Document:

Unassociated Document

    Exhibit 4.3

    
    

     

    
      	
              TRANSLATION
      FROM HEBREW

              THE
      BINDING VERSION IS THE HEBREW
VERSION

            

    

    
 

    Deed
of Trust

     

    Made
and signed in Netanya on September 20, 2007

     

    
    

     

    
      	
              Between:

            	 
	 	
              Cellcom
      Israel Ltd.

              of
      10 Hagavish Street, Netanya

              (hereinafter:
      “the
      Company”)

            	 
	 	 	
              of
      the one part;

            
	
              And:

            	 	 
	 	
              Aurora
      Fidelity Trust Company Ltd.

              Private
      company no. 51-3605576

              of 6
      Hayarkon St., Ramat Gan 52521

              Telephone:
      03-7551596

              Fax:
      03-7510902

              Contact:
      Adv. Iris Shalvin, CEO

              (hereinafter:
      “the
      Trustee”)

            	of the other
    part:

    

     

    
      	
              Whereas:

            	
              The
      board of the Company decided, on September 19, 2007, to approve the issue
      of Debentures (Series C), according to the conditions of the Prospectus;
      and

            

    

     

    
      	
              Whereas:

            	
              The
      Trustee is a limited shares company that has been incorporated in Israel
      according to the Companies Law, whose principle goal is to engage in
      trusteeship; and

            

    

     

    
      	
              Whereas:

            	
              The
      Trustee has declared that there is no impediment in accordance with the
      Securities Law 5728 – 1968 or any other law to its entering into an
      engagement with the Company pursuant to this Deed of Trust, and that it
      fulfills all of the requirements and conditions for competency stated in
      the Securities Law to serve as a trustee for the issue of the Debentures
      (Series C) covered by the Prospectus;
and

            

    

     

    
      	
              Whereas:

            	
              Within
      the Prospectus, the Company shall issue Debentures (Series C) of a par
      value that will be as determined in accordance with Section 2.2 of the
      Prospectus; and

            

    

     

    
      	
              Whereas:

            	
              The
      Company has requested that the Trustee serve as the trustee for the
      Debenture Holders (Series C), and the Trustee has agreed thereto, subject
      to the terms of this Deed of Trust;

            

    

     

    Now
therefore it has been agreed, declared and stipulated between the parties as
follows:

     

    1.           Preamble, interpretation and
definitions

     

    
      	
               
      

            	
              1.1

            	
              The
      preamble to this Deed of Trust and the appendices attached hereto
      constitute a

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                 
      

              	
                 

              	
                material
      and integral part hereof.

              

      

       

    

    
      	
               
      

            	
              1.2

            	
              The
      division of this Deed and Trust into sections and the titling of the
      sections are for the sake of convenience and as references only and may
      not be used for construction
purposes.

            

    

     

    
      	
               
      

            	
              1.3

            	
              The
      provisions hereof in plural apply to singular and vice versa; the
      provisions hereof in masculine gender apply to feminine and vice versa,
      and all statements regarding natural persons also refer to corporations,
      wherever this Deed does not implicitly and/or explicitly state otherwise
      and/or if the content of context of the statements does not necessitate
      otherwise.

            

    

     

    
      	
               
      

            	
              1.4

            	
              In
      this Deed of Trust and in the Debentures (Series C), the following
      expressions will have the meaning beside them, unless another meaning is
      implied by the content or context of the
  statements:

            

    

     

    
      	 	
              “This deed” or the
      “Deed of
      Trust”

            	 	
              –

            	
              This
      Deed of Trust, including the appendices attached hereto, which constitute
      an integral part hereof;

            
	 	 	 	 	 
	 	
              the
      “Prospectus”

            	 	
              –

            	
              The
      prospectus of the Company that is due to be published, inter alia, for the
      issue of the Debentures (Series C)

            
	 	 	 	 	 
	 	
              the
      “Debentures (Series
      C)” or the
      “Debentures”

            	 	
              –

            	
              The
      Debentures (Series C) of the Company, registered to name, that will be
      issued in accordance with the Prospectus;

            
	 	 	 	 	 
	 	
              the
    “Trustee”

            	 	
              –

            	
              Aurora
      Fidelity Trust Company Ltd. and/or any party serving from time to time as
      a trustee of the Debenture Holders (Series C) pursuant to this
      deed;

            
	 	 	 	 	 
	 	
              “Register”

            	 	
              –

            	
              Register
      of the Debenture Holders (Series C) as stated in Section 25
      hereof;

            
	 	 	 	 	 
	 	
              the “Debenture Holders (Series C)”
      and/or the “Debenture Holders”
      and/or the “Debenture Owners (Series
      C)” and/or the “Debenture
      Owners”

            	 	
              –

            	
              The
      persons whose names are listed at the time in question in the register of
      the Debenture Holders (series C), and in the case of a number of joint
      Holders, the joint Holder first listed in the
  register;

            

    

     

    
      
        
        

      

      
        - 2
-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              the “Debenture Certificate (Series
      C)”

            	 	
              –

            	
              A
      Debenture certificate (Series C) whose form appears as
      the first addendum to this deed;

            
	 	 	 	 	 
	 	
              the “Law” or the “Securities
      Law”

            	 	
              –

            	
              The
      Securities Law, 5728 – 1968 and the regulations thereby, as effective from
      time to time;

            
	 	 	 	 	 
	 	
              “Business
      day”

            	 	
              –

            	
              A
      day on which most of the banks in Israel are open for conducting
      transactions;

            
	 	 	 	 	 
	 	
              “Principal”

            	 	
              –

            	
              The
      par value of the Debentures (Series C)

            
	 	 	 	 	 
	 	
              the “Consumer Price Index”
      (“Index”)

            	 	
              –

            	
              The
      price index known by the name of "the Consumer Price Index", which
      includes fruit and vegetables, as published by the Central Bureau of
      Statistics, including that index even if published by another official
      body or institute, and including any official index that replaces it,
      whether composed of the same data as the existing index or not. If it is
      replaced by another index that is published by such a body or institute,
      and that body or institute did not determine the ratio between it and the
      index thus replaced, the ratio will be determined by the Central Bureau of
      Statistics, and in the case of such a ratio not being determined, it will
      be determined by the Trustee, who will determine, following consultation
      with economic experts of his choice, the ration between the other index
      and the replaced index;

            
	 	 	 	 	 
	 	
              the “Known
      Index”

            	 	
              –

            	
              The
      last known consumer price index;

            
	 	 	 	 	 
	 	
              the “Basic
      Index”

            	 	
              –

            	
              The
      consumer price index for August 2007 that was published on September 12,
      2007.

            
	 	 	 	 	 
	 	
              the “Payment
      Index”

            	 	
              –

            	
              The
      consumer price index known on the date of making any payment on the
      account of the principal and/or the interest;

            
	 	 	 	 	 
	 	
              “Trade
      Day”

            	 	
              –

            	
              A
      day on which transactions are executed on the 

            
	 	 	 	 	 

    

     

     

    
      
        
        

      

      
        - 3
-

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 	 	Tel
      Aviv Stock Exchange Ltd; 
	 	 	 	 	 
	 	
              the “Stock
      Exchange”

            	 	
              –

            	
              The
      Tel Aviv Stock Exchange Ltd;

            
	 	 	 	 	 
	 	
              “Meeting”

            	 	
              –

            	
              A
      meeting of the Debenture Holders, including a class
    meeting.

            
	 	 	 	 	 
	 	
              “Class
      meeting”

            	 	
              –

            	
              A
      meeting of the Debenture Holders, who have an interest that is materially
      different from the interest of other Debenture Holders on the matter that
      is being discussed in the meeting.

            
	 	 	 	 	 
	 	
              the “Nominee
      Company”

            	 	
              –

            	
              The
      Israel Discount Bank Nominees Ltd.

            
	 	 	 	 	 

    

     

    
      	
              2.

            	
              Issuance of the
      Debentures and the Applicability of the Deed of
    Trust

            

    

     

    The
Company shall issue an unlimited in amount series of registered to name
Debentures (Series C), bearing annual interest at a rate that is to be
determined in accordance with Section 2.2 of the Prospectus, linked (principal
and interest) to the Basic Index, for repayment in 9 equal semiannual
installments on March 1 and on September 1 of each of the years 2009 to 2012
(inclusive) and on March 1, 2013. The interest on the Debentures will be paid in
semiannual installments on March 1 and September 1 on each of the years 2008 to
2012 (inclusive) and a semiannual installment on March 1, 2013.

     

    
      	
              3.

            	
              Terms of the Issuance;
      Self-Purchase

            

    

     

    
      	
               
      

            	
              3.1

            	
              The
      Company shall issue the Debentures according to the conditions specified
      in the Prospectus and in the Debentures and will not secure them with any
      collateral.

            

    

     

    
      	
               
      

            	
              3.2

            	
              The
      Company reserves the right to purchase at any time, within or without the
      Stock Exchange, Debentures (Series C) at any price of its choosing,
      without prejudice to the obligation of repayment of the Debentures
      remaining in circulation as specified above. The Debentures that will be
      purchased by the Company will be cancelled and delisted from trade on the
      Stock Exchange, and the Company will not be allowed to re-issue
      them.

            

    

     

    
      	
               
      

            	
              3.3

            	
              A
      subsidiary of the Company and/or the controlling shareholder and/or
      companies under the control of the controlling shareholder of the Company
      (“Affiliated
      Company”) are allowed to purchase and/or sell from time to time
      within or without the Stock Exchange, including by way of issuance by the
      Company, Debentures at any price of their choosing and sell them
      accordingly. The Debentures thus held by the Affiliated Company will be
      considered as an asset of the Affiliated Company, and if they are listed
      for trading, they will not be delisted from trade on the Stock Exchange
      

            

    

     

    
      
        
        

      

      
        - 4
-

        
          

        

      

      
        
        

      

       

    

    other than
subject to the rules of the Stock Exchange.

     

    
      	
               
      

            	
              On
      the matter of holding Meetings of Holders of Debentures, the provisions of
      Section 2.19 of the second addendum to this Deed will
    apply.

            

    

     

    
      	
               
      

            	
              3.4

            	
              The
      Company is allowed, at any time and from time
      to time, without needing the consent of the Debenture Holders or the
      Trustee, to issue, including to an  Affiliated Company,
      Debentures of a different type and/or of different series and/or other
      securities, whether secured or unsecured, whether granting a right of
      conversion into shares of the Company or not granting such right, whether
      by public offering pursuant to a prospectus or otherwise, under terms of
      redemption, interest, linkage, discounting, repayment rate in the case of
      liquidation and other conditions, as the Company sees fit, whether they
      are preferable to the terms of the Debentures (Series C) issued pursuant
      to the Prospectus, equal to them or inferior to
  them.

            

    

     

    
      	
               
      

            	
              3.5

            	
              Without
      derogating from the foregoing, the Company is allowed, at any time and
      from time to time, without needing the consent of the Debenture Holders or
      the Trustee, to issue, including to an Affiliated Company, additional
      Series C Debentures. The additional Debentures that will be issued, to the
      extent issued, including their conditions and resulting rights, will be
      identical and as the existing Debentures, and will together constitute one
      series for all purposes (it is clarified that in the case of such
      issuance, the offerees to which additional Debentures will be issued will
      not be entitled to payment of principal and/or interest whose determinant
      payment date preceded the issuance date). The provisions of the Deed of
      Trust will apply to these additional Debentures. The Company will publish
      an immediate report on such an issuance of additional Debentures and will
      apply to the Stock Exchange in an application to list these additional
      Debentures for trading Debenture therein. In the case of expansion of the
      series of the Debentures (Series C) as above, the fee of the Trustee shall
      be increased in proportion to the increase of the size of the
      series.

            

    

     

    The
Company shall inform the Trustee and the Debenture Holders of the issue of these
additional Debentures.

     

    This right
of the Company does not exempt the Trustee from examining such an issuance, to
the extent that such a duty is imposed on the Trustee by law, and it does not
derogate from the rights of the Trustee and of the Meeting of the Debenture
Holders according to the Deed of Trust, including their right to make the
Debentures immediately repayable as stated in Section 6 hereof.

     

    
      	
               
      

            	
              3.6

            	
              The
      Debentures have been issued in their par value, i.e. without discount. The
      Company reserves the right to allocate the Debentures following an
      expansion of the series at a different discount rate (higher or lower)
      than the discount rate of the 

            

    

     

    
      
        
        

      

      
        - 5
-

        
          

        

      

      
        
        

      

       

    

    Debentures
then in circulation (including due to issuance at a price that reflects a
different discount rate). The discounted allocation of the Debentures
originating from expansion of the series of the Debentures at a rate exceeding
the discount rate established for the Debentures before the expansion, may
adversely affect the state of the Debenture Holders

     

    
      	
               
      

            	
              3.7

            	
              The
      provisions of this Section 3 above itself do not bind the Company or the
      Debenture Holders to purchase Debentures or sell the Debentures in their
      possession.

            

    

     

    
      	
               
      

            	
              3.8

            	
              Wherever
      the rules of the Stock Exchange apply or will apply to any action
      according to this Deed of Trust, they will have preference over the
      provisions hereof, and the dates of such an action will be determined in
      accordance with the rules of the Stock
Exchange.

            

    

     

    
      	
              4.

            	
              Undertakings of the
      Company

            

    

     

    
      	
               
      

            	
              4.1

            	
              The
      Company undertakes hereby towards the Debenture Holders, through the
      Trustee, to pay, on the dates set thereto, all of the sums of the
      principal, the interest and the linkage differences that will be payable
      pursuant to the terms of the Debentures, and fulfill all of the other
      conditions and undertakings imposed thereupon pursuant to the terms of the
      Debentures and this Deed.

            

    

     

    
      	
               
      

            	
              4.2

            	
              The
      Company hereby warrants that the capital raised that it will hold until
      the date of their use according to the designation of the issuance
      remuneration as stated in chapter 3 of the Prospectus, will be deposited
      and invested by the company as it deems fit, as long as each investment is
      made in solid channels, including, but not limited to, an interest-bearing
      monetary deposit, a foreign currency deposit, Debentures with a rating of
      not less than BBB-, and so on. For this purpose, an investment in shares
      or basket certificates whose base asset is shares or share indices or
      options in the Maof or the purchase or writing of positions in
      derivatives, will not be considered as an investment in solid
      channels.

            

    

     

    
      	
               
      

            	
              4.3

            	
              Securing of the
      Debentures

            

    

     

    
      	
               
      

            	
              4.4

            	
              The
      undertaking of the Company to repay the Debentures (principal, interest
      and linkage differences) is not secured by any
  collaterals.

            

    

     

    
      	
               
      

            	
              4.5

            	
              The
      Company will be allowed to pledge its assets, in part or in full, by any
      pledge and in any way, including to any third party, without the need for
      any consent from the Trustee and/or the Debenture
  Holders.

            

    

     

    
      	
               
      

            	
              4.6

            	
              The
      Company will be allowed to sell, lease, assign, deliver or transfer in any
      other way its assets, in part or in full, in any way, for the benefit of
      any third party, without the need for any consent of the Trustee and/or
      the Debenture Holders.

            

    

     

    
      
        
        

      

      
        - 6
-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              4.7

            	
              For
      the removal of doubt, it is clarified that the Trustee has no duty to
      examine, and in fact the Trustee has not examined, the need for providing
      collateral for securing the payments to the Debenture Holders. In its
      entering the engagement in this Deed of Trust, and with the consent of the
      Trustee to serve as the trustee for the Debenture Holders, the Trustee
      does not express its opinion, implicitly or explicitly, as to the ability
      of the Company to fulfill its undertakings towards the Debenture Holders.
      The foregoing does not derogate from the duty of the Trustee by law and/or
      Deed of Trust, nor does it derogate from the duty of the Trustee (to the
      extent that this duty applies to the Trustee according to any law) to
      examine the effect of changes in the Company from the date of the
      Prospectus onwards, to the extent that these may adversely affect the
      ability of the Company to fulfill its undertakings to the Debenture
      Holders.

            

    

     

    
      	
               
      

            	
              4.8

            	
              The
      Debentures will be in an equal pari passu degree of
      security among themselves concerning the undertakings of the Company
      pursuant to the Debentures, without precedence or preference over each
      other.

            

    

     

    
      	
              5.

            	
              Delisting of the
      Debentures from trade initiated by the Stock
    Exchange

            

    

     

    If the
Stock Exchange decides to delist the Debentures (Series C) because the value of
the series falls below the minimum sum stated in the guidelines of the Stock
Exchange, the Company will not perform immediate redemption of the Debentures
(Series C), but the Debentures will be delisted from trade.

     

    
      	
              6.

            	
              Immediate
      repayment

            

    

     

    
      	
               
      

            	
              6.1

            	
              Subject
      to the provisions of Section 6.2 below, the Trustee shall be entitled to
      call for immediate repayment of the unsettled balance of the Debentures,
      in part or in full, and will be compelled to do so if so demanded by a
      special resolution (as defined in the second addendum to this Deed) that
      is adopted in the general Meeting of the Debenture Holders, or by a
      written demand signed by the Holders of more than 50% of the unsettled
      balance of the principal of Debentures in circulation, in case one or more
      of the events enumerated below
occur:

            

    

     

    
      
        	
              	
                6.1.1

              	
                If
      the Company does not repay any sum (including principal or interest or
      linkage differences) that is due pursuant to the terms of the Debentures,
      within 7 days of the maturity of that sum, according to the terms of the
      Debentures.

              

      

    

     

    
      
        	
              	
                6.1.2

              	
                A
      permanent liquidator has been appointed by a court, or if the court has
      issued the Company a final liquidation order, or if a valid resolution for
      voluntary liquidation of the Company is
adopted.

