopted, as well as the absence of conflicting and/or contradictory
                                         undertakings on the part of the Company and the Property Companies in connection with
                                         the creation and/or registration of the Mortgages, and that the Mortgages are in the
                                         sole ownership and possession of the mortgaging company, as applicable. Furthermore,
                                         it should state that the laws of the United States are those applicable to the Mortgages.
                                         The identity of the signer and the fact that it is a senior officer in the Company and/or
                                         Property Companies, as applicable, shall be verified and confirmed by an American Attorney.

 

		C.	An
                                         opinion from the American Attorney as described in subsection 6.2.3(f) below.

 

The
draft of the mortgage agreements was published by the Company in a report of March 18, 2018. Mortgage agreements concerning the
execution of the Mortgages in favor of the Trustee shall be worded in a manner that pleases the Trustee, and such that the Trustee
is authorized to agree to any changes in the wording of the Mortgage agreements under the same terms by which the Trustee may
agree to changes in the body of the Deed of Trust, as detailed in Section 28 of the Deed of Trust, mutatis mutandis. It
is clarified that the confirmations of the American Attorney (including the opinion and memorandum) may include factual assumptions
and accepted qualifications and the American Attorney may rely on the Company’s declarations and/or the declarations of
the Property Companies and/or another person in connection with the factual assumptions (without independent examination) if accepted
in the relevant law for the execution of an examination as stated in the state in which the pledge is created.

 

    	 	41	 

    	 

    

 

		6.2.3.	Removal
                                         of the Existing Mortgages and Registration of the New Mortgages

 

		A.	The
                                         Company warrants that, as of the signing date of this Deed of Trust, Mortgages are registered
                                         on the Mortgaged Assets (as defined above), as described in Section 16.4 of the 2017
                                         Periodic Report and them alone (the “Existing Mortgages”).

 

		B.	After
                                         issuance of the Bonds (Series B), the net proceeds of the issue will be held in a trust
                                         account in Israel owned by the Trustee in favor of the Bondholders, to which the exclusive
                                         signature rights will be held by the Trustee. In order to release the existing mortgages
                                         and to register the mortgages to secure the secured amounts, the Company will be required
                                         to repay the balance of the existing loans in the pledged assets (and associated closing
                                         costs) out of the proceeds of the issue. The release of the existing mortgages and the
                                         registration of the new mortgage as aforesaid will be made by a trust arrangement as
                                         is customary and is practiced in the United States and will be administered by the Insurance
                                         Company, which will serve as the holder of the Trust as described below (the “Closing”).

 

It
is hereby clarified that the amounts to be transferred by the trustee to the rights insurance company will be in accordance with
the Payoff Letters (the “Payoff Letters “) on behalf of the financing entities which provided the outstanding
balance of the existing loans in the pledged assets plus the direct related costs that the Company and property companies have
in connection with the repayment of the existing loans in accordance with the calculation that will be transferred to the trustee
by the Company5, along with reference documents from those lending entities that their loans are repaid. It is emphasized
that the amounts listed in the Payoff Letters are final.

 

 

5 (Such
as the insurance premium for the issue of the rights of the rights, attorney fees, Closing Agent fees, pledge
registration fees, etc.).

 

    	 	42	 

    	 

    

 

The
Payoff Letters will be delivered to the trustee (or according to the rights insurance company’s request, which will receive
the Payoff Letters), specifying the amounts of repayment required to be transferred to the relevant financing entity for the purpose
of full repayment of the existing loans to the property companies, and for the removal of existing mortgages. The Payoff Letters
will note that in exchange for the transfer of the said amounts which will constitute the final payment of the existing loans
in relation to the pledged assets, the financing entities will release the existing mortgages in their favor on the pledged assets
and remove any registration in respect of these mortgages.

 

		C.	For
                                         the purpose of closing, a closing agreement will be executed between the Insurance Company
                                         (which will issue rights insurance as specified in paragraph E) and the Trustee (the
                                         “Closing Agreement”). The Closing Agreement will include arrangements
                                         and actions relating to: (1) the transfer of the net issuance consideration required
                                         for the payment of the loans secured with existing mortgages, the removal of the existing
                                         mortgages and payment of the Closing Costs. It is hereby
                                         clarified that the insurance policy will secure the proceeds of the issue, but it is
                                         possible that for efficiency reasons the proceeds of the issue to the insurance company
                                         will not be transferred, but rather directly to the beneficiaries provided that the same
                                         takes place with the knowledge of the title insurance company; (2) securing the
                                         mortgage registration to secure the Bonds (Series B); (3) the undertaking of the insurance
                                         company to issue a rights insurance policy as described in paragraph E below;

 

    	 	43	 

    	 

    

 

		D.	As
                                         the closing process progresses, the American Attorney will notify the Trustee that the
                                         closing is close to conclusion and has reached a stage in which mortgage lenders in the
                                         US transfer the funds to the Trusteeship; after receiving the said notice, and subject
                                         to signing the closing agreement and receipt of the letters of intent as stated above,
                                         the Trustee will deliver the required net issuance proceeds of the Bonds to the rights
                                         insurance company in accordance with the closing agreement. It is clarified that the
                                         net issuance consideration as aforesaid will be transferred to the Insurance Company
                                         in US dollar, after the Trustee converts, under the Company’s instructions, the
                                         net issuance consideration. The Trustee will be entitled to receive the net issuance
                                         proceeds of the Bonds that was transferred back to him at his request as long as long
                                         as the proceeds were not used in accordance with the Closing Agreement. Amounts payable
                                         in shekels (such as issuance expenses), if any, will not be converted and will remain
                                         in the hands of the Trustee (and will not be transferred to the Company) for payment
                                         directly to the entitled parties on the closing date.

 

“Closing
Completion Date” – the date on which the existing loans are repaid and the mortgages assigned and/or created for
the Trustee (but before the registration of the same transfers);

 

    	 	44	 

    	 

    

 

		E.	The
                                         rights insurance company: (1) shall transfer the net issuance consideration required
                                         for the purpose of full repayment of the existing loans and the removal of the existing
                                         mortgages and for the purpose of paying the closing costs; (2) register the mortgages
                                         to secure the Bonds (Series B) in favor of the Trustee; (3) issue insurance policies
                                         to the Trustee in the full amount (100%) of the issuance consideration for the losses
                                         that may be incurred as a result of the registration of the mortgages on the properties
                                         that is not a first lien and preferable to any other lien subject to the exceptions that
                                         are acceptable in such policies. The amount of the insurance cover shall be a nominal
                                         amount in dollars equal to the full Issuance Consideration (including the amount of the
                                         early commitment to institutional investors) according to the rate at which the proceeds
                                         of the issue were converted into dollars. It is clarified that in the event of a change
                                         in the exchange rate, the consideration received in dollars for the realization of the
                                         policy may be lower than the shekel value of the issue proceeds. The amount of the policy
                                         will not bear interest (“Rights Insurance Policy”)6; and
                                         (4) transfer the balance of the proceeds (if any) of the issue to the Company as described
                                         in subsection 6.2.4 below (“Finalizing”).

 

It
is noted that the insurance company will register the mortgages to secure the Bonds (Series B) immediately after the transfer
of the Bonds proceeds for repayment of the existing loans and for removing the existing mortgages concurrently with the issuance
of a rights insurance policy to the Trustee. The insurance Company will bear the fill risk deriving from the time gap, to the
extent that there is a gap as aforesaid between the transfer of the proceeds of the net issuance consideration for the purpose
of redeeming the existing mortgages and the registration of the mortgages under this Deed.

 

 

6 For an accepted wording of an
insurance policy refer to Loan Policy from 6.6.2017, available at the address:https://www.alta.org/policy-forms/. The
Company expects the insurance policy which will be signed to be significantly similar to the said accepted wording.

 

    	 	45	 

    	 

    

 

		F.	Finalizing
                                         the closing is subject to obtaining the opinion of the American lawyer. In this opinion,
                                         it will be determined, among other things, that subject to the assumptions and qualifications
                                         mentioned in the opinion: (1) The property companies were established lawfully, exist
                                         legally and are legally owned, directly or indirectly, by the Company; (2) the mortgages
                                         on the assets that will be pledged to secure the Bonds (Series B), were approved, duly
                                         signed and delivered; (3) the mortgages are legal, valid, enforceable and exercisable
                                         vis-à-vis the Property Companies and any other creditor of the property company;
                                         and (4) the exceptions included in the insurance policies of the Trustee are of the type
                                         that are issued to US commercial mortgage lenders.

 

It
is clarified that the opinion of the American Attorney will not include an opinion regarding property owned by any person or entity
or regarding the priority of any lien, and in these matters, the trustee will rely on the Trustee’s insurance policies.

 

Within
45 days from the closing date, the Company will provide the Trustee with confirmation from the American Attorney (in supplementation
to the opinion above) based on which all of the approvals required have been received in order to finalize the securities for
the Trustee. It is clarified that in this regard, the American Attorney can rely on the confirmation from the Insurance Company.

 

		G.	It
                                         is hereby clarified that on the maturity date of the last payment in respect of the principal
                                         and interest of the Bonds (Series B) and subject to full repayment, or settlement of
                                         the unpaid balance of the Secured Amounts in any manner (including by way of self-purchase
                                         and/or early redemption), the mortgages detailed in this section will be deemed void,
                                         without the need to take further action, and the Trustee shall sign any document required
                                         for the purpose of canceling the mortgage.

 

The
Company undertakes to sign any document required for the creation and registration of the mortgage in accordance with the Deed
of Trust.

 

    	 	46	 

    	 

    

 

		6.2.4.	Transfer
                                         of the Issuance Consideration to the Company

 

		(A)	As
                                         stated in Section 6.2.3 above, the net consideration from the issuance that is received
                                         by the issuance coordinator on account of the issuance of the Bonds (Series B), (following
                                         the withholding of prior undertaking fees to classified investors) (above and hereinafter:
                                         the “Net Issuance Consideration”) shall be transferred by the issuance
                                         coordinator, along with its proceeds, to the Trust Account, until the transfer of the
                                         sum to the Trust account of the Rights Insurance Company as described in Section 6.2.3
                                         above.

 

It
is clarified in this regarding that in reality, an amount equal to the amount of the issuance expenses in accordance with the
calculation provided by the Company to the Trustee may remain in the Trust Account and/or with the issuance coordinator in trust
for the Trustee and the Bondholders, and will be paid by the Company on account of the issuance expenses only on the completion
of the closing date.

 

Without
derogating from the provisions of 35H(1) of the Law, the Company sees the receipt of the consideration from the issuance by the
issuance coordinator as the receipt of the consideration by the Company, and, in light of this, shall request the listing of the
Bonds (Series B) for trade on the Stock Exchange.

 

		(B)	At
                                         the end of the closing proceeding, the remaining consideration from the issuance (as
                                         stated in paragraph C below) shall be transferred to the Company, upon the Company’s
                                         written demand, which shall also specify the account details for the transfer.

 

    	 	47	 

    	 

    

 

		(C)	The
                                         Trustee will rely on the opinion of the Company’s attorneys’ in the United
                                         States, as detailed in Sections 6.2.2 and 6.2.3 above (the “Confirmation of
                                         the U.S. Legal Counsels”) and shall not be required to investigate their validity
                                         and/or accuracy. Furthermore, within two (2) business days following the removal of the
                                         Existing Mortgages, as stated above, and following the creation and registration of the
                                         New Mortgages and the service of all documents specified in Sections 6.2.2 and 6.2.3
                                         above to the Trustee, including the Certificates of the Attorneys in the United States,
                                         the Trustee shall transfer the Company the balance of funds remaining in the Trust Account,
                                         along with their proceeds, less the account opening, management and closing expenses
                                         and additional fees paid to third parties, if and to the extent that there are such,
                                         and less the Interest Cushion Amount and the Expenses Amount.

 

		(D)	It
                                         is agreed that as long as the terms of release of the balance of the consideration from
                                         the issuance to the Company have not been fulfilled, according to the closing agreement
                                         described in Section 6.2.3 above, the Company shall not be entitled to any sum from the
                                         consideration for the issuance whose terms of release have not been fulfilled.

 

		(E)	The
                                         Company undertakes to do all under its control that the closing proceeding as described
                                         in Section 6.2.3 above will be fulfilled within a period of ninety (90) days of the date
                                         of the issuance of the Bonds (Series B). The Trustee will be permitted to extend such
                                         period in his sole discretion by an additional 30-day period. The general meeting of
                                         the Bondholders may approve an extension of said period by a special resolution adopted
                                         in the meeting of the Bondholders (Series B) (said 90-day period, or 120 days in the
                                         case where the Trustee provides an extension - combined with any extension approved,
                                         as stated, to the extent that such are approved, shall hereinafter be termed: the “Interim
                                         Period”).

 

    	 	48	 

    	 

    

 

To
the extent that the closing proceeding has not been completed as described in Section 6.2.3 above by the conclusion of the Interim
Period, regarding the assets whose Loan to Collateral Ratio does not exceed 65%, the Company shall work to perform a full early
repayment and erase the Bonds from being listed for trade in accordance with the directives of the Israel Securities Authority,
the provisions of the bylaws and guidelines of the Stock Exchange, and the bylaws of the Clearing House of the Stock Exchange
as they will be at the relevant date, (the “Forced Early Repayment”). One business day following the conclusion
of the Interim Period, the Company shall publish an immediate report, with a copy dispatched to the Trustee, giving notice of
the execution of the Forced Early Repayment and its date. The date of the Forced Early Repayment shall not be less than seventeen
(17) days, and not more than forty-five (45) days, following the Company’s report concerning the Forced Early Repayment
to the Bondholders. In said immediate report, the Company shall publicize the sum of the principal to be repaid in the Forced
Early Repayment, as well as the accumulated interest on account of the principal sum up until the date of the Forced Early Repayment
and the provisions of the rules and guidelines of the TASE shall apply.

 

In
the case of Forced Early Repayment, the amount paid to the Bondholders (Series B) will amount to the principal of the Bonds (Series
B) combined with annual interest according to the interest rate for the Bonds (Series B) accrued from the date of the tender and
until the actual date of the Forced Early Repayment, with taxes lawfully withheld. For the purposes of executing the Forced Early
Repayment under this Section 6.2.4.(E), will be made, inter alia, of the funds remaining in the Trust Account that are
provided by the Trustee directly from the Trust Account to the nominee company, less the costs of opening, managing and closing
the Trust Account and additional fees paid to third parties, should any such exist. The Company shall supplement any sum required
for the purposes of executing said Forced Early Repayment.

 

    	 	49	 

    	 

    

 

		6.3.	The
                                         Collateral Value of the Pledged Assets

 

		6.3.1.	In
                                         the same cases in which it is necessary under the provisions of this Deed to examine
                                         the Collateral Value of the Pledged Assets (i.e., on the release of the issuance consideration
                                         from the Trust Account as set forth in Section 6.2 above, upon publication of any financial
                                         statement, upon the expansion of the series of the Bonds (Series B) as stated in Section
                                         6.8 below, upon the sale of pledged assets as stated in Section 6.6 below, upon the refinancing
                                         for asset/s from the pledged assets, as stated in Section 6.7 below, the following rules
                                         shall apply:

 

		a.	The
                                         Collateral Value of the pledged assets will be equal to the value of the aforesaid assets
                                         based on a valuation (or the purchase price of the purchased asset as set forth below)
                                         in accordance with the terms set forth in Section 6.3.2 below;

 

		b.	The
                                         Collateral Value of the Financial Securities (if any) will be equal to the amount of
                                         the financial deposits to the value of the relevant Exchange and if the security is not
                                         marketable, then the undertaking price of the securities or lenders, as applicable, including
                                         profits accrued thereon, if any;

 

		c.	The
                                         Collateral Value of the bank guarantees (if any) will be equal to the amount of the bank
                                         guarantees under their terms;

 

		6.3.2.	The
                                         value of any pledged real estate asset will be determined based on a valuation of the
                                         aforesaid real estate asset (excluding in cases in which no valuation is performed as
                                         set forth in Section 6.3.2 below), which will meet all of the following conditions:

 

		a.	The
                                         valuation will be performed by an independent assessor that is selected by the Company,
                                         provided that he has experience in the performance of real estate assessments for public
                                         companies in accordance with the requirements of the Securities Law and its regulations,
                                         and his identity will be agreed upon by the Trustee in advance and in writing. Without
                                         derogating from the generality of the above, it is agreed that the assessor: Cushman
                                         & Wakefield and CBRE are accepted and agreed upon by the Trustee. It is clarified
                                         that by consenting to the identity of the Assessor, the Trustee completely relies on
                                         the representations of the Company and its confirmations regarding the experience of
                                         the assessor and the assessor being independent, and the Trustee will not be subject
                                         to a requirement to examine additional matters beyond the same.

 

    	 	50	 

    	 

    

 

		b.	The
                                         date of signing the valuation will be at most 12 months before the date of examining
                                         the value of a shorter period if an update is required to the valuation under the provisions
                                         of any law (including accepted accounting standards that are adopted by the Company on
                                         the basis of which its financial statements are prepared). It is clarified that in any
                                         case, the valuation will be performed for pledged assets at least once per year.

 

		c.	The
                                         valuation of income-generating real estate assets that are provided as a security under
                                         this Deed will be performed on the basis of the method based on which the valuation is
                                         performed by the Company of the pledged assets. The valuation of other real estate assets
                                         that are provided as a security under the Trust Deed will be performed based on an accepted
                                         appraisal method, as determined by the assessor at its professional discretion. In the
                                         valuation as stated, reductions of value will not be taken into account, including but
                                         not limited to reductions of value for the need for a rapid exercise and for tax matters.
                                         The type of method based on which the valuation will be performed will be listed in the
                                         valuation.

 

For
the avoidance of doubt, it is clarified that a valuation that was used for the audited or reviewed relevant financial statements
of the Company will also be used for the purpose of this Deed, provided that it has met all of the conditions set forth in this
Section 6.3.2 above.

 

Notwithstanding
the provisions of this Section 6.3.2 above, in the event that no valuation is performed for an asset purchased by the Company
during the period of up to eight months before the examination date (the “Purchased Asset”), the value of the
Purchased Asset for the examination of the value based on this Section 6.3.2 will be the purchase amount paid by the Company for
the Purchased Asset, and the Company will not be required to perform a valuation for the Purchased Asset in order to examine its
asset under this section.

 

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		6.3.3.	On
                                         each date on which the Company is required to examine its collateral value (as stated
                                         in Section 6.3.1 above), the Company will provide the Trustee with confirmation by the
                                         senior officer in the Company’s financial department or the CEO of the Company,
                                         to which a calculation will be attached, all in the form to the satisfaction of the Trustee,
                                         regarding the Collateral Value of all of the Pledged Assets. It is clarified that for
                                         the purpose of the calculation of the Collateral Value as stated in this Section 6.3
                                         above, the valuation will be taken into account that was used for the audited or reviewed
                                         relevant financial statements of the Company, provided that it has met all of the conditions
                                         set forth in this Section 6.3 above. The Trustee may rely on the approval transferred
                                         thereto and will not examine the accuracy of the above or its attachments.

 

		6.4.	Additional
                                         terms in connection with the Pledged Assets

 

It
is agreed that regarding the Pledged Assets, the following conditions will be fulfilled, as follows:

 

		6.4.1.	Subject
                                         to the pledge documents of the Pledged Assets, the Company and/or any of the Asset Companies
                                         may perform any action (legal or otherwise) in the Pledged Assets as stated, without
                                         requiring any consent from the Trustee or Bondholders (the “Permitted
                                         Actions”),
                                         including the following:

 

		a.	Betterment
                                         actions, planning, construction (including use of the rights existing as of the date
                                         of the Deed of Trust or use of rights which do not exist as of the date of the Deed of
                                         Trust), and all that is entailed in the performance of such actions, including the issuance
                                         of construction permits, performance of payments, providing undertakings to the authorities
                                         and any action required and accepted in the performance of the actions set forth above
                                         (it is clarified that actions as stated in this subsection A may temporarily impair income
                                         from the Pledged Assets);

 

		b.	Lease
                                         (which does not prevent and/or limit the recording of the pledge on the Pledged Asset
                                         and/or its exercise and/or require receipt of any consent and/or approval from the same
                                         lessees in connection with the creation of the pledge and/or its exercise, including
                                         the transfer of the rights therein to a purchaser in an exercise proceeding) for a period
                                         and/or periods at the sole discretion of the Company and/or authority to use and/or right
                                         to hold for defined periods;

 

    	 	52	 

    	 

    

 

		c.	The
                                         replacement of a pledged real estate asset under the provisions of the Deed of Trust
                                         (against providing another security in accordance with the provisions of Section 6.5
                                         below);

 

		d.	Any
                                         action for registration and arrangement regarding the pledged real estate assets.

 

Upon
the completion of the performance of the aforesaid actions, the pledge agreements and/or mortgage deeds will be adjusted in a
manner reflecting the aforesaid changes.

 

		e.	Entering
                                         into cooperation agreements with holders of rights in adjacent real estate (the “Cooperation
                                         Agreement”)
                                         provided that the same Cooperation Agreement (1) does not reduce from the economic value
                                         of the Pledged Rights in accordance with the valuation provided to the Trustee; (2) the
                                         Cooperation Agreement does not delay the exercise of the real estate rights compared
                                         to the state prior to the Cooperation Agreement; (3) no consent is required from the
                                         other party of the Cooperation Agreement to the pledge or its realization, and the other
                                         party is not granted initial rights in the land vis-a-vis the Trustee.

 

		f.	Signing
                                         any document and/or deed and/or agreement and/or undertaking in connection with the actions
                                         set forth above and the performance of any registration involved in the same actions.

 

All
- from time to time, during the ordinary business of the Company and/or Asset Company, as applicable, regarding the Pledged Assets,
in whole or in part, in a manner that does not harm the pledge recorded for the benefit of the Trustee and the Bondholders (Series
B) for the same Pledged Assets as stated and/or the ability to exercise the same.

 

It
is clarified that taking an action that is not expressly stated above as a Permitted Action will be possible provided that the
Company provides the Trustee, before the action is taken, with an opinion by an external attorney whereby the aforesaid action
does not harm the pledge recorded for the benefit of the Trustee for the Bondholders, for the Pledged Assets as stated.

 

    	 	53	 

    	 

    

 

Without
derogating from the above, the Trustee hereby undertakes that in any case in which the Company so requests, and subject to the
provision of the approvals and references required thereby (including an attorney opinion), it will provide (within five business
days from the date of the request) a letter directed to the Company that includes the Trustee’s consent to the execution
of any of the Permitted Actions as stated above, and will sign and provide the required document to any authority in the form
accepted by the same authority for the execution of any of the Permitted Actions as stated above.

 

		6.4.2.	The
                                         pledge for the benefit of the Trustee for the Bondholders on the Pledged Assets will
                                         not apply regarding property and/or any equipment and/or facility existing in the pledged
                                         asset which is not connected permanently - whether owned by the Company and/or any third
                                         party, including a lessee of a unit or area of a Pledged Asset and/or supplier of the
                                         Company and/or connected permanently in accordance with the relevant lease agreement,
                                         the lessee may dismantle them at the end of the term of the lease (all of the above will
                                         be hereinafter: “Movable
                                         Property”).
                                         The Company undertakes that if there is Movable Property in any of the Pledged Assets
                                         that is owned by the Company, the Movable Property will not be taken into account in
                                         the determination of the value of the Pledged Asset. If the Trustee is so requested by
                                         the Company, it will sign a letter vis-a-vis the Company whereby the pledge and lien
                                         for its benefit does not apply regarding the Movable Property.

 

		6.4.3.	The
                                         Trustee is aware that the recipient of the rights upon exercise of the pledge and/or
                                         mortgage by the Trustee will replace the Company with regard to its rights and obligations
                                         vis-a-vis renters of areas in the Pledged Assets, and for the same purpose, the recipient
                                         of the rights undertakes to sign any approval required.

 

		6.4.4.	With
                                         regard to profits of a Pledged Asset, the Company and/or a property company may receive
                                         them, transfer them to any third party at their discretion, make changes in conditions
                                         for their receipt, and perform any action with the same, without requiring any approval
                                         of the Trustee, until the exercise date of the Pledged Asset, if exercised, subject to
                                         subsection (b) below.

 

    	 	54	 

    	 

    

 

Without
derogating from the generality of the above, it is clarified that until the exercise date of the Pledged Asset: (a) the pledge
will apply, as of the date of its creation, both to the Pledged Asset and the profits, but not to Movable Property; (b) the Company
and/or a pledged subsidiary will not be subject to any limitation in connection with the profits and they may use them as they
wish. However, it is agreed that the Company and/or the Asset Company may not pledge or lien or assign their rights in properties
to any third party and not to provide any third party, regarding the same, with any right – directly or indirectly; (c)
the Company and/or Asset Company will not be subject to any limitation regarding engaging with third parties based on which there
is a right for profits, including to change the agreements therewith, terminate them, the engagement in other agreements with
the same third parties or with other third parties, subject to Section 6.4.1c above, provided that the aforesaid agreements do
not harm the rights of the holders based on the pledge documents of the pledged assets; (d) the Company and/or Asset Company will
not have any obligation to notify the lessees or any third party of a pledge of an asset under the Deed of Trust; (e) as of the
exercise date of the Pledged Asset, the aforesaid waivers in subsections (b) to (d) in this paragraph above shall not apply such
that, inter alia, the profits will be used for payment of the secured amounts.

 

For
the purpose of this section, “exercise the pledged asset” - will be considered to be the date on which a decision
is made, in accordance with the provisions of the Deed of Trust, by the Trustee and/or Bondholders to call the Bonds (Series B)
for immediate repayment and/or to exercise securities and on the date on which there are grounds to call for immediate repayment
as set forth in section 8.1.14 below (non-compliance with financial obligations for two consecutive quarters).

 

		6.4.5.	This
                                         Deed does not create, and will not be interpreted as creating, any limitation on making
                                         changes in the holdings of the Company in any subsidiary and/or other asset company that
                                         provides securities under this Deed (including the sale of all or part of its shares
                                         in any other asset company), provided that the aforesaid change does not harm the security
                                         provided for the Bondholder (Series B) and the rights of the Bondholders (Series B) in
                                         connection with the aforesaid security.

