Document:

exhibit_4-9a.htm

Exhibit 4.9a

This document constitutes a translation from Hebrew for convenience purpose only.

Annex to Lease Contract dated 7.2.2002

This annex was made and executed on October 31st, 2012

Between:

MOFARI LTD.

Private Company Number 51-140628-2

from 3 Hashikma St., P.B. 11376, Azour, 58001

(To be referred to hereinafter as "the Landlord)"

THE FIRST PARTY;

and

ITURAN LOCATION AND CONTROL LTD.

Public Company Number 52-004381-1

from 3 Hashikma St., Azour, 58001

(To be referred to hereinafter as "the Tenant")

THE SECOND PARTY;

	
Whereas:

	
on 2/7/2002 the parties executed a lease contract according to which the Tenant leases from the Landlord an area of approximately 2,614 square meters, on ground, Basement A and Basement B floors and a roof, located in the building leased by the Landlord in the new industrial park in Azour (hereunder: "the Contract");

	
Whereas:

	
the parties wish to extend the lease under the Contract, to increase the leased area and to amend the Contract in respect of several matters, and all in accordance with and subject to the following terms and provisions;

IT IS THEREFORE DECLARED, AGREED AND PROVIDED BETWEEN THE PARTIES AS FOLLOWS:

	
  

	
1.

	
It is agreed that the provisions of the Contract shall remain valid, mutatis mutandis, unless and to the extent they are explicitly amended under this Annex, and to the extent they do not contradict this Annex.

 

  

  

  

 

This document constitutes a translation from Hebrew for convenience purpose only.

 

	
  

	
2.

	
For the avoidance of doubt, it is agreed that in case that there is a contradiction between provisions of the Contract and this Annex, the provisions of this Annex will prevail.

	
  

	
3.

	
The current wording under the term "Leased Premises" in the Contract shall be replaced by the following wording:

"An area of approximately 2,798.5 square meters gross, in which are included, pursuant to the parties' agreement, an addition for public areas, on the ground and Basement A and Basement B floors, and a roof, located in the building belonging to the Landlord in the new industrial park in Azour, known as Parcel 87 in Block 6010 and outlined in red in the diagrams that are attached as Appendices A, B, C and D and which constitute an integral part of the Contract (hereinafter: the "Diagram"). Nevertheless, it is agreed that the parties will measure the Leased Premises through a licensed surveyor whose identity will be determined by agreement within 90 days following execution of this Annex, and if there is no such agreement within such period, the identity of the surveyor will be determined by the Chairman of the Association of Licensed Surveyors of Israel, pursuant to a request of the Landlord/Tenant.

The Parties will instruct the surveyor to measure the leased area (and other areas to the extent leased by the Tenant) by way of multiplying the net area (as defined below) by 1.25.

The leased area as determined by the surveyors (hereunder – "the Updated Area") shall be the area to be used by the parties as a basis for calculation under the Contract and this Annex. Until determination of the Updated Area, the leased area for purposes of the Contract and this Annex is 2,789.5 sq/m gross".

The net area for purposes of this Annex is: "the area placed between the external walls of the Leased Area plus the width of the external walls. For this purpose the width of the external walls means – the wall which separates between the Leased Premises and what is outside of it. For this purpose, with respect to an external wall with a stone cladding – the meaning is that the face of the wall shall include the cladding.

	
  

	
4.

	
The term of lease mentioned in section 4(a) of the Contract shall be extended and shall be for 7 years commencing from April 1, 2013 and until March 31, 2020.

	
  

	
5.

	
Section 4(b) of the Contract - is terminated.

	
  

	
6.

	
Instead of the current wording of section 7 of the Contract, the following wording shall be placed:

"7

  

  

  

 

This document constitutes a translation from Hebrew for convenience purpose only.

 

	
  

	
a.