              

      

    

     

    
      
        	
              	
                6.1.3

              	
                A
      motion is filed regarding the Company to reach a settlement with the
      creditors of the Company in accordance with Section 350 of the Companies
      Law, 5759 – 1999, or if a motion for staying of proceedings is issued
      pursuant 

              

      

       

      
        
          
          

        

        
          - 7
-

          
            

          

        

        
          
          

        

         

      

      to this
section, and if the motion has been filed other than by the Company – the motion
or order is not removed or cancelled within 45 days of filing or granting, as
relevant.

    

     

    
      
        	
              	
                6.1.4

              	
                If
      the Company is dissolved or struck for any reason, including striking or
      dissolution for merger purposes or within a share exchange transaction,
      unless the Trustee is convinced that the rights of the Debenture Holders
      (Series C) will not be infringed following such a merger or share exchange
      transaction.

              

      

    

     

    
      
        	
              	
                6.1.5

              	
                If
      one of the cases listed below occurs and, according to the determination
      of the Trustee or a special resolution adopted in a general Meeting of the
      Debenture Holders, this may infringe upon or endanger the rights of the
      Debenture Holders:

              

      

    

     

    
      
        	
              	
                6.1.5.1

              	
                A
      temporary liquidator or temporary receiver has been appointed for the
      Company by a court or if the court has issued the Company a temporary
      liquidation order, and such an appointment or order is not revoked within
      30 days of being issued.

              

      

    

     

    
      
        	
              	
                6.1.5.2

              	
                Material
      assets of the Company are subjected to attachment and the attachment is
      not removed within 45 days of its
imposition.

              

      

    

     

    
      
        	
              	
                6.1.5.3

              	
                An
      execution action is carried out against material assets of the Company and
      the action is not cancelled within 45 days of being carried
      out.

              

      

    

     

    
      
        	
              	
                6.1.5.4

              	
                If a
      permanent receiver is appointed for the Company and/or for all of its
      assets or for a material part thereof, and the appointment is not
      cancelled within 45 days.

              

      

    

     

    
      
        	
              	
                6.1.5.5

              	
                The
      Company ceases its payments and/or announces its intent to cease its
      payments and/or if there is genuine concern, in the opinion of the
      Trustee, that it will cease its payments and/or cease to continue its
      business affairs or it is likely that it will cease managing its business
      affairs.

              

      

    

     

    
      
        	
              	
                6.1.5.6

              	
                If
      the Company violates or fails to fulfill any material condition or
      undertaking that binds it pursuant to the conditions of the Debentures and
      this Deed, and it does not rectify the violation within 14 business days
      of its having received a written warning from the Trustee to rectify the
      violation.

              

      

    

     

    
      
        	
              	
                6.1.5.7

              	
                If
      pledgees of the assets of the Company realize the pledges that they have
      for material assets of the Company.

              

      

       

      
        
          
          

        

        
          - 8
-

          
            

          

        

        
          
          

        

      

    

     

    
      
        	
              	
                6.1.5.8

              	
                If
      another series of Debentures that the Company has issued is called for
      immediate repayment other than according to a resolution of the
      Company.

              

      

    

     

    
      
        	
              	
                6.2

              	
                Advance
      notice before calling Debenture for immediate
  repayment

              

      

    

     

    
      
        	
              	
                6.2.1

              	
                Notwithstanding
      the provisions of Section 6.1 above, the Trustee shall not call the
      Debentures for immediate repayment, unless the Trustee has given the
      Company prior written notice of its intent to do so, and the Company does
      not fulfill the provisions of the advance notice within 15 days of its
      receipt (“the Remedy
      Period”).

              

      

    

     

    
      
        	
              	
                6.2.2

              	
                In
      the said prior notice, the Company will be required to pay the arrears sum
      and/or fulfill other provisions of this Deed or of the terms of the
      Debentures whose violation or non-fulfillment constitute grounds for
      calling Debentures for immediate repayment, or restore the state of
      affairs that preceded the grounds for calling for immediate repayment, in
      accordance with the case stated in Section 6.1 above, for which this
      warning has been given.

              

      

    

     

    
      
        	
              	
                6.2.3

              	
                Despite
      the provisions in Section 6.2.1 above, if the Trustee holds the opinion
      that a deferral in calling the debt of the Company for immediate repayment
      as stated in Section 6.2.1 above will genuinely endanger the rights of the
      Debenture Holders, the Trustee shall be allowed to shorten the Remedy
      Period up to 3 business days, in order to prevent the said endangerment of
      the rights of the Debenture Holders, on the condition that it so confirms
      to the Company by a notice that is delivered to it at the time of calling
      of the Debentures for immediate
repayment.

              

      

    

     

    
      	
              7.

            	
              Claims and Proceedings
      by the Trustee

            

    

     

    
      	
               
      

            	
              7.1

            	
              Without
      derogating from any other provision of the Deed of Trust, the Trustee
      shall be allowed, at its discretion, and will be required to do so by a
      special resolution that is adopted by a meeting of the Debenture Holders
      and after issue of written notice to the Company immediately after the
      adoption of the resolution, to take all of the proceedings, including
      legal proceedings and motions for receiving orders as, it deems fit and
      subject to the provisions of the law, for enforcing the undertakings of
      the Company according to the Deed of Trust, exercising rights of the
      Debenture Holders and protection of their rights according to the Deed of
      Trust. The Trustee shall be allowed to instigate legal and/or other
      proceedings even if the Debentures are not called for immediate repayment,
      for protecting the rights of the Debenture Holders and subject to the law.
      Notwithstanding the provisions of this section, the right of calling for
      immediate repayment will apply only in accordance with the provisions of
      Section 

            

    

     

    
      
        
        

      

      
        - 9
-

        
          

        

      

      
        
        

      

    

     

    6 of thus Deed and not
pursuant to this section.

     

    
      	
               
      

            	
              7.2

            	
              The
      Trustee is allowed, at its exclusive discretion and without a need for
      notice to the Company, to apply to the appropriate court for a motion for
      receiving orders on any matter that is related to and/or arises from this
      Deed of Trust, whether before or after the Debentures are called for
      immediate repayment.

            

    

     

    
      	
               
      

            	
              7.3

            	
              Subject
      to the provisions of the Deed of Trust, the Trustee is allowed, but not
      compelled, to call at any time a general Meeting of the Debenture Holders
      in order to discuss and/or receive its instructions on any matter related
      to thte Deed of Trust, and is allowed to call it
    repeatedly.

            

    

     

    
      	
               
      

            	
              7.4

            	
              The
      Trustee is allowed, at its exclusive discretion, to delay the execution of
      any action thereby pursuant to this Deed of Trust, for applying to the
      Meeting of the Debenture Holders or the court until it receives
      instructions from the Meeting of the Debenture Holders and/or orders from
      the court on how to act. Notwithstanding the foregoing, the Trustee is not
      allowed to delay proceedings for calling for immediate repayment that have
      been decided upon by a Meeting of the Debenture Holders pursuant to the
      provisions of Section 6.2 hereto.

            

    

     

    
      	
              8.

            	
              Distribution of the
      Receipts

            

    

     

    
      	
               
      

            	
              8.1

            	
              All
      of the receipts that are received by the Trustee as a result of calling
      the Debentures for immediate repayment and/or as a result of proceedings
      that it takes, if it takes any, against the Company, will be kept by it in
      the trust and will serve it for the following purposes and in the
      following order of priority:

            

    

     

    Firstly,
for settling all expenses, payments, duties and undertakings expended by the
Trustee, imposed thereupon or caused due to or as a result of the actions of the
trusteeship or in another manner otherwise connected to the terms of this Deed,
including the fee thereof (on the condition that the Trustee does not receive a
double fee from both the Company and the Debenture Holders); secondly – in order
to pay the Debenture Holders the arrears interest due to them in accordance with
the terms of the Debentures and subject to the terms of the linkage in the
Debentures, pari passu,
in proportion to the sum of the arrears interest due to each of them, without
preference or priority for any of them; thirdly, in order to pay the Debenture
Holders the sums of the principal that are due to them pursuant to the
Debentures held thereby, pari
passu, and subject to the terms of linkage in the Debentures, whether the
principal sums have matured or not, in proportion with the sums due thereto,
without any preference concerning priority in time of issue of the Debentures by
the Company or otherwise, and the surplus, if any, will be paid by the Trustee
to the Company or the successors thereof. Withholding tax will be deducted at
source from the payments to the 

     

    
      
        
        

      

      
        - 10
-

        
          

        

      

      
        
        

      

    

     

    Debenture
Holders, to the extent that there is a duty to deduct it by law.

     

    
      	
               
      

            	
              8.2

            	
              Payment
      of the sums by the Trustee to the Debenture Holders out of the receipts
      that are received thereby, will be subject to rights of other creditors of
      the Company, which precede or are equal to those of the Debenture Holders
      by law, relative to the said receipts, if there are any, in accordance
      with the provisions of the law.

            

    

     

    
      	
              9.

            	
              Authority to Delay
      Distribution of Money

            

    

     

    
      	
               
      

            	
              9.1

            	
              Notwithstanding
      the provisions of Section 8 of this Deed, if the sum of money that is
      received as a result of taking the proceedings stated above that is
      available for distribution at any time, as stated in that section, will be
      less than ten percent (10%) of the balance of the unsettled principal of
      the Debentures and the interest, subject to the terms of the linkage in
      the Debentures, the Trustee shall not be required to distribute it and it
      will be allowed to invest the said sum, in part or in full, in investments
      that are permitted according to the Deed of Trust and replace these
      investments from time to time with other permitted investments, as it sees
      fit.

            

    

     

    
      	
               
      

            	
              9.2

            	
              On
      the first payment date of the principal and/or the interest to the
      Debenture Holders that is paid after receipt of the sum stated in Section
      9.1 above by the Trustee, or earlier, once the aforementioned investments
      with their profits and other sums that are received by the Trustee for the
      said purpose, reach a sum that will suffice to pay at least ten percent
      (10%) of the unsettled balance of the principal of the Debentures and the
      interest (subject to the terms of linkage in the Debentures), the Trustee
      shall pay them to the Debenture Holders as stated in section 8
      hereof.

            

    

     

    
      	
              10.

            	
              Notice of Distribution
      and Depositing with the
Trustee

            

    

     

    
      
        	
              	
                10.1

              	
                The
      Trustee shall inform the Debenture Holders of the day and place on which
      any payment is made out of the payments stated in Sections 8 and 9 of this
      Deed, by 14 days prior notice that is delivered in the manner stated in
      section 23 to this Deed.

              

      

    

     

    
      
        	
              	
                10.2

              	
                After
      the day stated in the notice, the Debenture Holders will be entitled to
      interest for the Debentures in accordance with the rate stated in the
      Debentures only for the balance of the principal sum (if any) after
      deducting the sum that has been paid or offered to them for such
      payment.

              

      

    

     

    
      	
              11.

            	
              Abstention from
      Payment for a Reason that does not Depend on the
      Company

            

    

     

    
      
        	
              	
                11.1

              	
                Any
      sum that is due to the Debenture Holder that is not actually paid for a
      reason that does not depend on the Company, while the Company was prepared
      to pay it, will cease to bear interest and linkage differences from the
      date stated for its payment, whereas the Debenture Holder will be entitled
      only to the sums that it would have been entitled to on the date stated
      for repayment of that sum on the account of the principal,
  

              

      

       

      
        
          
          

        

        
          - 11
-

          
            

          

        

        
          
          

        

      

       

    

    the
linkage differences or the interest.

     

    
      
        	
              	
                11.2

              	
                The
      Company will deposit with the Trustee by no later than 14 business days
      from the date stated for that payment, the sum of the payment that has not
      been paid for a reason that does not depend on the Company, and such a
      deposit will be considered as settlement of that payment, and in the case
      of settlement of all dues pursuant to the Debenture, as redemption of the
      Debenture.

              

      

    

     

    
      
        	
              	
                11.3

              	
                The
      Trustee shall deposit in a bank the sums that will be transferred thereto
      as stated in Section 11.2 of this Deed, to the credit of those Debenture
      Holders and will invest it in investments permitted hereby that are
      securities of the State of Israel or other securities that the laws of the
      State of Israel permit investment of the trust money in, as the Trustee
      deems fit and subject to the provisions of the law. Should the Trustee do
      so, it will not owe the beneficiaries sums other than the remuneration
      that is received from realizing the investments less the expenses,
      commissions and mandatory payments, if any, that are related to the said
      investment in managing the trust account less its
  fee.

              

      

    

     

    
      
        	
              	
                11.4

              	
                The
      Trustee shall transfer to each Debenture Holder for which sums and/or
      funds due to the Debenture Holders have been deposited with the Trustee,
      out of sums thus deposited, less all expenses, commissions, the mandatory
      payments and its fee, against presentation of the proof that is required
      by the Trustee, to the full satisfaction
  thereof.

              

      

    

     

    
      
        	
              	
                11.5

              	
                The
      Trustee shall keep these sums and invest them in the above mentioned
      manner until one year elapses from the final redemption date of the
      Debentures. After this date, the Trustee shall transfer to the Company
      these sums, including profits that result from their investment, less its
      expenses and other expenses expended in accordance with the provisions of
      this Deed of Trust (such as service provider fees, etc.) to the extent
      that these remain in its possession on that date. The Company will keep
      these sums in trust for an additional year from the day of their transfer
      thereto by the Trustee, for the Debenture Holders that are entitled to
      those sums, and with regard to the sums that are transferred thereto by
      the Trustee as stated above, the provisions of Section 11.3 of this Deed
      of Trust will apply, mutatis mutandis. Upon
      the transfer of the sums from the Trustee to the Company, to the
      satisfaction of the Trustee, the Trustee shall be exempt from payment of
      such sums to the entitled Debenture Holders. The Company will approve to
      the Trustee in writing the holding of the sums and the receipt thereof in
      trust for the said Debenture Holders, and will indemnify the Trustee for
      any claim and/or expense and/or damage of any type that it sustains due to
      and for the said money transfer, as long as the Trustee has acted
      reasonably. The Company will keep these sums in trust for the Debenture
      Holders that are entitled to these sums for an additional year from the
      day of their transfer to it from the Trustee. Sums that are not demanded
      from the Company by a Debenture Holder two years from the final repayment
      date of 

              

      

       

      
        
          
          

        

        
          - 12
-

          
            

          

        

        
          
          

        

      

       

      the
Debentures will be transferred to the Company, which will be entitled to use the
remaining sums for any purpose.

    

     

    
      	
              12.

            	
              Receipt from the
      Debenture Holders as Proof

            

    

    
       

      
        
          	
                	
                  12.1

                	
                  

                    A receipt from the
      Debenture Holder for the sums of the principal, the interest and the
      linkage differences that have been paid thereto by the Trustee for that
      Debenture will release the Trustee categorically in all matters related to
      payment of the sums stated on the
receipt.

                  

                

        

      

       

    

    
      
        	
              	
                12.2

              	
                Until
      the end of the period specified in Section 11.5 above, a receipt from the
      Trustee concerning the deposit of the sums of the principal, the interest
      and the linkage differences in its possession to the benefit of the
      Debenture Holders as stated in this Deed will be considered as a receipt
      from the Debenture Holders for the sums specified
  therein.

              

      

    

     

    
      
        	
              	
                12.3

              	
                The
      sums distributed as stated in Sections 11 and 12 hereof will be considered
      as payment on the account of the repayment of the
    Debentures.

              

      

    

     

    
      	
              13.

            	
              Presentation of a
      Debenture to the Trustee and Noting Concerning Partial
      Payment

            

    

     

    
      
        	
              	
                13.1

              	
                The
      Trustee shall be entitled to demand that a Debenture Holder present to the
      Trustee, at the time of payment of any interest or partial payment of
      principal, interest and linkage differences in accordance with Sections
      8-10 hereof, the Debenture for which the payments are being
      made.

              

      

    

     

    
      
        	
              	
                13.2

              	
                The
      Trustee shall note on the Debenture a comment concerning the sums paid as
      above and the date of payment
thereof.

              

      

    

     

    
      
        	
              	
                13.3

              	
                The
      Trustee shall be entitled, in any special case, at its discretion, to
      waive the presentation of the Debentures after it is given a
      indemnification letter and/or a sufficient guarantee, to its satisfaction,
      for damages that may be sustained due to not noting the said comment, as
      it deems fit. In such a case, the Company will not assume any liability
      for the payments stated in Section 13.1 towards that
    Holder.

              

      

    

     

    
      
        	
              	
                13.4

              	
                Notwithstanding
      the foregoing, the Trustee shall be entitled, at its discretion, to make
      notes in other ways concerning such partial
  payments.

              

      

    

     

    
      	
              14.

            	
              Reporting and
      Undertakings of the Company towards the
  Trustee

            

    

     

    
      
        	
              	
                14.1

              	
                The
      Company hereby undertakes towards the Trustee, for as long as the
      Debentures (including linkage differences thereupon) have not been repaid,
      as follows:

              

      

    

     

    
      
        	
              	
                14.1.1

              	
                To
      inform the Trustee upon its notice to the public in writing of reasonable
      concern on the part of the Company that any or all of the events specified
      in Section 6.1 above may occur and the occurrence of any or all of the
      events 

              

      

       

       

      
        
          
          

        

        
          - 13
-

          
            

          

        

        
          
          

        

         

        specified
in Section 6.1 above.

      

    

     

    
      
        	
              	
                14.1.2

              	
                To
      give to the Trustee immediately upon their publication a copy of the
      annual audited and consolidated financial statements (including the
      periodical statement) and the reviewed consolidated quarterly financial
      statements of the Company.

              

      

    

     

    
      
        	
              	
                14.1.3

              	
                To
      deliver to the Trustee, immediately upon its delivery, any report that it
      must submit to the Securities
Authority.