 

    	 	55	 

    	 

    

 

		6.4.6.	On
                                         the payment date of the last payment for the principal and interest for the Bonds (Series
                                         B) and subject to the full payment or clearance of the unpaid balance of the Bonds (Series
                                         B) in any manner (including by way of a buyback and/or early repayment), the pledges
                                         set forth in this Section 6 will expire and be considered to be void, without requiring
                                         additional actions, and the Trustee will sign any document required for the termination
                                         of the various pledges and the Trustee will provide, on the same day, the Company with
                                         the funds deposited in the Trust Account and the profits thereon (if there are such funds),
                                         less the fees required for managing the account and less the fees of the Trustee and
                                         its expenses, including in connection with the Trust Account. The Trustee will sign documents
                                         as stated only after being provided with signed confirmation by the CEO of the Company
                                         or the senior officer in the financial department regarding payment of the entire unpaid
                                         balance of the Bonds.

 

		6.4.7.	Excluding
                                         in a case of the expansion of Series B of the Bonds, the Company will not be required
                                         to provide additional securities and may release securities (other than within the replacement
                                         of securities in accordance with and subject to Section 6.5 below and/or the sale of
                                         Pledged Assets in accordance with and subject to Section 6.6 below and/or refinancing
                                         for the Pledged Assets, as stated in Section 6.7 below) as a result of a change in the
                                         value of any Pledged Asset (including in the case in which based on new and/or updated
                                         valuations of a pledged real estate asset there is an increase or decrease in value).
                                         For the avoidance of doubt, it is clarified that the terms of this Section 6.4.8 will
                                         not derogate from the provisions of this Deed regarding the examination of the Collateral
                                         Value of the Pledged Assets in cases in which such an examination is necessary under
                                         the Deed.

 

    	 	56	 

    	 

    

 

		6.4.8.	In
                                         any case in which this Deed of Trust refers to a security by way of financial deposit,
                                         the Company may provide, instead of the financial deposit or part thereof, a bank guarantee
                                         and/or government securities of the State of Israel and/or short term loans of Bank of
                                         Israel and the provisions of this Deed shall also apply to the Bank Guarantees, securities,
                                         or lenders as stated, mutatis mutandis.

 

		6.4.9.	The
                                         Company and the Asset Company may pledge its property that is not pledged at the time
                                         to the Trustee for the Bondholders or for which there is no undertaking to pledge it
                                         for the Trustee for the Bondholders, in whole or in part, with any pledge and in any
                                         manner, for the benefit of any third party, without any consent from the Trustee or the
                                         Bondholders (Series B). However, it shall be clarified that the Company and/or Asset
                                         Company may not pledge to a third party assets that are actually pledged at the time
                                         for the Trustee, for the Bondholders (Series B).

 

		6.4.10.	In
                                         its engagement in this Deed of Trust, and with the consent of the Trustee to serve as
                                         a trustee for the Bondholders, the Trustee does not express an option, explicitly or
                                         implicitly, as to the Company’s ability to meet its obligations vis-a-vis the Bondholders
                                         (Series B) under this Deed of Trust.

 

		6.4.11.	The
                                         Trustee will have the authority to agree to any change in the terms of the pledge agreements,
                                         under the same terms with which the Trustee may agree to changes in the Deed of Trust,
                                         as set forth in Section 28 below, mutatis mutandis.

 

		6.4.12.	The
                                         Trustee may rely on any approval and/or document provided thereto that appears to be
                                         duly signed by the Company, and is not required to examine, and in reality has not actually
                                         examined the accuracy and precision of its content, and will not verify the said signatures.
                                         In the event that the Trustee relied on any such approval and/or document and acted or
                                         failed to act following the same, no claim will be made against him regarding reliability
                                         of the approval and/or any document.

 

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		6.4.13.	Until
                                         the date on which grounds are established to call the Bonds for immediate repayment and/or
                                         exercise securities, the Company may, at any time, at its sole discretion, make use of
                                         the funds deposited in the Trust Account, including their profits, for payment of principal
                                         and/or interest of the Bonds (Series B) only, including by way of early repayment (full
                                         or partial, at the Company’s discretion) provided that after payment of the principal
                                         and/or interest as stated, the Loan to Collateral Ratio does not exceed 65% after the
                                         payment as stated, and the Trustee will be required to sign any document and/or approval
                                         required or beneficial for execution of the payment.

 

		6.5.	Replacement
                                         of the Pledged Assets

 

The
Company may, in cases as stated in Sections 6.6 and 6.7 below only, replace the Pledged Assets or any of them, as they may be
from time to time (the “Replaced Asset”) with a pledge, mortgage or lien, first-ranking and single (excluding
with respect to assets that are financial securities, for which the terms of Section 6.5.2 below will apply),of any of the assets
permitted to be pledged as collateral, of one kind or a number of kinds, and any combination of the same, all - at the Company’s
discretion (the “Replacing Asset”), provided that the Company has confirmed to the Trustee on the replacement
date that there are no grounds to call for immediate repayment and/or exercise securities and that all of the conditions set forth
in section 6.5.1 or 6.5.2 below, as applicable:

 

		6.5.1.	In
                                         the event that the replaced asset is a “pledged real estate asset,” (as defined
                                         in the definition of the “assets permitted to be pledged as a security”):

 

		a.	Resolution
                                         of Meetings of the Bondholders - 

 

		(1)
                                         The consent of the Bondholders (Series B) is received in advance in a meeting of
                                         the Bondholders (Series B), in a special resolution as defined above. For the avoidance
                                         of doubt, upon the replacement of the Replaced Asset in accordance with this subsection
                                         (1), the terms of subsection (b) below will apply.

 

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		(2)
                                         Alternatively, and notwithstanding the terms of subsection (1) above and the conditions
                                         listed therein, the Company may, at its sole discretion, replace the replaced asset with
                                         a pledged real estate asset (as set forth above), without being required to receive approval
                                         of a meeting of the Bondholders (Series B), and provided that the Loan to Collateral
                                         Ratio of all of the pledged assets at the time (less the replaced asset and after the
                                         addition of the replacing asset) does not exceed 65% and that the characteristics of
                                         the replacing asset are similar to or better than the replaced asset, in accordance with
                                         approval of the Company’s board of directors,7 after examining the replacing
                                         asset and determining that the same is met (in this case, it is clarified that the board
                                         of directors may examine the level of risk and characteristics of the asset when combined
                                         and determine that in light of the weighted result, this is replacement that is not detrimental
                                         to the Bondholders), and that the Company will provide information about the replacing
                                         asset similar to data provided about the replaced and replacing asset as set forth in
                                         subsection (4) below. According to the Company, the mechanism set forth in this section
                                         above has been determined to be the mechanism under Section 35g1 of the Securities Law.
                                         For the avoidance of doubt, it is clarified that upon the replacement of the Replaced
                                         Asset in accordance with this subsection (2), the terms of subsection (b) below will
                                         apply.

 

 

7 Provided
that in the resolution of the board of directors of approval as stated, at least two of the three independent directors
voted for the resolution.

 

    	 	59	 

    	 

    

 

		For
                                         the avoidance of doubt, it is clarified that a pledge of the assets in accordance with
                                         subsections (1) to (2) above will be on all of the rights of the Asset Company in the
                                         replacing asset, including its rights to profits from the same asset and the insurance
                                         receipts for the same asset in accordance with the provisions of this Deed. A pledge
                                         as stated will be made in accordance with the terms set forth in Section 6.2 above, mutatis
                                         mutandis.

 

		(3)
                                         In cases as stated in sections (1)-(2) above, the replacement will be approved by the
                                         Company’s board of directors, and the Company will provide information regarding
                                         the Replacing Asset that is similar to the data provided regarding the pledged Replaced
                                         Asset, within an immediate report published by the Company at least 14 days before the
                                         actual execution of the replacement, including, inter alia, the nature of the legal rights
                                         of the Company that holds the rights in the Replacing Asset and the value of the Replacing
                                         Asset, as required with respect to a material asset, and will attach updated valuations
                                         in accordance with Section 6.3.1a above. It is clarified that assets pledged in cases
                                         as stated above will be fully held by the Company (directly or indirectly).

 

		b.	The
                                         collateral value of the replacing asset- In the case of a pledge of the replacing
                                         asset for the Bondholders (Series B), the Collateral Value of the replacing asset will
                                         be determined in accordance with the rules and as set forth in Section 6.3 above.

 

The
Company will provide the Trustee with confirmation regarding its compliance with the undertakings in this Section B in accordance
with the provisions of Section 6.3.3 above.

 

		6.5.2.	In
                                         the event that the Replacing Asset is any of the assets permitted to be pledged as a
                                         security, that is not a “pledged real estate asset” (meaning, financial
                                         securities, bank guarantees) - notwithstanding the provisions of this Section 6.5
                                         above, the Company may replace the Replaced Asset without requiring approval of the Trustee
                                         and/or Bondholders and without being required to meet the terms of Section a above, provided
                                         that: (1) the Company published an immediate report regarding its intent to perform replacement
                                         as stated at least 14 days before the actual performance of the replacement, (2) the
                                         Loan to Collateral Ratio of all of the Pledged Assets at the time (less the replaced
                                         asset and after the addition of the replacing asset) as set forth in Section 6.3 above
                                         will not exceed 65%; and (3) the Replacing Asset will be deposited in the Trust Account,
                                         and with regard to this Bank Guarantee, will be entrusted with the Trustee, together
                                         with release of the Pledged Asset.

 

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		6.5.3.	Regarding
                                         the replacement of a pledged real estate asset with a financial security as stated, it
                                         is clarified that the Company will announce in advance - before the actual performance
                                         of the replacement, if the financial security meets is provided by the final payment
                                         date of the Bonds. If not, it will provide the period of time expected in which the financial
                                         security will be provided as collateral for the Bondholders, which is reasonable under
                                         the circumstances, following which an alternative asset will be provided as security,
                                         which will be of the same kind as the pledged real estate asset, and will specify the
                                         pledged real estate asset that the Company intends to pledge (instead of the financial
                                         security). Disclosure will also be provided regarding the same asset in accordance with
                                         the provisions of the law and the guidelines of the Securities Authority, as they may
                                         be on the relevant date. In the event that the Company announces that a financial security
                                         will be provided by the final payment date of the Bonds, the Company may not replace
                                         the financial security with a pledged real estate asset.

 

		6.5.4.	The
                                         Replacing Asset will be considered to be the Replaced Asset, as if the Replaced Asset
                                         was included at the outset in the provisions of the Deed of Trust (including in the definition
                                         of the “Mortgaged Assets”), including the Company’s right to
                                         replace it against from time to time in accordance with the above.

 

		6.5.5.	The
                                         Trustee will be required to sign, within a reasonable time, any document or confirmation
                                         that is required or beneficial for the execution of the replacement, provided that all
                                         of the conditions set forth in this Section 6.5 above are met, including for the purpose
                                         of the removal of the pledge on the Replaced Asset, and after the Company has completed
                                         the pledge proceedings of the Replacing Asset, to the satisfaction of the Trustee, and
                                         presented the Trustee with all of the documents set forth in Section 6.5 of the Deed
                                         in connection with the pledge of the Replacing Asset, and any other reasonable document
                                         required at the reasonable discretion of the Trustee for the creation and/or registration
                                         of the Replacing Asset.

 

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		6.6.	Sale
                                         of Pledged Assets

 

As
long as one or more of the grounds for immediate repayment set forth in Sections 8.1.1 to 8.1.33 below is met, the Company or
any Asset Company (subject to receipt of approval of its competent organs) may sell to third parties the Pledged Assets (as they
may be from time to time), in whole or in part, without the consent of the Trustee and/or a meeting of the Bondholders (Series
B), provided that it acts as follows:

 

		6.6.1.	Upon
                                         signing the sale agreement, the Company will provide the Trustee with confirmation of
                                         an officer whereby one or more of the grounds for immediate repayment set forth in Sections
                                         8.1.1 to 8.1.33 below are not met.

 

		6.6.2.	The
                                         net proceeds from the sale of the pledged property, namely, after deducting the tax,
                                         up to the total equal to the balance of the secured amounts as they will be 7 business
                                         days prior to the date of the transfer of the pledged property to the purchaser under
                                         the Sale Agreement (“Pre-Transfer Date”) less the Collateral Value
                                         of the additional pledged assets provided for the Bondholders (Series B) as they are
                                         on the Pre-Transfer Date (the “Sale Consideration”) will be deposited
                                         in the trust account, all provided that after the deposit of the Sale Consideration as
                                         stated, the Loan to Collateral Ratio of the Pledged Assets together with the Sale Consideration
                                         will not exceed 65%. The Company undertakes to ensure that the sale agreement includes
                                         an irrevocable order according to which the consideration for the sale as defined above
                                         will be deposited directly in the Trust account and that it will enforce the implementation
                                         of this provision.

 

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		6.6.3.	Prior
                                         to transferring the sale proceeds to the trust account, the Company shall provide the
                                         Trustee with a calculation signed by a senior officer in the Company’s finance
                                         or by the CEO of the Company in connection with the consideration expected to be received
                                         in the sale transaction, the tax amount, the expenses involved in the transaction, the
                                         Collateral Value of all of the Pledged Assets remaining after the sale, the balance of
                                         the secured amounts as well as reference documents (including a copy true to the original
                                         of the sale contract) and any other related certificate or document demanded reasonably
                                         by the Trustee. It is hereby clarified that the Company will be entitled to use the proceeds
                                         of the sale to be deposited in the trust account as aforesaid, in accordance with the
                                         provisions of Section 6.4.15 above.

 

		6.6.4.	Subject
                                         to the Company’s compliance with the terms and undertakings as stated in Section
                                         6.6.1 above, for the performance of the sale as stated, and after receipt of all of the
                                         above in Section 6.6.3 to the satisfaction of the Trustee, the Trustee will be required
                                         to sign any document and / or confirmation that will be necessary or useful for the sale
                                         of the pledged asset as aforesaid, including a letter of undertaking according to which
                                         he will agree to remove the pledge registered in his favor in respect of that pledged
                                         asset that was sold against it and on the date of transferring the sale proceeds to the
                                         trust account as set forth in Section 6.6.12 above.

 

		6.6.5.	For
                                         the avoidance of doubt, it is clarified that the Company may, at any time, at its sole
                                         discretion, replace the Sale Consideration with an alternative asset in accordance with
                                         the provisions of Section 6.5 above.

 

		6.6.6.	It
                                         is clarified that the provisions of this Section 6.6 above will apply only in the case
                                         in which the Pledged Assets or any of them are sold, and the Company did not, at the
                                         time, provide one security in their place as stated in Section 6.5 above.

 

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		6.7.	Refinancing
                                         of Mortgaged Assets

 

As
long as one or more of the grounds for immediate repayment set forth in Sections 8.1.1 to 8.1.33 below is met, the Company or
any Asset Company (subject to receipt of approval of its competent organs) may refinance any of the Pledged Asset/s (as they may
be from time to time), in whole or in part, without the consent of the Trustee and/or a meeting of the Bondholders (Series B),
provided that it acts as follows:

 

		6.7.1.	The
                                         consideration for the refinancing of the net pledged asset is less (performed before
                                         the transfer to the Trustee) tax, if applicable, up to the total equal to the balance
                                         of the secured amounts as they are seven business days before the receipt of the consideration
                                         under the refinancing agreement (the “Date Before Receipt of the Consideration”
                                         and the “Financing Agreement”), less the Collateral Value of the additional
                                         Pledged Assets provided for the benefit of the Bondholders (Series B) as they are on
                                         the date before receipt of the consideration (the “Consideration of the Financing
                                         Agreement”), will be deposited in a Trust Account - all provided that after
                                         the deposit of the consideration of the Financing Agreement as stated, the Loan to Collateral
                                         Ratio of the Pledged Assets together with the consideration of the Financing Agreement
                                         will not exceed 65%. The Company undertakes to ensure that the Financing Agreement will
                                         include an irrevocable provision whereby the consideration of the Financing Agreement
                                         as defined above will be deposited directly in the Trust Account and it will enforce
                                         the execution of this provision.

 

		6.7.2.	Before
                                         the transfer of the Consideration of the Financing Agreement to the Trust Account, the
                                         Company will provide the Trustee with a calculation signed by a senior officer in the
                                         Company’s financial department or the CEO in connection with the consideration
                                         expected to be received from the Financing Transaction, the tax amount, the expenses
                                         involved in the transaction, the Collateral Value of all of the Pledged Assets that remain
                                         after the refinancing, the balance of the secured amounts and references (including a
                                         true copy of the Financing Agreement) and any other relevant approval or document required
                                         reasonably by the Trustee. It is clarified that the Company may use the Consideration
                                         of the Financing Agreement deposited in the Trust Account as stated in accordance with
                                         the provisions of Section 6.4.12 above.

 

		6.7.3.	Subject
                                         to the Company’s compliance with the terms and obligations as stated in Section
                                         6.7.1 above, for the performance of refinancing as stated, and after receipt of all of
                                         the above in Section 6.7.2 above to the satisfaction of the Trustee, the Trustee will
                                         be required to sign any document and/or approval required or beneficial for the execution
                                         of the Company’s undertakings in accordance with the Financing Agreement as stated,
                                         including any undertaking whereby it agrees to clear the pledge registered for its benefit
                                         for the same Pledged Asset at the subject of the Financing Agreement against and upon
                                         the performance of a transfer of the Consideration in the Financing Agreement to the
                                         Trust Account as stated in Section 6.7.1 above.

 

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		6.7.4.	For
                                         the avoidance of doubt, it is clarified that the Company may, at any time and at its
                                         sole discretion, replace the Consideration of the Financing Account with an alternative
                                         asset in accordance with the provisions of Section 6.5 above.

 

		6.7.5.	It
                                         is clarified that the provisions of this Section 6.7 above will apply only in the case
                                         in which refinancing is performed for the Pledged Assets or any of them, and the Company
                                         did not, at the time, provide one security in their place as stated in Section 6.5 above.

 

		6.7.6.	It
                                         is further clarified that the actual performance of the refinancing may take place in
                                         accordance with the mechanism described in Section 6.2 above, and the Trustee undertakes
                                         to sign any documents required in order to enable the performance of the refinancing
                                         under this mechanism.

 

		6.8.	Expansion
                                         of the Series

 

The
Company may, at its discretion, expand the series of Bonds under Section 4.1 above. For the purpose of meeting the Loan to Collateral
Ratio after the expansion of the series, the Company may, if required, without requiring receipt of approval of the Trustee and/or
Bondholders (Series B) existing at the time, pledge any of the assets permitted to be pledged as collateral or any combination
thereof, provided that the Loan to Collateral Ratio of all of the Pledged Assets on the date of the expansion of the series does
not exceed 65% (including the additional bonds issued).

 

It
is clarified that in the event that on the expansion date of the series, the Company added other securities, it will be required
to provide the documents listed in Sections 6.2.2 and 6.2.3 above, to the Trustee, mutatis mutandis. For the purpose of the transfer
of the consideration to the Company, the provisions of Section 6.2.4 above shall apply, mutatis mutandis (for the avoidance of
doubt, if on the expansion date the Company is not required to add additional securities as stated, the issuance consideration
received by the issuance coordinator for the issue of the Bonds in full, and its profits, will be transferred to the account at
the instruction of the Company).

 

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		6.9.	Removing
                                         the Mortgages

 

After
the full and final repayment of the Bonds (Series B) (principal, interest and arrears, should any apply), the mortgages will be
removed and released automatically, and the Trustee will sign and provide the Company with any document that is required to remove
the Mortgages that should be in effect as of that date, within seven (7) days of the Trustee’s receipt of a signed certificate
from the Company’s CEO or CFO in respect of the repayment, as stated above, all in the form to the satisfaction of the Trustee.
In addition, the mortgages will be removed and released pursuant to the provisions of Sections 6.5 to 6.8 above. All the actions
required for the actual removal of the Mortgages shall be performed by the Company. The Trustee will sign any document required
for the termination of the mortgages.

 

		6.10.	Warranties
                                         and Undertakings in connection with the Mortgaged Assets

 

The
Company and the Property Companies declare and undertake as follows:

 

		6.10.1.	To
                                         make use of the power stemming from their holdings to cause the Property Companies to
                                         sign on any document required under the Deed of Trust.

 

		6.10.2.	The
                                         operating agreement of the Property Companies or any other agreement that the Property
                                         Companies are party to do not conflict with the provisions of this Deed.

 

		6.10.3.	To
                                         make use of the power stemming from their holdings to ensure that the Property Companies
                                         do not change their operating agreements or any other agreement they are engaged in any
                                         manner that applies limitations of any kind on the rights in the mortgaged assets, their
                                         transferability or exercise.

 

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		6.10.4.	Subject
                                         to the provisions of this Deed of Trust, to refrain from dispossessing the mortgaged
                                         asset, including not to pledge or lien the Mortgaged Assets and not affording any other
                                         person any right in respect of the Mortgaged Assets, as long as the secured sums have
                                         yet to be repaid, without first obtaining approval signed by the Trustee in advance after
                                         a Special Resolution has been adopted in the general meeting of the Bondholders on the
                                         subject. The foregoing does not derogate from the Company’s right to perform any
                                         action with the pledged assets in accordance with the provisions of Sections 6.5 to 6.8
                                         above.

 

		6.10.5.	Not
                                         to pledge or lien the Mortgaged Assets (including profits arising therefrom) or any part
                                         thereof for the benefit of any third party in any manner.

 

		6.10.6.	Subject
                                         to the provisions of the Deed of Trust, as long as the Mortgaged Assets are Mortgaged
                                         to insure the insured amounts, not to sell, transfer or assign and/or grant to any entity,
                                         the pledged assets or any part thereof.

 

		6.10.7.	To
                                         do, and to instruct the Bond Portfolio Corporation, at the Company’s expense or
                                         at their expense, as applicable, all that is required under the circumstances to ensure
                                         that the power of the Mortgage over the mortgaged assets for securing the Secured Amounts
                                         shall be effective against third parties, including other creditors present or future
                                         of the Company, and the Bond Portfolio Corporation, and supersede the rights of these
                                         in all matters concerning the Mortgages.

 

		6.10.8.	Subject
                                         to the removal of the existing mortgages, the Property Companies may mortgage the Mortgaged
                                         Assets to the holders of the Bonds (Series B) and no approval of any kind is required
                                         for the creation of the mortgages.

 

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		6.10.9.	Subject
                                         to the removal of the exciting mortgages, on the date of the engagement in this Deed,
                                         there is no impediment of law, agreement or undertaking, including in the incorporating
                                         documents of the Company and the Property Companies, to the Company’s signing on
                                         this Deed of Trust and to any of the undertakings of the Company and the Property Companies
                                         thereunder, and that there is no limitation or stipulation on the creation of the mortgages
                                         specified in this Deed and on the undertakings of the Company and the Property Companies
                                         herein, and that Company’s and the Property Companies’ engagement in and
                                         signing on this Deed does not constitute a breach of any other undertaking of the Company
                                         or the Property Companies, and that the authorized organs of the Company and the Property
                                         Companies adopted lawful resolution in respect of the creation of the Mortgages, and
                                         that no consent is required from any other party for the creation of the Mortgages.

 

The
Company hereby undertakes to notify the Trustee immediately and in writing in the event that a change occurs as described in this
subsection.

 

		6.10.10.	Subject
                                         to the removal of the existing Mortgages, the Property Companies. rights in the Mortgaged
                                         Assets are free and clear of any debt, attachment, pledge or third party right of any
                                         kind, excluding rights, restrictions and current debts during the normal course of business,
                                         in immaterial amounts (such as invoices for service providers and taxes) applicable generally
                                         to properties of the type of properties of the Company in the United States (“Ongoing
                                         Restrictions”), there is no limitation or stipulation applicable by law or agreement
                                         on the transfer of ownership therein, or on their pledging and/or exercise and/or transfer
                                         of ownership therein at the time of their exercise.

 

		6.10.11.	On
                                         the signing date of this Deed, the Company and/or the Property Companies are not involved
                                         in liquidation and/or receivership proceedings (interim or permanent) and/or in a stay
                                         of proceedings (or any similar proceeding under the law applicable to the Company and/or
                                         to the Property Companies, nor threat of such a motion being filed or such proceedings
                                         undertaken, and to the best of their knowledge the Company and/or the Property Companies
                                         have not adopted a resolution to liquidate.

 

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		6.10.12.	Immediately
                                         upon the Company and/or the Property Companies becoming informed of such, the Company
                                         shall notify the Trustee in writing in the event of the imposition of an attachment,
                                         undertaking of any execution actions or filing of a motion to appoint a receiver and/or
                                         other court officer over any of the Mortgaged Assets and/or any part thereof (or any
                                         other similar proceeding under the law applicable to the Company and/or the Property
                                         Companies) (in this section: the “Proceedings”). Furthermore, once
                                         the Company and/or the Property Companies become aware of such, they shall immediately
                                         give notice of the existing Mortgages in favor of the Trustee to the authority that issued
                                         the attachment or undertook the execution action or that was petitioned to appoint such
                                         a receiver or other such court officer (or any similar proceeding under the law applicable
                                         to the Company and/or the Property Companies), and/or to the third party that initiated
                                         or petitioned these or any part of them, and shall immediately undertake, at the Company’s
                                         expense, all reasonable and required measures for the purpose of annulling the attachment,
                                         execution action or appointment of a receiver or special administrator, as applicable.
                                         The terms of this section M. above will not apply to Proceedings that are negligible
                                         and removed within 21 days from being implemented, or in case of Ongoing Restrictions
                                         (as defined above). For the purpose of this section, a negligible proceeding is a proceeding
                                         in an amount the higher of: (a) USD 100 thousand; or (b) an amount whose value does not
                                         exceed 1% of the value of the assets for which it was taken.

