Document:

exhibit_4-8.htm

Exhibit 4.8

 

Addendum and Amendment to

Credit Agreement Dated February 11, 2010

Entered into in Tel Aviv as of the 14th day of April 2010

 

	  	  	  
	
By and between:

	
The Lenders set forth in Appendix B of the Credit Agreement

	  
	 	 	 
	  	 Of the first part;	 
	  	  	  
	
And:

	
Bank Hapoalim Ltd.

	  
	  	
In its capacity as Facility Agent

	  
	  	
And in its capacity as Security Trustee

	  
	  	  	  
	  	
Of the second part;

	 
	  	  	  
	
And:

	
B Communications (SP2) Ltd.

	  
	  	
Private Company No. 51-440539-8

	  
	  	
(Hereinafter, the "Company")

	  
	 	 	 
	  	
Of the third part;

	 

 

WHEREAS, on February 11, 2010, the parties executed an agreement for the provision of credit by the Lenders, for the purpose of partially financing the Company's purchase of shares of Bezeq pursuant to the Purchase Agreement, and expenses and additional amounts to be borne by the Company in connection with the Purchase Transaction and in connection with the provision of the Credit and management thereof (hereinafter, the "Credit Agreement"); and

WHEREAS, the parties wish to amend the Credit Agreement, all as set forth in this Addendum below;

NOW, THEREFORE, the parties stipulate and agree as follows:

	
1.

	
General

	
  

	
1.1.

	
The preamble hereto constitutes an integral part hereof and is to be regarded as one of the provisions hereof.

	
  

	
1.2.

	
Unless stated otherwise, the terms appearing in this Addendum shall have the meaning ascribed to them in the Credit Agreement.

	
2.

	
Provision of Credit

	
  

	
2.1.

	
The Lenders hereby authorize the Facility Agent to sign a protocol for the completion of the transaction contemplated under the Credit Agreement, in the form attached hereto as Appendix 2.1 (hereinafter, the "Closing Protocol"), and the parties agree to act in accordance with the Closing Protocol.

 

  

  

  

 

	
  

	
2.2.

	
It is agreed that notwithstanding the provisions of Section 8.1 of the Credit Agreement, the conditions precedent enumerated in Section 8.2 of the Credit Agreement may be satisfied by the Closing Date (inclusive).

	
  

	
2.3.

	
It is further agreed that documents which,  pursuant to Section 8 of the Credit Agreement, furnishing therefore to the Lender through the Facility Agent is a condition to the provision of the Credit may be furnished by the date set forth in the Credit Agreement to one or more trustees who shall be acceptable to the Facility Agent, or shall be held in another manner by third parties, as set forth in the Closing Protocol, and such documents shall be released to the Lenders, through the Facility Agent, immediately after the Credit is provided and the Purchase Consideration is remitted to the Sellers, all as described in the Closing Protocol.

	
3.

	
Repayment of the Principal Amount of Credit B

It is agree that the words "equal and consecutive payments" in Section 9.3 shall be replaced by the words "consecutive payments (Spitzer Amortization Table)."

	
4.

	
Addition to Section 20.2 of the Credit Agreement

It is agreed that the following paragraph shall be added to the end of Section 20.2 of the Credit Agreement:

"It is agreed that in the event that any of Credit A and/or Credit B and/or Credit C and/or Credit D partially bears floating interest and partially bears fixed interest, then the order of repayment of the (principal) portion bearing floating interest and the (principal) portion bearing fixed interest of each of such Credits shall be as follows: (a) upon each repayment event, with the exception of a demand for immediate repayment – first, the (principal) portion of the relevant Credit bearing floating interest shall be repaid, and, thereafter, the (principal) portion of the relevant  Credit bearing fixed interest shall be repaid; and (b) in the event of a demand for immediate repayment – repayment shall be made in accordance with the pro rata ratio of the (principal) portion of the relevant Credit bearing floating interest to the (principal) portion of the relevant Credit bearing fixed interest.

In addition, it is clarified and agreed that in the event (principal) portions of Credit A and/or Credit B and/or Credit C and/or Credit D bear fixed interest at varying rates, then, in the event of early repayment (pursuant to Sections 16 and/or 17), the Company may, at its discretion, determine the order of repayment of the aforementioned Credit portions."

	
5.

	
Release of Surpluses from the Company's Account

	
  

	
5.1.