              

      

    

     

    
      
        	
              	
                14.1.4

              	
                To
      deliver to the Trustee notices concerning the purchase of Debentures by
      the Company or the subsidiary, as stated in this Deed of
      Trust.

              

      

    

     

    
      
        	
              	
                14.1.5

              	
                On
      December 31 of each year, as long as the Deed of Trust is in effect, the
      Company will provide the Trustee with a confirmation signed by the CEO of
      the Company whereby to the best of his knowledge, the Company has not
      violated the Deed of Trust (including violation of the terms of the
      Debenture), unless explicitly stated
otherwise.

              

      

    

     

    
      
        	
              	
                14.1.6

              	
                To
      give the Trustee copies of notices and invitations that the Company gives
      to the shareholders in the Company and the Debenture Holders, as stated in
      Section 23.1 hereof.

              

      

    

     

    
      
        	
              	
                14.1.7

              	
                To
      cause a senior financial officer in the Company to give, within a
      reasonable time, to the Trustee and/or the persons as he instructs, any
      explanation, document, calculation or information related to the Company,
      its business affairs and/or assets that are reasonably required for the
      purpose of inquires conducted by the Trustee for protecting the Debenture
      Holders.

              

      

    

     

    
      
        	
              	
                14.1.8

              	
                To
      keep regular account books in accordance with generally accepted
      accounting principles. To keep the books and the documents used for them
      as references (including deeds of pledge, mortgage, bills and receipts)
      and allow the Trustee and/or the party that the Trustee appoints in
      writing for this purpose, to inspect at any reasonable time any such book
      and/or document and/or confirmation, to the extent required for protecting
      the Debenture Holders. The Trustee undertakes to inform whichever party is
      appointed thereby as above that the Trustee has undertaken to keep
      information that is given to it in
confidence.

              

      

    

     

    
      
        	
              	
                14.1.9

              	
                To
      allow the Trustee or a party that is appointed by the Trustee in writing
      for this purpose to enter its offices and anywhere where its assets may be
      found, at any reasonable time, for inspecting its assets, at the
      discretion of the Trustee, for protecting the Debenture
      Holders.

              

      

    

     

    
      
        
        

      

      
        - 14
-

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                14.1.10

              	
                To
      summon the Trustee to all of its general meetings (whether annual general
      meetings or special general meetings of the shareholders of the Company),
      without granting the Trustee a voting right in these
    meetings.

              

      

    

     

    
      
        	
              	
                14.1.11

              	
                To
      give the Trustee, upon his demand, an affidavit and/or declarations and/or
      documents and/or details and/or information, as required by the Trustee,
      in accordance with its reasonable discretion, for applying and exercising
      the authorities, powers and authorizations of the Trustee and/or its
      proxies according to this Deed of
Trust.

              

      

    

     

    
      
        	
              	
                14.1.12

              	
                The
      Trustee undertakes, by signing the Deed of Trust, to keep in confidence
      all information that is given to it by the Company and any information
      that the Trustee and/or its representative and/or agent and/or proxy has
      inspected and not make any use thereof other than for the fulfillment of
      its undertakings according to this Deed. Notice of the authorization of a
      representative and/or agent for the Trustee shall be given to the Company
      in advance and in writing. The Trustee declares that any representative
      and/or agent and/or proxy on its part will be committed towards the
      Trustee and towards the Company to keep in confidence the information that
      reaches it in its activities for the Trustee. It is clarified that subject
      to the law, the transfer of the relevant information only to the Debenture
      Holders for making a decision that is related to their rights in
      accordance with the Debentures or for giving a report on the state of the
      Company does not constitute a violation of its undertaking for
      confidentiality.

              

      

    

     

    
      	
              15.

            	
              Additional
      Undertakings

            

    

     

    
      
        	
              	
                15.1

              	
                After
      and to the extent that the Debentures are
      called for immediate repayment, as defined in Section 6 hereof, the
      Company will perform, from time to time and at any time it is required to
      do so by the Trustee, all of the reasonable actions in order to provide
      for the exercising of all of the authorities granted to the Trustee, and
      in particular the Company will perform all of the following actions, to
      the extent that they are
reasonable.

              

      

    

     

    
      
        	
              	
                15.1.1

              	
                It
      will declare the declarations and/or sign all of the documents and/or
      execute and/or have executed all of the actions that are necessary and/or
      required by law for validating the exercise of the authorities, the powers
      and the authorizations of the Trustee and/or the agent
      thereof.

              

      

    

     

    
      
        	
              	
                15.1.2

              	
                It
      will give all of the notices, the orders and the instructions that the
      Trustee considers beneficial and will demand
  them.

              

      

    

     

    
      
        
          	
                	
                  15.1.3

                	
                  

                    For
      the purposes of this section – a written notice signed by the Trustee that
      confirms that an action that is required thereby, within his authorities,
      is a 

                  

                

        

      

       

    

     

    
      
        
          
          

        

        
          - 15
-

          
            

          

        

        
          
          

        

         

        reasonable action, will
constitute prima
facie evidence thereof.

      

    

     

    
      	
              16.

            	
              Agents

            

    

     

    
      
        	
              	
                16.1

              	
                The
      Company hereby irrevocably
      appoints the Trustee as its agent, to effect and execute on its behalf and
      in its place all of the actions that it will be required to execute
      according to the conditions of this Deed, and in general to act on its
      behalf with regard to the actions that the Company is required to perform
      according to this Deed, which it has not performed, or exercise some of
      the authorities granted thereto, and appoint any other person as the
      Trustee deems fit for performing its duties according to this Deed,
      subject to the Company not having performed the actions that it must
      perform pursuant to the terms of this Deed within a reasonable time from
      the date of the demand of the Trustee, provided it has acted in good faith
      and reasonably.

              

      

    

     

    
      
        	
              	
                16.2

              	
                The
      appointment pursuant to Section 16.1 above does not bind the Trustee to
      perform any action.

              

      

    

     

    
      	
              17.

            	
              Other
      agreements

            

    

     

    Subject to
the provisions of the law and the restrictions imposed on the Trustee by law,
the performance of the duty of the Trustee according to this Deed or pursuant to
its status as a Trustee will not prevent it from associating with the Company by
various contracts or executing transactions with it within the normal course of
its business affairs.

     

    
      	
              18.

            	
              Reporting by the
      Trustee

            

    

     

    
      
        	
              	
                18.1

              	
                The
      Trustee shall prepare, at the end of each year following the date hereof,
      an annual report on the trust affairs (the "Annual
      Report”)

              

      

    

     

    
      
        	
              	
                18.2

              	
                The
      Annual Report will include a breakdown of the following subjects: current
      details of the course of affairs of the Trust in the elapsing year; a
      report on extraordinary events concerning the Trust that have occurred
      during the elapsing year.

              

      

    

     

    
      
        	
              	
                18.3

              	
                The
      Debenture Holders will be allowed to review the Annual Report in the
      offices of the Trustee during acceptable business hours and will be
      allowed to receive a copy thereof upon demand. A copy of the report will
      be provided to the Company along with it being made available for review
      by the Debenture Holders.

              

      

    

     

    
      
        	
              	
                18.4

              	
                The
      Trustee shall give the Debenture Holders notice of the date of submission
      of the report as stated in Section 23 hereof. Should the Trustee learn of
      a material violation hereof on the part of the Company, it will inform the
      Debenture Holders of the violation and of the steps that it has taken for
      preventing it or for fulfilling the undertakings of the Company, as
      relevant.

              

      

    

     

    
      	
              19.

            	
              Fee and Coverage of
      Expenses of the Trustee

            

    

     

    
      
        
        

      

      
        - 16
-

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                19.1

              	
                The
      Company shall pay the Trustee fees for its services hereby as elaborated
      below:

              

      

    

     

    
      
        	
              	
                19.1.1

              	
                For
      the first year of Trust, i.e. until 12 months from the date of the
      issuance, a sum of NIS 35,000. This sum will be paid within 30 days of the
      end of the month on which the Company has received from the Trustee a
      proforma invoice for this payment. The Trustee will be allowed to provide
      the Company with a proforma invoice within one business day of publishing
      the results of the issue.

              

      

    

     

    
      
        	
              	
                19.1.2

              	
                For
      each of the years from the second year (i.e. from the end of 12 months
      from the date of issuance) in which Debentures (Series C) will be in
      circulation and not yet paid up, a sum of NIS 18,000, linked to the Known
      Index on the date of publication of the Prospectus, but in any case the
      sum will not be less than the sum specified above (“the Annual Fee”). The
      Annual Fee will be paid to the Trustee within 30 days of the end of the
      month on which the Company received from the Trustee a proforma invoice
      for the Annual Fee. The Trustee will be allowed to provide the Company a
      proforma invoice at the beginning of each year of trusteeship. The Annual
      Fee shall be paid to the Trustee for the period until the end of the term
      of the Trust hereby even if a receiver and/or administrative receiver is
      appointed for the Company and/or if the Trust hereby is managed under the
      supervision of a court.

              

      

    

     

    
      
        	
              	
                19.1.3

              	
                If
      the tenure of the Trustee expires, as stated in Section 27 below, the
      Trustee will not be entitled to payment of the fee from the day of the
      appointment of a replacement Trustee. If the replacement Trustee is
      appointed during the Trust year, the fee that was paid for the months for
      which the Trustee did not serve as the Trustee of the Company will be
      refunded. It is clarified that this refund will not apply to the first
      year of Trust.

              

      

    

     

    
      
        	
              	
                19.2

              	
                If
      the Trustee is required to perform special work (such as work that is
      required owing to a change in the structure of the Company or for the need
      to perform actions due to the failure of the Company to fulfill its
      undertakings to the Debenture Holders or for the need to perform
      additional actions for fulfillment of its duty as a reasonable Trustee,
      owing to a future change in laws and/or regulations and/or other binding
      instructions that will apply to the action of the Trustee) a sum of 150
      dollars per year.

              

      

    

     

    
      
        	
              	
                19.3

              	
                It
      is clarified
      that if according to a future change in laws and/or regulations and/or
      other binding instructions that apply to the action of the Trustee, the
      Trustee is charged additional expenses, which are demanded of it for
      fulfillment of its duty as a reasonable Trustee, the Company will
      indemnify the Trustee for its expenses. The Trustee shall inform the
      Company in advance and in writing before incurring the expenses, on
      changes as described in this
section.

              

      

       

      
        
          
          

        

        
          - 17
-

          
            

          

        

        
          
          

        

      

    

     

    
      
        	
              	
                19.4

              	
                The
      Trustee is entitled to a refund of the expenses that it reasonably incurs
      within the fulfillment of its duty, on the condition that for expenses of
      an expert opinion, as specified in Section 20.2 below, the Trustee shall
      give advance notice of its intent to obtain an expert
    opinion.

              

      

    

     

    
      
        	
              	
                19.5

              	
                For
      each annual meeting of shareholders or Meeting of Debenture Holders that
      the Trustee participates in, an additional fee of NIS 150 per hour will be
      paid, linked to the Index in accordance with the provisions of Section
      19.1.2 above.

              

      

    

     

    
      
        	
              	
                19.6

              	
                VAT,
      if applies, will be added to the payments that are due to the Trustee
      pursuant to the provisions of this section and will be paid by the
      Company. The Trustee will transfer to the Company a tax invoice for these
      payments, within 14 days of the date of payment thereof to the Trustee by
      the Company.

              

      

    

     

    
      	
              20.

            	
              Special
      Authorities

            

    

     

    
      
        	
              	
                20.1

              	
                The
      Trustee shall be entitled to deposit all of the deeds and documents that
      attest, represent and/or determine its right concerning any asset then in
      its possession, in a safe and/or in any other place of its choice, in the
      possession of any banker and/or any banking company and/or an
      advocate.

              

      

    

     

    
      
        	
              	
                20.2

              	
                The
      Trustee is entitled, within the performance of the Trust affairs hereby,
      to act in accordance with the opinion and/or advice of any advocate,
      certified public accountant, appraiser, assessor, surveyor, mediator or
      other expert, whether such an opinion and/or advice has been prepared at
      the request of the Trustee and/or by the Company. The Trustee shall allow
      the Company to review any such opinion that the Company as paid for, upon
      demand. The provisions of this section do not exempt the Trustee of its
      responsibility by law.

              

      

    

     

    
      
        	
              	
                20.3

              	
                Any
      such advice and/or opinion may be given, sent or received by a letter,
      telegram, facsimile and/or any other electronic data transfer
      medium.

              

      

    

     

    
      
        	
              	
                20.4

              	
                The
      Trustee shall not be required to inform any party of the signing of this
      Deed of Trust and is not allowed to intervene in any way in the management
      of the business or affairs of the Company other than pursuant to the
      authorities that have been granted to the Trustee
  herein.

              

      

    

     

    
      
        	
              	
                20.5

              	
                The
      Trustee shall faithfully use the powers, authorizations and authorities
      granted thereto hereby in good faith and
  reasonably.

              

      

    

     

    
      	
              21.

            	
              Authority of the
      Trustee to Employ Proxies

            

    

     

    The
Trustee shall be entitled to appoint a proxy/ies for acting in its place,
whether an advocate or another party, in order to perform or participate in the
performing of special actions that must be performed concerning the Trust,
including, but not limited to, taking legal

     

    
      
        
        

      

      
        - 18
-

        
          

        

      

      
        
        

      

    

     

    proceedings.
In addition, the Trustee shall be entitled to settle, at the expense of the
Company, the reasonable fee of any such proxy, and the Company will return to
the Trustee immediately upon the first demand thereof any such reasonable
expense, on the condition that the Trustee gives the company advance notice of
such appointment of proxies.

     

    The
Company will be allowed to object to such an appointment on reasonable grounds,
including in the case of the proxy competing directly or indirectly with the
business of the Company.

     

    The
Trustee is allowed at any time to delegate from the Trusteeships, powers,
authorizations and authorities granted thereto hereby, in part or in full, to
another person or persons, and any such delegation will be made under the
conditions and instructions (including permission for a proxy to appoint a
proxy) that the Trustee deems suitable, but such delegation of authority will
not release the Trustee from any responsibility assumed thereby in case the
authorities were not delegated.

     

    Such
proxies and/or delegates will be bound by the confidentially provisions stated
in Section 14 above.

     

    
      	
              22.

            	
              Indemnification of the
      Trustee

            

    

     

    
      
        	
              	
                22.1

              	
                The
      Trustee shall be entitled to receive indemnification from the Debenture
      Holders or from the Company, as relevant, for reasonable expenses that it
      has incurred and/or will incur in connection with the actions that it has
      performed or must perform pursuant to its duty hereby, and/or by law
      and/or by order of a competent authority and/or any statute and/or upon
      the demand of the Debenture Holders and/or according to the demand of the
      Company. Notwithstanding the above, it is clarified and agreed hereby
      that:

              

      

    

     

    
      
        	
              	
                22.1.1

              	
                The
      Trustee shall not be entitled to demand such indemnification in advance on
      a matter that is urgent.

              

      

    

     

    
      
        	
              	
                22.1.2

              	
                The
      Trustee shall be entitled to indemnification for liability for torts, in
      the case of being found thus liable by a final court ruling or a concluded
      settlement towards a third party that is not one of the Debenture
      Holders.

              

      

    

     

    
      
        	
              	
                22.2

              	
                The
      Indemnification right detailed in section 22.1 above will be subject to
      the following terms:

              

      

    

     

    
      
        	
              	
                22.2.1

              	
                The
      expenses for liability for damages is
  reasonable.

              

      

    

     

    
      
        22.2.2
The
Trustee acted in good faith and the appropriate care, and the action was
preformed within the fulfillment of its duty, according to the provisions of law
and this Deed..

        
           

          
            
              	
                    	
                      22.3

                    	
                      Subject
      to the provisions of Sections 22.1 and 22.2 above, without prejudice to
      the

                    

            

          

        

      

    

     

    
      
        
        

      

      
        - 19
-

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                 

              	
                rights
      to compensation and indemnification that are granted to the Trustee by law
      and/or the commitments of the Company and the Debenture Holders hereby,
      the Trustee, its proxy, manager, agent or other person appointed by the
      Trustee hereby will be entitled to receive indemnification out of the sums
      that are received by the Trustee out of the proceedings taken and/or
      otherwise hereby, concerning undertakings that they have assumed,
      concerning expenses they incurred due to the performance of the Trust or
      related to such actions, which in their opinion were required for
      executing the aforesaid and/or concerning the exercising of authorities
      and authorizations granted hereby and concerning all kinds of legal
      proceedings, opinions of advocates and other experts, negotiations,
      discussions, expenses, claims and demands concerning any matter and/or
      thing that are made and/or not made in any way concerning the subject
      matter, and the Trustee may withhold the funds that are in its possession
      and pay out of them the sums that are necessary for payment of the said
      indemnification. The said sums will take precedence over the rights of the
      Debenture Holders, subject to the provisions of the
  law.

              

      

    

     

    
      
        	
              	
                22.4

              	
                For
      as long as the Trustee is required pursuant to the terms hereof an/or any
      statute and/or an order of a competent authority and/or the law and/or
      upon the demand of the Debenture Holders and/or the demand of the Company
      to perform any action, including, but not limited to instigating
      proceedings or filing claims upon the demand of the Debenture Holders, as
      stated herein, the Trustee shall be allowed to abstain from taking any
      such action until it receives, to its satisfaction, a letter of
      indemnification from any or all of the Debenture Holders, and if the
      action is performed owing to a demand of the Company, from the Company,
      for any liability for damages and/or expenses that may be incurred by the
      Trustee and by the Company or either of them, due to performing such an
      action. It is clarified that the foregoing does not exempt the Trustee
      from taking an urgent action that is required for preventing material
      infringement to the rights of the Debenture
  Holders.