 

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		6.10.13.	For
                                         as long as the Bonds (Series B) remain in circulation, the Company undertakes that the
                                         Mortgaged Assets will be insured, as is customary in the insurance requirements of financial
                                         lenders. The Company undertakes to immediately notify the Trustee in writing in any event
                                         wherein it is informed of a change for the worse in the scope of the insurance coverage
                                         in respect of the Mortgaged Assets, or of the expiration of the insurance policy in respect
                                         of the total Mortgaged Assets, or in the event that it is informed by the insurer of
                                         the expiration or termination of the policy in respect of any of the Mortgaged Assets.

 

		6.10.14.	The
                                         Company and/or Property Companies have not received any notice of any claims with respect
                                         to the rights of the Property Companies in the mortgaged Assets. The Company hereby undertakes
                                         to notify the Trustee in writing in the case in which a change occurs to the terms of
                                         this subsection immediately upon being made aware of the same.

 

		6.10.15.	As
                                         long as the Bonds (Series B) remain in circulation, once per year, near the publication
                                         date of the Company’s annual financial statements, the Company will provide the
                                         Trustee with an opinion from the American Attorney whereby the mortgages for the Mortgaged
                                         Assets are legal, valid, exercisable, and enforceable.

 

		6.10.16.	The
                                         Company and/or the Property Companies are not aware of any defect in the rights of the
                                         Mortgaged Assets, and if a defect is discovered as stated, they will act to remedy the
                                         defect, immediately upon being made aware of the defect as stated. The Company and/or
                                         the Property Companies have not received any notice of any claims and/or legal proceedings
                                         with respect to the rights of the Property Companies in the Mortgaged Assets. The Company
                                         hereby undertakes to notify the Trustee in writing in the case in which a change occurs
                                         to the terms of this subsection immediately upon being made aware of the same.

 

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	 	6.11	Undertakings Not
    to Create Pledges

 

		6.2.1	The
                                         Company undertakes not to pledge any of its property under a general floating pledge
                                         without receiving the prior consent from the assembly of bondholders (Series B) in a
                                         Special Resolution, and the Company declares that as at the date of the signing of the
                                         Deed of Trust it did not create a general floating pledge as aforesaid. It should be
                                         emphasized that subject to the provisions of Section 6.2 above, the Company will be permitted
                                         to pledge its property, in whole or in part, under specific pledges (including a floating
                                         pledge on specific assets) without the need to obtain the consent of the assembly of
                                         bondholders; for the avoidance of doubt, it is hereby clarified that subject to the mortgages
                                         on the Ledged Assets as stated in Section 6,2 above, the subsidiaries of the Company
                                         (excluding the property companies) may pledge their assets, in whole or in part, in any
                                         lien (including floating lien) and in any manner, without obtaining the consent of the
                                         meeting of the Bondholders of the Bonds (Series B) and without requiring any collateral
                                         for Bondholders of Bond (Series B) against the creation of such pledge by them.

 

	 	6.2.2	The Company
    undertakes that the property companies will not be pledged (with a floating or fixed pledge), liened or assigned by way of
    pledge as collateral for a financial debt on its holdings in the assets held thereby, unless prior consent for the same is
    received from the meeting of the Bondholders (Series B). In the case of the addition of a corporation that is held by the
    Company that directly or indirectly holds a pledged asset, the holdings in the corporation as stated will be pledged for the
    benefit of the Trustee.

 

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	 	6.2.3	The Company shall provide the Trustee with an opinion
of an attorney who specializes in the relevant law applicable to the Company regarding the matter of there being no legal obligation
in the British Virgin Islands for the Company to register its undertaking that it will not create a floating general pledge as
described in Section 6.9.1 above (“Undertaking Not to Create Liens”) in any registry that operates under the
laws of the British Virgin Islands. The Company shall provide the Trustee, in the framework of each periodical financial statement,
a confirmation from the Company’s CEO or the most senior financial officer in the Company stating that the Company has not
created and has not undertaken to create a lien in contravention of the Undertaking Not to Create Liens in accordance with Section
6.9.1 above. In addition, the Company shall provide the Trustee on December 31 of every year, with a confirmation of an attorney
who specializes in the relevant law applicable to the Company stating that the Company did not register in its registry books
or in another registry that operates under the relevant law, a pledge in favor of anyone in contravention of the Undertaking Not
to Create Liens as described in Section 6.9.1 above. To the attorney’s confirmation will be attached documentary proof from
the relevant registry under the law applicable to the Company.

 

	 	6.2.4	Subject to the above stated in this Section 6.9 and
in the Deed of Trust, the Company and its subsidiaries (including the property companies) will be permitted to sell, to lease,
to assign, to give or to transfer, in any way their property, in whole or in part in any way, for the benefit of anyone that they
see fit, without the need for any consent of the Trustee and/or of the bondholders (Series B), as relevant. The Company and the
subsidiaries are not required to notify the Trustee of a transfer or sale of any asset of their assets except if what is involved
is a sale or a transfer of “Material Asset” according to the meaning of that term in Section 8.1 below, and in addition
they are not required to notify the Trustee regarding the creation of a pledge over their assets, except as described in Section
6.9 above.

 

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		6.3	Financial
                                         Undertakings

 

Until
the date of the full, final and precise repayment of the Bonds under the terms of Deed of Trust, and the fulfillment of the other
obligations of the Company vis-à-vis the Bondholders (Series B) under this Deed of Trust and the terms of the Bonds (Series
B), the Company will meet, at all times, the financial conditions set forth below:

 

		(1)	The
                                         consolidated equity of the Company (excluding minority rights) will not be less than
                                         USD 150 million (the “Equity Covenant” or the “Minimum Equity”).

 

		(2)	The
                                         adjusted net financial debt ratio to adjusted EBITDA (as these terms are defined below)
                                         shall not exceed 13 (the “Debt to EBITDA Ratio Covenant” or the “Maximum
                                         EBITDA to Debt Ratio”).

 

“Adjusted
Net Financial Debt” and “Adjusted EBITDA” – as defined in Section 5.3 above. It shall be clarified
that in the event of the purchase of one or more income-generating asset, the calculation of the financial covenants will be performed
while adding to the adjusted EBITDA of the adjusted EBITDA that is generated by the same asset, while amending the adjusted EBITDA
of the asset to the terms of a full year. 

 

		(3)	The
                                         consolidated equity of the Company (including minority rights) to the total consolidated
                                         balance sheet will not be less than 25%.

 

		(4)	The
                                         Loan to Collateral Ratio will not exceed 75% (the “Loan to Collateral Ratio
                                         Condition”).

 

The
examination regarding the Company’s compliance with the financial covenants contained in Subsection (1) through (4) above
will be performed on the date of the publication of the Financial Statements by the Company and on their basis and as long as
the Bonds (Series B) exist in circulation, with respect to the quarterly/annual financial statements that the Company is required
to publish by the same date (“Date of the Examination”).

 

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The
Company will specify in the framework of the board of director report and notes to the quarterly or annual financial statements
as relevant whether it has or has not complied with the financial covenants set forth in subsections (1) through (4) above, and
will state in the note to the financial statement as stated the relevant calculation regarding each of the financial covenants
set forth above. 

 

In
addition, within five business days from the publication of the relevant financial statements, the Company will transfer to the
Trustee confirmation of the senior officer in the Company’s financial department or the CEO of the Company regarding its
compliance or non-compliance with the financial conditions as stated, together with the relevant calculation.

 

If
the Company does not meet any of the financial undertakings in subsections (1) to (4) above, the Company shall report in writing
to the Trustee and will report with an immediate report on MAGNA regarding this data and the implications of the data in accordance
with this Section, no later than the end of one business day after the publication of the Financial Statements (quarterly and
annual, as applicable). For the purpose of this Section, a report on MAGNA will not be considered to be a report to the
Trustee.

 

Non-compliance
with any of the financial undertakings in subsections (1) to (4) above during two consecutive quarters or non-compliance with
the debt to EBITDA condition during two consecutive quarters will serve as grounds to call for the immediate repayment of the
entire unpaid balance of the Bonds (Series B), as set forth in Section 8.1.14 below.

 

    	 	74	 

    	 

    

 

		6.4	Limitations
                                         to the Distribution of Dividends

 

The
Company undertakes that it will not perform any distribution (as defined in the Companies Law), including will not declare, pay
or distribute any dividend (“Distribution”), unless all of the terms set forth below are met:

 

		(1)	The
                                         Distribution amount will not exceed 40% of the net profit after tax that was recognized
                                         in the latest consolidated financial statements of the Company (quarterly or annual,
                                         as applicable) less net revaluation gains/losses (not yet exercised) (the “Revaluation
                                         Gains/ Losses” and hereinafter jointly: the “Distributable Profits”).
                                         It is clarified that (a) in the case of the sale of an asset (exercise) revaluated, the
                                         Revaluation Gains/Losses for the same asset will be added / reduced (as the case may
                                         be) to the distributable profits recognized and/or that will be recognized in the Company’s
                                         consolidated financial statements for previous periods; (b) the Distributable Profits
                                         for which no distribution was performed in a specific year will be added to the following
                                         quarters. Notwithstanding the above, in the case in which the Company’s equity
                                         in the consolidated financial statements based on which the distribution is performed
                                         exceeds USD 280 million, the distribution amount will not exceed 70% of the net profit
                                         after tax recognized in the consolidated financial statements on the basis of which the
                                         distribution was performed;

 

It
is clarified that the balance of the profits and funds accrued by June 30, 2015 will not be distributable and will not be taken
into account for the performance of a distribution on the basis thereof;

 

		(2)	The
                                         Company’s shareholders’ equity (excluding minority interest), at the end
                                         of the last quarter, before the distribution of dividend, less the dividend to be distributed,
                                         shall not be less than USD 180 million (this amount will not be linked to the CPI).

 

		(3)	The
                                         Company will provide the Trustee with confirmation whereby the Company’s board
                                         of directors has discussed and determined that on the date of the resolution of the board
                                         of directors to perform a distribution, there are no “warning signs” in the
                                         Company as defined in Article 10(b)(15) of the Reporting Regulations, provided that if
                                         there are warning signs as mentioned above and the Company’s board of directors
                                         has determined that this does not indicate a liquidity problem in the Company; 

 

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		(4)	The
                                         Company meets the financial conditions set forth in Section 6.12 above, and the Company
                                         is not in violation of all and/or any of its material undertakings to the Bondholders
                                         (Series B).

 

The
above in subsections (1) through (4) will be hereinafter jointly: the “Dividend Limitation.”

 

The
Company will provide the Trustee, no later than three business days after approval of the distribution by the Company’s
board of directors, and before the performance of the distribution, with confirmation of the Company’s auditor regarding
the Company’s compliance with the Dividend Limitation (including the details of the relevant calculation) and confirmation
of the Company under subsection (4). 

 

The
Company will specify in the framework of the quarterly or annual board of director reports, as applicable, the total distributable
profits as of the date of the relevant report. 

 

	7.	Early
                                         Redemption

 

		7.1	Early
                                         repayment initiated by the Stock Exchange

 

In
the event that the Stock Exchange decides to delist the Bonds from trade because the value of the Series of Bonds is less than
the amount set forth in the guidelines of the Stock Exchange regarding delisting from trade, the Company will act as follows:

 

		a)	Within
                                         45 days from the date of the resolution of the stock exchange’s board of directors
                                         to delist from trade as stated, the Company will provide notice of an early repayment
                                         date in which the Bondholder may redeem them.

 

		b)	The
                                         early redemption date with respect to the Bonds will occur no earlier than 17 days from
                                         the date of the notice’s publication and no later than 45 days from the aforesaid
                                         date, but shall not apply in a period between the effective date for the payment of interest
                                         and the actual payment date thereof.

 

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		c)	On
                                         the early redemption date, the Company will redeem the Bonds that the holders thereof
                                         request to redeem, based on the balance of their par value in addition to the interest
                                         that has accrued on the principal until the actual redemption date (the calculation of
                                         the interest will be performed on the basis of 365 days per year).

 

		d)	Determination
                                         of the early redemption date as stated above will not harm the redemption rights set
                                         forth in the Bonds for any of the Bondholders that do not redeem them on the early redemption
                                         date as set forth above; however, the Bonds will be delisted from trade in the Stock
                                         Exchange, and will be subject to the tax implications that arise as a result. 

 

Early
redemption of the Bonds as stated above will not grant any of the Bondholders that redeems them as stated with the right to an
interest payment for the period following the redemption date.

 

The
Company will publish a notice of the early redemption date in an immediate report. The notice as stated will also specify the
early redemption consideration amount.

 

		7.2	Early
                                         repayment initiated by the Stock Exchange

 

The
Company may, at its exclusive discretion, call for the early redemption of the Bonds (Series B), as of 60 days from the listing
for trade in the Stock Exchange, in which case the following provisions will apply – all subject to the instructions of
the Securities Authority and the provisions of the bylaws of the Stock Exchange and the guidelines thereunder, as they may be
at the relevant date:

 

The
frequencies of the early redemptions will not exceed one per quarter.

 

In
the event that early redemption is determined in a quarter in which an interest payment is also scheduled, or a date for payment
of partial redemption or a date for payment of final redemption, the early redemption will take place on the date scheduled for
the payment as stated.

 

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In
this regard, a “quarter” shall mean each of the following periods: January-March, April-June, July-September, October-December.

 

The
minimum amount of each early repayment will not be less than NIS 1 million. Notwithstanding the above, the Company may perform
early redemption in a scope of less than NIS 1 million, provided that the scope of the redemptions will not exceed one per year.

 

Any
amount that is paid in early repayment by the Company will be repaid with respect to all of the Bondholders (Series B), pro-rata
based on the par value of the Bonds (Series B) that are held thereby.

 

Upon
the passing of a resolution by the Company’s board of directors regarding the performance of early redemption as stated
above, the Company will publish an immediate report with a copy to the Trustee no less than seventeen (17) days and no more than
forty five (45) days before the early redemption date. The early redemption date will not occur during the period between the
effective date for the payment of interest for the Bonds (Series B) and between the actual date for the payment of the interest.
In the immediate report as stated, the Company will publish the principal amount that will be repaid in the early redemption,
as well as the interest that has accrued for the amount of the principal as stated until the early redemption date, in accordance
with the provisions below.

 

Early
redemption will not occur for part of a series of Bonds (Series B) if the last redemption amount is less than NIS 3.2 million.

 

If
the Company performs partial early repayment, the Company will pay the interest accrued only for the part redeemed, and not the
entire unpaid balance of the Bonds (which are redeemed on the partial repayment date). In the case of payment of additional interest
following the early redemption, the additional interest will be paid on the par value redeemed in early redemption only.

 

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On
the partial early redemption date, if any, the Company will issue an immediate report about: (1) the partial redemption rate in
terms of the unpaid balance; (2) the partial redemption rate in terms of the original series; (3) the partial redemption interest
rate on the redeemed part; (4) the interest rate that will be paid in partial redemption is calculated regarding the unpaid balance;
(5) the interest rate that will be paid in the partial redemption, calculated regarding the unpaid balance; (6) update of the
partial redemption rates that remain, in terms of the original series; (6) the effective date for eligibility to receive the early
redemption of the principal of the Bonds that will exist six (6) days before the date determined for the early redemption.

 

The
amount that will be paid to the Bondholders (Series B) in the event of early redemption, excluding in the case of forced early
redemption as stated in Section 6.2 above, will be the amount that is the higher of the following: (1) the market value of the
balance of the Bonds (Series B) available for early repayment which is determined based on the average closing price of the Bonds
(Series B) in thirty (30) trading days before the date on which the board of directors resolves to perform the early redemption,
however, if the early repayment date has been determined on the date on which interest is paid, the amount equal to the interest
amount paid on the same date for the bonds will be reduced from the average unit price as stated; (2) the undertaking value of
the Bonds (Series B) available for early redemption in circulation, i.e. the principal in addition to interest until the date
of the actual early redemption; (3) the balance of the cash flow of the Bonds (Series B) that are available for early redemption
(principal in addition to interest), when discounted based on the yield of government bonds (as defined below) with an addition
of the Addition Rate (as defined below), calculated on an annual basis. Discount of the Bonds (Series B) available for early redemption
will be calculated as of the early redemption date and until the last payment date determined with respect to the Bonds (Series
B) available for early redemption.

 

In
this regard, “addition rate” shall mean: in early repayment as stated, performed by March 31, 2021 - an annual
interest rate of 1.5%; in early repayment as stated that is performed as of April 1, 2021 - annual interest rate of 2.5%.

 

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In
this regard: “yield of government bonds” shall mean the weighted average of the yield for redemption (gross)
in a period of seven business days, ending two business days before the date of notice of early redemption, of the series of government
bonds that are not index-linked, with interest in a fixed rate, and that during their average life is the closest to the average
life of the bonds on the relevant date, i.e. one series with the closest average life higher than the life of the bonds (Series
B) on the relevant date, and one series with the average life below the Bonds (Series B) on the relevant date, and whose weight
will reflect the average life of the Bonds on the relevant date.

 

The
Company will provide the Trustee, within five trading days from the date of the Board of Director’s resolution, with confirmation
signed by the senior officer in the financial field or the CEO if the Company regarding calculation of the payment amount, all
in the form to the satisfaction of the Trustee.

 

	8.	Right
                                         to Call for Immediate Payment

 

		8.1	Upon
                                         the occurrence of one or more of the events listed in this section below, the provisions
                                         of Section 8.2 will apply, as applicable:

 

		8.1.1	In
                                         the event that the Company does not pay any amount owed in connection with the debt or
                                         the Deed of Trust or does not meet any of its other material obligations vis-à-vis
                                         the holders under the Deed of Trust. For the purpose of this section, the Company will
                                         have a period of seven (7) days to remedy the breach.

 

		8.1.2	In
                                         the event that the Company files a stay of proceedings order or in the event that a stay
                                         of proceedings order is given against the Company or if the Company files a motion for
                                         a settlement or arrangement with creditors of the Company under Section 350 of the Companies
                                         Law or a similar proceeding under foreign law (excluding for the purpose of a merger
                                         with another company as stated in Section 8.1.18 below and/or a change to the structure
                                         of the Company or a division that is not prohibited under the terms of this Deed, excluding
                                         making arrangements between the Company and its shareholders and/or holders of option
                                         warrants (that are exercisable into shares) of the Company, that are not prohibited under
                                         the terms of this Deed and will not impact the ability to repay the Bonds (Series B))
                                         or if the Company will otherwise offer its creditors such compromise or arrangement,
                                         against the background of the Company’s inability to meet its obligations under
                                         this Deed when due.

 

    	 	80	 

    	 

    

 

	 	8.1.3	If
    a request is filed under Section 350 of the Companies Law against the Company (without its consent) that is not rejected or
    dismissed within 45 days from the date of its submission or a similar proceeding is performed towards it. It is clarified
    that for the purpose of this Section 8.1.3, a request under Section 350 of the Companies Law with respect to the Company will
    be in accordance with Israeli law or a parallel proceeding in foreign law, parallel to the Israeli proceeding.

 

	 	8.1.4	In
    the event that the Company passes a liquidation resolution (excluding liquidation for purposes of merging with another company
    as stated in Section 8.1.18 below) or if a fixed and final liquidation order is given by a court and/or a fixed liquidator
    is appointed for it or a similar decision is made or a similar functionary is appointed by the Company and/or towards it.
    It is clarified that for the purpose of this subsection, liquidation proceedings with respect to the Company will be in accordance
    with Israeli law or a parallel proceeding in foreign law, parallel to the Israeli proceeding.

 

	 	8.1.5	In
    the event that a temporary liquidation order is given and/or a temporary liquidator or any similar functionary appointed and/or
    any judicial decision of a similar nature is given, and such order or decision as stated is not rejected or dismissed by the
    court within 45 days from the date on which the order is given or the decision made, as applicable. Notwithstanding the above,
    the Company will not be given any remedial period with respect to applications or orders that are filed or given, as applicable,
    by the Company or with its consent. It is clarified that for the purpose of this subsection, liquidation proceedings with
    respect to the Company will be in accordance with Israeli law or a parallel proceeding in foreign law, parallel to the Israeli
    proceeding.

 

    	 	81	 

    	 

    

 

	 	8.1.6	In
    the event that an application is filed for receivership or to appoint a receiver (temporary or permanent) or any similar functionary
    appointed for the Company or a material asset of the Company (as defined below), or if an order is given to appoint a temporary
    receiver or any similar functionary appointed that is not rejected or dismissed within 45 days from the submission or granting,
    as applicable; or, if an order is given to appoint a fixed receiver for the Company or for a material asset of the Company
    (as defined below) or a similar order under law applicable to the Company. Notwithstanding the above, the Company will not
    be given any remedial period with respect to applications or orders that were submitted or granted as applicable by the Company
    or with its consent. It is clarified that for the purpose of this subsection, receivership proceedings with respect to the
    Company will be in accordance with Israeli law or a parallel proceeding in foreign law, parallel to the Israeli proceeding.

 

	 	8.1.7	If
    an attachment is placed on a material asset of the Company (as this term is defined below) or execution actions are performed
    in connection with a material asset of the Company (as this term is defined below) and the attachment is not removed or the
    action is not terminated, as applicable, within 45 days from the date on which it is applied or performed, as applicable.
    Notwithstanding the above, the Company will not be given any remedial period with respect to orders or requests that are given
    or filed, as applicable by the Company or with its consent. It is clarified that for the purpose of this subsection, attachment
    proceedings or execution proceedings with respect to the Company will be in accordance with Israeli law or a parallel proceeding
    in foreign law, parallel to the Israeli proceeding. The provisions of this subsection will not apply to liens that are negligible.

 

    	 	82	 

    	 

    

 

	 	8.1.8	If
    the holders of pledges are exercised or the pledges that they have on a material asset of the Company (as this term is defined
    below).

 

	 	8.1.9	If
    there is a real concern that the Company will not meet, or the Company has failed to meet its material obligations vis-à-vis
    holders of the Bonds (Series B). It is clarified that the material obligations of the Company include, inter alia, payment
    amounts to holders and their dates.

 

	 	8.1.10	If
    the Company has ceased, or provided notice of its intent to cease its payments or ceases or has provided notice of its intent
    to cease to continue its business, as they may be from time to time.

 

	 	8.1.11	If
    a material deterioration occurs in the business of the Company compared to its state on the date of the first issuance of
    the Bonds (Series B) and there is a real concern that the Company will be unable to pay the Bonds (Series B) on time.

 

	 	8.1.12	If
    the control of the Company is transferred, directly or indirectly, and the transfer of control as stated is not approved in
    advance by holders of the Bonds (Series B) with a special resolution. For the purpose of this Section 8.1.12 – \

 

    	 	83	 

    	 

    

 

For
the purpose of this Section 8.1.12 - “Transfer of Control” shall mean a change of control of the Company such
that the Company has a controlling shareholder that is not any of the Controlling Shareholders (as defined in Section 1.5 of the
Deed) and/or is in the hands of any of their immediate family members (including through trusts that the Controlling Shareholders
and/or any of their immediate family members, as mentioned above, are the beneficiaries under and/or are their managers). In this
regard, “Control” – as defined in the Companies Law. It is clarified that holdings together with one
of the Controlling Shareholders (as defined in Section 1.5 of the Deed) with another person or corporation will not be considered
to be a transfer of control.

 

“Immediate
Family Members”- Spouse, parent, parent of parent, child, brother or child of spouse of each of these.

 

For
the removal of doubt it is clarified for this matter that inheritance under the law does not constitute a transfer of control
for this section and if the Controlling Shareholders’ holdings in the Company (and/or those of any of his immediate family
members) are transferred through inheritance under the law, this will not be deemed to be a transfer of control under this section.

 

    	 	84	 

    	 

    

 

	 	8.1.13	If
    there is called for immediate payment: (1) another series of bonds that is issued by the Company and listed for trade on the
    Stock Exchange or (2) a debt and/or several cumulative debts of the Company or of consolidated companies (including consolidated
    companies with relative consolidation, if any) the value of which is USD 35 million at least or 5% of the total assets of
    the Company based on the most recent consolidated financial statements of the Company, whichever is lower, based on the most
    recent consolidated financial statements of the Company published (whether audited or reviewed), whichever is lower, (Provided
    that if the debts are cumulative, they were immediately repaid simultaneously or close to each other) , or (3) a debt and/or
    several cumulative debts of an affiliated company in which the multiplication of the Company’s holding in (in final
    concatenation) in the affiliated company by the liability value of debt the debt constitutes at least USD 35 million the total
    assets of the Company based on the most recent consolidated financial statements (the debts described in subsections (2) and
    (3) shall be called in this section: the “Other Debt”), and the demand for immediate repayment as stated
    is not removed within twenty one (21) days from the date on which it was called for immediate repayment as stated. A loan
    with no recourse to the Company shall not be considered as a different debt as aforesaid. In this regard, it is noted that
    in connection with another debt for which the Company’s liability arises from providing a guarantee for payment of the
    bonds, the grounds in Section 8.1.13 will only be established in the event that the Company is required to actually pay an
    amount higher than or equal to the aforesaid other debt. In the event that the covenants set forth above are met, the aforesaid
    grounds shall apply, as of the same date on which the Company is required to pay the other debt (subject to the curing period
    set forth above) and not from the date of providing the same debt for early repayment, if these dates do not overlap. 

 

	 	8.1.14	If
    the Company does not meet any of its financial obligations stated in Section 6.10 above for two consecutive quarters.

 

	 	8.1.15	If
    the Company has performed a distribution contrary to the distribution limitation provisions, as set forth in Section 6.11
    above.

 

	 	8.1.16	If
    the rating of the Bonds (Series B) by the rating company is lowered to a rating that is lower than a rating of BBB minus.
    In the case of replacing the rating company, the Company will provide the trustee with a comparison of the rating scales of
    the replaced rating company and the rating scales of the new rating company. 

 

    	 	85	 

    	 

    

 

For
the purpose of this section below, it shall be emphasized that in the event that the Bonds (Series B) are rated by more than one
rating company, an examination of the rating based on the grounds for calling for immediate repayment above will take place, throughout,
based on the lower rating among them.