	
In consideration for the lease of the Leased Premises, the Tenant undertakes to pay the Landlord the followings:

	
  

	
(1)

	
Amount of NIS 48 plus VAT for each per square meter gross of the Leased Area, as defined above, as monthly lease payments and for the maintenance of the air-conditioning systems, computerized smoke detection center, elevators, cleaning of the public areas, sanitary plumbing in the public bathrooms, but not including municipal property taxes and water (the "Rental and Maintenance Payments").

	
  

	
(2)

	
In addition to the Rental and Maintenance Payments, the Tenant will pay to the Landlord the municipal property taxes in accordance with the rate determined by the Municipal Property Tax Order of the Azor Local Council as of 1.1.2013.

The Tenant shall be entitled to apply directly to the Local Council in a request to be charged a decreased municipal property tax rate due to the type of its business. If the Tenant provides the Landlord with the  Local Council's written approval regarding the decreased municipal property tax rate concerning the Leased Premises, then the Tenant will pay the Landlord the municipal property tax in accordance with the rate stated at such approval, but in any event the size of the area for the purpose of calculating the municipal property taxes shall be the area specified in the Contract.

The payment for the use of water will be paid by the Tenant, and will be imposed on it in addition to the above-mentioned amount in accordance with its actual consumption, at the rate at which the Landlord is charged by the Azour Local Council.

	
  

	
(3)

	
Terminated.

	
  

	
(4)

	
The Rental and Maintenance Payments will be linked to the Index as detailed below, and shall be referred to as "the Rental Payments".

In this Contract the following terms shall have the following meaning:

The "Index" – the consumer price index including the index of fruits and vegetables, as shall be published by the Central Bureau of Statistics or any other substitute official institute.

The "Basic Index" – the Index of November 2012 as published on 15/12/2012.

The "New Index" – the Index known on the day of payment.

Calculation of the Rental and Maintenance Payments as linked to the Index shall be made as follows:

To the Rental and Maintenance Payments will be added linkage differentials at the rate of the Index changes (increase or decrease) on the actual payment date, as compared to the Basic Index, but in any event not less than the Basic Index. The linkage differentials shall be paid along with the Rental and Maintenance Payments and shall be an integral part thereof.

It is agreed that in case the New Index shall decrease below the Basic Index, the Landlord shall be paid Rental and Maintenance Payments in the amount that was paid for the last month (including the linkage differentials) before the day on which each of the payments of the Rental and Maintenance payments shall be made.

Nonpayment of the linkage differentials on their due date shall be deemed as nonpayment of the Rental and Maintenance Payments on their due date. The settlement between the parties in respect of the linkage differentials shall be made on the actual payment date of the Rental and Maintenance Payments.

 

  

  

  

 

This document constitutes a translation from Hebrew for convenience purpose only.

 

	
  

	
b.

	
(Terminated).

	
  

	
c.

	 

	
  

	
(1)

	
On April 1st, 2013 the Tenant shall pay to the Landlord an amount for 4 months of rent and maintenance. The Rental and Maintenance Payments for one month of rent out of the amount mentioned in section 7c(1) shall be used as a security for the fulfillment of the Tenant's undertakings (hereinafter – "One Month Security Amount").

	
  

	
(2)

	
On this date the parties will conduct a settlement in respect of the security amounts paid for the period preceding the rental period under this Annex, to the extent paid (hereinafter - "the Security Amounts") and these will be deducted from the One Month Security Amount.

	
  

	
d.

	
The Tenant will pay to the Landlord VAT in addition to the Rental and Maintenance Payments at the rate applicable under the law on the date of payment against the provision of a tax invoice. The VAT amount shall be paid to the Landlord on the dates of payment of the Rental and Maintenance Payments as stated in this Contract, by check dated two days prior to the designated date of VAT payment under the law in respect of the invoice.

	
  

	
e.

	
Breach of the provisions of section 7 including all its subsections, shall be considered as a material breach of this Contract."

	
  

	
7.

	
Section 8e(1) of the Contract – instead of "34", "54" shall be placed. Instead of "1.1.02", "1.4.12" shall be placed.

	
  

	
8.

	
Section 8e(3) of the Contract – instead of "34", "54" shall be placed. Instead of "1.1.02", "1.4.12" shall be placed.