              

      

    

     

    
      
        	
              	
                22.5

              	
                Notwithstanding the provisions of
      this Section 22, as long as the trustee deems it right for protecting
      and/or exercising the rights of the Debenture Holders, and/or it is
      required hereby and/or by law and/or by an order of a competent authority
      and/or any statute and/or upon the demand of the Company and/or the
      Debenture Holders, to take legal proceedings, in the case of taking such
      an action due to a demand of the Company, the Company will deposit in the
      hands of the Trustee a sum that will be determined by the Trustee as the
      expected sum of the expenses of the Trustee concerning the proceedings. In
      any other case, the Trustee shall immediately call a Meeting of Debenture
      Holders in order to confirm their responsibility for covering the expenses
      involved in proceedings that the Trustee takes. In the case of the
      Debenture Holders refusing to assume the expenses involved in taking
      proceedings by the Trustee, 

              

      

    

     

    
      
        
        

      

      
        - 20
-

        
          

        

      

      
        
        

      

    

     

    
       

      
        
          	
                	
                   

                	
                  the
      Trustee shall assume no duty to take such proceedings. In addition, all of
      the sums that are received from the realization proceedings will also be
      used for refunding and covering expenses that the Debenture Holders thus
      undertake to bear. It is clarified that the foregoing does not exempt the
      Trustee from taking an urgent action that is required for preventing
      material infringement of the rights of the Debenture
    Holders.

                

        

      

       

    

    
      	
              23.

            	
              Notices

            

    

     

    
      
        	
              	
                23.1

              	
                Any
      notice from the Company and/or the Trustee to the Debenture Holders, as
      relevant, shall be given as
follows:

              

      

    

     

    
      	
            	
              23.1.1

            	
              By
      reporting in the MAGNA system of the Securities Authority and
      by

            

    

     

    
      	
            	
              23.1.2

            	
              A
      notice that will be published in two widely distributed daily newspapers
      that are published in Israel in
Hebrew;

            

    

     

    
      
        	
              	
                23.2

              	
                Any
      notice or demand from the Trustee to the Company may be given by a letter
      that is sent by registered mail to the address stated herein, or to any
      other address that the Company informs the Trustee of in writing, or by
      transmission by facsimile or by courier and any such notice or demand will
      be considered as having been received by the Company: (1) in the case of
      sending by registered mail – three business days from the day of mailing
      thereof; (2) in the case of transmission by facsimile (along with a
      telephone check of receipt thereof) – one business day from the day of its
      transmission; (3) and in the case of sending by courier – upon its
      delivery by the courier to the addressee or the offering thereof to the
      addressee for receipt, as
relevant.

              

      

    

     

    
      
        	
              	
                23.3

              	
                Any
      notice or demand from the
      Company to the Trustee may be given by a letter that is sent by registered
      mail to the address stated herein, or to another address that the Trustee
      informs the Company of in writing, or by transmission by facsimile or by
      electronic mail (“email”) or by courier
      and any such notice or demand will be considered as having been received
      by the Trustee: (1) in the case of sending by registered mail – three
      business days from the day of mailing thereof; (2) in the case of
      transmission by facsimile or email (along with a telephone check of
      receipt thereof) or of sending by courier – upon its delivery by the
      courier to the addressee or the offering thereof to the addressee for
      receipt, as relevant.

              

      

    

     

    
      
        	
              	
                23.4

              	
                Copies
      of notices and invitations that the Company gives to the Debenture Holders
      will also be sent by the Company in an Immediate Report, a copy of which
      will be given to the Trustee.

              

      

    

     

    
      	
              24.

            	
              Waiver; Settlement;
      and Changes in the Terms of the Deed of
  Trust

            

    

     

    
      
        	
              	
                24.1

              	
                Subject to the provisions
      of the Law and the regulations promulgated and/or that will be promulgated
      thereby, the Trustee shall be allowed, from time to time and at any
      

              

      

       

      
        
          
          

        

        
          - 21
-

          
            

          

        

        
          
          

        

         

      

    

    time, if
it is convinced that this does not in its opinion infringe upon the rights of
the Debenture Holders, to waive any violation or non-fulfillment of any of the
terms hereof by the Company, as long as these do not relate to the terms of
repayment of the Debentures and the grounds for calling for immediate repayment
as specified in Section 6 hereof.

     

    
      
        	
              	
                24.2

              	
                Subject
      to the provisions of the Law and the regulations promulgated and/or that
      will be promulgated thereby, the Trustee is allowed, whether before or
      after the principal of the Debentures is called for immediate repayment,
      to settle with the Company concerning any right or claim of the Debenture
      Holders and agree with the Company to any arrangement concerning the
      rights of the Debenture Holders, including waiving any right or claim of
      the Debenture Holders towards the Company hereby. If the Trustee settles
      with the Company after having received prior approval of the Debenture
      Holders as stated above, the Trustee shall be exempt of liability for this
      action, as approved by the general Meeting. The foregoing does not exempt
      the Trustee from responsibility for its actions until the date of making a
      decision of the Meeting of the Holders and/or its actions concerning its
      application.

              

      

    

     

    
      
        	
              	
                24.3

              	
                Subject
      to the provisions of the Law and the regulations promulgated and/or to be
      promulgated thereby, the Trustee and the Company may, whether before or
      after the principal of the Debentures is called for immediate repayment,
      change the Deed of Trust (including a change in the conditions of the
      Debentures), if one of the following is
  fulfilled:

              

      

    

     

    
      
        
          	
                	
                  24.3.1

                	
                  The
      Trustee is satisfied that the change does not adversely affect the
      Debenture Holders.

                

        

      

    

     

    
      
        
          	
                	
                  24.3.2

                	
                  The
      Debenture Holders have agreed to the proposed change, by a special
      decision as specified in Sections 2.4 and 2.10 of the second addendum
      hereinafter.

                

        

      

    

     

    
      
        	
              	
                24.4

              	
                The
      Trustee shall be entitled, at the request of the Company from time to
      time, to make changes in the Deed of Trust and/or in the Debentures, as
      required by a Securities Authority and/or the Stock Exchange and/or any
      other governmental authority, for the purpose of listing the Debentures
      for trade on the Stock Exchange, as long as the Trustee is satisfied that
      the change does not cause a material adverse effect to the Debenture
      Holders.

              

      

    

     

    
      
        	
              	
                24.5

              	
                The
      Company shall give the Debenture Holders a notice of any such change, in
      accordance with Section 23 hereof, as soon as possible after its
      execution.

              

      

    

     

    
      
        	
              	
                24.6

              	
                The
      general meetings as stated in this section above will be convened, as
      stated in the second addendum
hereto.

              

      

       

      
        
          
          

        

        
          - 22
-

          
            

          

        

        
          
          

        

      

    

     

    
      
        	
              	
                24.7

              	
                In
      any case of use of the right of the Trustee in accordance with this
      section above, the Trustee shall be entitled to demand that the Debenture
      Holders give to it or to the Company their certificates, for noting a
      comment concerning any such settlement, waiver, change or amendment and
      according to the demand of the Trustee, the Company shall note such a
      comment in the certificates that are given to it. In any case of use of
      the right of the Trustee pursuant to this section, the Trustee shall
      announce this, within a reasonable time, in writing, to the Debenture
      Holders.

              

      

    

     

    
      	
              25.

            	
              Register of Debenture
      Holders and Transfer of
Debentures

            

    

     

    
      
        	
              	
                25.1.1

              	
                The
      Company shall keep and maintain in its registered office a Register of the
      Debenture Holders, listing the names of the Debentures Holders, their
      addresses and the number and par value of the Debentures registered to
      their name. The register will also list any transfer of title to the
      Debentures. The Trustee and any Debenture Holder will be entitled, at any
      reasonable time, to review this Register. The Company is entitled to close
      the Register from time to time or for a period or periods that do not
      exceed an aggregate of thirty (30) days a
year.

              

      

    

     

    
      
        	
              	
                25.1.2

              	
                The
      Company will not be required to note in the Registers of Debenture Holder
      any notice concerning explicit, implicit or putative Trust, or
      hypothecation or pledging of any kind or any equity, claim or offset right
      or any other right, concerning the Debentures. The Company will only
      recognize the ownership by the person whose name the Debentures are listed
      under, as long as the legal heirs, administrators of estate or executors
      of the will of the registered owner or any person who will be entitled to
      the Debentures due to the bankruptcy of any registered owner (and in the
      case of a corporation - due to the liquidation thereof) will be entitled
      to register as the Holders thereof, after giving evidence that in the
      opinion of the Company is satisfactory for proving the right of any of the
      above to be registered as the Holder
thereof.

              

      

    

     

    
      	
              26.

            	
              Release

            

    

     

    
      
        	
              	
                26.1

              	
                Once
      it is proved to the satisfaction of the Trustee that all of the Debentures
      have been paid up, redeemed or when the Company deposits in the Trust of
      the Trustee sums of money that are enough for redeeming all of the
      Debentures, and once it is proved to the satisfaction of the Trustee that
      all of the undertakings and expenses made or sustained by the Trustee
      concerning the Deed of Trust and the instructions thereof have been fully
      paid up, the Trustee shall be required, upon the first demand of the
      Company, to act with the sums that have been deposited for Debentures
      whose redemption is not required according to the conditions stated
      herein.

              

      

       

      
        
          
          

        

        
          - 23
-

          
            

          

        

        
          
          

        

      

    

     

    
      	
              27.

            	
              Appointment of a New
      Trustee and Expiry of the Tenure of the
  Trustee

            

    

     

    
      
        	
              	
                27.1

              	
                The
      provisions of the Securities Law will apply to the tenure of the Trustee
      and the expiration thereof and the appointment of a new Trustee. Subject
      to the provisions of the Law, the Trustee and any Trustee replacing it
      will be entitled to resign from their functions as Trustees after giving
      written notice to the Company three (3) months in advance, elaborating the
      reasons for resignation.

              

      

    

     

    
      
        	
              	
                27.2

              	
                The
      resignation will take effect only after it is confirmed by the court, from
      the day established in the confirmation. In the case of such resignation
      or in the case of expiry of the tenure of the Trustee, the court is
      entitled to appoint another Trustee instead of the Trustee, for a period
      and under conditions as it deems
fit.

              

      

    

     

    
      
        	
              	
                27.3

              	
                The
      court will be entitled to dismiss a Trustee if it does not fulfill its
      duty properly or if the court finds another reason for the dismissal
      thereof.

              

      

    

     

    
      
        	
              	
                27.4

              	
                The
      Holders of ten percent (10%) of the unsettled balance of the Debentures
      are entitled to call a general meeting of the Debenture certificate
      Holder. Each Meeting thus convened is allowed to decide, according to a
      vote of Holders of at least fifty percent (50%) of the unsettled balance
      of the Debentures, for the transfer of Trustee from its
    duty.

              

      

    

     

    
      
        	
              	
                27.5

              	
                The
      Securities Authority is allowed to apply to the court with a motion to
      conclude the tenure of the Trustee, in accordance with Section 35 N of the
      Law.

              

      

    

     

    
      
        	
              	
                27.6

              	
                The
      Trustee and the Company will submit an immediate report to the Securities
      Authority of any such event in this section, concerning the tenure of the
      Trustee.

              

      

    

     

    
      
        	
              	
                27.7

              	
                Each
      new trustee will have the same powers, authorities and other
      authorizations and may act in all senses as though appointed as the
      Trustee from the outset, subject to the provisions of Section 35 N of the
      Law.

              

      

    

     

    
      
        	
              	
                27.8

              	
                The
      Trustee shall transfer to the new Trustee all of its records concerning
      the Debenture Holders, if there are any, information about the payments
      made by the Trustee through to that time, if such were effected, any
      report and any information given hereby and any information that is
      reasonably required for the new Trustee, and the Trustee shall transfer to
      the new Trustee any sum that will be held thereby at that time concerning
      the Debentures.

              

      

    

     

    
      	
              28.

            	
              Meeting of Debenture
      Holders

            

    

     

    Meetings
of the Debenture Holders will be managed, as stated in the
second addendum hereto.

     

    
      	
              29. 

            	
              Investments of
      Funds

            

    

     

    
      
        
        

      

      
        - 24
-

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                29.1

              	
                All
      sums that the
      Trustee is allowed to invest hereby will be invested thereby in bank/s, in
      its name or to its order, in investments that the laws of the State of
      Israel permit investing trust funds in, as it deems suitable, subject to
      the terms hereof and the provisions of the law, as long as any investment
      in securities will be in securities that have been given a rating of not
      less than AA. If the Trustee has done so, it will not owe the
      beneficiaries of these sums other than the remuneration received from
      realizing the investments less the expenses related to this investment and
      managing the trust accounts, the commissions, after deducting the
      mandatory payments imposed on the trust account. Out of these sums, the
      Trustee shall transfer sums to the Debenture Holders that are entitled
      thereto, as soon as possible after the Trustee is provided proof and
      confirmations of their right to these sums to the full satisfaction of the
      Trustee, after deducting its expenses and commission at the rate that is
      generally employed thereby at that
time.

              

      

    

     

    
      	
              30.

            	
              Applicability of the
      Law

            

    

     

    This Deed
and the Debentures are subject to Israeli law. On any matter that has not been
mentioned herein and in any case of a contradiction between the provisions of
the law and this Deed, the parties will act in accordance with the provisions of
Israeli law. In any case of a contradiction between the provisions described in
the Prospectus concerning this Deed and/or the Debentures, the provisions hereof
will take precedence.

     

    
      	
              31.

            	
              Exclusive
      Jurisdiction

            

    

     

    The only
court that will be authorized for hearing matters related hereto and to the
Debentures attached as an appendix hereto will be competent court in Tel Aviv
Yaffo.

     

    
      	
              32.

            	
              General

            

    

     

    Without
derogating from the other provisions hereof and of the Debentures, any waiver,
extension, accommodation, silence, abstention from action (“waiver”) on the part of the
Trustee concerning the non-fulfillment or partial or incorrect fulfillment of
any of the undertakings towards the Trustee hereby and in accordance with the
Debenture, will not be considered as a waiver by the Trustee of any right but as
limited consent for the particular instance on which it has been given. Without
derogating from the other provisions hereof and the Debenture, any change in the
undertakings to the Trustee necessitates receipt of the prior written consent of
the Trustee. Any other consent, whether oral or by waiver or abstention from
action or in any way that is not in writing, will not be considered as any
consent. The rights of the Trustee hereby are independent and unconditional of
each other and are in addition to any right that the Trustee has and/or will
have by law and/or agreement (including this Deed and the
Debenture).

     

    
      	
              33.

            	
              Addresses

            

    

     

     

    
      
        
        

      

      
        - 25
-

        
          

        

      

      
        
        

      

    

    The
addresses of the parties will be as specified in the preamble hereto, or any
other address for which an appropriate written notice is given to the
counterparty.

     

    
      	
              34.

            	
              Certification for
      MAGNA

            

    

     

    In
accordance with the provisions of the Securities Regulations (Signing and
Electronic Reporting) 5763 2003, the Trustee hereby approves that the competent
party of the Company report electronically to the Securities Authority of this
Deed of Trust.

     

     

    In
witness thereof the parties have set their hands hereunto

     

     

    
    

    
      
        	 	 	 
	
                Cellcom
      Israel Ltd.

              	 	
                 

                Aurora
      Fidelity Trust Company Ltd.

              

      

    

     

    I, the
undersigned, Tamar Enav, Adv., confirm that this Deed of Trusteeship has been
signed by Cellcom Israel Ltd. by Messrs. Tal Raz and Liat Menahemi Stadler and
that their signature binds the Company concerning this Deed of
Trust.

     

     

    

     

    
      
        	 
      	 
      
	
                Tamar
      Enav, Adv.

              	 
      

      

    

     

     

    
      
         

      

      
        - 26
-

        
          

        

      

      
         

        
           

           

        

      

    

     

    Cellcom
Israel Ltd.

     

    First
Addendum

     

    Debentures
(Series C)

     

     

    Issue of a
series of up to NIS _____________________________  par value of
registered to name Debentures (Series C), bearing annual interest at a rate of
__%, linked (principal and interest) to the consumer price index published in
August 2007, for repayment in 9 equal semiannual installments on March 1 and on
September 1 of each of the years 2009 to 2012 (inclusive) and on March 1, 2013.
The interest on the Debentures will be paid in semiannual installments on March
1 and September 1 on each of the years 2008 to 2012 (inclusive) and a semiannual
installment on March 1, 2013.

     

    Registered
to name Debentures (Series C)

     

    Number
1

     

    Part value
NIS ______________

     

    Interest
of __% annually.

     

    
      	
              1.

            	
              This
      certificate attests that Cellcom Israel Ltd. (hereinafter: “the Company”) shall pay
      the Israel Discount Bank Nominees Ltd. or any party that will be the
      registered owner of this Debenture (hereinafter: “the Debenture Holder (Series
      C”) at the end of February 17 or August 20, as the case may be, of
      each year before the date of payment of the appropriate installment for
      the Debentures (Series C) out of the principal of the par value of the
      Debentures (Series C) that are in circulation, subject to the terms of
      linkage and all other terms listed in the terms in the
      overleaf.

            

    

     

    
      	
              2.

            	
              The
      payments of the principal of the Debentures and the payments of the
      interest will be made against delivery of the Debenture to the Company at
      its registered office, as stated in the conditions in the overleaf or at
      any other place announced by the Company by no later than five business
      days before the payment date.

            

    

     

    
      	
              3.

            	
              Debentures
      (Series C) are issued pursuant to the Deed of Trust (hereinafter: the
      “Deed of Trust”) of September 20 that has been signed between the Company
      and Aurora Fidelity Trust
      Company Ltd. (hereinafter: the “Trustee”).