	
The Company declares that the equity capital which the Parent Company provided the Company together with a shareholder loan which the Parent Company is to provide the Company on the Date of Credit, as set forth in Section 8.7.1 of the Credit Agreement, shall leave a surplus in the Company's Account following payment of the purchase consideration to the Sellers pursuant to the provisions of the Credit Agreement, in the amount of NIS 122 million (hereinafter, the "Surplus Amount"). It is clarified that the Surplus Amount includes a total of NIS 100 million which is set forth in Section 8.3.2(s)(i) of the Credit Agreement.

 

  

  

  

 

	
  

	
5.2.

	
It is agreed that notwithstanding anything to the contrary in the Credit Agreement, including the Collaterals documents, and subject to the terms of the Permits, the following provisions shall apply with respect to the Surplus Amount:

	
  

	
5.2.1.

	
With respect to a total of NIS 55 million out of the Surplus Amount (hereinafter, the "Surpluses"): (a) the Company shall be entitled to use all or part of the Surpluses to pay transaction fees and expenses, including the aforementioned fees and expenses borne or to be borne by 012 Smile; and (b) the Company may provide all or part of the Surpluses to 012 Smile as a loan. It is clarified that the Company may, at any time, withdraw all or part of the Surpluses from the Company's Account without limitation, as aforementioned.

	
  

	
5.2.2.

	
With respect to a total of NIS 67 million out of the Surplus Amount, the provisions of the Credit Agreement applying with respect to the amount of NIS 100 million provided in Section 8.3.2(s)(ii) of the Credit Agreement shall apply.

	
  

	
5.3.

	
At the Company's request, which shall be made at its discretion, the Lenders, through the Facility Agent, shall agree to amend the Articles of Association of the Company to reflect the provisions of Section 5.2.1(b) above.

	
  

	
5.4.

	
The Company is aware that the foregoing consent to use all or part of the Surpluses, as set forth above, is a one-time consent, exclusive to the above circumstances, and such consent is not to be interpreted in a manner that enables the Company to perform other similar actions if they are not in accordance with the provisions of the Credit Agreement.

	
6.

	
Amendment of Collateral Documents

	
  

	
6.1.

	
It is hereby agreed to make amendments and supplements to the Collateral documents set forth below. The aforementioned documents shall be replaced by the forms attached to this Amendment. The documents are as follows:

	
  

	
6.1.1.

	
The Letter of Conditions and Encumbrance of Monies and Rights in Connection with the Deposit, attached as Appendix 16.1a to the Credit Agreement (Appendix 6.1.1 hereto).

	
  

	
6.1.2.

	
The Debenture, including the appendices thereto, for the creation of a lien by the Parent Company, which is attached as Appendix 22.1.1 to the Credit Agreement (Appendix 6.1.2 hereto).

	
  

	
6.1.3.

	
The Debenture, including the appendices thereto, for the creation of a floating charge over the assets of the Company, which is attached as Appendix 22.1.2 to the Credit Agreement (Appendix 6.1.3 hereto).

 

  

  

  

 

	
  

	
6.1.4.

	
The Debenture, including the appendices thereto, for the creation of encumbrances over the Company's assets, which is attached as Appendix 22.1.3 to the Credit Agreement (Appendix 6.1.4 hereto).

	
  

	
6.2.

	
In accordance with the amendment of the documents set forth above, the Credit Agreement shall be amended, as follows:

	
  

	
6.2.1.

	
"Appendix II" shall replace "Appendix III" in Section 8.7.7(d).

	
  

	
6.2.2.

	
Section 8.7.7(e) shall be replaced with the following language: "Instructions to the Company, with respect to amounts and assets due from the Company, in the form attached as Appendix III to the Upper Trust Agreement, approved by the Trust Company. The Parent Company shall sign the instructions, and the Company shall confirm receipt thereof, in the form attached thereto."

	
  

	
6.2.3.

	
Section 22.1.3.1(c) shall be cancelled.

	
  

	
6.2.4.

	
In Section 22.1.3.7, the words "on account of Shareholder Loans of any type and/or in connection with a management agreement to be executed between the Company and Bezeq" shall be deleted; the words "Appendix II" shall replace the words "Appendix B."

	
7.

	
Deletion of Reference to the Trust Account

It is agreed to delete from the Credit Agreement the references to the Trust Company's Account. Therefore, the Credit Agreement shall be amended as follows:

	
  

	
7.1.