	
  

	
9.

	
Section 8i fourth line – after the word "carpets" shall be placed "and/or the parquet."

	
  

	
10.

	
Section 8m – the words "the Tenant declares .... 40 ampere" shall be deleted.

 

  

  

  

 

This document constitutes a translation from Hebrew for convenience purpose only.

 

	
  

	
11.

	
Section 13a third line – instead of the words "amount equal to 1.40 $", "amount of NIS 6" shall be placed.

	
  

	
12.

	
Section 15f – the words "in addition to dollar linkage differentials" as mentioned in section 7 above, shall be deleted. Instead of the words "the calculations will be carried out", the words "the calculation will be carried out" shall be placed.

	
  

	
13.

	
Section 17 to the Contract – is terminated.

	
  

	
14.

	
Section 25a to the Contract – instead of current wording, the following wording shall be placed: "the Tenant confirms that he is aware that he has no right of use whatsoever regarding the part of the ramp in front of the vitrines, as outlined in red in the Diagrams (annex c), and this part shall be used for parking of vehicles of other tenant/s in accordance with the sole discretion of the Landlord".

	
  

	
15.

	
Section 25b to the Contract – is terminated.

	
  

	
16.

	
Section 29 to the Contract – is terminated.

	
  

	
17.

	
Section 32 to the Contract, at the end shall be added– "the Tenant undertakes to perform periodical examinations of radiation of the antennas and the electronic equipment as required under the law".

	
  

	
18.

	
A new section 33(c) will be added as follows – "the Landlord allows the Tenant to park, for no consideration, within the area of parking outlined in red in the attached diagrams, which is located on the upper surface of the ramp in front of the offices of "Mister Big". The Tenant shall pay the local property taxes for this parking area.

	
  

	
19.

	
Section 34 to the Contract – the clause which starts with the words "notwithstanding the foregoing, ..." shall be deleted until the end of the section.

	
  

	
20.

	
Section 35 will be added to the Contract as follows: "the Landlord, at its sole discretion, shall be entitled to add and build additional floors on the roof of the building in which the Leased Premises and its systems are located. The Tenant shall not be entitled to object to the construction, as long as such construction shall not cause any change to the structure of the Leased Premises. The Landlord shall take reasonable measures to avoid unreasonable disturbances to the use of the Leased Premises taking into consideration the circumstances of such construction works. In the event of such construction, the Tenant undertakes to evacuate, on its account, the mast currently placed on the roof of the building to another place as instructed by the Landlord.

The Landlord undertakes to allow the Tenant free access to the entrance of the Leased Premises during such construction. The Landlord shall take all reasonable measures to reduce as much as possible interruptions to the Tenants as a result of the construction."

  

  

  

 

This document constitutes a translation from Hebrew for convenience purpose only.

 

	
  

	
21.

	
Section 36 will be added to the Contract as follows: "the parties agree to avoid any unilateral action toward each other without notice and/or the receipt of consent of the other party, including actions of set-off, electricity disconnection, close of entrances/exits etc.

During performance of renovation works by the Tenant at the Leased Premises which may cause disturbance to the neighbors, the Tennant will inform the Landlord and the other right holders in the building by an advance written notice, of the possibility of such disturbance and the Tenant shall use its best efforts to limit these disturbances. Light renovation or changes, which do not damage the Leased Premises, do not require prior approval."

	
  

	
22.

	
Section 37 will be added as follows - the Tenant is entitled, upon coordination with the Landlord, to place flowerpots/vegetation in front of the building on the sidewalk.

	
  

	
23.

	
Section 38 will be added to the Contract as follows: the parties acknowledge that on the date of execution of this Annex, the Tenant leases from the Landlord 5 parking places (in addition to the 3 parking places that the Tenant is entitled to under the Contract) at the basement of the building, for a monthly consideration of NIS 400 plus VAT for double parking, and a monthly consideration of NIS 470 plus VAT for single parking. This lease shall remain valid under these terms.