            

    

     

    
      	
              4.

            	
              The
      Debentures are not secured by any collateral. All of the Debentures
      (Series C) will have an equal degree of security among each other (pari passu) concerning
      the undertakings of the Company pursuant to the Debentures (Series C),
      without a preferential right or priority over one
  another.

            

    

     

    
      	
              5.

            	
              This
      Debenture (Series C) is issued subject to the conditions listed in the
      overleaf, the conditions listed in the Deed of Trust and in the
      Prospectus.

            

    

     

     

    
       
Signed
with the stamp of the Company, affixed
on_____________________________

    

     

     

    
      	
              Chairman
      of the board:

            	 	 

    

     

    
      
         

      

      
        - 27
-

        
          

        

      

      
         

      

    

     

    
       
The Conditions Listed
Overleaf

    

     

     

    
      	
              1.

            	
              General

            

    

     

    In this
Debenture (Series C), the following expressions will have the following
meanings, unless another meaning is implied by the context, as
follows:

     

    
      	 	
              “The
      Company”

            	 	
              –

            	
              Cellcom
      Israel Ltd.

            
	 	 	 	 	 
	 	
              The
      “Deed of
      Trust”

            	 	
              –

            	
              The
      Deed of Trust that was signed between the Company and the Trustee on
      September 20, 2007, including the appendices attached thereto, which
      constitute an integral part thereof;

            
	 	 	 	 	 
	 	
              The
      “Prospectus”

            	 	
              –

            	
              The
      prospectus of the Company that is due to be published, inter alia, for the
      issue of the Debentures (Series C);

            
	 	 	 	 	 
	 	
              The “Debentures (Series C)”
      or the “Debentures”

            	 	
              –

            	
              The
      Debentures (Series C) of the Company, registered to name, that will be
      issued in accordance with the Prospectus,;

            
	 	 	 	 	 
	 	
              The “ Trustee”

            	 	
              –

            	
              Aurora
      Fidelity Trust Company Ltd. and/or any party serving from time to time as
      a trustee of the Debenture Holders (Series C) pursuant to the Deed of
      Trusteeship;

            
	 	 	 	 	 
	 	
              “Register”

            	 	
              –

            	
              Register
      of the Debenture Holders (Series C) as stated in Section 25 of the Deed of
      Trusteeship;

            
	 	 	 	 	 
	 	
              The “Debenture Holders (Series C)”
      and/or the “Debenture Holders”
      and/or the “Debenture Owners
      (Series C)” and/or the “Debenture
      Owners”

            	 	
              –

            	
              The
      persons whose names are listed at the time in question in the register of
      the Debenture Holders (series C), and in the case of a number of joint
      Holders, the joint Holder first listed in the register;

            
	 	 	 	 	 
	 	
              The “Debenture Certificate (Series
      C)” and/or “the
      Debenture Certificate”

            	 	
              –

            	
              A
      Debenture certificate (Series C) whose form appears as the first addendum
      to this deed;

            

    

     

     

    
      
        
        

      

      
        - 28
-

        
          

        

      

      
        
        

      

       

    

    
      	 	
              The “Law”

            	 	
              –

            	
              The
      Securities Law, 5728 – 1968 and the regulations thereby, as effective from
      time to time;

            
	 	 	 	 	 
	 	
              “Principal”

            	 	
              –

            	
              The
      par value of the Debentures (Series C) in circulation;

            
	 	 	 	 	 
	 	
              The “Consumer Price Index” (“the
      Index”)

            	 	
              –

            	
              The
      price index known by the name of "the Consumer Price Index", which
      includes fruit and vegetables, as published by the Central Bureau of
      Statistics, including that index even if published by another official
      body or institute, and including any official index that replaces it,
      whether composed of the same data as the existing index or not. If it is
      replaced by another index that is published by such a body or institute,
      and that body or institute did not determine the ratio between it and the
      index thus replaced, the ratio will be determined by the Central Bureau of
      Statistics, and in the case of such a ratio not being determined, it will
      be determined by the Trustee, who will determine, following consultation
      with economic experts of his choice, the ration between the other index
      and the replaced index;

            
	 	 	 	 	 
	 	
              The “Known Index”

            	 	
              –

            	
              The
      last known consumer price index;

            
	 	 	 	 	 
	 	
              The “Basic Index”

            	 	
              –

            	
              The
      consumer price index for August 2007 that was published on September 12,
      2007.

            
	 	 	 	 	 
	 	
              The “Payment Index”

            	 	
              –

            	
              The
      consumer price index known on the date of making any payment on the
      account of the principal and/or the interest;

            
	 	 	 	 	 
	 	
              “Business
      day”

            	 	
              –

            	
              A
      day on which most of the banks in Israel are open for conducting
      transactions;

            
	 	 	 	 	 
	 	
              The “Stock Exchange”

            	 	
              –

            	
              The
      Tel Aviv Stock Exchange Ltd.

            
	 	 	 	 	 

    

    
      
        
        

      

      
        - 29
-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              “Trade
      Day”

            	 	
              –

            	
              A
      day on which transactions are made on the Tel Aviv Stock Exchange
      Ltd;

            
	 	 	 	 	 
	 	
              “Meeting”

            	 	
              –

            	
              A
      meeting of the Debenture Holders, including a class
    meeting.

            
	 	 	 	 	 
	 	
              “Class
      meeting”

            	 	
              –

            	
              A
      meeting of the Debenture Holders, who have an interest that is materially
      different from the interest of other Debenture Holders on the matter that
      is being discussed in the meeting.

            
	 	 	 	 	 
	 	
              The “Nominee Company”

            	 	
              –

            	
              The
      Israel Discount Bank Nominees Ltd.

            

    

     

    
      	
               
      

            	
              1.1

            	
              This
      Debenture is one of a series of registered to name Debentures (Series C)
      to a total specified sum that will be determined in accordance with
      Section 2.2 of the Prospectus. The Debentures of this series will have an
      equal, pari passu
      degree of security among each other concerning the undertakings of the
      Company pursuant to the Debentures (Series C), without a right of
      preference or priority of one over another concerning the sums
      due.

            

    

     

    
      	
              2.

            	
              Securing the
      Debentures (series C)

            

    

     

    
      	
               
      

            	
              2.1

            	
              The
      undertaking of the Company to repay the Debentures (principal, interest
      and linkage differences) is not secured by any
  collaterals.

            

    

     

    
      	
               
      

            	
              2.2

            	
              The
      Company will be allowed to pledge its assets, in part or in full, by any
      pledge and in any way, to the benefit of any third party, without the need
      for any consent from the Trustee and/or the Debenture
    Holders.

            

    

     

    
      	
               
      

            	
              2.3

            	
              The
      Company will be allowed to sell, lease, assign, deliver or transfer in any
      other way its assets, in part or in full, in any way, for benefit of any
      third party, without the need for any consent of the Trustee and/or the
      Debenture Holders.

            

    

     

    
      	
               
      

            	
              2.4

            	
              For
      the removal of doubt, it is clarified that the Trustee has no duty to
      examine, and in fact the Trustee has not examined, the need for providing
      collateral for securing the payments to the Debenture Holders. In its
      entering the engagement in this Deed of Trust, and with the consent of the
      Trustee to serve as the trustee for the Debenture Holders, the Trustee
      does not express its opinion, implicitly or explicitly, as to the ability
      of the Company to fulfill its undertakings towards the Debenture Holders.
      The foregoing does not derogate from the duty of the Trustee by law and/or
      the Deed of Trust, nor does it derogate from the duty of the Trustee (to
      the extent that this duty applies to the Trustee according to any law) to
      examine the effect of changes in the Company from the date of the
      Prospectus onwards, to the extent that these may
  

            

    

     

    
      
        
        

      

      
        - 30
-

        
          

        

      

      
        
        

      

       

    

    adversely
affect the ability of the Company to fulfill its undertakings to the Debenture
Holders.

     

    
      	
               
      

            	
              2.5

            	
              The
      Debentures will be in an equal pari passu degree of
      security among themselves concerning the undertakings of the Company
      pursuant to the Debentures, without precedence or preference over each
      other.

            

    

     

    
      	
              3.

            	
              Date of Repayment of
      the Principal of the Debentures (Series
  C)

            

    

     

    
      	
               
      

            	
              Subject
      to all of the other terms of the Debentures (Series C), the principal of
      the Debentures (Series C) will be repaid in nine (9) equal semiannual
      installments on March 1 and on September 1 of each of the years 2009 to
      2012 (inclusive) and on March 1, 2013. The principal of the Debentures
      (Series C) is linked to the Consumer Price Index as specified in Section 5
      below.

            

    

     

    
      	
              4.

            	
              The
      Interest

            

    

     

    The
unsettled balance of the principal of the Debentures (Series C) in circulation
will bear annual interest at a rate that will be determined in accordance with
Section 2.2 of the Prospectus. The interest for the Debentures (Series C) is
linked to the Consumer Price Index as specified in Section 5 below.

     

    The
interest for the Debentures (Series C) will be paid in semiannual installments,
on March 1 and on September 1 of each of the years 2008 to 2012 (inclusive) and
a semi-annual payment on March 1, 2013, For the period of the six (6) months
ending on the last day before each such date, except the first interest period,
for which the proportionate part of the interest will be paid (calculated based
on 365 days a year) for the period starting on the first day of trading after
the tender (the settlement day) and ending on February 28, 2008. The first
interest payment for the Debentures (Series C) will be on March 1,
2008.

     

    The
Company will announce by immediate report, within a business day of the date of
establishing the interest in the tender, the interest rate during the first
interest period.

     

    The last
payment of the interest for the Debentures (Series C) will be made on March 1,
2013, with the last payment of the principal of the Debentures (Series C),
against the handover of the Debentures (Series C) to the Company.

     

    Income tax
(see Section 2.3 of the Prospectus) will be deducted from each payment of
interest for the Debentures (Series C), according to law.

     

    
      	
              5.

            	
              Terms of Linkage of
      the Principal and the
Interest

            

    

     

    The
principal of the Debentures and the interest for the principal will be linked to
the Consumer Price Index based on the Basic Index, as follows:

     

    If it is
found, on the date of repayment of any installment on the account of the
principal 

     

    
      
        
        

      

      
        - 31
-

        
          

        

      

      
        
        

      

    

     

    and/or the
interest for the Debentures, that the payment index for that date has increased
relative to the Basic Index, the Company will pay that installment of principal
and/or interest increased relative to the rate of the change in the Payment
Index compared to the Basic Index. However, if it is found that the Payment
Index is identical to the Basic Index or is lower, the Payment Index will be the
Basic Index.

     

    
      	
              6.

            	
              Payments of the
      Principal and the Interest of the
  Debentures

            

    

     

    
      	
               
      

            	
              6.1

            	
              Each
      installment on the account of the principal for the Debentures (Series C)
      will be paid to the Debenture Holders (Series C) whose names are listed in
      the Register of Debenture Holders (Series C) of the Company as Holders on
      the end of February 17 or August 20, as the case may be, of each year
      before the date of payment of the appropriate installment for the
      Debentures (Series C) (the “Determinant Day for Payment of
      the Principal of the Debentures (Series
  C)”).

            

    

     

    
      	
               
      

            	
              Each
      installment on the account of the interest for the Debenture (Series C)
      will be paid to the Debenture Holders (Series C) whose names are listed in
      the in the Register of Debenture Holders (Series C) of the Company as
      Holders on the end of February 17 or August 20, as the case may be, of
      each year before the date of payment of the appropriate installment for
      the Debentures (Series C) (the “Determinant Day for Payment of
      the Interest of the Debentures (Series
  C)”).

            

    

     

    Notwithstanding
the foregoing, the last installment of the principal and the interest for the
Debentures (Series C) will be paid against delivery of the Debentures
Certificates (Series C) to the Company, at its registered office or anywhere
else as advised by the Company, by no later than five (5) business days before
the day stated for payment of the last installment.

     

    
      	
               
      

            	
              6.2

            	
              In
      any case in which the date of payment of on the account of principal
      and/or interest falls on a day that is not a Business Day, the payment
      date will be deferred to the first Business Day thereafter without
      additional payment, interest or
linkage.

            

    

     

    
      	
               
      

            	
              6.3

            	
              Payment
      to beneficiaries will be made by checks or by bank transfer to the credit
      of the bank account of the persons whose names are listed in the Register
      of the Debenture Holders and that is indicated in the details that they
      give to the Company in writing in advance, in accordance with the
      provisions of Section 6.4 below. If the Company cannot, for any reason
      that does not depend thereupon, pay any sum to the entitled parties, the
      provisions of Section 7 below will
apply.

            

    

     

    
      	
               
      

            	
              6.4

            	
              A
      Debenture Holder that will be interested in informing the Company of the
      details of the bank account for crediting it with payments pursuant to the
      Debentures as stated above, or change these account details or
      instructions concerning the mode of payment, may do so by notice to the
      company by registered letter. However, the Company will
  

            

    

     

    
      
        
        

      

      
        - 32
-

        
          

        

      

      
        
        

      

       

    

    fulfill
the instruction only if it reaches its registered office at least thirty (30)
days before the Determining Date for Payment of any installment pursuant to the
Debenture.

     

    
      	
               
      

            	
              In
      the case of the notice being received by the Company belatedly, the
      Company shall act thereby only concerning installments whose Determinant
      Payment Date is after the date of payment which is near to the day of
      receipt of the notice.

            

    

     

    
      	
               
      

            	
              6.5

            	
              If a
      Debenture Holder who is entitled to such a payment has not given the
      Company in advance details concerning its bank account, any installment on
      the account of the principal and interest will be made out by a check that
      will be sent by registered mail to its last address listed in the Register
      of the Debenture Holders. Sending of a check to a beneficiary by
      registered mail as stated above will be considered, for all intents and
      purposes, as payment of the sum specified therein on the date of its
      mailing, as long as it is duly paid upon its presentation for
      collection.

            

    

     

    
      	
              7.

            	
              Abstention from
      Payment for a Reason that does not Depend on the
      Company

            

    

     

    
      	
               
      

            	
              7.1

            	
              Any
      sum that is due to the Debenture Holder that is not actually paid for a
      reason that does not depend on the Company, while the company was prepared
      to pay it, will cease to bear interest and linkage differences from the
      date stated for its payment, whereas the Debenture Holder will be entitled
      only to the sums that it would have been entitled to on the date stated
      for repayment of that sum on the account of the principal, the linkage
      differences or the interest.

            

    

     

    
      	
               
      

            	
              7.2

            	
              The
      Company will deposit with the Trustee by no later than 14 business days
      from the date stated for that payment, the sum of the payment that has not
      been paid for a reason that does not depend on the Company, and such a
      deposit will be considered as settlement of that payment, and in the case
      of settlement of all dues pursuant to the Debenture, as redemption of the
      Debenture.

            

    

     

    
      	
               
      

            	
              7.3

            	
              The
      Trustee shall deposit in a bank the sums that will be transferred thereto
      as stated in Section 7.2 above, to the credit of those Debenture Holders
      and will invest it in investments permitted hereby that are securities of
      he State of Israel or other securities that the laws of the State of
      Israel permit investment of the trust money in, as the Trustee deems fit
      and subject to the provisions of the law. Should the Trustee do so, it
      will not owe the beneficiaries for sums other than the remuneration that
      is received from realizing the investments less the expenses, commissions
      and mandatory payments, if any that are related to the said investment in
      managing the trust account less its
fee.

            

    

     

    
      	
               
      

            	
              7.4

            	
              The
      Trustee shall transfer to each Debenture Holder for which sums and/or
      funds due to the Debenture Holders have been deposited with the Trustee,
      out of sums thus deposited, less all expenses, commissions, the mandatory
      payments and its fee, against 

            

    

     

    
      
        
        

      

      
        - 33
-

        
          

        

      

      
        
        

      

       

    

    presentation of the proof
that is required by the Trustee, to the full satisfaction thereof.

     

    
      	
               
      

            	
              7.5

            	
              The
      Trustee shall keep these sums and invest them in the above mentioned
      manner until one year elapses from the final redemption date of the
      Debentures. After this date, the Trustee shall transfer to the Company
      these sums, including profits that result from their investment, less its
      expenses and other expenses incurred in accordance with the provisions of
      this Deed of Trust (such as service provider fees, etc.) to the extent
      that these remain in its possession on that date. The Company shall keep
      these sums in trust for an additional year from the day of their transfer
      thereto by the Trustee, for the Debenture Holders that are entitled to
      those sums, and with regard to the sums that are transferred thereto by
      the Trustee as stated above, the provisions of Section 7.3 of this Deed of
      Trust will apply, mutatis mutandis. Upon
      the transfer of the sums from the Trustee to the Company, to the
      satisfaction of the Trustee, the Trustee shall be exempt from payment of
      such sums to the entitled Debenture Holders. The Company shall approve to
      the Trustee in writing the holding of the sums and the receipt thereof in
      trust for the said Debenture Holders, and will indemnify the Trustee for
      any claim and/or expense and/or damage of any type that it sustains due to
      and for the said money transfer, as long as the Trustee has acted
      reasonably. The Company shall keep these sums in trust for the Debenture
      Holders that are entitled to these sums for an additional year from the
      day of their transfer to it from the Trustee. Sums that are not demanded
      from the Company by a Debenture Holder two years from the final repayment
      date of the Debentures will be transferred to the Company, which will be
      entitled to use the remaining sums for any
  purpose.

            

    

     

    
      	
              8.

            	
              The register of the
      Debenture Holders and Transfer of
  Debentures

            

    

     

    
      	
               
      

            	
              8.1

            	
              The
      Company shall keep and maintain in its registered office a Register of the
      Debenture Holders, listing the names of the Debentures Holders, their
      addresses and the number and par value of the Debentures registered to
      their name. The register will also list any transfer of title to the
      Debentures. The Trustee and any Debenture Holder will be entitled, at any
      reasonable time, to review this Register. The Company is entitled to close
      the Register from time to time or for a period or periods that do not
      exceed an aggregate of thirty (30) days a
year.