 

	 	8.1.17	If
    the Company performs business activity outside the United States or Israel or sells to another/ others all of its assets or
    its main assets during one calendar quarter, and the holders of the Bonds (Series B) do not consent in advance to the sale
    with a decision passed with a Special Resolution. “Sale to Another” – sale to any third party (including
    the controlling shareholder of the Company and/or corporations under his control), excluding a sale to corporations that are
    fully held by the Company; “Main Assets of the Company” – an asset or a number of assets the value
    of which and/or the aggregate value of which (as applicable) in the most recent consolidated financial statements published
    before the occurrence of the relevant event exceeds 50% of the scope of its assets in the consolidated balance sheet of the
    Company based on the financial statements as stated, unless the consideration for the sale is invested in real estate for
    investment, or is used for early repayment of the Bonds (Series B) and the investment agreement as aforesaid will be signed
    within six (6) months from the date of the sale (including up to six months before the sale). For the avoidance of doubt,
    the sale proceeds will not be distributed as dividend.

 

    	 	86	 

    	 

    

 

	 	8.1.18	In
    the event that a merger was performed (excluding a merger with a company under the Company’s full control) with the
    prior consent of the holders of the Bonds (Series B) with a special resolution, unless the absorbing entity undertakes all
    of the Company’s undertakings vis-à-vis the Bondholders (Series B) under the Deed of Trust and in addition, the
    Company or absorbing company declared (as applicable) vis-à-vis the holders of the Bonds (Series B), including through
    the trustee, at least 10 business days before the date of the merger, that there is no reasonable concern following the merger
    that the absorbing company will be unable to uphold its obligations vis-à-vis the holders of the Bonds (Series B).
    The provisions of this section will not derogate from the other grounds for calling immediate repayment granted to the holders
    of the Bonds in accordance with this section 8.1 above and below. Additionally, as of the period of 30 days before the date
    of the planned merger and until the merger date, all of the grounds listed in this Section 8.1 above and below will also apply
    with respect to the absorbing company, as if it was the Company. With respect to the provisions of this Deed that are derived
    from the financial statements of the Company, an examination will be performed with respect to the financial statements of
    the absorbing company, as it may be after the merger. In this regard, it should be emphasized that the cause of action in
    this section shall not apply to a merger between companies fully owned by the Company, provided that such merger shall not
    be between the Property Companies and corporations which are not included in the corporation whose assets are pledged for
    the bondholders.

 

	 	8.1.19	If
    trade of the Bonds (Series B) in the Stock Exchange is suspended by the Stock Exchange in accordance with the provisions of
    the Fourth Part of the bylaws, excluding suspension on grounds of the creation of ambiguities as stated in the Fourth Law
    of the bylaws of the Stock Exchange and 60 days have transpired from the suspension date during which it was not removed.

 

    	 	87	 

    	 

    

 

	 	8.1.20	If
    the Company is dissolved or terminated for any reason.

 

	 	8.1.21	If
    the Company breaches the terms of the Bonds (Series B) and/or the terms of the Trust Deed with a fundamental breach, including
    if it is discovered that any of the material representations by the Company in the Bonds and/or Trust Deed is incorrect and/or
    incomplete, and the Trustee has notified the Company in writing that it is required to remedy the breach, and the Company
    fails to remedy the breach as stated within 14 days of the date on which the notice was provided. 

 

	 	8.1.22	If
    the Bonds (Series B) cease to be rated for a period exceeding 60 consecutive days following reasons and/or circumstances that
    are under the Company’s control. In this regard, the non-performance of payments that the Company has undertaken to
    make to the rating company and failure to provide information and reports required by the rating company in the framework
    of the engagement between the Company and the rating company will be considered reasons and circumstances that are under the
    control of the Company.

 

	 	8.1.23	In
    the event that the Company expands a series of Bonds (Series B) or issues an additional series of bonds and/or other securities,
    contrary to the provisions of Section 4 above. 

 

	 	8.1.24	If
    the Company ceases to be a reporting corporation as defined in Section 1 of the Securities Law.

 

	 	8.1.25	If
    the Company does not publish a financial report that it is required to publish under any law or under the provisions of the
    Deed of Trust, within 30 days from the deadline on which it was required to publish the same. 

 

	 	8.1.26	If
    the Bonds (Series B) are delisted from trade in the Stock Exchange.

 

    	 	88	 

    	 

    

 

	 	8.1.27	If
    the Bonds (Series B) are not repaid on time or another material obligation provided in favor of the holders is not fulfilled.

 

	 	8.1.28	If
    the Company breaches any of its obligations to avoid creating pledges as stated in Section 6.9 above.

 

	 	8.1.29	If
    a “going concern” note is recorded in the Company’s financial statements for a period of two consecutive
    quarters.

 

	 	8.1.30	If
    the Company breaches any of its obligations in connection with approval of transactions as stated in Section 5.4 above.

 

	 	8.1.31	If
    the Company breaches any of its obligation to deposit the Interest Cushion as stated in Section 5.5 above.

 

	 	8.1.32	If
    the Company breaches its undertaking not to issue bonds outside of Israel and not to take other financial debt outside of
    Israel as set forth in Section 4 of the Deed.

 

	 	8.1.33	If
    the Company, its officers and/or controlling shareholders breach their undertakings as set forth in Section 33 of the Deed.

 

	 	8.1.34	If
    the Company breaches any of the provisions related to the appointment of a representative for the service of legal process.

 

	 	8.1.35	If
    the Company breaches any of its material obligation in connection with a pledge of the pledged assets.

 

For
the purpose of this Section 8, a “Material Asset of the Company” is an asset or assets in the aggregate of
the Company or corporations under the control thereof whose assets are consolidated in the Company’s statements, the value
of which on the relevant date, based on the most recent consolidated financial statements (audited or reviewed) of the Company
published before the same date, exceeds 50% of the scope of the assets in the consolidated balance sheet of the Company based
on the financial statements as stated.

 

    	 	89	 

    	 

    

 

	 	8.2	Upon
    the occurrence of any of the events set forth in Sections 8.1.1 until 8.1.34 (inclusive) above, the following provisions will
    apply, as applicable:

 

	 	8.2.1	Upon
    the occurrence of any of the events set forth in Sections 8.1.1 through 8.1.33 the Trustee will be required to convene a meeting
    of the holders of Bonds (Series B), that will convene 21 days from the date of the invitation (or a shorter time in accordance
    with the provisions of Section 8.2.5 below), and the agenda of which will contain a resolution regarding calling for immediate
    repayment of the entire unpaid balance of the Bonds (Series B) due to the occurrence of any of the events set forth in Sections
    8.1.1 through 8.1.33 (inclusive) above, as applicable. The invitation will state that if the event set forth in Section 8.1
    above, for which the meeting was convened, will be cancelled, terminated or removed, by the date for which the meeting was
    called, the invitation for the meeting of the Bondholders will be cancelled as stated above.

 

	 	8.2.2	A
    resolution of the holders to call for the immediate repayment of the Bonds (Series B) will be passed in a meeting of holders
    that is attended by holders of at least fifty percent (50%) of the balance of the par value of the Bonds (Series B), with
    a majority of holders of the balance of the pay value of the Bonds represented in the vote or with a majority as stated in
    a deferred meeting of holders that is attended by holders of at least twenty percent (20%) of the balance as stated.

 

	 	8.2.3	In
    the event in which by the date of convening the meeting as stated, none of the events set forth in Sections 8.1.1 through
    8.1.33 (inclusive) above was cancelled, terminated or removed, and the resolution in the meeting of holders of the Bonds (Series
    B) as stated is passed in the manner required as set forth in Section 8.2.2 above, the trustee will be required, within a
    reasonable amount of time, to call for the immediate repayment of the entire unpaid balance of the Bonds (Series B), provided
    that the Company was given a written warning of 15 days of his intention to do so. 

 

    	 	90	 

    	 

    

 

	 	8.2.4	A
    copy of the invitation notice for the meeting as stated will be sent by the trustee to the Company for publication, and the
    invitation for the meeting will constitute prior written consent to the Company of its intent to act to call for immediate
    repayment of the Bonds as stated.

 

	 	8.2.5	The
    Trustee may, at its discretion, shorten the count of 21 days as stated in Section 8.2.1 above and/ or the 15 days of warning
    mentioned in section 8.2.3 above and / or not to give a notice at all, in the case in which the trustee is of the opinion
    that there is a reasonable concern that waiting this period or providing the warning, as applicable, will harm the possibility
    of calling for immediate payment of the Bonds or harm the rights of holders.

 

	 	8.2.6	In
    the event that any of the subsections of Section 8.1 above provides a period in which the Company may perform an action or
    make a decision as a result of which the grounds for calling for immediate repayment are terminated, the trustee or holders
    may call for immediate repayment as stated in this Section 8 only if the period set forth as stated transpires and the grounds
    are not terminated; however, the trustee may shorten the aforesaid period if it feels that the same may materially harm the
    rights of the holders.

 

    	 	91	 

    	 

    

 

	 	8.2.7	For
    the avoidance of doubt, it shall be clarified that the provisions of this Section 8.2 above will not derogate from the authority
    of the trustee to call for immediate repayment of the Bonds (Series B) at its discretion.

 

	 	8.2.8	Notwithstanding
    the provisions of this Section 8.2 above, in the event that the Company asks the Trustee in writing to appoint an urgent representation,
    it shall act in accordance with the provisions set forth in the Third Schedule to the Deed of Trust.

 

	 	8.2.9	For
    the avoidance of doubt, it is clarified that calling for immediate repayment will take place based on the balance of the par
    value of the Bonds (Series B) that have not yet been paid, including interest differentials that have accrued on the principal,
    including arrears interest (if relevant), while the interest is calculated for the period beginning after the last day for
    which interest was paid and until the actual date of immediate payment (calculation of the interest for a subpart will take
    place based on 365 days per year).

 

	 	8.2.10	For
    the avoidance of doubt, it is clarified that the right to call for immediate repayment as stated above and/or calling for
    immediate repayment will not derogate from or harm any other or additional remedy available to holders of the Bonds (Series
    B) or the trustee under the terms of the Bonds (Series B) and the provisions of this Deed or under law, and calling a debt
    for immediate repayment upon the occurrence of any of the cases set forth in Section 8.1 above will not constitute any waiver
    of the rights of the holders of the Bonds or the trustee as stated.

 

    	 	92	 

    	 

    

 

	9.	Claims
    and Proceedings by the Trustee

 

	 	9.1	In
    addition to any provision in this Deed and as a right and personal authority, the Trustee shall be entitled, at any time,
    at its reasonable discretion, and without providing notice, to perform any of the proceedings, including legal proceedings
    and motions to receive orders, as it shall see fit, for the purpose of realizing and/or defending the rights of the Holders
    of Bonds (Series B) and in order to enforce the Company’s performance of another of the Company’s undertakings
    according to the Deed of Trust. The above shall not damage and/or derogate from the rights of the Trustee to begin legal and/or
    other proceedings even if the Bonds (Series B) were not called for immediate repayment, all for the defense of the Bondholders
    (Series B) and/or for the purpose of granting any order regarding the matters of the trusteeship. Notwithstanding the statements
    of this Section, it is clarified that the right to call for immediate repayment shall only be established in accordance with
    the provisions of Section ‎8 above, and not on behalf of this Section. 

 

	 	9.2	Pursuant
    to the provisions of the Deed of Trust, the Trustee is entitled but not obligated to convene a general assembly of the Bondholders
    (Series B) in order to discuss and/or accept its instruction for any matter relating to the Deed of Trust. 

 

	 	9.3	Whenever
    the Trustee shall be obligated according to the terms of the Deed of Trust to perform any action, including commencing proceedings
    or filing actions according to the request of the Bondholders (Series B), as stated in this Section, the Trustee shall be
    entitled, at its sole discretion, to delay the performance of any said action until it receives instructions from the general
    assembly of Bondholders (Series B) and/or the instructions of the court how to act, provided that the convening of the assembly
    or the petition to the court shall be performed on the first possible date. For the removal of doubt it shall be clarified
    that the Trustee shall not be entitled to delay the performance of actions or proceedings as stated in the event in which
    the delay may harm the rights of the Bondholders (Series B).

 

	 	9.4	The
    Trustee shall be entitled, pursuant to any special resolution of the Bondholders (Series B) as stated above, to waive the
    covenants that it shall see fit regarding the existence of those undertakings, entirely or partially, of the Company. 

 

    	 	93	 

    	 

    

 

	 	9.5	The
    Trustee is entitled, prior to performing any legal proceedings, to convene an assembly of Bondholders (Series B) in order
    for the Holders to determine which proceedings to take for the realization of their rights under this Deed. Similarly, the
    Trustee shall be entitled to again convene the assembly of Bondholders (Series B) for the purpose of receiving instructions
    for any matter relating to the management of the proceedings as stated, provided that the convention of the assembly shall
    be performed on the first possible date under the provisions of the second supplement to the Deed of Trust and the delay of
    the proceedings shall not harm the rights of the Holders.

 

	10.	Trust
    of Proceeds

 

All
of the funds held from time to time by the Trustee, excluding his wages, expenses and the repayment of any debt therefor, in any
manner including but not limited to as a result of calling the Bonds for immediate repayment and/or as a result of the proceedings
that it will conduct, if any, against the Company, will be held thereby in trust and shall remain in its possession for the purposes
and in the priority as follows: First – the clearance of expenses, payments, levies and undertakings incurred
by the Trustee, placed thereon or caused as a result of the actions of managing the trusteeship or in another manner in connection
with the terms of the Deed of Trust, including its salary (and under the condition that the Trustee will not receive its salary
from both the Company the Bondholders). Second – the payment of any other sum according to the ‘indemnification
undertaking’ (as the term is defined in Section 26.1 below); Third – the payment to the Series B Bondholders
carried out in installments according to Section 26.4.2 below;

 

    	 	94	 

    	 

    

 

The
balance will serve for the purposes within the following priority: (a) first – in order to pay the Holders the arrears interest
for the Bonds they are owed according to the Bonds (Series B), if applicable, conditions pari-passu, and in a relative manner
to the sum of the arrears interest which each of them are owed without preference or precedence towards any of them; (b) second
–in order to pay the Holders of Bonds (Series B) the principal arrears owed to them under the terms of the Bonds (Series
B) held thereby, pari-passu, in a manner that is relative to the principal sums in arrears to which they are owed, without any
preference or priority right regarding any of them ; (c) third – in order to pay the Holders of Bonds (Series B) the interest
amounts they are owed according to the conditions of the Bonds pari-passu, and in a manner relative to the sum which each of them
are owed without any preference or precedence to any of them; (d) fourth – in order to pay the Holders the principle sums
they are owed according to the Bonds held thereby pari-passu, whether the time came for the removal of the principle sums or not,
in a manner relative to the sums they are owed, without any preference in connection with the issuance ahead of time of Bonds
(Series B) by the Company or in another manner; the balance – if existing, will be paid to the Company by the Trustee or
vice versa, as applicable.

 

Withholding
tax will be deducted from the payments to the Bondholders (Series B), as long as there is an obligation to deduct it according
to any law.

 

It
shall be clarified that if the Company must bear any of the expenses but does not do so, the Trustee will act reasonably to receive
the sums as stated from the Company and in the event that it will succeed in receiving them, they will be held thereby in trust
and will serve in its possession for the purposes and according to priority as detailed in this Section.

 

	11.	Authority
    to Demand Payment to Holders through Trustee

 

The
Trustee may direct the Company to transfer to it part of the payment that the Company must pay to the Bondholders, (in this section:
“the Relevant Payment”) for the purpose of financing the Proceedings and / or expenses and / or the Trustee’s
fee under this Deed of Trust (in this section: the “Amount of Financing”) as long as the Company did not bear
the Amount of the Financing and / or deposit with the Trustee in advance the Amount of the Financing. The Company shall transfer
the Amount of the Financing Fee to the Trustee no later than the date of payment of the relevant payment. The Company may not
refuse to act in accordance with the said notice, and will be seen as complying with its undertakings toward the Bondholders if
it proves that it transferred the entire Amount of Financing to the Trustee, as aforesaid. Until no later than one business day
from the determined date for payment of the Relevant Payment from which the Amount of Financing will be deducted, a notice will
be published stating the Amount of Financing, its purpose and the up-to-date amounts of principle and/or interest to be paid to
the Bondholders in the framework of the Relevant Payment.

 

    	 	95	 

    	 

    

 

The
amount of financing that the Trustee may instruct the Company to transfer to it as stated above in this section, to the extent
that the decision of the holders of the matter has not been received previously and / or in the matter and / or appointed a representative
on behalf of the court (including a decision in connection with the taking of the proceedings and / or the execution of the actions
for which the amount of the financing and / or the appointment of representatives and / or advisors to the trustee is required)
will be limited to NIS 700,000 (plus VAT) (The “Ceiling Amount”). It is hereby clarified that the Ceiling Amount
does not limit the Trustee’s right to receive indemnification from the Company and / or the Bondholders.

 

The
Trustee is entitled to instruct the Company in writing to transfer to the Trustee’s account (for the Bondholders) part of
the payment (interest and/or principle) which the Company must pay to the Holders, such that the said sum that is designated for
repayment shall be transferred to the account of the Trustee (for the Bondholders) no later than one business day before repayment
date to the Bondholders, for the purpose of financing proceedings and/or expenses and/or the salary of the Trustee under this
Deed. The Company is not entitled to refuse to act in accordance with the notice as stated, and shall consider it as fulfilling
one of its undertakings vis-à-vis the Holders if it shall prove that it transferred the entire requested sum into the account
of the Trustee as stated.

 

The
above shall not release the Company from its debt to bear the expense payments and the salary as stated when it is obligated to
bear them according to this Deed or by any law. Similarly, the above shall not derogate from the obligation of the Trustee to
act reasonably to acquire the sums to which the Holders are entitled from the Company, which will serve to finance the proceedings
and/or expenses and/or the salary of the Trustee according to the Deed of Trust.

 

    	 	96	 

    	 

    

 

	12.	Powers
    to Delay the Distribution of Funds

 

Notwithstanding
the statements of Section ‎10 above, if the financial sum, which will be received as a result of performing the proceedings
as stated above and which will be called at any time for a distribution in accordance with Section ‎10 above, shall be less
than NIS 1 million, the Trustee shall not be obligated to distribute it and it shall be entitled to invest the said sum, entirely
or partially, in investments permitted according to the Deed of Trust as set forth in Section ‎17below, and it shall be entitled
to replace these investments from time to time in other permitted investments as it sees fit. If these investments and their profits,
together with additional funds that are received by the Trustee for are a sum that is not sufficient to pay the aforesaid amount,
the Trustee shall pay them to the Holders in accordance with the set of priorities as stated in Section ‎10 above. In the
event in which up to the earlier of: the closest interest/principle payment date or a reasonable time after receiving the said
financial sum, the Trustee shall not be in possession of a sum that is sufficient to pay at least NIS 1 million as stated, the
Trustee shall be entitled to distribute the funds in its possession to the Bondholders.

 

Notwithstanding
the provisions of this Section 12 above, the Bondholders (Series B) shall be entitled, according to a decision passed thereby,
to instruct the Trustee to pay them the funds received by the Trustee and called for distribution, as stated in Section 10 above,
even if their sums amount to less than NIS 1 million, pursuant to the provisions of the Stock Exchange’s Articles of Association,
as shall be at that time.‎12‎10 Notwithstanding the above, the payment of the Trustee’s salary and the Trustee’s
expenses shall be paid from the said funds immediately upon reaching their date (and regarding the expenses already paid by the
Trustee, the sums shall be returned to the Trustee immediately upon the funds arriving in the Trustee’s possession) even
if the funds that the Trustee received are less than NIS 1 million as stated.

 

	13.	Notice
    of Distribution 

 

The
Trustee shall notify the Bondholders (Series B) of the date and place where any payment was performed from among the payments
mentioned in Sections 10-12 above, in an advance notice of 14 days that shall be sent in the manner set forth in Section 27 below.‎10‎12‎27
After the date determined in the notice, the Bondholders (Series B) shall be entitled to interest according to the rate determined
in the Bonds, only for the balance of the principle sum (if existing) after deducting the sum that was paid or called for payment
to them, as stated.

 

    	 	97	 

    	 

    

 

	14.	Refraining
    from Payment for a Reason Which is not Dependent on the Company

 

	 	14.1	Any
    sum to which the Bondholders (Series B) are entitled and was not paid in practice on the date set forth for its payment, for
    a reason independent of the Company, while the Company was ready and able to pay it (the “Impediment”),
    shall not bear interest from the date set forth for its payment and the Bondholders (Series B) shall be only be entitled to
    those sums to which they were entitled on the date set forth for the repayment of the payment at the expense of the principle
    or the interest.

 

	 	14.2	The
    Company shall deposit with the Trustee, on the earliest date possible after the date determined for payment and no later than
    the end of 14 days from the date set forth for payment, the sum of the payment that was not paid on time, as stated in Section
    14.1 above, and shall provide written notice based on the addresses found in its possession, if any, to the Bondholders (Series
    B) of the said deposit, and the said deposit shall be considered as removing that payment to the Holder and in the event of
    removing that is entitled for that Bond, it shall also be considered as a deposit of the Bond (Series B) by the Company. ‎14.1
    The above will not derogate from the obligations of the Company to bear the wages of the Trustee and its expenses, all in
    accordance with the provisions of this Deed. 

 

	 	14.3	Any
    sum held by the Trustee in trust for the Holders shall be deposited by the Trustee in a bank and will be invested thereby,
    in its name or its order, at its discretion in investments permitted to it according to Section ‎17 below. If the Trustee
    did so, it shall only be obligated to those eligible for those sums for the consideration that it shall receive from the realization
    of the investments, less the expenses connected to the said investment, including for the management of the trust account
    and less its salary and debt payments and it shall pay to those eligible against the evidence that will be requested thereby
    to its full satisfaction. After the Trustee will receive notice from the Holder of the removal of the impediment as stated,
    the Trustee will transfer to the Holder all of the funds accumulated for the deposit and derived from the exercise of their
    investment, less all of the reasonable expenses and trust account management fees and less any tax by law. The payment will
    be performed against the presentation of that evidence, which shall be accepted by the Trustee, regarding the right of the
    Holder to receive it.

 

    	 	98	 

    	 

    

 

	 	14.4	The
    Trustee shall hold these funds and shall invest them according to the provisions of Section ‎17 below, until the end of
    one year from the final date for the repayment of the Bond (Series B), but the Trustee shall return the accumulated sums in
    its possession (including their profits) less its expenses and less its salary and other expenses which it expended in accordance
    with the provisions of this Deed (such as salaries of service providers, etc.) to the Company and the Company shall hold these
    sums in trust for the Bondholders (Series B) entitled to those sums for a period of up to the end of seven (7) years from
    the final repayment date of the Bonds (Series B), and regarding the funds that will be transferred to it by the Trustee as
    stated above, the provisions of Subsection‎14.3 above shall apply to it, mutatis mutandis. Funds that are not demanded
    from the Company by the Bondholders (Series B) at the end of seven (7) years from the final payment date of the Bonds (Series
    B) will be transferred to the Company’s ownership after 30 days from providing notice to the aforesaid holders by the
    Company, in writing, based on the addresses listed in its possession, if any, and it may use the remaining funds for any purpose.

 

	 	14.5	The
    Company shall provide written confirmation to the Trustee of the return of the sums as stated in Section 14.4 above, and regarding
    their receipt in trust for the Bondholders (Series B) and it shall indemnify the Trustee for any action and/or expense and/or
    damage of any kind that will be caused to it due to and for the transfer of the funds as stated, unless the Trustee acted
    with negligence (excluding negligence exempted by law as shall be from time to time), with a lack of good faith or with malice.
    ‎14.4

 

    	 	99	 

    	 

    

 

	15.	Receipt
    by Bondholders and Trustee

 

	 	15.1	A
    signed receipt from the Bondholder (Series B) or a reference from a member of the Stock Exchange regarding the execution of
    the transfer or the execution of the transfer via the TASE Clearing House for the principle and interest sums paid thereto
    by the Trustee for the Bonds shall absolutely release the Trustee for all matters related to the essence of executing the
    payment of the sums denominated in the receipt. 

 

	 	15.2	A
    receipt from the Trustee regarding the deposit of the principle and interest sums in its possession for the benefit of the
    Bondholders (Series B) as stated, shall be considered a receipt from the Bondholders (Series B) for the purpose of the statements
    of Section ‎15.1 above, in relation to the release of the Company for all connected to the execution of the payment of
    the sums denominated in the receipt. 

 

	 	15.3	The
    sums distributed as stated in Sections‎10and ‎12 above shall be considered as payment at the expense of the repayment
    of the Bonds (Series B).

 

	16.	Presentation
    of Bonds to the Trustee; Registration in Connection with Partial Payment 

 

	 	16.1	The
    Trustee may demand from the Bondholders (Series B) to present the Trustee, upon any interest payment or partial payment of
    principal and interest, with the Certificate of the Bonds (Series B) for which the payments are made. A Bondholder (Series
    B) will be required to present the Certificate of the Bond as stated, provided that the above will not require the Bondholder
    (Series B) to bear any payment and/or expense and/or impose on the Bondholder (Series B) liability and/or any debt.

 

	 	16.2	The
    Trustee may record on the certificate of the Bonds (Series B) a note regarding the amounts paid as stated above, and the date
    of their payment.

 

    	 	100	 

    	 

    

 

	 	16.3	The
    Trustee may, in any special case at its discretion, waive the presentation of the Certificate of Bonds (Series B) after being
    provided by the Bondholder (Series B) a waiver and/or guarantee that is sufficient to its satisfaction for damage that may
    be caused as a result of the non-registration of the note as stated, all as it sees fit.

 

	 	16.4	Notwithstanding
    the above, the Trustee may, at its reasonable discretion, hold records in another manner regarding partial payments as stated.

 

	17.	Investment
    of Funds

 

All
of the funds that the Trustee may invest under the Deed of Trust will be invested thereby in one of the four largest banks in
Israel, provided that the rating of the bank is not less than AA in its name or for its deposit, in investments as it sees fit,
all subject to the terms of the Deed of Trust, provided that it deposits in bank deposits, treasury funds issued by the Bank of
Israel and/or government bonds issued by the Bank of Israel.