The consideration for each of these 5 parking places shall be linked to the Basic Index and the calculation shall be made as detailed in section 6a(4) of this Annex.

In addition, it is agreed that in case that the Landlord will close the parking bay located in the Shikma St., in Azur from public use and will use it for its own purposes, then the Tenant is granted an option to lease from the Landlord 4 parking places in such parking bay, for a consideration to be determined by the Landlord at its sole discretion. It is hereby clarified that if for any reason the parties will not reach an agreement regarding the consideration for the lease of the above-mentioned parking places, within 7 business days from the date of the Tenant's written request to exercise the option, the option will expire and the Landlord will be entitled to lease these parking places or any part thereof to others.

	
  

	
24.

	
Section 39 will be added to the Contract  – it is agreed that in case that the parties will agree on the lease of additional areas in the building, then the rental payments to be paid by the Tenant therefor shall be at same rate as the rental payments paid by the Tenant for the leased areas it then leases from the Landlord.

 

  

  

  

 

This document constitutes a translation from Hebrew for convenience purpose only.

 

In any event, the performance of works for the adjustment of such new areas (to the extent they shall be leased) for the purpose of the lease, shall be carried out by the Tenant, at its account, upon coordination with the Landlord, under its supervision and upon its prior written approval.

IN WITNESS THEREOF, THE PARTIES HAVE SIGNED:

[signed]                                            [signed]

___________________             ______________________________________

 MOFARI LTD.                        ITURAN LOCATION AND CONTROL LTD.

[Diagrams are omitted]exhibit_4-12.htm

Exhibit 4.12

FORM OF DIRECTORS' LETTER OF INDEMNITY (ENGLISH TRANSLATION)

 

LETTER OF INDEMNITY

 

To:

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------------------

1.      GENERAL

        1.1    We hereby inform you that in accordance with the decision of the Compensation Committee and the Board of Directors of Ituran Location and Control Ltd ("THE COMPANY") dated December 18 and 20, 2013, respectively, and pursuant to the decision of the Company's General Meeting dated January 28, 2014 (Hereinafter: "THE DETERMINING DATE"), it was decided to pledge to the Office Holders that the Company shall indemnify each of them against any liability or expense, as detailed in this letter below, which may be imposed upon them due to any action they have done ex officio, by virtue of their being Office Holders of the Company.

        1.2    The terms which have not been defined in this Letter shall be interpreted as in the Companies Law, 5759 - 1999 (hereinafter: "COMPANIES LAW"), save if the context of the matter shall require otherwise.

2.     COMMITMENT TO INDEMNIFY

        Subject to the provisions hereof and the provisions of any law, the Company hereby commits itself toward you to indemnify you of any liability and/or expense as detailed in paragraph 3.1 below, which may be imposed on you due to any action you have carried out and/or may carry out in the Company and/or in a subsidiary and/or in an affiliated company (as defined in the Securities Law 5728-1968) and/or in a related company (hereinafter in this Letter, subsidiary and/or affiliated company and/or related company: "RELATED COMPANY"), including actions carried out by you before the date of signing this Letter, by virtue of your being an Office Holder of  the Company, and on condition that said actions were directly and/or indirectly related to one (or more) of the types of events specified in paragraph 5 below.

3.     THE LIABILITY AND EXPENSES TO WHICH INDEMNITY SHALL APPLY

        3.1   The indemnity pursuant hereto shall apply only due to liability and/or expenses as follows:

                3.1.1 Financial liability imposed on you in favor of another person in accordance with a verdict, including a verdict given in conciliation or an arbitration award authorized by a Court of Law;

                3.1.2 Reasonable litigation expenses, including attorney's fees, which you have expended or for which you have been charged due to an interrogation or a proceeding that has been conducted against you by an authority competent to wage an interrogation or a proceeding, and which has ended without the filing of an indictment against you and without a financial liability having been imposed on you as an alternative to a criminal proceeding or that ended without the filing of an indictment against you but with the imposition of a financial liability as an alternative to a criminal proceeding in an offense which does not require the substantiation of criminal intent, or in connection with a financial sanction.