            

    

     

    
      	
               
      

            	
              8.2

            	
              The
      Company will not be required to note in the Debenture Holder Registers any
      notice concerning explicit, implicit or putative trusteeship, or
      hypothecation or pledging of any kind or any equity, claim or offset right
      or any other right, concerning the Debentures. The Company shall only
      recognize the ownership of the person whose name the Debentures are listed
      under, as long as the legal heirs, administrators of estate or executors
      of the will of the registered owner or any person who will be entitled to
      the Debentures due to the bankruptcy of any registered owner (and in the
      case of a 

            

    

     

    
      
        
        

      

      
        - 34
-

        
          

        

      

      
        
        

      

       

    

    corporation - due to the
liquidation thereof) will be entitled to register as the Holders thereof, after
giving evidence that in the opinion of the Company is satisfactory for proving
the right of any of the above to be registered as the Holder
thereof.

     

    
      	
              9.

            	
              The Debenture
      Certificates (Series C), their Split and
  Transfer

            

    

     

    
      	
               
      

            	
              9.1

            	
              For
      the Debentures that are listed to one Holder, one certificate will be
      issued, or at its request, a number of certificates will be issued (the
      certificates referred to in this section will be referred to hereinafter
      as: the “Certificates”).

            

    

     

    
      	
               
      

            	
              9.2

            	
              Each
      Certificate may be split into certificates whose total principal equals
      the sum of the par value of the Debentures that have been included in a
      Certificate whose split has been requested, as long as the new Debenture
      Certificates that are issued will be to par value sums in whole New
      Israeli Shekels, in accordance with a split request that has been signed
      by the registered owner of that Debenture Certificate, against the
      provision of that Debenture Certificate to the Company at its registered
      office for effecting the split. The split shall be made within seven (7)
      days of the end of the month on which the Certificate along with its split
      request were provided at the registered office of the Company. All of the
      expenses and commissions involved in the split, including stamp tax and
      other duties, if any, will apply to the party requesting the
      split.

            

    

     

    
      	
               
      

            	
              9.3

            	
              The
      foregoing will apply accordingly to allocation letters, as long as they
      have not been replaced with
Certificates.

            

    

     

    
      	
               
      

            	
              9.4

            	
              The
      Debentures may be transferred concerning any par value sum, as long as it
      is in whole New Israeli Shekels. Any transfer of the Debentures that is
      not performed through the trading system of the Stock Exchange will be
      made out according to a transfer deed that is made out in a generally
      accepted format for transferring shares, duly signed by the registered
      owner or the legal representatives thereof, and by the transferee or the
      legal representatives thereof, which will be delivered to the Company at
      its registered office along with any other proof that is required by the
      Company for proving the right of the transferor to their transfer and the
      identity thereof. If any stamp tax or other mandatory payment applies to
      the deed of transfer of the Debentures, the company will be given proof of
      their payment by the requester of the transfer, which will be to the
      satisfaction of the Company.

            

    

     

    
      	
               
      

            	
              9.5

            	
              It
      is clarified hereby that all of the expenses and commissions involved in
      the transfer, including stamp tax and other mandatory payments and duties,
      if any, will be borne by the party requesting the transfer only. The
      Company shall be allowed to keep the deed of
  transfer.

            

    

     

    
      	
               
      

            	
              9.6

            	
              In
      the case of a transfer of only part of the sum of the specified principal
      of the Debentures in the Certificate, the Certificate will be split first
      as specified in Section 

            

    

     

    
      
        
        

      

      
        - 35
-

        
          

        

      

      
        
        

      

    

     

    9.2 above
into a number of Debenture Certificates as required thereby, in such a manner
that the total sums of the principal specified therein is equal to the sum of
the specified principal of the said Debenture Certificate.

     

    
      	
               
      

            	
              9.7

            	
              After
      fulfillment of all of the conditions stated above, the transfer will be
      registered in the Register of the Debenture
  Holders.

            

    

     

    
      	
              10.

            	
              Delisting of the
      Debentures from trade  initiated by the Stock
      Exchange

            

    

     

    If the
Stock Exchange decides to delist the Debentures (Series C) because the value of
the series falls below  the minimum sum stated in the guidelines of
the Stock Exchange, the Company will not perform immediate redemption of the
Debentures (Series C), but the Debentures will be delisted from
trade.

     

    
      	
              11.

            	
              Purchase of the
      Debentures (Series C) by the Company and/or by a
      subsidiary

            

    

     

    
      
        	
              	
                11.1

              	
                The
      Company shall issue the Debentures under conditions as specified in the
      Prospectus and in the Debentures and will not secure them with any
      collateral.

              

      

    

     

    
      
        	
              	
                11.2

              	
                The
      Company reserves the right to purchase at any time, within or without the
      Stock Exchange, Debentures (Series C) at any price of its choosing,
      without prejudice to the obligation of repayment of the Debentures
      remaining in circulation as specified above. The Debentures that will be
      purchased by the Company will be cancelled and delisted from trade on the
      Stock Exchange, and the Company will not be allowed to re-issue
      them.

              

      

    

     

    
      
        
          	
                	
                  11.3

                	
                  

                    A
      subsidiary of the Company and/or the controlling shareholder and/or
      companies under the control of the c controlling shareholder of the
      Company (“Affiliated
      Company”) are allowed to purchase and/or sell from time to time
      within or without the Stock Exchange, including by way of issuance by the
      Company, Debentures at any price of their choosing and sell them
      accordingly. The Debentures thus held by the Affiliated Company will be
      considered as an asset of the Affiliated Company, and if they are listed
      for trading, they will not be delisted from trade on the Stock Exchange
      other than subject to the rules of the Stock Exchange.

On
      the matter of holding Meetings of Holders of Debentures, the provisions of
      Section 2.19 of the second addendum to this deed will
      apply.

                  

                

        

      

       

    

    
      
        	
              	
                11.4

              	
                The
      Company is allowed, at any time and from time
      to time, without needing the consent of the Debenture Holders or the
      Trustee, to issue, including to an Affiliated Company, Debentures of a
      different type and/or of different series and/or other securities, whether
      secured or unsecured, whether granting a right of conversion into shares
      of the Company or not granting such right, whether by public offering
      pursuant to a prospectus or otherwise, under terms of redemption,
      interest, linkage, discounting, 

              

      

       

      
        
          
          

        

        
          - 36
-

          
            

          

        

        
          
          

        

      

       

    

    repayment
rate in the case of liquidation and other conditions, as the Company sees fit,
whether they are preferable to the terms of the Debentures (Series C) issued
pursuant to the Prospectus, equal to them or inferior to them.

     

    
      
        	
              	
                11.5

              	
                Without
      derogating from the foregoing, the Company is allowed, at any time and
      from time to time, without needing the consent of the Debenture Holders or
      the trustee, to issue, including to an Affiliated Company, additional
      Series C Debentures. The additional Debentures that will be issued, to the
      extent issued, including their conditions and resulting rights, will be
      identical and as the existing Debentures, and will together constitute one
      series for all purposes (it is clarified that in the case of such
      issuance, the offerees to whom additional Debentures will be issued will
      not be entitled to payment of principal and/or interest whose determinant
      payment date preceded the issuance date). The provisions of the Deed of
      Trust will apply to these additional Debentures. The Company shall publish
      an immediate statement on such an issuance of additional Debentures and
      will apply to the Stock Exchange in an application to list these
      additional Debentures for trading these therein. In the case of expansion
      of the series of the Debentures (series C) as above, the fee of the
      Trustee shall be increased in proportion to the increase of the size of
      the series.

              

      

    

     

    The
Company shall inform the Trustee and the Debenture Holders of the issue of these
additional Debentures.

     

    This right
of the Company does not exempt the Trustee from examining such an issuance, to
the extent that such a duty is imposed on the Trustee by law, and it does not
derogate from the rights of the Trustee and of the Meeting of the Debenture
Holders according to the Deed of Trust, including their right to make the
Debentures immediately payable as stated in Section 16 below.

     

    
      
        	
              	
                11.6

              	
                The
      Debentures have been issued in their par value, i.e. without discount. The
      Company reserves the right to allocate the Debentures following an
      expansion of the series at a different discount rate (higher or lower)
      than the discount rate of the Debentures then in circulation (including
      due to issuance at a price that reflects a different discount rate). The
      discounted allocation of the Debentures originating from expansion of the
      series of the Debentures at a rate exceeding the discount rate established
      for the Debentures before the expansion may adversely affect the state of
      the Debenture Holders.

              

      

    

     

    
      
        	
              	
                11.7

              	
                The
      provisions of this Section 11 above itself do not bind the Company or the
      Debenture Holders to purchase Debentures or sell the Debentures in their
      possession.

              

      

    

     

    
      
        	
              	
                11.8

              	
                Wherever
      the rules of the Stock Exchange apply or will apply to any action
      according to this Deed of Trust, they will have preference over the
      provisions hereof, and the 

              

      

    

     

    
      
        
        

      

      
        - 37
-

        
          

        

      

      
        
        

      

    

     

    dates of
such an action will be determined in accordance with the rules of the Stock
Exchange.

     

    
      	
              12.

            	
              Waiver; Settlement and
      Changes in the Terms of the Debentures (series
  C)

            

    

     

    
      
        	
              	
                12.1

              	
                Subject to the provisions
      of the Law and the regulations promulgated and/or that will be promulgated
      thereby, the Trustee shall be allowed, from time to time and at any time,
      if it is convinced that this does not in its opinion infringe upon the
      rights of the Debenture Holders, to waive any violation or non-fulfillment
      of any of the terms hereof by the Company, as long as these do not relate
      to the terms of repayment of the Debentures and the grounds for calling
      for immediate repayment as specified in Section 16
  below.

              

      

    

     

    
      
        	
              	
                12.2

              	
                Subject
      to the provisions of the Law and the regulations promulgated and/or that
      will be promulgated thereby, the Trustee is allowed, whether before or
      after the principal of the Debentures is called for immediate repayment,
      to settle with the Company concerning any right or claim of the Debenture
      Holders and agree with the Company to any arrangement concerning the
      rights of the Debenture Holders, including waiving any right or claim of
      the Debenture Holders towards the Company hereby. If the Trustee settles
      with the Company after having received prior approval of the Debenture
      Holders as stated above, the Trustee shall be exempt of liability for this
      action, as approved by the general Meeting. The foregoing does not exempt
      the Trustee from responsibility for its actions until the date of making a
      decision of the Meeting of the Holders and/or its actions concerning its
      application.

              

      

    

     

    
      
        	
              	
                12.3

              	
                Subject
      to the provisions of the Law and the regulations promulgated and/or to be
      promulgated thereby, the Trustee and the Company may, whether before or
      after the principal of the Debentures is called for immediate repayment,
      change the Deed of Trust (including a change in the conditions of the
      Debentures), if one of the following is
  fulfilled:

              

      

    

     

    
      	
            	
              12.3.1

            	
              The
      Trustee is satisfied that the change does not adversely affect the
      Debenture Holders.

            

    

     

    
      
        	
              	
                12.3.2

              	
                The
      Debenture Holders have agreed to the proposed change, by a special
      decision as specified in Sections 2.4 and 2.10 of the second addendum
      hereinafter.

              

      

    

     

    
      
        	
              	
                12.4

              	
                The
      Trustee shall be entitled, at the request of the Company from time to
      time, to make changes in the Deed of Trust and/or in the Debentures, as
      required by a Securities Authority and/or the Stock Exchange and/or any
      other governmental authority, for the purpose of listing the Debentures
      for trade on the Stock Exchange, as long as the Trustee is satisfied that
      the change does not cause a material adverse effect to the
  

              

      

       

      
        
          
          

        

        
          - 38
-

          
            

          

        

        
          
          

        

      

       

      Debenture
Holders.

    

     

    
      
        	
              	
                12.5

              	
                The
      Company will give the Debenture Holders a notice of any such change, in
      accordance with Section 17 hereof, as soon as possible after its
      execution.

              

      

    

     

    
      
        	
              	
                12.6

              	
                The
      general meetings as stated in this section above will be convened, as
      stated in the second addendum of the Deed of
  Trusteeship.

              

      

    

     

    
      
        	
              	
                12.7

              	
                In
      any case of use of the right of the Trustee in accordance with this
      section above, the Trustee shall be entitled to demand that the Debenture
      Holders give to it or to the Company their certificates, for noting a
      comment concerning any such settlement, waiver, change or amendment and
      according to the demand of the Trustee, the Company will note such a
      comment in the certificates that are given to it. In any case of use of
      the right of the Trustee pursuant to this section, the Trustee shall
      announce this, within a reasonable time, in writing, to the Debenture
      Holders.

              

      

    

     

    
      	
              13.

            	
              Meeting of Debenture
      Holders (series C)

            

    

     

    General
meetings of the Debenture Holders (series C) will be convened and managed, as
stated in the
second addendum of the Deed of Trusteeship.

     

    
      	
              14.

            	
              Receipts as
      proof

            

    

     

    
      
        	
              	
                14.1

              	
                A receipt from the
      Debenture Holder for the sums of the principal, the interest and the
      linkage differences that have been paid thereto by the Trustee for that
      Debenture will release the Trustee categorically in all matters related to
      payment of the sums stated on the
receipt.

              

      

    

     

    
      
        	
              	
                14.2

              	
                Until
      the end of the period specified in Section 7.5 above, a receipt from the
      Trustee concerning the deposit of the sums of the principal, the interest
      and the linkage differences in its possession to the benefit of the
      Debenture Holders as stated in this Deed will be considered as a receipt
      from the Debenture Holders for the sums specified
  therein.

              

      

    

     

    
      
        	
              	
                14.3

              	
                The
      sums distributed as stated in Sections 7 and 14 hereof will be considered
      as payment on the account of the repayment of the
    Debentures.

              

      

    

     

    
      	
              15.

            	
              Replacement of
      Debenture Certificates

            

    

     

    In the
case of a Debenture Certificate wearing out, being lost or destroyed, the
Company shall be entitled to issue in its place a new Certificate of the
Debentures, under the same conditions concerning proof, indemnification and
coverage of the expenses sustained by the Company for inquiring as to the right
of ownership of the Debentures that the certificate thus replaced relates to, as
the Company deems fit, provided that in the case of wear, the worn out Debenture
Certificate will be returned to the Company before the new Certificate is
issued. Taxes, duties and other expenses involved in the issue of the new
Certificate will be borne by the party 

     

    
      
        
        

      

      
        - 39
-

        
          

        

      

      
        
        

      

    

     

    requesting
this Certificate.

     

    
      	
              16.

            	
              Immediate
      repayment

            

    

     

    
      
        	
              	
                16.1

              	
                Subject
      to the provisions of Section 16.2 below, the Trustee shall be entitled to
      call for immediate repayment of the unsettled balance of the Debentures,
      in part or in full, and will be compelled to do so if demanded by a
      special resolution (as defined in the second addendum to this Deed) that
      is adopted in the general Meeting of the Debenture Holders, or by a
      written demand signed by the Holders of more than 50% of the unsettled
      balance of the principal of Debenture in circulation, in
      case  one or more of the events enumerated below
      occur:

              

      

    

     

    
      	
            	
              16.1.1

            	
              If
      the Company does not repay any sum (including principal or interest or
      linkage differences) that is due pursuant to the terms of the Debentures
      within, 7 days of the maturity of that sum, according to the terms of the
      Debentures.

            

    

     

    
      	
            	
              16.1.2

            	
              A
      permanent liquidator has been appointed by a court, or if the court has
      issued the Company a final liquidation order, or if a valid resolution for
      voluntary liquidation of the Company is
adopted.

            

    

     

    
      	
            	
              16.1.3

            	
              A
      motion is filed regarding the Company to reach a settlement with the
      creditors of the Company in accordance with Section 350 of the Companies
      Law, 5759 – 1999, or if a motion for staying of proceedings is issued
      pursuant to this section, and if the motion has been filed other than by
      the company – the motion or order is not removed or cancelled within 45
      days of filing or granting, as
relevant.

            

    

     

    
      	
            	
              16.1.4

            	
              If
      the company is dissolved or struck for any reason, including striking or
      dissolution for merger purposes or within a share exchange transaction,
      unless the Trustee is convinced that the rights of the Debenture Holders
      (Series C) will not be infringed following such a merger or share exchange
      transaction.

            

    

     

    
      	
            	
              16.1.5

            	
              If
      one of the cases listed below occurs and according to the determination of
      the Trustee or a special resolution adopted in a general Meeting of the
      Debenture Holders, this may infringe upon or endanger the rights of the
      Debenture Holders:

            

    

     

    
      	
            	
              16.1.5.1

            	
              A
      temporary liquidator or temporary receiver has been appointed for the
      Company by a court or if the court has issued the Company a temporary
      liquidation order, and such an appointment or order is not revoked within
      30 days of being issued.

            

    

     

    
      	
            	
              16.1.5.2

            	
              Material
      assets of the Company are subjected to attachment and the attachment is
      not removed within 45 days of its
imposition.

            

    

     

    
      
        
        

      

      
        - 40
-

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              16.1.5.3

            	
              An
      execution action is carried out against material assets of the Company and
      the action is not cancelled within 45 days of being carried
      out.

            

    

     

    
      
        	
              	
                16.1.5.4

              	
                If a
      permanent receiver is appointed for the Company and/or for all of its
      assets or for a material part thereof, and the appointment is not
      cancelled within 45 days.