	
The term " Trust Company Account" in Section 2 of the Credit Agreement shall be deleted.

	
  

	
7.2.

	
The words "... subject to the provisions regarding the transfer of monies via the Trust account, as set forth in the Lower Trust Agreement" shall be deleted from the end of the first sentence in Section 21.1(a) of the Credit Agreement.

	
  

	
7.3.

	
The words "... and/or the Trust Company's Account" shall be deleted from the first paragraph of Section 25.1 of the Credit Agreement.

	
8.

	
Completion of Details in the Credit Agreement

	
  

	
8.1.

	
The parties agree that the details of the "Company's Account" in Section 2 of the Credit Agreement are: account no. 634993 in the Central branch (600) of Bank Hapoalim Ltd.

	
  

	
8.2.

	
The parties agree that "B. Communications Ltd." shall appear in the definition of "012 Smile" in place of "012 Smile Communication Ltd."

 

  

  

  

 

	
  

	
8.3.

	
The parties agree that their addresses for purposes of the Credit Agreement, as set forth in Section 47.2 of the Credit Agreement, shall be as set forth in Appendix 8.2 hereto.

	
9.

	
Except as set forth in this Amendment above, there shall be no change to the remaining provisions of the Credit Agreement.

 

IN WITNESS WHEREOF, the parties hereto affix their signature:

 

	 	 	 
	
B. Communications (SP2) Ltd. 

(the Company)

 

	  	
Israel Discount Bank Ltd. 

(as Lender)

	
Bank Hapoalim Ltd. 

(in its capacity as Lender)

 

	  	
HSBC Bank PLC (as Lender)

	
Mizrahi Tehafot Bank Ltd. 

(as Lender)

 

	  	
Union Bank of Israel (as Lender)

	
First International Bank of Israel 

Ltd. (as Lender)

 

	  	
Bank Leumi LeYisrael B.M. (as Lender)

	
Central Benefits Fund of Histadrut 

Employees Ltd. (under special 

management) (as Lender)

 

	  	
Makefet Fund Pension and 

Provident Center - AS Ltd. 

Pension Fund (as Lender)

	
Makefet Fund Pension and Provident 

Center - AS Ltd. (under special 

management) – Other-Purpose 

Funds (as Lender)

 

	  	
Mivtachim The Workers Social 

Insurance Fund Ltd. (under 

special management) - Pension 

Fund (as Lender)

	
Mivtachim The Workers Social 

Insurance Fund Ltd. (under special 

management) Illness and Accident 

Provident Fund (as Lender)

 

	  	
Hadassa Employees Pension Fund 

Ltd. (under special management) 

(as Lender)

	
"Egged" Members Pension Fund Ltd. 

(under special management) – 

Pension Track (as Lender)

 

	  	
"Egged" Members Pension Fund 

Ltd. (under special management)

 – Full Pension Track (as Lender)

	
Bank Hapoalim Ltd.

(in its capacity as Security Trustee)

	  	
Bank Hapoalim Ltd.

(in its capacity as Facility Agent)

  

  

  

 

Signature Confirmation

I, the undersigned, Ami Barlev, Adv., who serves as the legal counsel for B. Communications (SP2) Ltd. (hereinafter, the "Company"), hereby confirm that all the necessary resolutions have been received by the authorized organs of the Company, for the purpose of the Company's execution of this Addendum, and that this Addendum was duly executed by the Company, in accordance with its updated incorporation documents and by means of the parties authorized to bind it, and whose signature on this Addendum obligates the Company for all intents and purposes under this Addendum.

 

                                                                              

	 	 	Ami Barlev, Attorney
	April 14, 2010	 	License No. 43053
	
Date

	  	
Signature and stamp of attorneyexhibit_4-9.htm

Exhibit 4.9

 

Addendum and Amendment No. 1 to the Loan Agreement Dated 

February 18, 2010

Entered into in Ramat Gan as of the 14th day of April 2010

By and between

	 	
Entities Within the Migdal Insurance and Financial Holdings Ltd. Group Pro Rata Among Themselves

	 
	 	
All as set forth in Appendix A to the Original Agreement

	 
	 	
Whose address is 4 Efal Street, Kiryat Arye, Petach Tikva

	 
	 	
Each severally, with respect to its portion of the Loan, as set forth in the Appendix (and not jointly and severally)