For the purpose of this paragraph - the ending of a proceeding without the filing of an indictment in a matter in which a criminal investigation has been opened - signifies the closing of the case pursuant to section 62 of the Criminal Procedure Law [Consolidated Version], 5742-1982 ("the CRIMINAL PROCEDURE LAW"), or a delay of proceedings by the Legal Advisor to the Government pursuant to section 231 of the Criminal Procedure Law.

 

  

  

  

“FINANCIAL ALTERNATIVE AS AN ALTERNATIVE TO CRIMINAL PROCEEDING" - Financial liability imposed in accordance with law as an alternative to a criminal proceeding, including an administrative penalty according to the Administrative Offenses Law 5746-1985, fine for an offense that has been determined as a fineable offense in accordance with the provisions of the Criminal Procedure Law, Financial Sanction or Indemnity.

3.1.3 Reasonable litigation expenses, including attorney's fees, which you have expended or been charged with by a court of law, in a proceeding filed by the Company or on the Company's behalf or by another person, or in a criminal indictment from which you have been acquitted or in a criminal indictment in which you have been convicted of an offense which does not require the substantiation of criminal intent.

3.1.4 A payment which you are obligated to make to an injured party as set forth in Section 52(BBB)(a)(1)(a) of the Securities Law.

3.1.5 Expenses that you incurred in connection with a proceeding under Chapters H'3, H'4 or I'l of the Securities Law, Sections 363a-363c of the Companies Law and Chapter G1 of the Antitrust Law, 1988, including reasonable legal expenses, which term includes attorney fees.

        3.2   It is hereby clarified that the indemnity pursuant to this Letter shall not apply in the following cases:

                3.2.1 Breach of fiduciary duty, save in the matter of indemnity and insurance due to breach of fiduciary duty in cases in which you have acted in good faith and for which you had a reasonable basis to assume that the act would not hinder the Company's interest;

                3.2.2 Breach of the duty of care made intentionally or recklessly, save if made in negligence only;

                3.2.3 Acting with the intent of gaining unlawful personal profit;

                3.2.4 A fine or redemption imposed upon you.

        3.3   In cases in which you shall receive compensation from the insurance company of the Company's insurance policy for the Company's Office Holders (hereinafter: "THE INSURER"), on account of the matter subject of the indemnity, the indemnity given by the Company in the amount of the difference between the amount of financial liability imposed on the Office Holder and/or the litigation expenses which the Office Holder has expended or been charged with, as stated in paragraph 3.1 above, and the amount received from the insurer on account of that same matter, and on condition that the indemnity amount for which the Company shall be charged as aforesaid shall not be greater than the maximum indemnity amount (as defined below).

4.     MAXIMUM INDEMNITY AMOUNT

        4.1    The indemnity amount that the Company shall pay (including amounts which shall be received by the Office Holders from insurance companies, if such shall be received, in the frame of insurances which the company has acquired, if it has acquired such) for all the Office Holders , cumulatively, pursuant to letters of indemnity for Office Holders shall not exceed a total amount equal to the rate of 25% of the Company's equity (consolidated) in accordance with the Company's last financial reports published before the actual indemnification (hereinafter: "the MAXIMUM INDEMNITY AMOUNT"). The maximum indemnity amount has been determined by the Company's Board of Directors as reasonable under the circumstances.

        4.2    Should and as far as the total of all the indemnity amounts that the Company shall be required to pay shall exceed the maximum indemnity amount or the balance of the maximum indemnity amount (as it shall be at that time), the maximum indemnity amount or the balance thereof, as applicable, shall be divided between the Office Holders who shall be entitled to indemnity, in a manner that the indemnity amount which shall be received by each of the Office Holders, in practice, shall be calculated pursuant to the ratio between the indemnity amount which shall be forthcoming to each of the Office Holders on account of the liabilities and/or the expenses which each shall be obliged to bear as a result of the legal proceeding and the indemnity amount which shall be forthcoming to all  the said Office Holders on account of liabilities and/or expenses which they shall be obliged to bear as a result of the legal proceeding, cumulatively on account of that same event.