              

      

    

     

    
      
        	
              	
                16.1.5.5

              	
                The
      Company ceases its payments and/or announces its intent to cease its
      payments and/or if there is genuine concern, in the opinion of the
      Trustee, that it will cease its payments and/or cease to continue its
      business affairs or it is likely that it will cease managing its business
      affairs.

              

      

    

     

    
      
        	
              	
                16.1.5.6

              	
                If
      the Company violates or fails to fulfill any material condition or
      undertaking that binds it pursuant to the conditions of the Debentures and
      this Deed, and it does not rectify the violation within 14 business days
      of its having received a written warning from the Trustee to rectify the
      violation.

              

      

    

     

    
      
        	
              	
                16.1.5.7

              	
                If
      pledgees of the assets of the Company realize the pledges that they have
      for material assets of the
Company.

              

      

    

     

    
      
        	
              	
                16.1.5.8

              	
                If
      another series of Debentures that the Company has issued is called for
      immediate repayment other than according to a resolution of the
      Company.

              

      

    

     

    
      
        	
              	
                16.2

              	
                Advance
      notice before calling for immediate
repayment

              

      

    

     

    
      
        	
              	
                16.2.1

              	
                Despite
      the provisions of Section 16.1 above, the Trustee shall not call the
      Debentures for immediate repayment, unless the Trustee has given the
      Company prior written notice of its intent to do so, and the Company does
      not fulfill the provisions of the advance notice within 15 days of its
      receipt (“the Remedy
      Period”).

              

      

    

     

    
      
        	
              	
                16.2.2

              	
                In
      the said prior notice, the Company will be required to pay the arrears sum
      and/or fulfill other provisions of this Deed or of the terms of the
      Debentures whose violation or non-fulfillment constitute grounds for
      calling Debentures for immediate repayment, or restore the state of
      affairs that preceded the grounds for calling for immediate repayment, in
      accordance with the case stated in Section 6.1 above, for which this
      warning has been given.

              

      

    

     

    
      
        	
              	
                16.2.3

              	
                Despite
      the provisions in Section 16.2.1 above, if the Trustee holds the opinion
      that a deferral in calling the debt of the Company for immediate repayment
      as 

              

      

       

      
        
          
          

        

        
          - 41
-

          
            

          

        

        
          
          

        

      

       

    

    stated in
Section 16.2.1 above will genuinely endanger the rights of the Debenture
Holders, the Trustee shall be allowed to shorten the Remedy Period up to 3
business days, in order to prevent the said endangerment of the rights of the
Debenture Holders, on the condition that it so confirms to the Company by a
notice that is delivered to it alongside the calling of the Debentures for
immediate repayment.

     

    
      	
              17.

            	
              Notices

            

    

     

    
      
        	
              	
                17.1

              	
                Any
      notice from the Company and/or the Trustee to the Debenture Holders, as
      relevant, shall be given as
follows:

              

      

    

     

    
      	 	
              17.1.1

            	
              By
      reporting in the MAGNA system of the Securities Authority; and
      by

            
	 	 	 
	 	
              17.1.2

            	
              A
      notice that will be published in two widely distributed daily newspapers
      that are published in Israel in
Hebrew;

            

    

     

    
      
        	
              	
                17.2

              	
                Any
      notice or demand from the Trustee to the Company may be given by a letter
      that is sent by registered mail to the address stated herein, or to any
      other address that the Company informs the Trustee of in writing, or by
      transmission by facsimile or by courier and any such notice or demand will
      be considered as having been received by the Company: (1) in the case of
      sending by registered mail – three business days from the day of mailing
      thereof; (2) in the case of transmission by facsimile (along with a
      telephone check of receipt thereof) – one business day from the day of its
      transmission; (3) and in the case of sending by courier – upon its
      delivery by the courier to the addressee or the offering thereof to the
      addressee for receipt, as
relevant.

              

      

    

     

    
      
        	
              	
                17.3

              	
                Any
      notice or demand from the
      Company to the Trustee may be given by a letter that is sent by registered
      mail to the address stated herein, or to another address that the Trustee
      informs the Company of in writing, or by transmission by facsimile or by
      electronic mail (“email”) or by courier
      and any such notice or demand will be considered as having been received
      by the Trustee: (1) in the case of sending by registered mail – three
      business days from the day of mailing thereof; (2) in the case of
      transmission by facsimile or by email (along with a telephone check of
      receipt thereof) or sending by courier – upon its delivery by the courier
      to the addressee or the offering thereof to the addressee for receipt, as
      relevant.

              

      

    

     

    
      
        	
              	
                17.4

              	
                Copies
      of notices and invitations that the Company gives to the Debenture Holders
      will also be sent by the Company in an Immediate Report, a copy of which
      will be given to the Trustee.

              

      

    

     

    
      
         

      

      
        - 42
-

        
          

        

      

      
         

      

    

     

    
      Cellcom
Israel Ltd.

    

     

    
      Second
Addendum

    

     

    Meetings of the Debenture
Holders (Series C)

     

     

    
      	
              1.

            	
              Calling
      of Meetings of the Debenture
Holders:

            

    

     

    
      	
               
      

            	
              1.1

            	
              The
      Trustee or the Company may call a Meetings of the Debenture Holders. If
      the Trustee and/or the Company calls such a Meeting, they must send
      immediately a written notice to the Trustee and/or the Company, as
      relevant, regarding the site, the day and the time on which the Meeting
      will be held and on the matters to be brought for discussion therein, and
      the Trustee or the Company, as the case may be, or a representative
      thereof, will be entitled to participate in such a Meeting without them
      having a voting right. The Company will be required to call a general
      meeting by written request of the Trustee or of the Debenture Holders
      holding at least ten percent 10%) of the unsettled balance of the
      principal of the Debentures in circulation, as relevant. The Trustee shall
      be required to call such a Meeting, at the written request of the Holders
      of at least ten percent (10%) of the par value of the unsettled balance of
      the principal of the Debentures in circulation. If the parties asking to
      call the Meeting are the Debenture Holders, the Company and/or the
      Trustee, as relevant, are entitled to demand from the requesting parties
      indemnification for the reasonable expenses involved
    therein.

            

    

     

    
      	
               
      

            	
              1.2

            	
              Fourteen
      (14) days advance notice will be given of each Meeting of the Debenture
      Holders, which will elaborate the place, the day and the time of the
      Meeting, and will indicate in general the subjects that will be discussed
      in the meeting. The Trustee is allowed, at its discretion, to shorten the
      duration of the advance notice if it sees that a deferral in calling the
      Meeting will cause material infringement of the rights of the Debenture
      Holders.

            

    

     

    
      	
               
      

            	
              1.3

            	
              In
      case of the purpose of the Meeting being a discussion and adopting a
      special resolution as defined in Section 2.4 and 2.10 of this addendum
      hereinafter, the notice will elaborate, in addition to the foregoing, the
      principle of the proposed decision. No resolution that has been duly
      adopted in a Meeting thus called will be disqualified if notice is not
      given, erroneously to all of the Debenture Holders, or if such notice has
      not been received by all of the Debenture
  Holders.

            

    

     

    
      	
               
      

            	
              1.4

            	
              Any
      such notice from the Company and/or the Trustee to the Debenture Holders
      will be given by a notice that is published in two (2) widely distributed
      daily newspapers that are published in Israel in Hebrew. In addition, an
      immediate report will be given by the Company. Any notice that is
      published as stated above will be considered as

            

    

     

    
      
        
        

      

      
        - 43
-

        
          

        

      

      
        
        

      

    

     

    having
been given to the Debenture Holders on the day of its publication as
above.

     

    
      	
              2.

            	
              Meetings
      of the Debenture Holders:

            

    

     

    
      	
               
      

            	
              2.1

            	
              The
      chairman of the Meeting will be a person who will be appointed by the
      Trustee. If the Trustee has not appointed a chairman or he is absent from
      the Meeting for half an hour from the determinant time for holding the
      Meeting, the attending Debenture Holders will choose a chairmen from among
      their number.

            

    

     

    
      	
               
      

            	
              2.2

            	
              A
      Meeting of the Debenture Holders will be opened after it is proved that
      there is the legal quorum for starting the discussion
    present.

            

    

     

    
      	
               
      

            	
              2.3

            	
              Subject
      to the legal quorum that is required in a Meeting that is convened for
      adopting a special resolution, and subject to the legal quorum that is
      required for the dismissal of a trustee pursuant to the Securities Law,
      two Debenture Holders who are attending by themselves or by proxy and
      together holding or representing at least a tenth (1/10) of the unsettled
      balance of the Debentures in circulation at that time will constitute a
      legal quorum.

            

    

     

    
      	
               
      

            	
              2.4

            	
              A
      special resolution of the Debenture Holder Meeting will be required on the
      following issues (“Special
      Resolution”):

            

    

     

    
      	
            	
              2.4.1

            	
              A
      change and/or amendment to the Deed of Trust, in the case of this
      requiring a resolution of a general Meeting pursuant to the Deed of
      Trust

            

    

     

    
      
        	
              	
                2.4.2

              	
                Any
      amendment, change and/or arrangement of rights of the Debenture Holders,
      whether these rights result from the Debenture, the Deed of Trust or
      otherwise, or any settlement or waiver concerning these rights, in the
      case of a decision of a general meeting being required for this purpose
      pursuant to the Deed of
Trusteeship.

              

      

    

     

    
      
        	
              	
                2.4.3

              	
                Calling
      the Debentures for immediate repayment, in accordance with the terms of
      the Deed of Trust.

              

      

    

     

    
      
        	
              	
                2.4.4

              	
                Giving
      of notices to the Trustee.

              

      

    

     

    
      	
               
      

            	
              2.5

            	
              In a
      meeting that is called for adopting a Special Resolution a legal quorum
      will be constituted – if Holders of at least fifty percent (50%) of the
      unsettled balance of the Debentures in circulation at that time are
      present in the general meeting, or in a deferred meeting - if Holders of
      at least ten percent (10%) of the said balance are
  present.

            

    

     

    
      	
               
      

            	
              2.6

            	
              If
      within a half an hour of the time set for starting a Meeting, no legal
      quorum is present, the meeting will be deferred to the same day in the
      following week (and in the case of this day not being a Business Day to
      the Business Day immediately following it) to the same place and time,
      without there being a duty to announce this to
  the

            

    

     

     

    
      
        
        

      

      
        - 44
-

        
          

        

      

      
        
        

      

       

      
         

        
          	
                   
      

                	
                   

                	
                  Debenture
      Holders, or to another day, place and time, as chosen by the inviting
      party, which it will announce to the Debenture Holders at least three (3)
      days in advance. If no legal quorum is found in a Meeting thus deferred,
      half an hour after the time established for starting the Meeting, two (2)
      Debenture Holders attending by themselves or by proxy, regardless of the
      par value held thereby, will constitute a legal quorum, and other than the
      legal quorum required for adopting a special resolution, provided that the
      instruction determining the legal quorum as above is published within the
      notice of the original Meeting, provided that the notice to the Debenture
      Holders of the holding of the deferred Meeting is announced in accordance
      with the provisions of Section 1 hereto above, by no later than seven (7)
      days before the date of holding the deferred Meeting. Such a notice may be
      published within the notice of the original Meeting (the general meeting
      that was deferred).

                

        

      

    

     

    
      	
               
      

            	
              2.7

            	
              Other
      than the foregoing, a Debenture Holder will not be entitled to receive any
      notice of a deferred Meeting and/or of matters that will be discussed in
      the deferred Meeting. Only matters that may be discussed in a Meeting will
      be discussed in a deferred Meeting.

            

    

     

    
      	
               
      

            	
              2.8

            	
              With
      the consent of a majority in a Meeting in which a legal quorum has
      attended, the chairman is allowed, and at the demand of the Meeting is
      compelled, to defer the continuation of the Meeting from time to time and
      from place to place, as the Meeting decides. If the continuation of the
      Meeting is deferred by ten (10) days or more, a notice of the continued
      Meeting will be given by way of publishing an immediate report in the
      MAGNA system only.

            

    

     

    
      	
               
      

            	
              2.9

            	
              In
      the vote, each Holder who is present in person or by proxy will have one
      vote for each NIS 1 par value of the total specified unpaid principal of
      the Debentures by which he may
vote.

            

    

     

    
      
        	
              	
                2.10

              	
                Each
      resolution will be adopted by a counting of votes. The majority that is
      required for a regular resolution is a regular majority of the number of
      votes represented in the vote of the Meeting (except abstainers). The
      majority that is required for a Special Resolution in such a Meeting is a
      majority of not less than 75% of the number of votes represented in such a
      vote (except abstainers).

              

      

    

     

    
      
        	
              	
                2.11

              	
                A
      appointment letter that appoints a proxy will be in writing and will be
      signed by the appointer or by the proxy thereof who is duly authorized to
      do so in writing. If the appointer is a corporation, the appointment will
      be made in writing and will be signed by the stamp of the corporation,
      along with the signature of the secretary of the corporation or the
      advocate of the corporation who has the authority to do so. The
      appointment letter of a proxy will be made out in any generally accepted
      form. A proxy is not required to be a Debenture Holder himself. The
      appointment letter and the power .

              

      

       

      
        
          
          

        

        
          - 45
-

          
            

          

        

        
          
          

        

      

       

    

    of
attorney or the other certificate by which the appointment letter is made out or
an approved copy of such a power of attorney, will be deposited in the
registered office of the Company or at another address that the Company
announces not less than forty eight (48) hours before the time of the Meeting
for which the power of attorney has been given, unless otherwise determined in
the notice calling the Meeting. The appointment letter will also be valid
concerning any deferred Meeting of a Meeting that the appointment letter relates
to, unless stated otherwise in the appointment letter. A vote that is made in
accordance with the terms in the document appointing a proxy will also be valid
if the appointer has passed away or been declared legally incompetent or if the
appointment letter is cancelled or the Debenture that the vote has been given
for is transferred, prior to the vote, unless a written notice of the death,
decisions of legal incompetence, cancellation or transfer, as relevant, received
at the registered office of the Company before the Meeting

     

    
      
        	
              	
                2.12

              	
                Any
      corporation that owns a Debenture may, by duly signed written
      authorization, empower a person as it deems fit to act as its
      representative in any Meeting of the Debenture Holders, and the person who
      has been authorized will be allowed to act on behalf of the corporation
      that he represents.

              

      

    

     

    
      
        	
              	
                2.13

              	
                Any
      proposal for a resolution that is put to the vote in a Meeting of Holders
      will be decided by a show of hands, unless a vote using a ballot box is
      demanded by the chairman or by at least two (2) Debenture Holders, who are
      present by themselves or by their proxy, whether a vote was made
      previously with a raise of hands or thereafter and the vote by ballot box
      will prevail. In the case of joint Holders, only the vote of the more
      senior Holder wishing to vote will be accepted, whether by himself or by
      his proxy, for which purpose seniority will be determined by the order in
      which the names are listed in the Register of
  Holders.

              

      

    

     

    
      
        	
              	
                2.14

              	
                The
      Trustee shall not have a right to vote in a Meeting of the Debenture
      Holder.

              

      

    

     

    
      
        	
              	
                2.15

              	
                In a
      vote, a Debenture Holder or the proxy thereof is allowed to vote with some
      of its votes in favor of a proposal that is being discussed, and with some
      against the proposal, as it deems
fit.

              

      

    

     

    
      
        	
              	
                2.16

              	
                Declaration
      of the chairman of the Meeting concerning adopting or rejecting a
      resolution and recording of this matter in the minutes book will serve as
      prima facie
      evidence of this fact.

              

      

    

     

    
      
        	
              	
                2.17

              	
                The
      chairman of the meeting will have a minute of the Meeting of the Debenture
      Holders prepared, which shall be written in the book of minutes. Each such
      minute will be signed by the chairman of the Meeting or by the chairman of
      the Meeting held thereafter, and all minutes thus signed will serve as
      conclusive testimony of the 

              

      

    

     

    
      
        
        

      

      
        - 46
-

        
          

        

      

      
        
        

      

       

    

    proceedings in the Meeting,
and as long as it is not proved otherwise, any resolution adopted in such a
Meeting will be considered as having been duly adopted.

     

    
      
        	
              	
                2.18

              	
                A
      person or persons who are appointed by the Trustee, the secretary of the
      Company and any other person or persons authorized by the Company will be
      allowed to be present in Meetings of the Debenture Holders without a
      voting right.

              

      

    

     

    
      
        	
              	
                2.19

              	
                Debentures
      held by an Affiliated Company will not grant their Holders a voting right
      in the general meeting of the Debenture Holders, but they will be
      considered for determining the legal quorum in the general meeting, except
      Debentures that will be held by an Affiliated Company that is an investor
      that is one of the investors listed in the first addendum to the
      Securities Law (concerning Section 15A(B)(1) of the Law) that is not
      investing for itself (an "Affiliated Institutional Investor”), which will
      grant voting rights in a Meeting of the Debenture Holders. At the time of
      holding the Meeting of the Debenture Holders, the Trustee shall check for
      conflicting interests among the Debenture Holders in accordance with the
      circumstances at hand and the need for calling Class Meetings in cases in
      which there are differing interests among the Debenture Holders, in
      accordance with the circumstances at hand. The Company and the Trustee
      shall act to call Class Meetings of the Debenture Holders in accordance
      with the provisions of the law, the provisions of the Securities Law and
      the Regulations and guidelines promulgated thereunder. In the case of
      holding Class Meetings, approval of a resolution requires approval in each
      of the Class Meetings that are called, and in the Meeting of all of the
      Debenture Holders, with the majority that is required by the provisions of
      the Deed of Trust and the appendices
thereof.