 

In
the event that it does so, it will only owe to those entitled to the same amounts the consideration received from the exercise
of the investments, less its fees and expenses, charges and expenses related to the aforesaid investment and managing the trust
accounts, the fees and less the obligatory payments applicable to the trust account, and the Trustee will act in accordance with
the provisions of Sections ‎12 and/or ‎14 above, as applicable, with the balance of the funds as stated.

 

	18.	Company’s
    Undertakings vis-à-vis Trustee 

 

The
Company hereby undertakes vis-à-vis the Trustee and Bondholders, as long as the Bonds (Series B) have not yet been fully
repaid, as follows:

 

	 	18.1	To
    maintain and manage the Company’s business in an orderly, proper and effective manner.

 

	 	18.2	To
    manage orderly account books in accordance with the GAAP, and to maintain records, including the documents used as references
    therefor (including pledge and mortgage deeds, accounts and receipts) in its offices, and to allow the Trustee and/or any
    authorized representative of the Trustee to review, at a time coordinated with the Company in advance, no later than 5 business
    days from the date of the Trustee’s written request, any record and/or document as stated that the Trustee requests
    to review. In this regard, an authorized representative of the Trustee shall mean a person that the Trustee appoints for the
    purpose of a review as stated, with written notice of the Trustee that is provided to the Company before the review as stated,
    subject to the obligation of confidentiality subject to the provisions of Section ‎31.12 below. 

 

    	 	101	 

    	 

    

 

	 	18.3	To
    notify the Trustee in writing, as early as reasonably possible and no later than two business day after being made aware of
    any case in which an attachment is placed and/or execution proceedings take place on a material asset of the Company (as this
    term is defined in Section ‎8.1 above) and in any event in which a receiver, special manager and/or temporary and/or permanent
    receiver and/or trustee who is appointed in the framework of a request for a stay of proceedings under Section 350 of the
    Companies Law and/or any functionary, against the Company is appointed with respect to a material asset of the Company, and
    to take, at its expense, any reasonable means required in order to remove such an attachment or terminate the receivership,
    liquidation or management, as applicable.

 

	 	18.4	To
    inform the Trustee in writing, immediately upon the Company being made aware and no later than two business day, of the occurrence
    of one or more of the cases listed in Section ‎8.1 above and its subsections and on a certain concern of the Company as
    to the occurrence of any of the events listed in Section 8.1 and its subsections. The provisions of this Section and all of
    its subsections will be performed by the Company without taking into account the curing and waiting periods listed in Section
    ‎8.1 above, if any.

 

	 	18.5	To
    provide the Trustee, no later than the end of 30 days from the date of the issuance of the Bonds (Series B) under this Deed
    with a repayment schedule for payment of the Bonds (principal and interest).

 

    	 	102	 

    	 

    

 

	 	18.6	To
    provide the Trustee with written notice, signed by a senior officer of the Company or the CEO of the Company, no later than
    five business days from the date of a written request of the Trustee, of the performance of any payment to the Bondholders
    under the Deed of Trust and of the balance of the amounts that the Company owes under the Deed of Trust at the same date to
    the Bondholders after the performance of the aforesaid payment.

 

	 	18.7	To
    provide the Trustee immediately upon its publication with any report that it is required to submit to the Securities Authority.
    An immediate report in the MAGNA system of the Securities Authority and any report or information that is published (in full)
    by the Company on the MAGNA system will be considered to have been provided to the Trustee. Notwithstanding the above, at
    the Trustee’s request, the Company will provide the Trustee with a printed copy of the report or information as stated.

 

	 	18.8	To
    allow the Trustee and / or the whomever appointed by the Trustee in writing for this purpose, to enter by appointment to the
    Company’s offices and any place where the Company’s assets will be found at any reasonable time and no later than
    seven (7) business days from the date of the Trustee’s request, At the Trustee’s discretion, in order to protect
    the Bondholders.

 

	 	18.9	To
    provide the Trustee with copies of notices and invitations provided to the Company, as stated in Section ‎27 of this Deed.

 

	 	18.10	To
    ensure that the senior financial officer of the Company or the CEO of the Company will provide, within a reasonable time from
    the date of the Trustee’s request, and no later than five business days from the Trustee’s request, to the Trustee
    and/or the individuals that it so instructs, with any explanation, document, calculation or information relating to the Company,
    its business and/or assets that are required, at the reasonable discretion of the Trustee, for the purpose of examinations
    performed by the Trustee in order to protect the Bondholders.

 

    	 	103	 

    	 

    

 

	 	18.11	So
    long that the Company is bonds company that is private (as those terms are defined in the Companies Law) – to provide
    the Trustee pursuant to his request, the signed minutes of the shareholder meetings within a reasonable time from the date
    of his request and in addition the Company undertakes to provide the Trustee a copy of every document and/or information that
    the Company provided to the bondholders to the extent that it provided these, and to provide copies of the notices and the
    invitations that were provided to the bondholders if such were provided. Additionally, the Company undertakes to invite the
    Trustee to be present at the general meetings (whether in annual general meetings or special general meetings of the Company’s
    shareholders) (without rights to participate or vote), held in Israel (if such are held). Publication of an invitation to
    a general meeting of the shareholders of the Company in the MAGNA system will be considered to be an invitation of the Trustee
    for the purpose of this Section. 

 

	 	18.12	As
long as the Bonds (Series B) are not yet repaid in full, to provide the Trustee, further to his request, with the reports and
statements as follows:8

 

	 	18.12.1	Consolidated
    and solo annual audited financial statements of the Company, and quarterly reviewed consolidated and solo financial statements
    of the Company, no later than the dates set forth for their publication under the Securities Law, even in the event in which
    the Company ceases to be a reporting corporation.

 

	 	18.12.2	If
    the Company is a public company (as defined in the Companies Law) – a copy of any document that the Company transfers
    to all of its shareholders or all of the Bondholders, and details of any information that the Company transfers to them in
    another manner, including any report submitted under law to the Securities Law in order to be published publicly (immediate
    reports), immediately upon their publication. As long as the Company is a bonds company – to provide the Trustee with
    a copy of any document that the Company transfers to all of the Bondholders and the details of all of the information that
    the Company transfers to them in another manner, including any report submitted under law to the Securities Authority in order
    to be published publicly (immediate reports), immediately upon their publication.

 

 

8
It is clarified that a report in the Magna system shall constitute a report to the Trustee for the purposes of this section.

 

    	 	104	 

    	 

    

 

	 	18.12.3	To
    provide the Trustee, upon its first written request, with written confirmation, signed by an accountant, stating that all
    of the payments to the Bondholders under this Deed have been paid on time, and the balance of the par value of the Bonds in
    circulation.

 

	 	18.12.4	In
    the event that the Company ceases to be a reporting corporation, the Company will provide the Trustee, in addition to the
    provisions of Sections 18.2 through 18.12 above, with annual, quarterly and immediate reports as set forth below: 

 

	 	(a)	Annual
    reporting including the information set forth in Appendix 5.2.4.8 of Chapter 4 Part 2 (management of investment funds and
    provision of credit) in Part 5 (principles of the management of business), in the consolidated circular of the Ministry of
    Finance - Division of Capital Markets, Insurance and Savings9 ( the “Chapter for Management of Investment
    Assets in the Circular by the Ministry of Finance”) or as updated from time to time, no later than 60 days from the
    date on which the Company was required to publish the annual reports if it was a reporting corporation;

 

 

9
http://mof.gov.il/hon/Information-entities/Pages/Codex.aspx

 

    	 	105	 

    	 

    

 

	 	(b)	Quarterly
    reporting including the information set forth in the Chapter for Management of Investment Assets in the Circular by the Ministry
    of Finance, as updated from time to time, no later than 30 days from the date on which the Company was required to publish
    the quarterly reports if it was a reporting corporation;

 

	 	(c)	An
    immediate report in the case that one of the events occurs listed in Appendix 5.2.4.10 of the Chapter for Management of Investment
    Assets in the Circular by the Ministry of Finance, as updated from time to time. The report will be provided on the date on
    which the Company was required to report about the occurrence of the event based on Article 30(b) of the Reporting Regulations.

 

	 	18.13	To
    provide the Trustee, at its written request, no later than five business days from the date of the Trustee’s request,
    any affidavit and/or declaration and/or documents and/or details and/or additional information regarding the Company (including
    explanations, documents and calculations regarding the Company, its business or assets) and even to order its accountant and
    legal advisors to do so, at the reasonable written request of the Trustee, if the Trustee reasonably believes that the information
    is required by the Trustee in order to apply and use the authorities, powers and authorizations of the Trustee and/or its
    counsel under the Deed of Trust, including information that may be essential and required in order to protect the rights of
    the Bondholders, provided that the Trustee acts in good faith, subject to the undertaking of confidentiality as stated in
    Section 31.12 below.‎31.12

 

	 	18.14	To
    provide the Trustee with all of the reports or notices as set forth in Section 35j of the Law.

 

    	 	106	 

    	 

    

 

	 	18.15	No
    later than ten business days from publication of the annual or quarterly financial statements of the Company, as applicable,
    the Company will provide the Trustee, at its request, with written confirmation, by the Company along with a calculation,
    in a form to the satisfaction of the Trustee, signed by the CEO or the most senior officer in the Company’s financial
    department, regarding its compliance or non-compliance of the Company with the financial covenants set forth in Section 6.10
    of this Deed. 

 

	 	18.16	In
    the event that the Company ceases to be a reporting corporation, then -To cause the senior officer in the Company’s
    financial department or the CEO of the Company to provide within 5 five business days of the date of the Trustee’s request,
    to the Trustee and/or to people that he so orders, with any explanation, document, calculation, or information related to
    the Company, its business and/or its assets that will be reasonably required in the Trustee’s discretion in order to
    carry out his role and to protect the Bondholders. 

 

	 	18.17	In
    the event the Company should cease to be a Reporting Company, on April 10 of each year, for the previous calendar year, and
    as long as there are Bonds (Series B) in circulation, the Company will provide the Trustee, with confirmation, signed the
    by a director, the CEO or Company’s senior officer of the performance of all of the interest payments and/or payments
    on account of the principal, in connection with the Bonds (Series B), that are due to be paid before the date of the confirmation,
    and the payment date, as well as the balance of the par value of the Bonds from this series, which are still in circulation
    as of the date of the confirmation; 

 

	 	18.18	No
    later than April 10 of each year and so long as this Deed is in force, confirmation from a directors of the Company and its
    CEO that in the period from the date of the Deed and/or from the date of the previous confirmation, the later of the two and
    until the date of the provision of the confirmation the Company did not breach this Deed of Trust including a material breach
    of the terms of the Bonds unless explicitly stated otherwise.

 

    	 	107	 

    	 

    

 

	 	18.19	To
    notify the Trustee in writing of any change to its name or address no later than two trading days from the day of the change.

 

	 	18.20	The
    Trustee may instruct the Company to immediate report on the MAGNA system, on behalf of the Trustee, any report in the form
    as provided in writing by the Trustee to the Company, and the Company shall be required to provide the report as stated.

 

	 	18.21	The
    Trustee will maintain the confidentiality of the information sent to him according to this Section, will not reveal it to
    anyone else and will not make any use of it, unless the discovery or use thereof is required in order to fulfill the Trustee’s
    position by law, according to the Deed of Trust or according to a court order. 

 

	 	18.22	To
    notify the Trustee of any non-compliance with any foreign covenant at the earliest possible point and no later than 5 business
    days from the date of non-compliance with the foreign covenant or within 5 business days from the date on which notice was
    given by the affiliate company regarding the non-compliance with any foreign covenant, as applicable, as well as the expected
    implications of this non-compliance in accordance with the Company’s agreements with that entity. It shall be clarified,
    that as long as the Company did not fulfill any foreign covenant and it will be given an extension in order to fulfill the
    foreign covenant, the extension shall not be considered, regarding this Section alone, as a fulfillment of the covenant the
    Company will notify the Trustee of the non-compliance of the foreign covenant as stated. 

 

For
the purpose of this section -

 

“Foreign
covenant” – a material financial condition of the Company and any affiliated company of the Company, in the framework
of the agreement with a financial institution or with another entity which provided the Company with material credit.

 

“Material
financial condition” – a financial condition, for which the non-compliance thereof will constitute grounds for
the immediate repayment of material credit.

 

    	 	108	 

    	 

    

 

“Material
credit” – debt constituting at least 10% of the consolidated equity of the Company (including minority rights).
Regarding an associated company - credit that multiplies the rate of the Company’s holdings (in final concatenation) in
the associated company constituting at least 10% of the consolidated equity of the Company (including minority rights).

 

	19.	Additional
    Liabilities

 

	 	19.1	If
    the Bonds are called for immediate repayment, as defined in Section ‎8above, the Company will perform, from time to time
    and at any time required by the Trustee, all of the reasonable actions in order to enable the operation of all of the powers
    granted to the Trustee, and in particular, the Company will perform the following actions, no later than seven business days
    from the date of the Trustee’s request:

 

	 	19.1.1	Declare
    the declarations and/or sign all of the documents and/or perform and/or cause the performance of all of the actions required
    or necessary in accordance with the law in order to give effect to the operation of the powers, authorities and authorizations
    of the Trustee and/or its counsel under this Deed of Trust.

 

	 	19.1.2	Provide
    all of the notices, deposits and instructions that the Trustee sees fit and necessary in order to apply the provisions of
    the Deed of Trust.

 

	 	19.1.3	To
    repay to the bond holders and to the Trustee all the amounts due to them under the terms of the Deed of Trust, whether on
    the original due date or the date of the charge is due (‘Acceleration’).

 

	 	19.2	For
    the purposes of this Section – written notice, signed by the Trustee, that confirms that an action requested thereby,
    in the framework of its authorities, is a reasonable action, constitutes prima-facie evidence thereof.

 

    	 	109	 

    	 

    

 

	20.	Counsel

 

	 	20.1	The
    Company hereby irrevocably appoints the Trustee as its counsel to execute and perform in its name and place all of the technical
    actions that it must perform under the terms included in this Deed, and to act in its name generally with respect to the technical
    actions that the Company must perform under this Deed and has not performed, or to perform some of the authorities granted
    thereto, and to appoint any other person as the Trustee sees fit, and to perform its position under this Deed, subject to
    the Company failing to perform the technical actions that it must perform under this Deed within 14 days, as determined by
    the Trustee from the date of the Trustee’s demand, provided that it acted reasonably.

 

	 	20.2	An
    appointment under Section ‎20.1above shall not obligate the Trustee to perform any action, and the Company hereby exempts
    the Trustee and its agents in advance in the event in which it does not perform any action, and the Company waives in advance
    any claim vis-à-vis the Trustee and its agents for any damage caused or that may be caused to the Company directly
    or indirectly, for this, on the basis of any action that is not performed by the Trustee and its agents as stated above. 

 

	21.	Other
    Agreements

 

Subject
to the provisions of the law and the limitations imposed on the Trustee by law, the fulfillment of the Trustee’s position
under this Deed or its position as a trustee will not prevent it from engaging with the Company in other agreements or performing
transactions therewith during the ordinary course of its business, provided that the same does not create a conflict of interests
with serving as a trustee for the Bondholders (Series B).

 

	22.	Reports
    on Matters Relating to Trusteeship

 

	 	22.1	The
    Trustee will be required to submit a report regarding the actions performed in accordance with the provisions of Section 35h1
    of the Securities Law.

 

	 	22.2	The
    Trustee will prepare, by June 30 of each year, for the previous calendar year, an annual report of the Trustee’s affairs
    (the “Annual Report”). 

 

    	 	110	 

    	 

    

 

	 	22.3	The
    Annual Report will include a report of extraordinary events in connection with the trusteeship that occurred during the past
    year.

 

	 	22.4	The
    Trustee will publish (itself or through the Company at the request of the Trustee) the Annual Report on the MAGNA system.

 

	 	22.5	In
    the event that the Trustee becomes aware of a material breach of this Deed and/or of the terms of the Bonds (Series B) on
    the part of the Company, based on public publications of the Company or under a notice of the Company to the Trustee under
    Section ‎18.4above, it will notify the Bondholders (Series B) of the breach and the measures that it has taken to prevent
    or enforce the fulfillment of the Company’s obligations by the Company, as applicable. This obligation will not apply
    with respect to an event that is published by the Company under law. This obligation of the Trustee is subject to its actual
    knowledge of the breach event as stated. 

 

	 	22.6	The
    Trustee will update the Company of any report filed under this Section ‎22 and pass on to it a copy thereof.

 

	 	22.7	The
    terms of this section above will not derogate from any other or additional reporting obligation imposed on the Trustee under
    any law.

 

	 	22.8	The
    Trustee must submit a report regarding activity performed under the provisions of Chapter E1 of the Law at the reasonable
    request of the holders with at least ten percent (10%) of the balance of the par value of the Bonds within a reasonable time
    from the date of the demand, all subject to the confidentiality obligation borne by the Trustee vis-à-vis the Company
    as stated in Section 35j(d) of the Law.

 

	 	22.9	At
    the request of holders of more than five percent (5%) of the balance of the par value of the Bonds, the Trustee will transfer
    to the holders data and details regarding its expenses in connection with the trust.

 

	 	22.10	As
    of the signing date of this Deed, the Trustee is insured under professional liability insurance in the amount of $ 10 million
    for the period (the “Coverage Amount”). If the Coverage Amount is reduced for any reason below $8 million,
    the Trustee will update the Company no later than 7 business days from the day on which it learned of the abovementioned reduction
    from the Insurer in order to publish an immediate report on the matter.

 

    	 	111	 

    	 

    

 

	23.	Wages
    and Coverage of Trustee’s Expenses

 

The
Company will pay the Trustee its fees as set forth in Appendix 23 of this Deed.

 

	24.	Special
    Powers 

 

	 	24.1	The
    Trustee may deposit all of the deeds and documents that indicate, represent and/or set forth its right in connection with
    the trusteeship at the subject of this Deed, including in connection with any asset that it possesses at the time, in a safe
    and/or another place determined, with an banker and/or banking company and/or with an attorney. 

 

	 	24.2	The
    Trustee may, within the performance of the trusteeship under the Deed of Trust, commission any opinion or the counsel of any
    attorney, accountant, appraiser, assessor, broker or other expert (the “Consultants”) and act in accordance
    with their conclusions, whether the opinion or counsel was prepared at the request of the Trustee or the request of the Company
    and the Trustee will not be responsible for any loss or damage caused as a result of any action or omission performed thereby
    on the basis of the counsel or opinion as stated, unless determined in an absolute judgment that the Trustee acted negligently
    (excluding negligence exempt under law as it may be from time to time) and/or in bad faith and/or maliciously. The Trustee
    will include, in opinion regarding the manner of exercise of the rights of the holders vis-à-vis the issuance, a copy
    of the opinion or counsel available to the Bondholders, further to their request (subject to the requestor proving ownership
    of the Bonds), subject to the Trustee’s determination, at its discretion, that the exposure of the opinion as stated
    will not harm the rights of the Bondholders, and it may determine conditions regarding the procedures for the review of the
    opinion. The Company will bear all of the expenses of hiring the Consultants appointed as stated, provided that the Trustee
    will provide the Company with notice five days in advance of its intent to receive an expert opinion or counsel as stated,
    provided that the expenses are reasonable. If the same does not harm the rights of the holders, the Trustee will provide the
    Company with notice five business days in advance of its intent to receive an expert opinion or counsel as stated.

 

    	 	112	 

    	 

    

 

	 	24.3	Any
    counsel and/or opinion as stated may be provided, sent or received by a letter, telegram, facsimile, email and/or other electronic
    means of transferring information, and the Trustee will not be responsible for actions performed on the basis of advice and/or
    an opinion or knowledge transferred via one of the methods mentioned above although it contains errors and/or was not authentic,
    unless the same errors could have been discovered in a reasonable inspection.

 

	 	24.4	Subject
    to any law, the Trustee will not be required to notify any party of the signature of the Deed of Trust, and will not be permitted
    to intervene in any manner in the management of the Company’s business or affairs, other than based on the authorities
    that will be granted to the Trustee in this Deed or as agreed by the Company and the Bondholders (Series B) and the Trustee.
    The provisions of this Section will not limit the Trustee in actions that it must perform in accordance with the Deed of Trust.

 

	 	24.5	The
    Trustee will use in the trusteeship the powers, authorizations and permissions granted thereto under the Deed of Trust, at
    its absolute discretion and subject to the other provisions of this Deed. In the event that the Trustee does not, it will
    not bear liability for any damage and/or loss and/or expense that is caused to the Company and/or the Bondholders and/or that
    it may bear following any action and/or omission performed by the Trustee, including as a result of mistakes in discretion,
    unless determined in an absolute judgment that the Trustee acted negligently (excluding negligence that is exempt under law
    as it may be from time to time) or in bad faith or maliciously or contrary to the provisions of this Deed, all in accordance
    with and subject to the provisions of the law. 

 

    	 	113	 

    	 

    

 

	 	24.6	Unless
    explicitly determined otherwise by Law or the provisions of this Deed, the Trustee is not required to act in a manner which
    is not expressly detailed in this Deed of Trust so that any information, including about the Company and/or in connection
    with the Company’s ability to meet its obligations to bondholders comes to his attention, and this is not his role.

 

	25.	Trustees’
    Power to Engage Agents

 

The
Trustee may, in the framework of managing the trusteeship’s business, appoint agent/s that will act in its place, whether
an attorney or another person, in order to perform or participate in the performance of special actions that must be performed
in connection with the trusteeship and pay reasonable waves to any such agent, and without derogating from the generality of the
above, to take legal proceedings. The Trustee may pay at the expense of the Company the reasonable wages of any such agent, considering
the circumstances, including by way of offsetting from amounts that it owes, and the Company will return to the Trustee immediately
upon its first request any expense as stated, all provided that prior to the appointment of the agent as stated, all provided
that the Trustee has provided the Company with notice in advance regarding the appointment of agents as stated, excluding in cases
in which providing notice in advance as stated will materially harm the rights of the Bondholders.

 

It
is clarified that the appointment of an agent as stated will not derogate from the liability of the Trustee for its actions and
those of its agents.

 

	26.	Indemnification
    of the Trustee

 

	 	26.1	The
    Company and the Bondholders (on the relevant effective date as stated in Section 26.6 below, each for its obligations as stated
    in Section 26.4 below) hereby undertakes to indemnify the Trustee and all of its officers, employees, agents or an expert
    that it appoints and/or that are appointed by the Trustee under the provisions of this Deed of Trust and/or under a lawful
    decision that is passed in a meeting of Bondholders (Series B) under the provisions of this Deed of Trust (the “Parties
    Eligible for Indemnification”):

 

	 	26.1.1	For
    any damage and/or loss and/or financial charge under a judgment (for which a stay is not granted) or based on a settlement
    that has ended (if the settlement relates to the Company, and the Company provides its consent to the settlement) the grounds
    of which are related to actions performed by Parties Eligible for Indemnification or that they are required to perform under
    the provisions of this Deed and/or under law and/or an instruction of a competent authority and/or any law and/or at the request
    of the Bondholders (Series B) and/or at the request of the Company; and

 

    	 	114	 

    	 

    

 

	 	26.1.2	For
    the fees of the Parties Eligible for Indemnification and the reasonable expenses under the circumstances incurred and/or that
    will be incurred, and for any damage and/or loss that they sustain due to actions performed by the Parties Eligible for Indemnification
    or that they are required to perform under the provisions of this Deed, and/or under law and/or an instruction of the competent
    authority and/or under any law and/or at the request of the Bondholders (Series B) and/or at the request of the Company and/or
    in connection with use of the powers and authorities provided by virtue of this Deed, and in connection with any legal proceedings,
    opinion of an attorney and other experts, negotiations, discussions, expenses, claims and demands with respect to any matter
    and/or item performed and/or that is not performed in any manner with respect to the matter herein.

 

All
provided that:

 

	 	26.1.3	The
    Parties Eligible for Indemnification do not demand indemnification in advance regarding any manner that cannot be delayed
    (without harming their right to retroactive indemnification if and to the extent such right exists);

 

	 	26.1.4	It
    is not determined in a final judicial decision that the Parties Eligible for Indemnification acted in bad faith and that the
    action was performed other than in the fulfillment of their positions, other than in accordance with the provisions of the
    law and/or other than under this Deed of Trust;

 

    	 	115	 

    	 

    

 

	 	26.1.5	It
    is not determined in a final judicial decision that the Parties Eligible for Indemnification were negligent with negligence
    that is not exempt under law, as it may be from time to time; 

 

	 	26.1.6	It
    is not determined in a final judicial decision that the Parties Eligible for Indemnification acted maliciously;

 

An
indemnification undertaking under this Section ‎26.1 will be hereinafter: an “Indemnification Undertaking.”

 

It
is agreed that in any event in which it is claimed against the Parties Eligible for Indemnification that: (1) they acted in bad
faith or other than in the fulfillment of their roles, or not in accordance with the provisions of the law or the Deed of Trust,
and/or (2) they were negligent with negligence that is not exempt under law and/or (3) acted maliciously – they will be
entitled to indemnification immediately upon their request for payment of the Indemnification Undertaking amount; however, if
it is determined in a final judicial decision that they did in fact act as claimed against them as stated above, the Parties Eligible
for Indemnification will return the Indemnification Undertaking amounts paid to them.

 

	 	26.2	Without
    derogating from the rights to compensation provided to the Trustee under law and subject to the provisions of this Deed and/or
    the obligations of the Company under this Deed, the Parties Eligible for Indemnification will be entitled to indemnification
    from the funds received by the Trustee in the proceedings taken regarding the obligations that it has undertaken, with respect
    to reasonable expenses incurred following the performance of the trusteeship or in connection with such actions, which in
    their opinion are required to be performed and/or in connection with use of the powers and authorities provided by virtue
    of this Deed and in connection with all types of legal proceedings, opinions of attorneys and other experts, negotiations,
    discussions, claims and demands regarding any matter and/or action that is performed and/or not performed in any manner with
    respect to this, and the Trustee may delay the funds available thereto and paid from them the amounts required in order to
    pay the indemnification as stated. All of the said amounts will have priority over the rights of the Bondholders (Series B)
    and subject to the provisions of any law, provided that the Trustee acts in good faith and in accordance with the obligations
    imposed thereon under any law and under this Deed. For the purpose of this Section, an action of the Trustee that is approved
    by the Company and/or the Bondholders will be considered an action that is reasonably required.