 

  

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5.     THE EVENTS TO WHICH THE INDEMNITY SHALL APPLY

       The indemnity in accordance with this letter of indemnity shall apply to a liability and/or an expense as aforesaid, which stem from one (or more) of the events detailed below, which have been determined by the Board of Directors as anticipated in view of the Company's actual activities at the time of providing the commitment:

        5.1    A proposal and/or issue of the Company's equities and/or those of a related company in Israel and/or abroad to the public and/or to individuals, pursuant to a prospectus and/or a private placement, including the details which shall be included in the aforesaid executable instruments;

        5.2    Actions and/or reports stemming from the Company's and/or a related company's being and/or should the Company and/or a related company be in future a public company the shares of which shall be issued to the public and shall be traded in the Israeli Stock Exchange or in a stock exchange abroad;

        5.3    Actions and/or decisions related to the making of investments in the company and/or in subsidiaries and/or in related companies and/or for the acquisition of properties, including the acquisition of companies and/or businesses and/or investments in companies and/or investment of funds in traded equities and/or in any other form, and/or the sale of assets and/or sale of holdings in related companies;

        5.4    Events related to the terms of employment of employees and employer-employee relations, including and without derogating from the promotion of employees, handling of pension arrangements, insurance funds, options and other benefits to the Company's employees and/or those of a related company;

        5.5    Decisions and/or actions related to the Company's engagements and/or those of a related company with others, and/or between themselves in the frame of the Company's ongoing business

(including with clients, suppliers, contractors);

        5.6    Actions and/or decisions designated in this paragraph 5, connected with related companies, including decisions and/or actions as Office Holders in the Company and/or in related companies;

         5.7    Actions and/or decisions connected with the distribution of dividends in the Company and/or in a related company and/or the acquisition of the Company's shares;

        5.8    An action and/or a decision connected with the provision of a statement of opinion in a proposal for acquisition or any other action connected with and/or related to a proposal for acquisition in the company and/or a related company;

        5.9    An action and/or a decision connected with a change in the Company's structure and or that of a related company or the reorganization or any decision with respect thereof, including, but without derogating from the generality of the aforesaid, the merger, splitting, change in the Company's capital, the dissolution of companies or their sale, allocation or division;

        5.10   Any legal proceeding in Israel or abroad, in matters that are connected, either directly or indirectly, to trade restrictions and including binding arrangements, mergers and monopolies in the Company and/or in a related company;

        5.11   Any action which has brought about a default in carrying out proper insurance arrangements by the Company;

 

  

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        5.12   An action and/or a decision connected with the approval of transactions with Office Holders and/or with a controlling shareholder in the Company and/or in a related company;

        5.13   Any action which has caused damage including damage to property including the loss of its use and which is connected to the actions designated in this paragraph and/or to the Company's products, or those of its subsidiaries and/or related companies or to other activities in the frame of the Company's ongoing business or that of related companies.

 

        5.14 Any event and/or action under Chapters H'3, H'4, or I'1 of the Securities Law,  Sections 363a-363c of the Companies Law, and Chapter G1 of the Antitrust Law, 1988, which are indemnifiable under applicable law.

6.     DEALING WITH THE SUIT

In any case in which you will be entitled to compensation in accordance with this statement, the following instructions will apply:

         6.1    You will notify the company in writing of any legal procedure taken against you and any chance and/or threat that a legal procedure will be taken against you and circumstances brought to your knowledge that may lead to a legal procedure against you (including, but not limited to a request of any kind, including an investigation of an authorized entity, a letter of demand, a legal claim, a civil claim, a request for declaratory judgment, and including an administrative enforcement procedure under the Securities Law, Companies Law or Antitrust Law, 1988, hereinafter: "THE PROCEDURE"), this as soon as possible after the time it becomes known to you, and you will transfer without delay to the company, or to whoever the company decides, a copy of any document regarding the procedure.