	 
	 	
(hereinafter, the "Lender")

	 
	 	
Of the first part;

	 

  And

	 	
B Communications (SP1) Ltd. Company No. 514405414

	 
	 	
Whose address is 2 Dov Friedman Street, Ramat Gan

	 
	 	
(Hereinafter, the "Borrower")

	 
	 	
Of the second part;

	 

 

WHEREAS, on February 18, 2010, a Loan Agreement was executed between the parties (hereinafter, the "Original Agreement"); and

WHEREAS, the parties wish to amend and add to the Original Agreement;

NOW, THEREFORE, the parties stipulate and agree as follows:

Provision of the Loan

	
1.

	
Unless explicitly stated otherwise in this Amendment No. 1, the terms in this Amendment No. 1 shall have the meaning ascribed to them in the Original Agreement.

	
2.

	
Notwithstanding Section 7.5 of the Original Agreement, the Borrower hereby instructs the Lender (subject to the satisfaction of the conditions for providing the First Installment) to provide the Borrower with the Loan in its entirety, in a single installment, in the following manner:

	
  

	
2.1.

	
A total of NIS 22,500,000 shall be transferred by way of a Real Time Gross Settlement ("RTGS") transfer to the Encumbered Account, as set forth in Section 7.5 of the Original Agreement.

	
  

	
2.2.

	
A total of NIS 477,500,000 shall be transferred by way of an RTGS to the Purchaser's bank account, the details of which are as follows: account no.  [         ] in Bank Hapoalim Ltd., Central Branch (600), IBAN No. [IL790126000000000634993] (hereinafter, the "Purchaser's Account").

 

  

  

  

 

Pursuant to the provisions of Section 2.15 of the Original Agreement, the Borrower hereby notifies the Lender that the details of the Encumbered Account are as follows: account no.  [         ] in Israel Discount Bank Ltd., Kikar Hayahalom Branch (123), IBAN No. [IL490111230000093053292].

	
3.

	
The Borrower represents and warrants that its request to provide a portion of the Loan to the Purchaser's Account, as aforementioned, was designed to facilitate the money transfer process and the actions to be performed on the date of consummation of the transaction under the Bezeq Purchase Agreement, and that the transfer of the Loan in its entirety to the Purchaser's Account and the Encumbered Account is equivalent to the provision of the Loan to the Borrower under the terms of the Original Agreement for all intents and purposes.

	
4.

	
Without derogating from the generality of the foregoing, the words "in the Bank Account" in Section 7.6 of the Original Agreement shall be deemed to have been replaced with the words "in the Bank Account and the Purchaser's Account, in accordance with Section 2 of Addendum No. 1 of the Original Agreement."

	
5.

	
In addition, in light of the Lender's consent to provide the Loan immediately prior to the provision of the Bank Debt to the Purchaser despite Section 7.2 of the Original Agreement, such that the Loan amounts are held by the Borrower and the Purchaser in trust for the Lender until such time as the Bank Debt is provided to the Purchaser, the Borrower undertakes that in the event the Loan is provided at such time, as aforementioned, and, after the provision thereof AP.SB.AR. Irrevocable Instruction, as defined below, is not performed for any reason whatsoever by 11:59 p.m. on April 14, 2010, then the Borrower shall immediately return to the Lender (on April 15, 2010) the entire Loan amount without the need for any demand or action on the part of the Lender. It shall do so by RTGS transfer to the account whose details are as follows: account no.  [         ] at the Montefiore branch (781) of Bank Hapoalim Ltd., under the name of Amit, Pollak, Matalon Trust for Migdal Insurance Company Ltd. (IBAN: IL90-0127-8100-0000-0317-703).

As a condition for the Lender's provision of the Loan and without derogating from the Borrower's above undertaking: (a) the Borrower shall provide the Lender with a letter of undertaking, in the form attached as Appendix A to this Addendum No. 1, signed by the Purchaser, pursuant to which the Purchaser shall return to the Lender a total of NIS 477,500,000 in the aforementioned event; and (b) the Lender shall be provided irrevocable instructions from the Purchaser to Bank Hapoalim Ltd. and to Bank Hapoalim Ltd. (as Facility Agent), in the form attached as Appendix B to this Addendum No. 1, approved by Bank Hapoalim Ltd. The Lender shall sign the aforementioned instructions, granting its consent thereto.