 

    	 	116	 

    	 

    

 

	 	26.3	Without
    derogating from the Indemnification Undertaking in Section ‎26.1 above, in the event that the Trustee is required, under
    the terms of the Deed of Trust and/or under law and/or an instruction of a competent authority and/or any law and/or at the
    request of the Bondholders (Series B) and/or at the request of the Company to perform any action including but not limited
    to commencing proceedings or filing cases at the request of the Bondholders (Series B) as stated in this Deed, the Trustee
    will be required to refrain from taking any such action until it receives, to its satisfaction, a financial deposit to cover
    the Indemnification Undertaking (the “Financing Cushion”) in the amount required, with first priority from
    the Company, and in the case in which the Company still has not deposited the entire financing deposit on the date required
    to do so by the Trustee, provided that the Trustee has taken the actions required to collect the aforesaid amounts from the
    Company, the Trustee will contact the Bondholders (Series B) that hold the Bonds (Series B) on the effective date (as stated
    in Section ‎26.4 below), with a request that they deposit the Financing Cushion amount, each its ‘relative share’
    (as this term is defined below). In the event in which the Bondholders (Series B) do not actually deposit the entire Financing
    Cushion amount required, the Trustee will not be subject to the obligation to take any action or relevant proceedings. The
    provisions above will not exempt the Trustee from taking an urgent action required in order to prevent material detrimental
    harm to the rights of the Bondholders (Series B).

 

    	 	117	 

    	 

    

 

The
Trustee is authorized to determine the Financing Cushion amount and may again create an additional cushion as stated from time
to time, in the amount determined thereby. It shall be clarified that the payment by the holders under this Section will not release
the Company from its obligation to bear the aforesaid payment.

 

	 	26.4	The
    indemnity undertaking:

 

	 	26.4.1	Shall
    apply to the Company in any event of: (1) actions performed at the reasonable discretion of the Trustee and/or under any law
    and/or that are required to be performed under the terms of the Deed of Trust or in order to protect rights of the Bondholders
    (including due to a demand of a holder that is required for the sake of protection as stated); and (2) actions performed and/or
    required to be performed at the request of the Company, including due to a demand as stated.

 

	 	26.4.2	Shall
    apply to Holders that hold, on the effective date (as stated in Section ‎26.6 below) in any event of: (1) actions performed
    and/or that are required to be performed at the demand of the Bondholders (excluding actions which, as stated, are taken at
    the demand of Holders in order to protect the rights of the Bondholders); and (2) non-payment by the Company of the indemnification
    undertaking amount applicable thereto under Section ‎26.3 above (subject to the provisions of Section ‎26.6 below)
    and provided that the Parties Entitled to Indemnification have taken the reasonable actions under the circumstances required
    to collect the aforesaid amounts from the Company. It shall be clarified that the payment in accordance with subsection (2)
    above will not derogate from the obligation of the Company to bear the indemnification undertaking in accordance with the
    provisions of Section‎26.4.1 above.

 

    	 	118	 

    	 

    

 

	 	26.5	In
    any event in which the Company does not pay the entire amount required to cover the Indemnification Undertaking and/or does
    not deposit the entire Financing Cushion amount, as applicable, and/or the Holders are called to deposit the Financing Cushion
    amount under Section ‎26.3above, provided that the Parties Entitled to Indemnification have taken the reasonable actions
    under the circumstances required to collect the aforesaid funds from the Company, the following provisions shall apply:

 

	 	26.5.1	The
    funds will be collected in the following manner: 

 

	 	26.5.1.1	First
    - the amount will be financed from the interest and/or principal that the Company is required to pay to the Bondholders
    (Series B) after the date of action. It is clarified that in the event that use is made of the same amounts by the Trustee,
    since the Company has not paid all of the amounts required to cover the Indemnification Undertakings and/or has not deposited
    the entire amount of the Financing Cushion, the same amounts will not be considered to have been repaid by the Company on
    account of the Bonds in favor of the Bondholders; 

 

	 	26.5.1.2	Second
    - if, in the Trustee’s opinion, the amounts deposited in the Financing Cushion are insufficient to cover the Indemnification
    Undertaking, the holders that hold on the Effective Date (as stated in Section ‎26.3 below) will deposit the missing amount,
    in accordance with the relative share (as this is defined), with the Trustee. 

 

“Relative
Share” shall mean: the relative share of the Bonds (Series B) held by the Holder on the relevant effective date as stated
in Section ‎26.3below of the total nominal value in circulation at the time. It is clarified that calculation of the relative
share will remain effective even if after the same date a change occurs to the nominal value of the Bonds held by the Holder.

 

    	 	119	 

    	 

    

 

It
shall be clarified that Bondholders that bear liability to cover expenses as stated in this Section above may bear expenses as
stated in this section above in excess of their relative share, and in such a case, the priority will apply to the repayment of
the funds in accordance with the provisions of Section ‎10of this Deed.

 

	 	26.6	The
    effective date for the determination of the obligation of a Holder in an Indemnification Undertaking and/or payment of the
    Financing Cushion is as follows:

 

	 	26.6.1	In
    any event in which the Indemnification Undertaking and/or payment of the Financing Cushion is required due to an urgent resolution
    or action required in order to prevent material detrimental harm to the rights of the Bondholders (Series B), without a prior
    decision of the meeting of Bondholders (Series B) – the effective date for the obligation will occur at the end of the
    trading day of the day on which the action is taken or the decision is made, and if the same day is not a trading day, on
    the previous trading day. 

 

	 	26.6.2	In
    any event in which the Indemnification Undertaking and/or payment of the Financing Cushion is required based on a resolution
    of the meeting of Bondholders (Series B) – the effective date for the obligation will be the effective date for participation
    in the meeting (as this date is determined in the assembly notice).

 

	 	26.7	Payment
    of any amount imposed on the Company under this Section ‎26 by the Holders in lieu of the Company will not release the
    Company from its obligation to bear the aforesaid payment. 

 

    	 	120	 

    	 

    

 

	 	26.8	With
    regard to the priority of the reimbursement to Holders that bear payments under this Section from the receipts by the Trustee,
    see Section ‎10above. The Trustee will act reasonably to return funds as stated that are paid by the Holders in place
    of the Company from the Company.

 

	27.	Notices

 

	 	27.1	Any
    notice on behalf of the Company and/or Trustee to the Bondholders will be provided through a report on the MAGNA system of
    the Securities Authority (the Trustee may instruct the Company and the Company will be required to immediate report on the
    MAGNA system on behalf of the Trustee, regarding any report in the form provided in writing by the Trustee to the Company).
    Any notice that is published or sent as stated will be considered to have been provided to a Bondholder on the date on which
    it was published as stated. If required under law, the Company will also publish an article in the paper.

 

	 	27.2	Any
    notice or demand on behalf of the Trustee to the Company or on behalf of the Company to the Trustee may be provided in a letter
    sent via registered mail based on the address set forth in the Deed of Trust, or based on another address of which one party
    shall inform the other in writing (including an email address) or through dispatch via email or an agent, and any notice or
    demand will be considered to have been received by the Company: (1) in the event of dispatch via registered mail – three
    business days from the day on which it is sent via mail; (2) in the event of dispatch via email (with telephone verification
    of its receipt) – one business day from the date on which it is sent; (3) in the event of delivery by courier –
    upon the delivery by courier to the recipient or its offer for acceptance of the recipient, as applicable.

 

    	 	121	 

    	 

    

 

	28.	Waivers,
    Compromises, and Changes to the Deed of Trust

 

Subject
to the provisions of any law, excluding regarding (1) payment dates under the Bonds (including a technical change to the dates
or effective date for payment); (2) the interest rate, adjustments of the interest arising from non-compliance with the financial
covenants and a change to the rating; (3) undertakings of the Company in connection with the financial covenants and their breach;
(4) undertakings of the Company in connection with the distribution of dividends; (5) provisions related to the expansion of a
series; (6) the provisions pertaining to the law applicable to this Deed; (7) the terms of repayment and grounds for calling for
immediate repayment; (8) the provisions regarding assets pledged and the negative pledge; (9) the appointment of a representative;
(10) Interest cushion; (11) limitation on an activity sector;
and (12) limitations regarding transactions with controlling shareholders; (13) material provisions related to a pledge of the
Pledged Assets; and (14) reports that the Company is required to provide the Trustee under the Deed of Trust, the Trustee may,
from time to time and at any time when, in its opinion, there will not be harm to the rights of the Bondholders (Series B), waive
any breach or non-fulfillment of any of the terms of the Bonds or the non-fulfillment of any of the terms of the Deed of Trust
by the Company.

 

Subject
to the provisions of any law and with the prior approval of the Bondholders in a special resolution, the Trustee may, whether
before or after the principal of the Bonds (Series B) is called for payment, settle with the Company in connection with any right
or claim of the Bondholders (Series B), waive any right or claim of the Bondholders (Series B) or any of them vis-à-vis
the Company under the Deed of Trust and the Bonds (Series B) and agree with the Company to any arrangement of their rights, including
to waive any right or claim of the Bondholders (Series B) vis-a-vis the Company under this Deed.

 

In
the event that the Trustee settles with the Company, waives any right or claim of the Bondholders (Series B) or agrees with the
Company to any arrangement of rights of the Bondholders (Series B) after receiving the prior consent of the meeting of Bondholders
(Series B) as stated above, the Trustee will be exempt from liability for this action, as approved by the general meeting, provided
that the Trustee does not breach a fiduciary duty and does not act in bad faith or maliciously or with negligence that is not
exempt under law, in the implementation of the resolution of the general meeting.

 

    	 	122	 

    	 

    

 

Without
derogating from the provisions above, subject to the provisions of any law, the Company and the Trustee may, whether before or
after the principal of the Bonds is called for payment, change the Deed of Trust and its appendices (including a change to the
terms of the Bonds) if one of the following is met:

 

	 	(a)	If
    the Trustee is convinced that the change does not harm the rights of the Bondholders under the Deed of Trust (excluding regarding
    the matters listed in subsections (1) to (14) above in this section 28), provided that he has notified the Bondholders (Series
    B) of the same in writing.

 

	 	(b)	The
    change is approved by the Bondholders (Series B) in a special resolution.

 

This
Deed may also be changed within settlement and arrangement proceedings under Section 350 of the Companies Law.

 

The
Company has provided the Bondholders with notice through an immediate report published on the MAGNA of any change as stated above,
shortly after its occurrence.

 

In
any event of use of the Trustee’s right under this Section, the Trustee may demand from the Bondholders (Series B) that
they provide it or the Company with the Certificates of the Bonds in order to record a note thereon regarding any settlement,
waiver, change or amendment as stated, and at the request of the Trustee, the Company will record such a note. In any event of
use of the Trustee’s right under this Section, it will inform the Bondholders (Series B) thereof in writing within a reasonable
time.

 

	29.	Register
    of Bondholders

 

	 	29.1	The
    Company will keep and manage in its registered offices a register of Bondholders (Series B) in accordance with the Securities
    Law, which is open for the review of any person.

 

	 	29.2	The
    Company will not be required to record in the register of Bondholders (Series B) any notice regarding explicit, implicit or
    estimated trusteeship, or a pledge or lien of any kind or any equitable right, claim or offsetting or any other right, in
    connection with the Bonds (Series B). The Company will solely recognize the ownership of a person in whose name the Bonds
    are recorded, its legal heirs, estate managers or will executors of the registered owner and any person entitled to the Bonds,
    following a bankruptcy of any registered owner (or in the event of a corporation – following its liquidation) is entitled
    to be registered as a holder after evidence is provided which, in the opinion of the Company’s managers, is sufficient
    in order to prove the right of the person to be registered as the Bondholder.

 

    	 	123	 

    	 

    

 

	30.	Release

 

When
it is proved to the satisfaction of the Trustee that all of the Bonds (Series B) are paid, redeemed or when the Company deposits
sufficient amounts of money in trust with the Trustee which will suffice for the full and final redemption as well as when it
is proved to the satisfaction of the Trustee that all of his wages and all of the expenditures made by the Trustee and/or his
agents in connection with his operation according to the Deed of Trust and according to its provisions are paid to him in full,
and the Trustee is required, at the Company’s first request, to act upon the monies deposited with him in respect of the
Bonds (Series B) whose redemption was not requested, according to the terms stipulated in this Deed.

 

	31.	Appointment
    of the Trustee, the Trustee’s Roles, the Trustee’s Powers, and the Expiry of the Trustee’s Service

 

	 	31.1	The
    Company hereby appoints the Trustee as a trustee for the Bondholders (Series B) alone under the provisions of Section 35b
    of the Securities Law, including for the parties entitled to payments under the Bonds (Series B) that are not paid after the
    date of payment.

 

	 	31.2	The
    trusteeship for the Bondholders and the roles of the Trustee under the terms of this Deed will enter into force on the date
    of the allocation of the Bonds by the Company. The term of the Trustee’s appointment will be until the date of the convening
    of the holders’ meeting in accordance with the provisions of section 35B(a1) of the Securities Law. 

 

	 	31.3	From
    the date on which this Deed of Trust takes effect, the Trustee’s roles will be according to all laws and this Deed.

 

	 	31.4	The
    Trustee will act in accordance with the provisions of the Securities Law. 

 

	 	31.5	The
    Trustee will represent the bondholders (Series B) in every matter stemming from the Company’s undertaking to them, and
    he will be entitled, for this purpose, to take action to exercise the rights given to the holders according to the Securities
    Law or according to the Deed of Trust.

 

    	 	124	 

    	 

    

 

	 	31.6	The
    Trustee is entitled to initiate any proceeding for the purpose of protecting the rights of the holders in accordance with
    all laws and what is detailed in this Deed of Trust. 

 

	 	31.7	The
    Trustee is entitled to appoint agents as detailed in Section ‎25 above. 

 

	 	31.8	The
    Trustee’s actions are valid even if a defect is discovered in his appointment or eligibility. 

 

	 	31.9	The
    Trustee’s signature on this Deed does not constitute an opinion on his part regarding the nature of the offered securities
    or desirability of investment therein. 

 

	 	31.10	The
    Trustee will not be required to notify any party of the signing of this Deed. The Trustee will not interfere in any form whatsoever
    in the conducting of the Company’s business or affairs and this is not included amongst his roles. Nothing in this section
    will restrict the Trustee in any action which he must take in accordance with the provisions of this Deed.

 

	 	31.11	Subject
    to the provisions of all laws, the Trustee is not required to act in a manner which is not expressly detailed in this Deed
    of Trust so that any information, including about the Company and/or in connection with the Company’s ability to meet
    its obligations to bondholders comes to his attention, and this is not his role. 

 

	 	31.12	Subject
    to the provisions of all laws and what is stated in this Deed of Trust, the Trustee undertakes, by his signing this Deed,
    to maintain in confidentiality all information provided to him by the Company and will not disclose it to another and will
    not make any use thereof, unless it’s disclosure or use is required for the purpose of fulfilling his role according
    to the Securities Law, according to the Deed of Trust, or according to a court order. Said duty of confidentiality will apply
    as well to any agent of the Trustee (including any consultant, counsel, and so forth). It is clarified that the transfer of
    information required to bondholders for the purpose of adopting a resolution relating to their rights according to the bond
    or for the purpose of providing report on the Company’s condition does not constitute a breach of said undertaking of
    confidentiality.

 

    	 	125	 

    	 

    

 

	 	31.13	The
    Trustee is entitled to rely, in the framework of his trust, on any written document including a letter of instruction, notice,
    request, consent or approval, purporting to be signed by or originating from a person or entity which the Trustee believes
    in good faith was signed by or originated from him.
	 	 	 
	 	31.14	The
    provisions of the Securities Law will apply to the end of the Trustee’s service.
	 	 	 
	 	31.15	If
    the Trustee’s service ended, a new trustee will be appointed in his place at a meeting of the holders.
	 	 	 
	 	31.16	Despite
    the aforesaid, a resolution of the holders on the termination of the trustee’s service and his replacement with another
    trustee will be done, subject to any law, at a meeting at which holders with 50% of the balance of the par value of the Series
    B Bonds are present, or at a postponed meeting at which holders with at least 10% of said balance were present, with a majority
    of over 50% of those present and attending the vote.
	 	 	 
	 	31.17	Subject
    to the provisions of all laws, the Trustee whose service ended will continue serving in his position until the appointment
    of another trustee. The Trustee will provide the new trustee with all of the documents and amounts accrued by him in connection
    with the trust which is the subject of the Date of Trust for Series B, and will sign any documents required for this purpose.
    Any new trustee will have the same powers, obligations, and authorities, and he will be able to act for all intents and purposes
    as if he was appointed as trustee in the first place.
	 	 	 
	 	31.18	The
    Company will publish an immediate report in any event of the resignation of the Trustee and/or the appointment of a different
    trustee.

 

    	 	126	 

    	 

    

 

	32.	Bondholders’
    Meetings

 

Meetings
of bondholders (Series B) will be conducted as stated in the Second Supplement to this Deed.

 

	33.	Applicable
    Law

 

The
only law which applies to this Deed of Trust and its appendices10, including the bonds, is Israeli law. In the event
of any matter that is omitted from this Deed and in any event of a conflict between the provisions of the law and this Deed of
Trust, the parties will act only in accordance with the provisions of Israeli law.

 

	34.	Exclusive
    Jurisdiction

 

The
law applicable to this Deed of Trust, including its appendices, is the Israeli law only. In the event of a conflict between the
provisions of the law and this Deed of Trust, the parties shall act in accordance with the provisions of Israeli law.

 

The
exclusive and sole jurisdiction in connection with this Deed of trust, including its appendices11 and the bond, as
an appendix thereto, is subject to the competence court in Tel Aviv- Jaffa.

 

 

10
                                         Except for the pledge document to be signed as described in Section 6 of the Deed
                                         of Trust, which will be subject to US law.

11
                                         Except for the pledge documents to be signed as stated in Section 6 of the Deed
                                         of Trust, regarding which the competent court in the US will be authorized to hear any
                                         matters connected thereto.

 

    	 	127	 

    	 

    

 

The
Company, (with its signing of the Shelf Offer Report) the Controlling Shareholders in the Company (present and future) and the
officers in the Company, (who serve and who will serve in the Company in the future), undertook and will undertake as relevant:
that they will not object to a request by the Trustee and/or the Bondholders of Bonds (Series B) who will submit to a court in
Israel a request for the application of Israeli law regarding compromise, arrangement, and insolvency in connection with the Company
(and including the liquidation of the Company), regarding the Company’s compliance with the terms of the Deed of Trust and
the Bonds (Series B), inasmuch as it shall be submitted; not to apply of their own initiative to courts outside of Israel in order
to receive protection from a proceeding as aforesaid initiated against the Company by the Trustee and/or the Company’s Bondholders
; not to object if a court in Israel will seek to apply Israeli law regarding a compromise an arrangement and insolvency in connection
with the Company (including liquidation; and will not raise claims against the local authority of the court in Israel in connection
with proceedings filed by the Trustee and/or the Company’s Bondholders against the Company including a class action and
derivative action regarding the Company’s compliance with the terms of the Deed of Trust and the Bonds (Series B). Further,
the Company (with its signing of the Prospectus) undertook that in every agreement that the Company directly enters with a third
party, including with the Company’s employees, it will be established that insolvency proceedings against the Company shall
be initiated only in a court in Israel and according to the Israeli law. For this matter it is clarified that this undertaking
shall not apply to the Company’s contracting with a third party that are ancillary to the contracting of the Company’s
subsidiaries, including (without derogating from the generality of the above) the Company’s provision of guarantees and
as well it will not apply to hedging agreements that the Company will enter with a third party, if such an agreement will occur.

 

In
light of the aforesaid and subject to the fulfillment of the Company’s the Controlling Shareholders’ and the officers’
undertakings (in the present and in the future, as relevant), to the Company’s understanding an insolvency proceeding against
the Company which is not according to Israeli law and/or not before Israeli courts can only stem from a lawsuit by a foreign creditor.
On this matter, it is noted that if an insolvency proceeding against the Company is initiated not according to Israeli law and/or
not before a foreign court, that stems from a lawsuit by a foreign creditor, the Company will make its best efforts and argue
that the forum is not appropriate and all subject to all laws.

 

For
the avoidance of doubt it is clarified that the undertakings by the Controlling Shareholders and officers in the Company (in the
present and in the future) shall include, expressly, an irrevocable undertaking as well not to commence, at their initiative,
ad insolvency proceeding against the Company according to foreign law and/or in a foreign court.

 

    	 	128	 

    	 

    

 

In
light of the aforesaid and subject to the fulfillment of the undertakings of the Company, Controlling Shareholders and officers
(present and future, as applicable), it is the Company’s understanding that and insolvency proceeding which is not according
to Israeli law and/or before non-Israeli courts can only stem from a lawsuit by a foreign creditor which is not one of the above
factors (the Company, the Controlling shareholders and the officers, as aforesaid) .

 

In
addition, the Company (by signing this Prospectus), the Controlling Shareholders and the Officers of the Company12,
present and future, irrevocably undertake and will undertake in writing not to make any claims against the authority of the Securities
Authority and/or the administrative enforcement committee in Israel in connection with financial sanctions and/or administrative
means of enforcement placed thereon by the Securities Authority and/or the administrative enforcement committee in Israel, according
to Chapter H3 and/or Chapter H4 of the Securities Law, and irrevocably undertake and will undertake in writing to uphold the decisions
of the Securities Authority and/or the administrative enforcement committee in Israel including, without derogating from the generality
of the foregoing, to pay the financial sanctions and/or payments to the victims of the breach placed thereon (if any) and to take
the actions to amend the breach and prevent its recurrence without waiving any right to petition, appeal or otherwise claim against
such financial decision or sanction.

 

 

12
That are not Israeli.

 

    	 	129	 

    	 

    

 

In
addition, the Company undertakes to provide the Trustee, shortly after the signing of the Trust Deed, with an irrevocable written
undertakings of the Company, the Controlling Shareholders and the Officers of the Company on the signing date of the Trust Deed
(and shortly after a change of control in the Company, as applicable) and any officer as stated above serving in the Company on
the date of signing the Trust Deed (and shortly after the appointment of additional officers to the Company, as applicable) by
virtue of their positions as officers of the Company: (1) not to object to the request of the Trustee and/or Bondholders that
will be submitted to a court in Israel for the application of Israeli law regarding compromise, arrangement, and insolvency (including
liquidation) in connection with the Company, if filed; (2) not to object if the court in Israel seeks to apply Israeli law regarding
a compromise, arrangement and insolvency (including liquidation) in connection with the Company; (3) not to make claims against
the territorial jurisdiction of the court in Israel in connection with the proceedings filed by the Trustee and/or bondholders
of the Company against the Company, including a class action or derivative claim; (4) not to apply of their own initiative to
courts outside of Israel to receive protection in any proceeding initiated by the Trustee and/or the Bondholders of the Company
against the Company regarding the Company’s fulfillment of the terms of the Company’s Bonds and Trust Deed, and not
to manage on their own an insolvency proceeding against the Company under foreign law and in a jurisdiction that is not Israel;
(5) not to make claims against the authority of the Securities Authority and/or an administrative enforcement committee in Israel
in connection with financial sanctions and/or administrative enforcement measures imposed thereon by the Securities Authority
and/or administrative enforcement committee in Israel, under Chapter H3 and/or Chapter H4 of the Securities Law, and undertake
and will undertake irrevocably and in writing to uphold the decisions of the Securities Authority and/or the administrative enforcement
committee in Israel, including, without derogating from the generality of the above, to pay the financial sanctions and/or payments
to victims of the breach imposed thereon (if any) and to take actions to remedy the breach and prevent its recurrence without
waiver on any right of petition, appeal or claim in any other manner against the aforementioned sanctions or resolutions. The
aforesaid undertakings of the Company, officers and controlling shareholders of the Company will be hereinafter referred to as
the “Undertakings of the Company, Officers and Controlling Shareholders.”

 

The
controlling shareholders’ and officers’ undertakings, as stated above, will be published shortly after the publication
of the results of the tender regarding the issuance of Series B Bonds, or as the case may be will be attached in the framework
of the immediate report regarding the appointment of the officer which the Company will publish in accordance with the provisions
of the law Or regarding the change in control of the Company, as the case may be, which the Company shall publish in accordance
with the provisions of the law in Israel, as part of the pre-issuance reports and at the time of the appointment of any officer
and/or the entry of a new controlling shareholder, all during the course of the life of the Bonds (Series B).

 

    	 	130	 

    	 

    

 

The
laws of the British Virgin Islands and the incorporation documents of the Company do not limit or prevent the registration for
trade of the securities offered according to this Prospectus and these may be traded freely in the Stock Exchange without any
limitation under the laws of the British Virgin Islands and the incorporation documents of the Company.

 

Moreover,
it should be noted that the Controlling Shareholders and Officers in the Company, present and future, have irrevocably undertaken
and will irrevocably undertake (as applicable) not to make any claims against the imposition or validity of Article 39a as aforementioned.

 

	35.	General

 

Without
derogating from the other provisions of this Deed and of the Bonds (Series B), any waiver, extension, discount, silence, refraining
from taking action (“Waiver”) on the part of the Trustee regarding nonfulfillment or partial fulfillment or improper
fulfillment of any obligation to the Trustee according to this Deed and the bond (Series B) will not be considered as a Waiver
on the part of the Trustee of any right, but rather limited consent to the special opportunity in which it was granted. Without
derogating from the other provisions of this Deed and the bond (Series B), any change in undertakings to the Trustee requires
received of the Trustee’s prior written consent. Any other consent, whether oral or by means of Waiver and refraining from
taking action or in any other way which is not written will not be considered consent of any kind. The Trustee’s rights
according to this Deed of Trust are individual and independent of one another, and are in addition to any right existing and/or
which shall be granted to the Trustee according to law and/or agreement (including this Deed and the bond (Series B)).