         6.2    You will fully cooperate with the company and with anyone it decides, including the insurer, and you will transfer any information required regarding the procedure and you will follow the rest of the instructions of the insurance policy of the employees of the company (at the time) regarding the defense from the procedure.

         6.3    The company will be entitled to take upon itself your defense in the procedure and to transfer the defense in the case to a lawyer to be determined by the company, according to its judgment, and while taking into consideration the company's obligations according to the policy and the option to appoint a lawyer on behalf of the insurer (hereinafter: "the company's advocate").

         6.4    Despite the mentioned in section 6.3 above, you will be entitled to object to the representation by the company's advocate due to reasonable reasons and/or under circumstances that in your opinion and/or the opinion of the company's advocate there is a conflict of interests between your defense and the defense of the company.

         6.5    If within 14 days from accepting the notice as mentioned in section 6.1 above, the company and the insurer did not take your defense upon themselves in the procedure, or if you or the company's advocate object to the representation by the company according to the mentioned above in section 6.4, you will be entitled to appoint an advocate of your choice (hereinafter: "the other advocate"), providing the sum of the professional fees of the advocate will be approved by the audit committee that will examine the reasonableness. The professional fee determined for the company's advocate will be considered a reasonable basis in order to examine the fee of the other advocate. You will be given the opportunity to appear and argue before the committee and it will explain its decision. You will be entitled to appeal to the board of directors and you will be given the opportunity to appear and argue before them. If the entire sum of the fee is not approved by the company and you decide not to concede the advocate, you will be entitled to receive the amount approved, and to pay the rest on your own.

         6.6    Despite the mentioned above in sections 6.4 and 6.5, if the policy refers to the matter, the company will act according to the instructions of the mentioned policy regarding disagreements with the insurer regarding the identity of the advocate representing according to the instructions of the policy when the case is transferred to the other advocate under the circumstances will enable the insurer to be released of its obligation or to minimize it and the instructions of the policy will override any agreement between you and the company, the company will however make every reasonable effort to honor your wish.

 

  

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         6.7    If the company decides to take upon itself the defense in the procedure and you did not object under the circumstances mentioned in section 6.4 above, you will sign, to the request of the company, an authorization authorizing the company (as well as its advocate), to deal with the defense in your name and to represent you in any thing regarding the defense and the company and its advocate will be entitled to deal with the mentioned above exclusively (while reporting to you) and will be entitled to end the procedure as they see right, this subject to the provisions of section 6.15.

         6.8    You will cooperate with the company and its advocate in any reasonable way required by them regarding the procedure, including signing requests, depositions and any other document.

         6.9    If the company decided to take upon itself to deal with the defense in the procedure and you did not object under the circumstance mentioned in 6.4, the company will bear the expenses up to the maximum compensation (subject to the instructions of section 4.2), so that you will not have to pay them yourself, and the company will not be liable for any legal expenses including the lawyer's professional fees spent during the procedure.

         6.10   To your request, the company will pay an advance payment to you that you need to cover the reasonable costs you will be due to pay and/or are due to pay, including the lawyer fees, this

according to the estimate made by the company and at the time decided by it, compensation to which you are entitled according to this statement, providing the total sum will not be more than the maximum compensation (subject to the instructions of section 4.2 above).

         6.11   If the company should pay you any amount from the power of this statement, as an advance or otherwise, and it then becomes clear that you are to return it, all or part, due to the fact that you were not entitled to compensation, for any reason, you will return it to the company bearing linkage differences of the consumer price index (as it is publicized from time to time by the CBS) as well as interest determined by the Finance minister, approved by the finance committee of the Knesset, according to section 3 (i) of the Tax Law (new version), 1961.

         6.12   If the company paid any amount of this statement, and then the obligation due to which the payment was made was cancelled or was reduced for any reason, you will write a check to return the sum from the plaintiff in the procedure and you will do whatever is necessary so that the check is valid and the company can cash it, and once you do this you will not be obligated to return the sum that was cancelled. If you do not do so- you will have to return the sum to the company, or its part, according to the matter, plus linkage differences and interest accordingly.