In this Section, "AP.SB.AR. Irrevocable Instruction" shall mean irrevocable instructions which the Purchaser shall give to Bank Hapoalim Ltd. (in its capacity as Facility Agent) immediately after the Purchaser's Account is credited, as set forth in Section 2 above, to credit the Sellers' account(s) in consideration for shares of Bezeq which are purchased in accordance with the provisions of the Bezeq Purchase Agreement, upon receiving the approval of Bezeq's secretary for the appointment of directors to the Board of Directors of Bezeq (the form of the Ap.Sb.Ar. Irrevocable Instruction is attached hereto as Appendix C).

 

  

  

  

 

Correction of Typing Error

	
6.

	
In Section 6.6.6 of the Original Agreement, the digit "0" shall be replaced by the number "6.6.4."

Surpluses in the Purchaser's Account

	
7.

	
The Borrower declares that the equity capital it provided to the Purchaser, together with the Loan amount which it shall provide the Purchaser on the Closing Date as a shareholder loan, shall leave a surplus in the Purchaser's Account, after payment of the purchase consideration to the Sellers pursuant to the Bezeq Purchase Agreement, in an amount of NIS 122 million (it is clarified that this amount includes a total of NIS 100 million, which is included in the Permitted Expenses pursuant to Section 5.7(b) of the Original Agreement) (hereinafter, the "Surplus Amount"). As part of the amendment to the Bank Financing Agreement, it is was determined, inter alia, that with respect to a total of NIS 55 million from the Surplus Amount, the Purchaser shall be entitled to provide all or part of such amount as a loan to Smile (the "Loan to Smile").

	
8.

	
The Lender consents to the provisions of Section 7 notwithstanding anything to the contrary in the Original Agreement, and it agrees that the Purchaser may provide the Loan to Smile without transferring monies via the Encumbered Account. The Lender shall execute any document reasonably required by the Borrower in order to exclude all or part of the Surplus Amount from the Irrevocable Instruction to pay the Purchaser's Surpluses into the Encumbered Account, which was furnished to the bank in which the Account is managed, pursuant to the provisions of Section 5.7 of the Original Agreement. In the event all or part of the Surplus Amount reaches the Encumbered Account, pursuant to the aforementioned Irrevocable Instruction, it may be released from the Account at the Borrower's discretion.

The Borrower is aware that the foregoing consent for use of all or part of the Surplus Amount, as set forth above, is a one-time consent, exclusive to the above circumstances, and such consent is not to be interpreted in any manner that enables the Company to perform other similar actions if they are not in accordance with the provisions of the Original Agreement.

Miscellaneous

	
9.

	
The parties agreed that "B. Communications Ltd." shall replace "012 Smile. Communication Ltd." in the definition of the term "Smile."

	
10.

	
For the avoidance of doubt, nothing in this Addendum No. 1 derogates from or modifies the conditions for the provision of the Loan.

	
11.

	
There shall be no change to the remaining provisions of the Original Agreement.

  

  

  

 

IN WITNESS WHEREOF, the parties hereto affix their signature:

                                                                                                                           

	 (-)	 	 (-)
	
B. Communications (SP1) Ltd.

 

	  	
Migdal Insurance Company Ltd.

For profit-participation policies

 

(-)

	  	  	
Migdal Insurance Company Ltd.

For Nostro

 

(-)

	  	  	
Migdal Makefet Pension and 

Provident Fund Ltd.

 

(-)

	  	  	
Migdal Management of Provident 

Funds Ltd.

 

(-)

	  	  	
New Makefet Provident Fund 

Management Ltd.

 

(-)

	  	  	
Yozma Pension Fund for Self 

Employed Ltd.

 

Signature Confirmation

I, the undersigned, Ami Barlev, Adv., who serves as the legal counsel for the Borrower, hereby confirm that the document entitled "Addendum and Amendment No. 1 to the Loan Agreement Dated February 18, 2010," was duly executed by the Borrower, by means of Messrs. Or Elovitch, ID No. 038475117 and Amikam Shorer, ID No. 059821988, who are duly authorized to sign on behalf of the Borrower and bind it to this Agreement. The aforementioned signatures on this Agreement obligate the Borrower for all intents and purposes.

 

	 	
(-)

Ami Barlev, Attorney

License No. 43053

	 
	 	
Signature and stamp

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