 

    	 	131	 

    	 

    

 

	36.	Trustee’s
    Liability

 

	 	36.1	Notwithstanding
    what is stated in any law and anywhere in the Deed of Trust, inasmuch as the Trustee acted for the purpose of fulfilling his
    position in good faith and within a reasonable time, as well as ascertained the facts which a reasonable trustee would have
    ascertained under the circumstances, he shall not be liable to the bondholder for harm caused to him as a result of the fact
    that the Trustee utilized his discretion according to the provisions of section 35H(d1) or 35I1 of the Securities Law, unless
    it is determined in a final judgment that the Trustee acted with severe negligence. It is clarified that inasmuch as a contradiction
    shall be discovered between the provisions of this section and other provisions in the Date of Trust, the provisions of this
    section shall prevail.
	 	 	 
	 	36.2	If
    the Trustee acted in good faith and without negligence in accordance with the provisions of section 35H(d2) or 35H(d3) of
    the Securities Law, he will not be liable for performing said action.

 

	37.	Addresses

 

The
Parties’ addresses will be as detailed in the preamble to this Deed, or any other address regarding which appropriate written
notice is given to the other party.

 

	38.	Authorization
    to MAGNA

 

In
accordance with the provisions of the Securities Regulations (Signature and Electronic Reporting), 5763–2003, the Trustee
hereby certifies to the entity authorized for the same on behalf of the Company, to electronically report to the Securities Authority
regarding this Deed of Trust.

 

    	 	132	 

    	 

    

 

In
witness whereof the Parties have signed:

 

	 	 	 
	Mishmeret
    Trust Services Company Ltd.	 	Strawberry
    Fields REIT Ltd.

 

I
the undersigned, Boaz Noiman, Advocate, of the offices of Fischer Behar Well Orion & Co., certify that this Deed of Trust
was signed by Strawberry Fields REIT Ltd. Through Mr. Moshe Eingal, whose signature binds the Company in connection with this
Deed of Trust.

 

	 	 
	 	Boaz
    Noiman
	 	 
	 	Advocate

 

    	 	133	 

    	 

    

 

First
Addendum

 

Certificate
of Bonds (Series B)

 

Issuance
of a series of NIS ___ million par value of Bonds (Series B), registered by name, bearing fixed annual interest in the rate determined
by the Tender (the “Interest”), repayable (principal) in three payments – on March 31 of each of the
years 2020, 2021, and 2022, such that each of the first two payments on account of the principal will constitute 10% of the total
principal par value of the Bonds (Series B) and the third and last payment on account of the principal will constitute 80% of
the principal total par value of the Bonds (Series B). The interest for the Bonds (Series B) will be paid on September 30 and
March 31 of each of the years 0218 to 2022 (inclusive) (the first interest payment will be made on September 30, 2018 and the
last interest payment will be made on March 31, 2022, together with payment of the principal of the Bonds).

 

Bond
(Series B) Registered by Name

 

Number
1

 

Par
value NIS __________

 

Annual
interest: fixed at a rate determined by the Tender.

 

The
registered owners of the Bonds in this Certificate: Mizrahi Tefahot Nominee Company Ltd.

 

	1.	This
    certificate indicates that Strawberry Fields REIT Ltd. (the “Company”) will pay any party that is the registered
    owner of this Bond (the “Holder of the Bond (Series B)”) on the effective date for the same payment. The
    payments will be made on the following dates:

 

	 	1.1.	The
    principal of the par value of the Bonds (Series B) in three payments - on March 31 of each of the years 2020, 2021, and
    2022, such that each of the first two payments on account of the principal will constitute 10% of the total principle par
    value of the Bonds (Series B) and the third and final payment on account of the principal will constitute 80% of the total
    principal par value of the Bonds (Series B).

 

    	 	134	 

    	 

    

 

	 	1.2.	The
    interest for the Bonds (Series B)- the interest for the Bonds (Series B) will be paid in biannual payments on March 31
    and September 30 of each of the years 2018 to 2022 (inclusive). The first interest payment will be made on September 30, 2018
    for the period beginning on the first trading day after the closing date of the signatures and ending on the last day before
    the first payment date of the interest (i.e. on September 29, 2018) (the “First Interest Period”), which
    will be calculated based on the number of dates in this period on a basis of 365 days per year. The interest rate that will
    be paid for a certain interest period (excluding the First Interest Period) i.e. the period commencing on the payment date
    of the previous interest period and ending on the last day before the payment date shortly after the date of its commencement
    will be calculated as the annual interest rate divided by two (the “Biannual Interest Rate”). .

 

All
subject to the provisions on the overleaf and the Deed of Trust, dated ___, 2018, between the Company of the first part and Mishmeret
Trust Services Ltd. and/or any party that serves from time to time as a trustee of the Bondholders under the Deed of Trust (the
“Trustee” and the “Deed of Trust” respectively).

 

	2.	The
    Bonds (Series B) are not linked to any index or currency.
	 	 
	3.	The
    final payment of principle and the final payment of the interest will be made in exchange for provision of the bond certificates
    (Series B) to the Company on the date of the final payment (i.e. on March 31, 2022) at the Company’s registered office
    or in any other place which the Company shall indicate. The Company’s notice as stated will be published no later than
    five (5) business days before the last payment date.
	 	 
	4.	All
    of the Bonds (Series B) shall have an equal security rating between them (Pari Passu) in connection with the Company’s
    liabilities according to the Bonds (Series B) and without a priority right or preference for one over another.

 

    	 	135	 

    	 

    

 

	5.	This
    Bond (Series B) is issued subject to the terms detailed on the overleaf, the terms detailed in the Deed of Trust, the Shelf
    Prospectus and the Shelf Offer Report.

 

Signed
by the Company on ____ 2018

 

	By:	 
	 	 
	Authorized
    Signatory: _______________	Authorized
    Signatory: _______________

 

I
the undersigned, Boaz Noiman, Advocate, of Fischer Behar Hen Well Orion and Co. certify that this bond certificate was duly signed
by Strawberry Fields REIT Ltd., by means of Mr. Nahman Eingal, whose signature binds the Company in connection with this bond.

 

Boaz
Noiman, Adv.

 

    	 	136	 

    	 

    

 

The
Terms Listed on the Overleaf

 

	1.	General

 

In
this (Series B) bond, the following expressions shall have the following meanings and inasmuch as they are not defined below,
shall have the meaning given them in the Deed of Trust, unless a different meaning is implied by the context:

 

	“Business
    Day”	 	 
	 	 	 
	or
    a “Bank Business Day” 	 	Any
    day on which the exchange clearinghouse of most of the banks in Israel are open to carry out transactions.
	 	 	 
	“Series
    of Bonds” 	 	–
    the bonds listed by name, whose terms will be in accordance with the certificate of the Bonds (Series B) and the Shelf Offer
    Report on behalf of the Company dated ____ 2018 (including its amendments, if any) based on which they will be issued.
	 	 	 
	“Principal”
    - 	 	The
    unpaid par value of the (Series B) bonds.
	 	 	 
	“Special
    Resolution” – 	 	a
    resolution passed in a general meeting of Bondholders (Series B), who are present themselves or by their counsel whose Bonds
    represent at least 50% of the balance of the par value of the Bonds (Series B), or in an adjourned meeting attended by the
    Bondholders, themselves or by their counsel, who hold at least 20% of the balance of the par value as stated, and which is
    passed (whether in the original meeting or adjourned meeting) with a majority of at least two thirds (2/3) of the balance
    of the par value of the Bonds (Series B) represented in the vote.

 

    	 	137	 

    	 

    

 

	“Ordinary
    Resolution” - 	 	a
    resolution passed in a meeting of Bondholders convened under Section 35l13 and 35l14(a) of the Securities Law, passed (whether
    in the original or deferred meeting) with a majority of at least fifty percent (50%) of all of the votes of the participants
    in the vote, excluding abstentions;
	 	 	 
	The
    “Nominee Company” – 	 	Mizrahi
    Tefahot Nominee Company Ltd. or a nominee company that will replace it, provided all the Company’s securities will be
    registered under its name.
	 	 	 
	“Trading
    Day” -	 	A
    day on which transactions are made in the Tel Aviv Securities Exchange Ltd.
	 	 	 
	“Clearing
    Housing of the Stock Exchange” -	 	The
    Securities Authority The Tel Aviv Stock Exchange Ltd.

 

	2.	The
    Bonds

 

For
details regarding the Bonds (Series B), see section 2 ‎2of the Deed of Trust.

 

	3.	Terms
    of Bonds (Series B)

 

	 	(a)	The
    Bonds (Series B), registered by name, worth NIS 1 par value each. The Bonds (Series A) will be payable (principal) in three
    payments - on March 31 of each of the years 2020, 2021, and 2022, such that each of the first two payments on account of the
    principal will constitute 10% of the total principle par value of the Bonds (Series B) and the third and final payment on
    account of the principal will constitute 80% of the total principal par value of the Bonds (Series B).
	 	 	 
	 	(b)	The
    unpaid balance of the principal of the Bonds (Series B) will bear fixed annual interest at the rate determined in the Tender
    (but subject to adjustments in the case of a change to the rating of the Bonds (Series B) and/or deviation from the financial
    covenants set forth in Sections 5.2 and 5.3, respectively, in the Deed of Trust. 13

 

 

13
It is clarified that if the Bonds (Series B) are rated by more than one reading company, the ratings test for the purpose
of adjusting the interest rate to a change in rating (if and inasmuch as there shall be such a change) shall be done, at all times,
according to the lower of the ratings.

 

    	 	138	 

    	 

    

 

	 	(c)	The
    Bonds (Series B) are not linked to any currency or index.
	 	 	 
	 	(d)	The
    interest for the Bonds (Series B) will be paid in semiannual payments, on March 31 and on September 30 of each of the years
    2018 to 2022 (inclusive), as set forth below (excluding the first payment, which will be made as set forth in subsection (e)
    below).
	 	 	 
	 	(e)	The
    first payment of interest on the Bonds (Series B) will be paid on September 30, 2018 for the period beginning on the first
    trading day after the signature closing date and will end on the last day before the date of the first interest payment (namely,
    on September 29, 2018) (the “First Interest Period”) which shall be calculated according to the number of days
    during this period on the basis of 365 days per year. The interest rate which will be paid for a particular interest period
    (other than the first interest period) (meaning, the period which begins on the payment day of the prior interest period and
    ending on the last day before the payment date immediately after the commencement date) will be calculated as the yearly interest
    rate divided by two (the “Semiannual Interest Rate”). The Company will publicize, in the immediate report on the
    results of the tender, the initial interest rate, the annual interest rate which shall be determined in said tender, and the
    Semiannual Interest Rate.
	 	 	 
	 	(f)	The
    final payment of principle and the final payment of the interest will be made in exchange for provision of the bond certificates
    (Series B) to the Company on the date of the final payment (namely, on March 31, 2022) and the Company’s registered
    office or in any other place which the Company shall indicate. Such notice by the Company will be published no later than
    five (5) business days before the date of the final payment.

 

    	 	139	 

    	 

    

 

	 	(g)	It
    is clarified that a party that is not registered in the registry regarding payment of principal and/or interest, as applicable,
    on March 19 and September 18 regarding each relevant period that precedes the payment date of the principal and/or interest
    will not be entitled to payment of principal and/or interest for the principal and/or interest term beginning before the same
    date.

 

	4.	Payments
    of Principal and Interest of the Bonds (Series B)

 

	 	(a)
    	Every
    payment on account of the principle and/or interest which shall be paid with a delay exceeding seven (7) days from the date
    stipulated for its payment according to the bond terms, and this for a reason under the Company’s control, shall bear
    lateness interest as defined below, beginning on the date stipulated for its payment and until the date of actual payment.
    Regarding this, the rate of interest in arrears shall be in addition to 3% on the interest rate on bonds as stated in section
    3(b) ‎3 above, and all on a yearly basis (the “ Arrears Interest”). The Company shall give notice of the rate
    of Interest which has accrued (inasmuch as it has accrued) on the precise interest rate for the period, including the arrears
    interest, as well as the date of payment, in an immediate report and this two (2) trading days before the date of actual payment.
	 	 	 
	 	(b)
    	Payment
    to those who are so entitled will be done by check or bank transfer and/or by means of the Exchange Clearinghouse in favor
    of the bank account of the bondholders (Series B). If the Company cannot, for any reason whatsoever which is not under the
    Company’s control, pay any amount to those so entitled, the provisions of Section ‎14of the Trust Deed will apply.
	 	 	 
	 	(c)	A
    bondholder (Series B) who so wishes, will notify the Company of the details of the bank account to be credited with payments
    to that same holder according to the Bonds (Series B) as aforesaid, or of a change in the details of said account or his address,
    as applicable, in a notice which will be sent by registered mail to the Company. The Company shall be required to act in accordance
    with the notice from the holder regarding said change after the passing of 15 business days from the date on which the holder’s
    notice reached the Company.

 

    	 	140	 

    	 

    

 

	 	(d)
    	If
    a bondholder registered in the registry of holders did not timely provide the Company with details regarding his bank account
    to be credited with the transfer of payments to the same holder, according to the bond, every such payment will be made by
    check which will be sent by registered mail to his last address registered in the registry of holders. Sending of a check
    to one so entitled by registered mail as aforesaid will be considered for all intents and purposes as payment of the amount
    determined therein on the date of its sending by mail, provided that the check is deposited in the bank and actually paid.

 

	5.	Postponement
    of Dates

 

In
any event in which a date for payment on account of principle and/or interests falls on a day which is not a business day, the
payment date will be postponed to the first business day thereafter, without additional payment and the “Effective Date”
for the purpose of determining entitlement for redemption or interest will not change as a result.

 

	6.	Securing
    the Bonds

 

See
Section ‎6 of the Deed of Trust.

 

	7.	Refraining
    from Payment for a Reason Which is not under the Company’s Control

 

See
Section ‎14of the Deed of Trust.

 

	8.	Register
    of Bondholders

 

See
Section ‎29of the Deed of Trust.

 

	9.	Splitting
    Bond Certificates

 

	 	(a)	In
    respect of the Bonds (Series B) registered in the name of one holder, the holder shall be issued one certificate, or at his
    request, he shall be issued a number of certificates in a reasonable amount (and the certificates mentioned in this section
    shall hereinafter be called: the “Certificates”).
	 	 	 
	 	(b)	Every
    bond certificate may be split to bond certificates where the sum of all of their par value equals the amount of the par value
    of the certificate whose splitting is requested, provided that said certificates shall not be issued except in reasonable
    amounts. We split will be done in exchange for providing that same bond certificate together with a written request signed
    by the registered holder given to the Company at its registered office for the purpose of carrying out the split. All of the
    costs involved in the split, including taxes and levies, if such shall apply, will fall on the party requesting the split.

 

    	 	141	 

    	 

    

 

	10.	Transfer
    of Bonds

 

The
bonds may be transferred and their full par value, as well as in part, provided that it shall be in whole New Israel Shekels.
Every bond transfer shall be done by a letter of transfer in an accepted wording, duly signed by a the registered holder or his
legal representatives and by the recipient of the transfer orders legal representatives, which shall be provided to the Company
at its registered office together with the bond certificates transferred in accordance there with as well as every other proof
required by the Company for the purpose of proving the transferor’s right to transfer them. If tax or any other mandatory
payment shall apply to the letter of transfer of the bonds, proof of their payment shall be provided to the Company which shall
be satisfactory to the Company. The Company’s Articles of Incorporation which apply to the transfer shares which are fully
paid and their assignment will apply, mutatis mutandis, as applicable, on the manner of the transfer of the bonds and their assignment.
In the event of a transfer of only a portion of the amount of the determinate principle in a bond certificate, it is necessary
to first split, according to the provisions of section ‎8above, the certificate to a number of certificates as required by
the same, in a manner such that the sum of all of the determinate principle amounts therein will be equal to the amount of the
determinate principle of said bond certificate. After fulfilling all of these conditions, the transfer shall be registered in
the registry, and the Company shall be entitled to require that a notice regarding said transfer be registered on the certificate
of the transferred bond which will be provided to the transfer recipient or that he be issued a new bond certificate in its place,
and the transferee shall be subject to all of the conditions detailed in the transferred bond certificate such that in a place
that it states “the holder” it shall be seen as if it says “the transferee”, and he shall be considered
as a “holder” for purposes of the Deed of Trust.

 

    	 	142	 

    	 

    

 

	11.	Early
    Redemption

 

Regarding
early redemption of the Bonds at the initiative of the Stock Exchange and early redemption at the initiative of the Company, see
Section ‎5 of the Deed of Trust.

 

	12.	Purchase
    of Bonds by the Company and/or an Affiliate

 

See
Section ‎3 of the Deed of Trust.

 

	13.	Waivers;
    Compromises, and Changes to the Deed of Trust

 

See
Section ‎28 of the Deed of Trust.

 

	14.	Bondholders’
    Meetings

 

The
general meetings of bondholders (Series B) shall be convened and shall be conducted in accordance with what is stated in the Second
Supplement of the Deed of Trust.

 

	15.	Receipt
    from Bondholders

 

See
Section ‎15 of the Deed of Trust.

 

	16.	Right
    to Call for Immediate Repayment

 

See
Section ‎8 of the Deed of Trust.

 

	17.	Notices

 

See
Section ‎27 of the Deed of Trust.

 

	18.	Applicable
    Law and Judicial Authority

 

See
Sections ‎33and ‎34 of the Deed of Trust.

 

	19.	Order
    of Priorities

 

In
the event of a contradiction between this supplement and the Deed of Trust, the Deed of Trust shall prevail.

 

***

 

    	 	143	 

    	 

    

 

Second
Addendum

 

Bondholders’
Meetings (Series B)

 

	1.	Entitlement
    to Convening a Meeting

 

	 	1.1.	The
    Trustee will convene a meeting of Holders if it sees that the same is necessary or at the request of one or more Bondholder
    who has at least 5% (five percent) of the balance of the par value of the Bonds. In the event that those requesting the calling
    of the meeting are bondholders, the Trustee will be entitled to require indemnification, including in advance, from the requesters
    for the reasonable expenses involved.
	 	 	 
	 	1.2.	It
    shall be clarified that the indemnification demand by the Trustee shall not detract from the calling of a meeting which was
    called for the purpose of initiating an action designed to prevent harm to the rights of the bondholders and the indemnification
    demand shall not derogate from the Company’s obligation to bear the expenses involved in calling the meeting.
	 	 	 
	 	1.3.	The
    Trustee will call a meeting of bondholders within 21 days from the date on which the request that it be convened is submitted
    to him, on a date which shall be stipulated and of the summons, and provided that the date of convening will not be earlier
    than seven days and no later than 21 days from the date of the summons; however the Trustee is entitled to advance the convening
    of the meeting to at least one day after the summons date, if he believes that this is required for the purpose of defending
    the holders’ rights; should he do so, the Trustee will explain the reasons for advancing the convening date in the report
    regarding the meeting summons.
	 	 	 
	 	1.4.	If
    the Trustee did not call a meeting of holders, according to the holder’s request as aforesaid, within 21 days from the
    date he was requested as aforesaid, the holder is entitled to convened the meeting, and provided that the date of convening
    will be within 14 days of the end of the period in which the Trustee must call the meeting, and the Trustee will bear the
    expenses incurred by the holder in connection with convening the meeting.
	 	 	 
	 	1.5.	Every
    meeting of bondholders (Series B) will take place in Israel and a place indicated by the Company and/or the Trustee, and the
    Company will bear the reasonable expenses of convening the meeting.

 

    	 	144	 

    	 

    

 

	2.	Meeting
    Summons and Meeting Agenda

 

	 	2.1.	A
    summons to a meeting by the Trustee for the purpose of consultation only with the bondholders will be published at least one
    day before the date of its convening (“Consultation Meeting”). An agenda will not be published for, and no resolutions
    will be adopted at a Consultation Meeting.
	 	 	 
	 	2.2.	A
    summons to a meeting which is not a Consultation Meeting will be published in accordance with the provisions of the Securities
    Law as it shall exist from time to time, at least 7 (seven) days, but no more than 21 days before the convening of the meeting
    ( “Summons”).
	 	 	 
	 	2.3.	The
    Trustee will determine the agenda at the bondholders meeting. One or more Bondholder (Series B) who has at least 5% (five
    percent) of the balance of the par value of the Bonds (Series B) is entitled to request that the Trustee include a topic on
    the holders’ meeting which will be convened in the future, provided that the topic is appropriate in the Trustee’s
    opinion for discussion at said meeting;
	 	 	 
	 	2.4.	The
    Trustee will be entitled to shorten the date of convening to at least one day after the date of the summons if he saw that
    delay in convening the meaning constitutes or is likely to constitute injury to the rights of the bondholders. Should he do
    so, the Trustee will explain the reasons for advanced in the convening of the meeting in the report regarding the meeting
    summons.
	 	 	 
	 	2.5.	The
    summons shall detail:

 

	 	2.5.1.	Location
    where the meeting will be convened;
	 	 	 
	 	2.5.2.	The
    date and time on which the meeting will be convened;
	 	 	 
	 	2.5.3.	The
    legal quorum for commencing the meeting as detailed in section ‎3 below;
	 	 	 
	 	2.5.4.	The
    effective date for participation in the meeting which shall occur no less than one day before the convening of the meaning
    and not more than three days before its convening.
	 	 	 
	 	2.5.5.	The
    topics to be discussed at the meeting and proposed resolutions will be indicated;
	 	 	 
	 	2.5.6.	Arrangements
    regarding written voting;

 

    	 	145	 

    	 

    

 

	3.	The
    Legal Quorum for Commencing the Meeting and Postponed Meeting

 

	 	3.1.	A
    Consultation Meeting will take place with any number of participants.
	 	 	 
	 	3.2.	A
    meeting of bondholders so commence after it is proved that the required legal quorum as stated below for holding the meeting
    is present.
	 	 	 
	 	3.3.	Subject
    to the presence of the required legal quorum for the meeting which was convened to adopt special resolutions and subject to
    the provisions of the Securities Law, the legal quorum for holding a holders’ meeting is the presence of at least two
    bondholders who have 25% (twenty-five percent) at least of the unpaid balance of the par value of the bonds in circulation
    and that time, within half an hour from the time stipulated for opening the meeting
	 	 	 
	 	3.4.	If
    within half an hour from the time stipulated for the opening of the meeting, a legal quorum is not present, the meeting will
    be postponed to a different date which shall not be earlier than two business days after the date stipulated for holding the
    original meeting or one business day, if the Trustee believes that this is required for the purpose of protecting the rights
    of the bondholders; if the meeting is postponed, the Trustee will explain the reasons for this in the report regarding the
    postponed-meeting summons.
	 	 	 
	 	3.5.	Other
    than in connection with a meeting which was convened to adopt as resolution that is required to be adopted as a special resolution
    and subject to the provisions of the Securities Law, if you legal corm is not present at the postponed holders’ meeting
    within half an hour from the time stipulated for its commencement, the quorum shall be legal with any number of participants;
    if the meeting is convened following a request from the holders, as set forth in Sections ‎1.2 and ‎1.3 above - the
    legal quorum of Bondholders will be one or more holding at least 5% (five percent) of the balance of the par value of the
    bonds existing in circulation on the effective date for the meeting.
	 	 	 
	 	3.6.	Bonds
    held by a related person (as defined in section ‎3.2 of the Deed) will not be taken into consideration for the purpose
    of determining the legal quorum.

 

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	4.	Chairperson

 

At
every holders’ reading, the Trustee or whomever he appoints shall serve as chairperson of that same meeting.

 

	5.	Adjourned
    Meeting

 

	 	5.1.	A
    meeting which has been opened shall be adjourned at the notice of the Trustee or notice of the chairperson of the meeting,
    and it may have one or more sessions.
	 	 	 
	 	5.2.	In
    a holders’ meeting which has a legal quorum, the meeting chairperson and/or the Trustee are entitled to decide to hold
    an additional session which will take place on a different date and location which will be determined by the Trustee (“Adjourned
    Meeting”).
	 	 	 
	 	5.3.	The
    Trustee will be responsible for publicizing a notice regarding the date and location on which the Adjourned Meeting will be
    convened, and provided that said notice shall be given 12 hours at least before the convening of the Adjourned Meeting.
	 	 	 
	 	5.4.	At
    an Adjourned Meeting, only a topic which was on the agenda of the original meeting regarding which no resolution was adopted
    will be discussed.
	 	 	 
	 	5.5.	A
    holder who was not present at the original meeting will be able to be present for the Adjourned Meeting and vote on the topics
    which have been presented for vote (and for which the vote has not yet been sealed) and will be presented for voting, subject
    to the fact that he proves his ownership of bonds which are the subject of the meeting to the one calling the meeting as of
    the effective date of the meeting is stipulated in summons notice for the meeting.

 

	6.	Provisions
                                         for Special Meetings

 

In
a meeting of bondholders the agenda of which contains one of the following, the provisions below will apply regarding the legal
quorum in a meeting of holders or an adjourned meeting, and regarding the majority required for passing the resolutions:

 

	 	6.1.	In
    a meeting the agenda of which contains calling the bonds for immediate repayment - the provisions of Section ‎8.2.2 of
    the Trust Deed will apply.

 

    	 	147	 

    	 

    

 

	 	6.2.	In
    a meeting the agenda of which contains removing the Trustee from his service - the provisions of Section ‎31of the Trust
    Deed will apply.
	 	 	 
	 	6.3.	A
    change and/or amendment and/or addition to the Trust Deed - the provisions of Section 28 of the Deed of Trust will apply.
    ‎28

 

At
a meeting on whose agenda includes a resolution on a topic regarding which it is stipulated in the Trust Deed or the bond that
it is subject to a special resolution, the legal quorum is the presence of bondholders who own fifty percent (50%) at least of
the balance of the bonds’ par value or at a postponed meeting, the presence of bondholders who own twenty percent (20%)
at least of the balance of the bonds’ par value. The required majority for adopting a special resolution (whether at the
original meeting or at a postponed meeting) is a majority of two-thirds (two thirds) of the balance of the bonds’ par value
which is represented at the vote.