         6.13   If the company's advocate represented you and the company in the procedure, and it later became clear that you are not entitled to compensation, for any reason, and a disagreement rises

regarding your obligation to return the trial expenses or the amount to be returned, the disagreement will be transferred to an arbitrator to be agreed upon according to section 6.14. The company will bear the expense of the arbitration, including lawyer fees, unless the arbitrator decides that you used the arbitration not in good faith.

         6.14   In signing this statement, you are obligated to do all you can, within the framework of the law, to reduce the amount of compensation you are entitled to as much as possible. You will not agree to compromise and/or to arbitrary, unless the company agreed in advance and in writing, and if it is necessary the agreement of the insurer, that it was received. The company will not agree to compromise unless the compromise does not expose the company to other suits on part of the plaintiff and that the agreement will not be considered admission and/or recognizing of liability regarding the causes of the procedure. The company will bring to the knowledge of the employees the details of the agreement. In case there is disagreement between the company and employees, regarding if the agreement answers to the instructions of this section, it will be brought before an arbitrator for a quick decision to be appointed by the company. The arbitrator will be appointed within 7 days from the time one side demanded arbitrary agreed upon the sides and if there is no agreement, the identity of the arbitrator (that will be a former district or high court judge) by the president of the lawyer's chamber in Israel, unless the arbitrator decides that the arbitrary was used not in good faith.

 

  

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         6.15   The company, as well as the company's advocate, will not agree to compromise if the sum is more than the compensation you will be entitled to, unless you agree in advance in writing and if there is need for the agreement of the insurer- with the advanced agreement of the insurer.

         6.16   In case you appeal the decision of a court in the procedure, you will have to receive the approval of the company in advance and in writing. The company will be entitled to refuse a request as mentioned due to relevant considerations regarding the incident.

7.      THE VALIDITY OF THE OBLIGATION

         7.1    The obligation for compensation will be valid according to this statement regarding procedures against you during your work or office as well as procedures afterwards, providing they refer to actions you took from the time you were appointed to a position in the company, while you were in the position or as a result. The compensation obligation will stand for your inheritors and/or replacements according to law.

         7.2    The company will not be required to pay any sum paid to you for yourself or in your place, in any way, in the framework of insurance acquired by the company or in the framework of insurance acquired by a company controlled by the company or a connected company (if you have a position in them) or an obligation to any compensation of a company controlled by the company or anyone else.

         7.3    This statement does not cancel or concede or reduce any other compensation the position holder is entitled to from any other source according to any law and/or obligation.

         7.4    This statement does not prevent or limit the company from giving you additional special compensations, providing it does not harm the compensation obligation of this statement.

         7.5    This statement does not prevent or limit the company from increasing the maximum compensation due to the incidents regarding the compensation, providing the decision is reached according to law.

         7.6    The company's obligations will be broadly interpreted according to this statement and in order to fulfill them, as permitted by law. In case of a contradiction between any instruction in this statement and any law that cannot be changed, added to or conditioned, the mentioned law will override, but this will not reduce the validity of the other instructions in this statement.

         7.7    This statement is not a contract for a third party and cannot be conceded.

         7.8    This Letter of Indemnify cancels any other letter of indemnity or similar obligation granted to you as an Office Holder of the company.

         7.9    It is hereby agreed that the court authorized to deal with conflicts and/or disagreements regarding this statement, is the Tel Aviv-Jaffa court alone. The laws of the state of Israel alone will apply to this statement.

8.      THE PAYMENT

         8.1    To any payment paid to you, VAT will be added, when it applies.

         8.2    Any payment the company has to pay according to this statement will be paid within 30 days from the day it was requested.

 

	 	Respectfully, Ituran Location and Control Ltd.

                                                                   

Date:

CONFIRMATION:

-------------

  

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I hereby confirm that I received the above statement and agree to everything in it and am obligated to act according to its conditions.

Name:

      -------------------------

Signature:

      ---------------------

Date:

      --------------------------

 

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