 

	7.	Position
    Statements

 

	 	7.1.	The
    Trustee or the bondholder, one or more, who owns at least 5% (five percent) of the balance of the bonds’ par value (Series
    B) is entitled to make a written application to the bondholders in a letter which will be attached to the ballot in order
    to convince them regarding the manner of their vote on one of the topics raised for discussion at that same meeting (in this
    supplement – “Position Statement”).
	 	 	 
	 	7.2.	A
    holder who wishes to make use of this right will give notice of the same to the Trustee during the session in which it is
    resolved to bring that same topic to a vote and will provide the Trustee with the Position Statement within 24 hours of the
    date of that same session.
	 	 	 
	 	7.3.	Any
    meeting which was summoned following a request by shareholders or by the shareholders as detailed in sections 1.1 and 1.3,
    every holder will be entitled, by means of the Trustee, to publish a Position Statement in relation to the topics which are
    on the agenda for the meeting.‎1.2‎1.3
	 	 	 
	 	7.4.	The
    Trustee in the Company will be entitled, each one individually, to publish a Position Statement in response to the Position
    Statement which was sent in accordance with 7.1 and 7.3 above, or in response to another application to the bondholders.
	 	 	 
	 	7.5.	Position
    Statements will not be published at a Consultation Meeting.

 

    	 	148	 

    	 

    

 

	8.	Votes
    at a Meeting

 

	 	8.1.	The
    vote at a meeting of the holders of the Bonds (Series B) will take place in relation to the topics which were detailed in
    the summons only.
	 	 	 
	 	8.2.	A
    holder of a Bond (Series B) will be entitled to vote himself, by means of an agent appointed in accordance with this supplement
    or by means of a ballot.
	 	 	 
	 	8.3.	The
    meeting chairperson is entitled to determine that votes will be by ballot or by means of vote during the course of the meeting.
    In the event in which the chairperson determined that the vote will be by means of ballot, the trustee will ensure that the
    text of the ballot will be distributed to the holders, and will determine the date on which the vote is closed by which time
    the holders must send the full and duly signed ballot to the Trustee. The Trustees entitled to require that a holder declare,
    in the framework of the ballot, the existence or absence of a conflict of interest (as defined infra) which he has, in accordance
    with the Trustee’s judgment. A holder who does not fill out the ballot in full and/or does not prove his entitlement
    to participate and vote at a meeting according to the provisions of the Second Supplement will be considered as one who has
    not submitted a ballot and accordingly has chosen not to vote on the topic(s) which are on the ballot. A fully filled out
    and duly signed ballot in which the holder indicated his vote which reaches the Trustee by the deadline determined for the
    same will be considered as presence at the meeting for the purpose of breaching the legal quorum at the meeting.
	 	 	 
	 	8.4.	Unless
    expressly stipulated otherwise in this Deed, the required majority for adopting any resolution by the general meeting is an
    ordinary majority of the number of votes represented in the vote and those voting for or against. Additionally, but subject
    to the provisions above, the Trustee is entitled to decide at his discretion in accordance with the circumstances whether
    adoption of a resolution requires a majority which is not ordinary.
	 	 	 
	 	8.5.	The
    Trustee will participate in the meeting without the right to vote. The Company may, through its representatives, present matters
    before the discussion and respond to questions from holders, if any. Notwithstanding the above, it shall be clarified that
    the Trustee may, at its sole discretion, resolve that the meetings of holders, in whole or in part, will take place in the
    absence of the Company or a representative on its behalf or a related holder or any other person, without being subject to
    the obligation to provide grounds.

 

    	 	149	 

    	 

    

 

	 	8.6.	Holders
    of the bonds are entitled to participate and vote in every general meeting on their own or by means of representatives. Every
    voter by bondholders will be conducted according to the number of votes such that every bondholder or his representative will
    be entitled to one vote in respect of every NIS 1 par value from the total specified principle which has not yet been repaid
    of the bonds based on which he is entitled to vote. In the event of joint holders, only the vote by the requested registered
    first between them in the registry, whether himself or by means of an agent.
	 	 	 
	 	8.7.	A
    bondholder or his agent are entitled to vote in respect of a portion of his votes in favor of a particular proposed resolution,
    and against in respect of another portion, and in respect of another portion to abstain, all as he sees fit.

 

	9.	Checking
    for the Existence of a “Conflicted Interest”

 

	 	9.1.	In
    the number of voters, the votes of Bondholders who are a related person as defined in section 3.2 of the Trust Deed will not
    be considered and these bonds shall not grant the related person the right to vote at the general meeting of bondholders as
    long as they are held by the related person.
	 	 	 
	 	9.2.	The
    Trustee will examine the existence of conflicts of interests by holders, whether it is a matter stemming from their holding
    of the bonds or whether it is another matter related to them, as determined by the Trustee (in this supplement – “Other
    Matter”); the Trustee is entitled to require that the holder participating in the holders’ meeting notify him
    regarding any Other Matter of his as well as whether he has such a conflict of interests.
	 	 	 
	 	9.3.	Without
    derogating from the generality of the aforesaid, each of the following shall be considered a conflicted owner:

 

	 	9.1.1	A
    holder who is a Related Person (as this term is defined in section ‎3.2of the Trust Deed);

 

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	 	9.1.2	A
    holder who served as an officer in the Company adjacent to the time of the event which is at the basis of the resolution at
    issue at the meeting;
	 	 	 
	 	9.1.3	Any
    holder who the Trustee determines possesses a “conflict of interest” according to what is stated, infra, subject
    to all laws and/or instructions by the competent authority including: every holder who declares to the Trustee in writing
    that he has a substantive personal interest which deviates from the interests of all of the bondholders at the bondholders
    meeting (Series B). A holder who fails to provide a written declaration after having been requested to do so by the Trustee
    will be considered as having declared that he has a personal interest as such, and regarding him the Trustee will determine
    that he has a conflict of interest. Without derogating from what is stated in this section ‎9, the Trustee will examine
    whether the holder is a holder with a “conflict of interest,” taking into account also the holdings of that same
    holder of other securities in the Company and/or securities in any other corporation relevant to the resolution presented
    for approval at the meeting (as shall be detailed in the ballot), in accordance with the declaration of that same holder.

 

Determination
of a conflict of interest will be done as well on the basis of a general test for conflict of interest which shall be carried
out by the Trustee. Similarly, for the avoidance of doubt is clarified that the provisions regarding the definition of bondholders
with a conflict of interest shall not derogate from the provisions of any law, case law and binding guidelines by the Securities
Authority regarding the definition of bondholders with a conflict of interest, as shall apply at the time of the examination.

 

	 	9.4.	For
    the purpose of examining a conflict of interests as aforesaid, the Trustee shall be entitled to rely on a legal opinion which
    he shall request, and it shall be subject to the provisions of the Deed of Trust regarding bearing of expenses.

 

    	 	151	 

    	 

    

 

	 	9.5.	It
    shall be clarified that the test for a conflict of interests as stated, supra, inasmuch as it is required in the judgment
    of the Trustee, shall be conducted separately in relation to each resolution on the meeting agenda as well as in relation
    to each meeting, separately. It shall be further clarified that the declaration of a holder as having a conflict of interest
    in a resolution or meeting will not, in and of itself, demonstrate a conflict of interests by that same holder for a different
    resolution which is on the meeting agenda or his conflict of interest at different meetings.
	 	 	 
	 	9.6.	And
    counting the vote tally at a vote which took place at a holders’ meeting, the Trustee will not take into account the
    votes of holders who did not respond to his request as described in section ‎9.1above, or that of holders regarding whom
    he found that there is a conflict of interest as stated in that same subsection (in this supplement – “Holders
    With a Conflict of Interest”).
	 	 	 
	 	9.7.	Notwithstanding
    what is stated in Section 9.6 above, if the total holdings participating in the vote, who do not possess a conflict of interest,
    is a less than a rate of five percent (5%) of the balance of the bonds’ par value (Series B), the Trustee will take
    into account when telling votes, the votes of holders with a conflict of interest as well.‎9.6

 

	10.	Declaration
    of Adoption of a Resolution

 

The
declaration by chairperson that a resolution at a holders’ meeting was adopted or rejected, whether unanimously or by some
majority, shall be prima facie evidence of what is stated therein.

 

	11.	Letter
    of Appointment

 

	 	11.1.	A
    letter appointment appointing an agent will be in written and will be signed by the a pointer or by his authorized representative,
    in writing as required. If the pointer is a corporation, the appointment will be made in writing, signed with of the corporation’s
    stamp and the signature of the clerk of the corporation or the corporation’s representative who is authorized to do
    so. A letter of appointment of an agent will be drafted in any common form. An agent is not required to be a holder himself.
	 	 	 
	 	11.2.	A
    letter of appointment and the power of attorney or another certificate based on which the letter of appointment is signed,
    or a certified copy of such a power of attorney, will be deposited in the Company’s office prior to the time of the
    meeting regarding which power of attorney is granted, unless otherwise stipulated in the notice calling the meeting.

 

    	 	152	 

    	 

    

 

	 	11.3.	A
    vote cast in accordance with the terms in the document appointing an agent shall be valid even if the grantor passes away
    beforehand or is declared legally incompetent or the letter of appointment is annulled or the bond regarding which the vote
    was cast is transferred, unless prior to the meeting, written notice regarding the death, declaration of incompetence, annulment,
    or transfer, as applicable, is received in the Company’s registered office.
	 	 	 
	 	11.4.	Subject
    to the provisions of Section 11.2 above, every corporation which owns bonds is entitled by written and duly signed authorization,
    to empower a person as it sees fit to act as its representative at every meeting of bond owners, and a person thus authorized
    is entitled to act in the name of the corporation which he represents.

 

	12.	Minutes

 

	 	12.1.	The
    Trustee will prepare minutes of the holders’ meeting and will maintain them in his registered office for a period of
    seven years from the date of the meeting. The Trustee may prepare minutes of a meeting of parts thereof by way of recording.
	 	 	 
	 	12.2.	Minutes
    signed by the chairperson of the meeting will serve as prima facie evidence of the matters listed therein. A declaration by
    the chairperson of the meeting regarding adoption of a resolution or its rejection and a notation regarding the matter in
    the minutes’ registry shall serve as prima facie evidence of this fact.
	 	 	 
	 	12.3.	The
    registry of minutes of holders’ meetings will be maintained in the Trustee’s registered office and will be open
    for examination by the Company and the bondholders, and a copy thereof will be sent to any bondholder requesting it. The Trustee
    of the Company, at its request, will also be sent a copy of the minutes of this meeting in which the Company participated.
	 	 	 
	 	12.4.	The
    Trustee will be entitled to delay delivery of any minutes, to any entity whatsoever, if in his exclusive discretion, provision
    of the minutes, in whole or in part, may harm or cause result in harm to the rights of bondholders (Series B).

 

	13.	A
    person or persons appointed by the Trustee, the Company Secretary, and any other person or persons so authorized by the Trustee
    will be entitled to be present at the bondholders’ meeting. In a case in which according to the Trustee’s reasonable
    discretion it shall be necessary to engage in discussions during a portion of the meeting outside of the presence of the Company’s
    representatives, then representatives of the Company or anyone on their behalf will not take part in that same portion of
    the meeting.
	 	 
	14.	Everything
    stated in this supplement is subject to the Deed of Trust.

 

***

 

    	 	153	 

    	 

    

 

Third
Addendum

 

Urgent
Representation for the Holders of Bonds

 

	1.	Regarding
    the Bonds (Series B), insofar as an urgent representation of the Bondholders of the Bonds (Series B) as set forth below, the
    Company undertakes that the urgent representation shall be appointed to act in accordance with the relevant provisions of
    Appendix 5.2.4.4 to Chapter 4 in Part 2 (Management of Investment Assets and Provision of Credit ) In Section 5 (Principles
    of Business Conduct) in the Consolidated Circular14, And the Company undertakes to act in full cooperation with
    the urgent representative and the trustee, to the extent necessary for carrying out the tests required by them and formulating
    the decision of the urgent representatives, and to transmit to the urgent representative office all the data and documents
    in the Company’s possession that will be required of it for the Company and which were requested in writing.
	 	 
	2.	Appointment;
    Tenure

 

	 	2.1	The
    Trustee may, or at the request of the Company in writing – will be obligated, to appoint and convene the urgent representation
    from among the Holders of Bonds, as detailed below (the “Urgent Representation”).
	 	 	 
	 	2.2	For
    the Urgent Representation the Trustee will appoint three (3) Holders of Bonds, who to the best of the Trustee’s knowledge,
    are holders of a par value higher than all of the Holders of Bonds, and which will declare that they have fulfilled all of
    the conditions detailed below (the “Members of the Urgent Representation”). In a case where any of them cannot
    serve as a Member of the Urgent Representation, as stated, the Trustee will appoint the Holder of Bonds with the next highest
    par value holding, for which all of the conditions have been fulfilled, as detailed below.

 

 

14
http://ozar.mof.gov.il/hon/2001/law/Codex.asp

 

    	 	154	 

    	 

    

 

And
these are the conditions:

 

	 	2.2.1
    	The
    Holder of Bonds does not have a conflict of interest due to the existence of any additional material interest that is conflicting
    a matter derived from the office of the Urgent Representation, and from his holding of Bonds. For the avoidance of doubt it
    shall be clarified that a Holder who is a connected party (as the term is defined in Section ‎3.2of the Deed of Trust,
    will be considered as having a conflict of interest as stated, and will not serve in the Urgent Representation;
	 	 	 
	 	2.2.2
    	During
    the course of that same calendar year, a bondholder does not serve on similar representations for other bonds whose aggregate
    amount exceeds the amount of the asset portfolio managed by him, which was determined as the maximum amount allowing the service
    on the Urgent Representation according to the Antitrust Commissioner’s orders in relation to establishment of an urgent
    representation;

 

	 	2.3	If
    during his office in the Urgent Representation, one of the circumstances noted in Sections 2.2.1 and 2.2.2 above failed to
    be fulfilled, then the member’s office will expire and the Member of the Representation as stated will notify as such
    in writing to the Trustee and the Trustee will appoint another member in his place, from among the Holders of Bonds, as stated
    in Section 2.2 above.
	 	 	 
	 	2.4
    	Prior
    to the appointment of the Members of the Urgent Representation, the Trustee will receive, from the candidates for serving
    as Members of the Urgent Representation, a declaration regarding the existence of lack of conflicts of interest, as stated
    in Section 2.2.1 above, and regarding serving in additional representations, as stated in Section 2.2.2 above. Similarly,
    the Trustee is entitled to require such a declaration from the members of the Urgent Representation at any time during the
    course of the Urgent Representation’s service. A holder who does not provide said declaration will be considered as
    having a conflict of interests or preclusion from service based on the Antitrust Commissioner’s orders as aforesaid,
    as applicable. In relation to a declaration regarding a conflict of interest, the Trustee will check for the existence of
    conflicting interests and to the extent required, will decide whether the conflicts of interest disqualified that same holder
    from service on the Representation. It should be clarified that the Trustee will rely on the said declarations and will not
    conduct an additional personal test or investigation. The Trustee’s determinations in these matters shall be final.

 

    	 	155	 

    	 

    

 

	 	2.5
    	The
    term of office of the Urgent Representation will end on the date where the Company will publish the decisions of the Urgent
    Representation in connection with providing an extension to the Company for the purpose of fulfilling the conditions of the
    Deed of Trust, as detailed in Section ‎8 of the Deed of Trust, but in any event shall not exceed three months from the
    appointment date.

 

	3.	Authority

 

	 	3.1
    	The
    Urgent Representation shall have the authority to grant a one-time extension to the Company in connection with the dates for
    fulfilling any of the financial obligations set forth in the Deed of Trust in a manner that will not apply as the grounds
    for immediate repayment as in Sections 8.1.13 through 8.1.14 of the Deed of Trust, as applicable, for the entire extension
    term, as granted, for a term that is up to the publication date of the financial statements after the publication date of
    the financial statements, from which it arises that the company did not fulfill a financial obligation for two consecutive
    calendar quarters. It shall be clarified that the period of time up until the appointment of the Urgent Representation shall
    be taken into consideration in the framework of the aforesaid extension, and it will not constitute cause for granting any
    additional extension to the Company beyond the aforesaid. It shall be clarified that the Urgent Representation’s activities
    and the collaboration between its members shall be limited to discussion of the possibility of granting said extension and
    no other information which does not relate to the granting of said extension shall be shared between the members of the Representation.
	 	 	 
	 	3.2
    	If
    an Urgent Representation is not appointed as aforesaid, or if the Urgent Representation decided not to grant the Company and
    extension as stated in section 3.1 above, the Trustee will be required to call a meeting of the bondholders in accordance
    with the provisions of section 8.2 of the Deed.

 

The
above shall not derogate from the authority of the Trustee to convene an assembly of Holders of Bonds, including in relation to
that matter for which the Urgent Representation was convened. If the decision of the assembly of Holders of Bonds was made for
that matter, the decision of the assembly shall prevail over the decision of the Urgent Representation, including vis-à-vis
the Company.

 

    	 	156	 

    	 

    

 

	4.	The
    Company’s Obligations in Connection with the Urgent Representation

 

	 	4.1
    	The
    Company undertakes to provide the Trustee all information in its possession or which it is able to secure in connection with
    the identity of the bondholders and the scope of their holdings. Similarly, the Trustee will act to secure said information
    in accordance with the authorities granted him according to law.
	 	 	 
	 	4.2
    	In
    addition, the Company undertakes to fully cooperate with the Urgent Representation and the Trustee, inasmuch as required for
    the purpose of executing the required checks by them and formulating the Urgent Representation’s decision, and to provide
    the Urgent Representation all of the data and documents in its possession or which it is able to secure which are required
    by it regarding the Company subject to the limitations of law. Without derogating from the generality of the aforesaid, the
    Company shall provide Urgent Representation with the relevant information for the purpose of formulating the decision, which
    to the best of the Company’s knowledge shall not include any misleading detail and shall not be lacking.
	 	 	 
	 	4.3
    	The
    Company shall bear the Urgent Representation’s expenses, including the cost of employing advisors and experts by the
    Urgent Representation or on its behalf and in this regards, the provisions of section 26 of the Deed will apply, mutatis mutandis.‎26

 

    	 	157	 

    	 

    

 

	5.	Liability

 

	 	5.1
    	The
    Urgent Representation shall act and decide on the matters that were placed before it as aforesaid and its absolute discretion
    and shall not be liable, it or any of its members, officers therein, their employees or advisors, and the Company and the
    bondholders hereby grant them a waiver in relation to any claims, demands and lawsuits against them in respect of the fact
    that they utilized or abstain from utilizing powers, authorities or the discretion granted them according to the Deed of Trust
    and according to this supplement and in connection there with or from any other action which they took their under, unless
    they did so maliciously and/or in bad faith.
	 	 	 
	 	5.2
    	The
    indemnification provision stipulated in section ‎26of the Date of Trust shall apply to the members of the Urgent Representation
    and anyone acting on their behalf, as if they were the Trustee.
	 	 	 
	 	5.3
    	The
    Company shall publish an immediate report immediately upon the appointment of said Urgent Representation, regarding the appointment
    of the Person Representation, the identity of its members, and their powers.
	 	 	 
	 	5.4
    	The
    Company will publish an additional immediate report about the Urgent Representation’s decision. Upon the completion
    of the Urgent Representation’s service, the Company will publish all of the information which was provided by the Company
    for the Urgent Representation’s examination provided that there is nothing precluding its publication, by law.

 

***

 

    	 	158	 

    	 

    

 

Appendix
23

 

Of
the Deed of Trust dated ___ 2018

 

Trustee
Salary

 

The
Company will pay the Trustee wages for his services, in accordance with this Deed of Trust, as detailed below:

 

	1.	A
    salary of NIS 500 per hour will be paid for the actions performed by the Trustee in connection with the formulation of the
    documents connected to the trusteeship and other actions related to the issuance. However, in any event an amount above NIS
    72,000 will not be paid for these actions. (This amount does not include the fees of an American lawyer who will represent
    the Trustee in the process of providing the collateral and releasing the proceeds of the issue, which will be paid by the
    Company separately). In the event that the prospectus will not be published as a result of termination or rejection (or for
    any reason) the said amount above will be limited to NIS 15,000.
	 	 
	2.	For
    the entire trust year (or part thereof), commencing on the issuance date of the Bonds, the Trustee will be paid annual wages
    in the sum of NIS 28,000 (the “Annual Wages”).
	 	 
	3.	Additionally,
    the Trustee will be entitled to a return on reasonable expenses from the Company, as defined below: “Reasonable Expenses”
    – sums paid by the Trustee in the framework of fulfilling his position and/or pursuant to the authorities granted thereto
    according to this Deed, including: expenses and costs for the initiation and convening of an assembly of holders of Bonds
    and expenses for the notices, transportation and advertisement publications connected to the convening of the assembly, and
    as required by any law.

 

    	 	159	 

    	 

    

 

	4.	Without
    derogating from the generality of the above, the Trustee will be entitled to wage payments from the Company in the sum of
    NIS 500 for each working hour required therefor for the special operations to be performed in the framework of his position
    as Trustee (all – pursuant to the provisions of the Deed of Trust), including:

 

	 	4.1	The
    operations derived from a breach or suspicion of a breach to the Deed by the Company;
	 	 	 
	 	4.2	Operations
    in connection with placing Bonds for immediate repayment and/or operations in connection with the decision of the assembly
    of holders of Bonds to place the Bonds for immediate repayment;
	 	 	 
	 	4.3	Special
    operations that were required or will have a need to be performed, for the purpose of fulfilling his position according to
    this Deed in connection with the rights of the holders of Bonds and to defend them, including due to the non-compliance of
    the Company with its undertakings according to this Deed, including the convening of assemblies of holders of Bonds as stated
    in this Deed and including due to the participation in the assemblies of holders of Bonds;
	 	 	 
	 	4.4	Special
    works (including, without limitation, works required because of changes in the Company’s structure or work because of
    the Company’s demand) or in respect of the need to take additional actions for the purpose of fulfilling his role as
    a reasonable Trustee, because of changes in laws (including regulations which shall be enacted following amendments 50 and
    51 of the Securities Law) and/or regulations and/or other binding instructions which shall apply in connection with the Trustee’s
    activities and his responsibility according to this Deed of Trust;
	 	 	 
	 	4.5	Actions
    in connection with the registration, amending registration or voiding of registration of guarantees and the registry (including
    abroad), similarly, review, supervision, control, enforcement, and so forth of obligations (such as: restrictions on the Company’s
    freedom of operation, pledging of assets, and so forth), which the Company undertook or will undertake or which will be undertaken
    by anyone on its behalf or for its in connection with the guaranteeing of other undertakings by the Company or anyone acting
    on its behalf (such as: making payments according to the terms of the bonds) towards bondholders.

 

    	 	160	 

    	 

    

 

	 	4.6	In
    the event where the Company will be meant to pay the Trustee a payment for his wage expenses and/or payment for reasonable
    expenses paid thereby and/or for special operations to be performed by him or which were performed by him in the framework
    of fulfilling his position and/or on behalf of the authorities granted thereto according to the Deed of Trust, if any of the
    above is applicable, and the Company failed to do so, the Trustee may pay the full amount of these sums from the receipts
    that were accrued thereby in accordance with the Deed of Trust, provided that he notified the Company of his intention to
    do so in advance and in writing.
	 	 	 
	 	4.7	It
    shall be clarified that in the event that due to a future change to the laws and/or regulations and/or other binding provisions
    applying to the Trustee’s actions additional expenses will be exclusively borne by the Trustee, required thereof for
    the fulfillment of his position as a reasonable Trustee, the Company will indemnify the Trustee for the reasonable expenses
    including his reasonable wages.
	 	 	 
	 	4.8	VAT,
    if applicable, will be added to each of the said sums, as applicable, and will be paid by the Company.
	 	 	 
	 	4.9	All
    of the abovementioned sums will be linked to the index for __ 2018, however, in any event, a sum that is lower than the sum
    denominated in this Deed will not be paid.
	 	 	 
	 	4.10	The
    Trustee’s wages will be paid in respect of the period up until the end of the Trust included in this Deed even if a
    receiver is appointed for the Company (or a receiver and a manager), or whether the trust according to this Deed will be managed
    under the supervision of the court, or not.
	 	 	 
	 	4.11	The
    aforesaid yearly wage will be paid at the end of every trust year.
	 	 	 
	 	4.12	Subject
    to the provisions of the Deed of Trust, all of the amounts described in this supplement will have preference over monies due
    to the bondholders.
	 	 	 
	 	4.13	To
    the extent that the Trustee’s service as described in this Deed of Trust shall come to an end, the Trustee will not
    be entitled to payment of his wages as of the date of the commencement of service of the replacement trustee. To the extent
    that the Trustee’s service ended during the course of the trust year, wages paid in respect of months in which the Trustee
    did not serve as trustee for the bonds shall be refunded, as of the appointment of the replacement trustee. This session will
    not apply regarding the initial trust year.

 

    	 	161	 

    	 

    

 

	5.	The
    appointment of a trustee to replace the trustee whose office ended according to Section 35b(a1) or 35(14)(d) of the Securities
    Law, the Holders of Bonds of Series B will bear the difference in the salary of the appointed trustee, as stated, than that
    which was paid to the Trustee who was replaced, if the difference as stated is unreasonable, and the provisions of the relevant
    laws will apply at the time of the replacement as stated. The obligation of the Holders for the difference as stated will
    be performed by offsetting the relative part of the difference from any payment that the Company will make to the Holders
    of Bonds in accordance with the terms of the Deed of Trust and the transfer thereof will be directly from the Company to the
    Trustee.
	 	 
	6.	If
    according to any law there will be an obligation to deposit a guarantee applying to the Company to ensure the Company’s
    obligation for the special expenses of the Trustee, the Company will act in accordance with the provisions as stated.

 

***

 

    	 	162

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