              

      

    

     

    - 47 -Exhibit 4.4

    
      
         

        
        

         

        
          	
                  TRANSLATION
      FROM HEBREW

                  THE
      BINDING VERSION IS THE HEBREW
VERSION

                

        

        
 

      

      Deed
of Trust

       

      Made
and signed in Netanya on September 20, 2007

       

       

      Between:

       

      Cellcom
Israel Ltd.

      of 10
Hagavish Street, Netanya

      (hereinafter:
“the
Company”)

       

      of
the one part;

       

       

      And:

       

      Hermetic
Trust (1975) Ltd.

      Private
company no. 51-070519-7

      of 113
Hayarkon St., Tel Aviv

      Telephone:
03-5274867

      Fax:
03-5271736

      Email:
hermetic@hermetic.co.il

      Contact:
Meirav Ofer Oren, joint CEO

      (hereinafter:
“the
Trustee”)                                                                                of the other
part:

       

      
        	
                Whereas:

              	
                The
      board of the Company decided, on September 19, 2007, to approve the issue
      of Debentures (Series D), according to the conditions of the Prospectus;
      and

              
	 	 
	
                Whereas:

              	
                The
      Trustee is a limited shares company that has been incorporated in Israel
      according to the Companies Law/ Ordinance, whose principle goal is to
      engage in Trust; and

              
	 	 
	
                Whereas:

              	
                The
      Trustee has declared that there is no impediment in accordance with the
      Securities Law 5728 – 1968 or any other law to its entering into an
      engagement with the Company pursuant to this Deed of Trust, and that it
      fulfills all of the requirements and conditions for competency stated in
      the Securities Law to serve as a trustee for the issue of the Debentures
      (Series D) covered by the Prospectus; and

              
	 	 
	
                Whereas:

              	
                Within
      the Prospectus, the Company shall issue Debentures (Series D) of a par
      value that will be as determined in accordance with Section 2.2 of the
      Prospectus; and

              
	 	 
	
                Whereas:

              	
                The
      Company has requested that the Trustee serve as the trustee for the
      Debenture Holders (Series D), and the Trustee has agreed thereto, subject
      to the terms of this Deed of Trust;

              

      

       

      Now
therefore it has been agreed, declared and stipulated between the parties as
follows:

       

      
        	
                1.

              	
                Preamble,
      interpretation and definitions

              
	 	 	 
	 
      	
                1.1

              	
                The
      preamble to this Deed of Trust and the appendices attached hereto constitute a 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      
        	 	 	material and integral part hereof.
	 	 	 
	 
      	
                1.2

              	
                The
      division of this Deed and Trust into sections and the titling of the
      sections are for the sake of convenience and as references only and may
      not be used for construction purposes.

              
	 	 	 
	 
      	
                1.3

              	
                The
      provisions hereof in plural apply to singular and vice versa; the
      provisions hereof in masculine gender apply to feminine and vice versa,
      and all statements regarding natural persons also refer to corporations,
      wherever this Deed does not implicitly and/or explicitly state otherwise
      and/or if the content of context of the statements does not necessitate
      otherwise.

              
	 	 	 
	 
      	
                1.4

              	
                In
      this Deed of Trust and in the Debentures (Series D), the following
      expressions will have the meaning beside them, unless another meaning is
      implied by the content or context of the
  statements:

              

      

       

      
        	 	
                “This deed” or the
      “Deed of
      Trust”

              	
                –

              	
                This
      Deed of Trust, including the appendices attached hereto, which constitute
      an integral part hereof;

              
	 	 	 	 
	 	
                The “Prospectus”

              	
                –

              	
                The
      prospectus of the Company that is due to be published, inter alia, for the
      issue of the Debentures (Series D)

              
	 	 	 	 
	 	
                The “Debentures (Series D)”
      or the “Debentures”

              	
                –

              	
                The
      Debentures (Series D) of the Company, registered to name, that will be
      issued in accordance with the Prospectus;

              
	 	 	 	 
	 	
                The “Trustee”

              	
                –

              	
                Hermetic
      Trust (1975) Ltd. and/or any party serving from time to time as a trustee
      of the Debenture Holders (Series D) pursuant to this
  deed;

              
	 	 	 	 
	 	
                “Register”

              	
                –

              	
                Register
      of the Debenture Holders (Series D) as stated in Section 25
      hereof;

              
	 	 	 	 
	 	
                The “Debenture Holders (Series D)”
      and/or the “Debenture Holders” and/or
      the “Debenture Owners
      (Series D)” and/or the “Debenture
      Owners”

              	
                –

              	
                The
      persons whose names are listed at the time in question in the register of
      the Debenture Holders (Series D) and in the case of a number of joint
      Holders, the joint Holder first listed in the
  register;

              

      

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      
        	 	
                The “Debenture Certificate (Series
      D)”

              	
                –

              	
                A
      Debenture certificate (Series D) whose form appears as
      the first addendum to this deed;

              
	 	 	 	 
	 	
                The “Law” or the “Securities
      Law”

              	
                –

              	
                The
      Securities Law, 5728 – 1968 and the regulations thereby, as effective from
      time to time;

              
	 	 	 	 
	 	
                “Business
      day”

              	
                –

              	
                A
      day on which most of the banks in Israel are open for conducting
      transactions;

              
	 	 	 	 
	 	
                “Principal”

              	
                –

              	
                The
      par value of the Debentures (Series D)

              
	 	 	 	 
	 	
                The “Consumer Price Index”
      (“Index”)

              	
                –

              	
                The
      price index known by the name of "the Consumer Price Index", which
      includes fruit and vegetables, as published by the Central Bureau of
      Statistics, including that index even if published by another official
      body or institute, and including any official index that replaces it,
      whether composed of the same data as the existing index or not. If it is
      replaced by another index that is published by such a body or institute,
      and that body or institute did not determine the ratio between it and the
      index thus replaced, the ratio will be determined by the Central Bureau of
      Statistics, and in the case of such a ratio not being determined, it will
      be determined by the Trustee, who will determine, following consultation
      with the Company and economic experts of his choice, the ration between
      the other index and the replaced index;

              
	 	 	 	 
	 	
                The “Known Index”

              	
                –

              	
                The
      last known consumer price index;

              
	 	 	 	 
	 	
                The “Basic Index”

              	
                –

              	
                The
      consumer price index for August 2007 that was published on September 12,
      2007.

              
	 	 	 	 
	 	
                The “Payment Index”

              	
                –

              	
                The
      consumer price index known on the date of making any payment on the
      account of the principal and/or the
interest;

              

      

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      
        	 	
                “Trade
      Day”

              	
                –

              	
                A
      day on which transactions are executed on the Tel Aviv Stock Exchange
      Ltd;

              
	 	 	 	 
	 	
                The “Stock Exchange”

              	
                –

              	
                The
      Tel Aviv Stock Exchange Ltd;

              
	 	 	 	 
	 	
                “Meeting”

              	
                –

              	
                A
      meeting of the Debenture Holders, including a class
    meeting.

              
	 	 	 	 
	 	
                “Class
      meeting”

              	
                –

              	
                A
      meeting of the Debenture Holders, who have an interest that is materially
      different from the interest of other Debenture Holders on the matter that
      is being discussed in the meeting.

              
	 	 	 	 
	 	
                “The
      Nominee Company”

              	
                –

              	
                The
      Israel Discount Bank Nominees Ltd.

              

      

       

      
        	
                2.

              	
                Issuance of the
      Debentures and the Applicability of the Deed of
    Trust

              
	 	 
	 
      	
                The
      Company shall issue a series of registered to name Debentures (Series D),
      to an unlimited sum, bearing annual interest at a rate that is to be
      determined in accordance with Section 2.2 of the Prospectus, linked
      (principal and interest) to the Basic Index, for repayment in 5 equal
      annual installments on July 1 of each of the years 2013 to 2017
      (inclusive). The interest on the Debentures will be paid in annual
      installments on July 1 in each of the years 2008 to 2017
      (inclusive).

              
	 	 
	 	 
	 	 
	
                3.

              	
                Terms of the Issuance;
      Self-Purchase

              
	 	 	 
	 
      	
                3.1

              	
                The
      Company shall issue the Debentures according to the conditions specified
      in the Prospectus and in the Debentures and will not secure them with any
      collateral.

              
	 	 	 
	 
      	
                3.2

              	
                The
      Company reserves the right to purchase at any time, within or without the
      Stock Exchange, Debentures (Series D) at any price of its choosing,
      without prejudice to the obligation of repayment of the Debentures
      remaining in circulation as specified above. The Debentures that will be
      purchased by the Company will be cancelled and delisted from trade on the
      Stock Exchange, and the Company will not be allowed to re-issue
      them.

              
	 	 	 
	 
      	
                3.3

              	
                A
      subsidiary of the Company and/or the controlling share Holder and/or
      companies under the control of the controllers of the controlling share
      Holder of the Company (“ Affiliated Company”) are allowed to purchase
      and/or sell from time to time within or without the Stock Exchange,
      including by way of issuance by the Company, Debentures at any price of
      their choosing and sell them accordingly. The Debentures thus held by the
      Affiliated Company will be considered as an asset of the Affiliated
      Company, and if they are listed for trading, they will not be delisted
      from trade on the 

              

      

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	Stock
      Exchange other than subject to the rules of the Stock
      Exchange. 
	 	 	 
	 
      	 
      	
                On
      the matter of holding Meetings of Holders of Debentures, the provisions of
      Section 2.19 of the second addendum to this Deed will
    apply.

              
	 	 	 
	 
      	
                3.4

              	
                The
      Company is allowed, at any time and from time
      to time, without needing the consent of the Debenture Holders or the
      Trustee, to issue, including to an Affiliated Company, Debentures of a
      different type and/or of different series and/or other Debentures
      securities, whether secured or unsecured, whether granting a right of
      conversion into shares of the Company or not granting such right, whether
      by public offering pursuant to a prospectus or otherwise, under terms of
      redemption, interest, linkage, discounting, repayment rate in the case of
      liquidation and other conditions, as the Company sees fit, whether they
      are preferable to the terms of the Debentures (Series D) issued pursuant
      to the prospectus, equal to them or inferior to them.

              
	 	 	 
	 
      	
                3.5

              	
                Without
      derogating from the foregoing, the Company is allowed, at any time and
      from time to time, without needing the consent of the Debenture Holders or
      the Trustee, to issue, including to an Affiliated Company, additional
      Series D Debentures. The additional Debentures that will be issued, to the
      extent issued, including their conditions and resulting rights, will be
      identical and as the existing Debentures, and will together constitute one
      series for all purposes (it is clarified that in the case of such
      issuance, the offerees to which additional Debentures will be issued will
      not be entitled to payment of principal and/or interest whose determinant
      payment date preceded the issuing date). The provisions of the Deed of
      Trust will apply to these additional Debentures. The Company will publish
      an immediate report on such an issuance of additional Debentures and will
      apply to the Stock Exchange in an application to list these additional for
      trading these additional Debentures therein. In the case of expansion of
      the series of the Debentures (Series D) as above, the fee of the Trustee
      shall be increased in proportion to the increase of the size of the
      series.

              
	 	 	 
	 
      	 
      	
                The
      Company shall inform the Trustee and the Debenture Holders of the issue of
      these additional Debentures.

              
	 	 	 
	 
      	 
      	
                This
      right of the Company does not exempt the Trustee from examining such an
      issuance, to the extent that such a duty is imposed on the Trustee by law,
      and it does not derogate from the rights of the Trustee and of the Meeting
      of the Debenture Holders according to the Deed of Trust, including their
      right to make the Debentures immediately repayable as stated in Section 6
      hereof.

              
	 	 	 
	 
      	
                3.6

              	
                The
      Debentures have been issued in their par value, i.e. without discount. The
      Company reserves the right to allocate the Debentures following an
      expansion of the series at a different discount rate (higher or lower)
      than the discount rate of the 

              

      

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	Debentures
      then in circulation (including due to issuance at a price that reflects a
      different discount rate). The discounted allocation of the Debentures
      originating from expansion of the series of the Debentures at a rate
      exceeding the discount rate established for the Debentures before the
      expansion may adversely affect the state of the Debenture
    Holders.
	 	 	 
	 
      	
                3.7

              	
                The
      provisions of this Section 3 above itself do not bind the Company or the
      Debenture Holders to purchase Debentures or sell the Debentures in their
      possession.

              
	 	 	 
	 
      	
                3.8

              	
                Wherever
      the rules of the Stock Exchange apply or will apply to any action
      according to this Deed of Trust, they will have preference over the
      provisions hereof, and the dates of such an action will be determined in
      accordance with the rules of the Stock
Exchange.

              

      

       

      
        	
                4.

              	
                Undertakings of the
      Company

              
	 	 	 
	 
      	
                4.1

              	
                The
      Company undertakes hereby towards the Debenture Holders, through the
      Trustee, to pay, on the dates set thereto, all of the sums of the
      principal, the interest and the linkage differences that will be payable
      pursuant to the terms of the Debentures, and fulfill all of the other
      conditions and undertakings imposed thereupon pursuant to the terms of the
      Debentures and this Deed.

              
	 	 	 
	 
      	
                4.2

              	
                The
      Company hereby warrants that the capital raised that it will hold until
      the date of their use according to the designation of the issuance
      remuneration as stated in chapter 3 of the Prospectus, will be deposited
      and invested by the company as it deems fit, as long as each investment is
      made in solid channels, including, but not limited to, an interest-bearing
      monetary deposit, a foreign currency deposit, Debentures with a rating of
      not less than BBB-, and so on. For this purpose, an investment in shares
      or basket certificates whose base asset is shares or share indices or
      options in the Maof or the purchase or writing of positions in
      derivatives, will not be considered as an investment in solid
      channels.

              
	 	 	 
	 
      	
                4.3

              	
                Securing of the
      Debentures

              
	 	 	 
	 
      	
                4.4

              	
                The
      undertaking of the Company to repay the Debentures (principal, interest
      and linkage differences) is not secured by any
  collateral.

              
	 	 	 
	 
      	
                4.5

              	
                The
      Company will be allowed to pledge its assets, in part or in full, by any
      pledge and in any way, including to any third party, without the need for
      any consent from the Trustee and/or the Debenture
  Holders.

              
	 	 	 
	 
      	
                4.6

              	
                The
      Company will be allowed to sell, lease, assign, deliver or transfer in any
      other way its assets, in part or in full, in any way, for benefit of any
      third party, without the need for any consent of the Trustee and/or the
      Debenture Holders.

              

      

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                4.7

              	
                For
      the removal of doubt, it is clarified that the Trustee has no duty to
      examine, and in fact the Trustee has not examined, the need for providing
      collateral for securing the payments to the Debenture Holders. In its
      entering the engagement in this Deed of Trust, and with the consent of the
      Trustee to serve as the trustee for the Debenture Holders, the Trustee
      does not express its opinion, implicitly or explicitly, as to the ability
      of the Company to fulfill its undertakings towards the Debenture Holders.
      The foregoing does not derogate from the duty of the Trustee by law and/or
      Deed of Trust, nor does it derogate from the duty of the Trustee (to the
      extent that this duty applies to the Trustee according to any law) to
      examine the effect of changes in the Company from the date of the
      Prospectus onwards, to the extent that these may adversely affect the
      ability of the Company to fulfill its undertakings to the Debenture
      Holders.

              
	 	 	 
	 
      	
                4.8

              	
                The
      Debentures will be in an equal pari passu degree of
      security among themselves concerning the undertakings of the Company
      pursuant to the Debentures, without precedence or preference over each
      other.

              

      

       

      
        	
                5.

              	
                Delisting of the
      Debentures from trade initiated by the Stock Exchange

                 

                If
      the Stock Exchange decides to delist the Debentures (Series D) because the
      value of the series falls below the minimum sum stated in the guidelines
      of the Stock Exchange, the Company will not perform immediate redemption
      of the Debentures (Series D), but the Debentures will be delisted from
      trade.

              
	 	 
	
                6.

              	
                Immediate
      repayment

              
	 	 	 
	 
      	
                6.1

              	
                In
      one or more of the events enumerated below:

              
	 	 	 
	 
      	 
      	
                6.1.1

              	
                If
      the Company does not repay any sum that is due from it in connection to
      the Debentures within 45 days of the maturity of that
  sum.

              
	 	 	 	 
	 
      	 
      	
                6.1.2

              	
                A
      temporary liquidator has been appointed by a court, or if a valid
      resolution has been adopted to liquidate the Company (other than
      liquidation for merging with another company and/or restructuring of the
      Company) and this appointment or resolution is not cancelled within 30
      Business Days of being given.

              
	 	 	 	 
	 
      	 
      	
                6.1.3

              	
                If
      an attachment is imposed on some or all of the material assets of the
      Company and the attachment is not removed within 60
  days.

              
	 	 	 	 
	 
      	 
      	
                6.1.4

              	
                An
      execution action is carried out against a material asset of the Company,
      in part or in full, and the action is not cancelled within 90
      days.

              
	 	 	 	 
	 
      	 
      	
                6.1.5

              	
                If a
      receiver is appointed for the Company and/or some or all of its material
      assets, and the appointment is not cancelled within 90
    days.

              
	 	 	 	 
	 
      	 
      	
                6.1.6

              	
                If
      the Company ceases the payments of the Debentures and/or announces its
      

              

      

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	intent
      to cease the payments of the Debentures. 
	 	 	 	 
	 
      	 
      	
                6.1.7

              	
                If
      the Company discontinues its business affairs or managing its business
      affairs, as they are from time to time, and/or announces its intent to
      cease in engaging in or managing its business affairs as shall be from
      time to time.

              
	 	 	 	 
	 
      	 
      	
                6.1.8

              	
                If
      another series of Debentures that the Company has issued is called for
      immediate repayment other than according to a resolution of the
      Company.

              
	 	 	 	 
	 
      	 
      	
                6.1.9

              	
                If
      an order for staying of proceedings is given or if a motion has been filed
      concerning the Company to make an arrangement with the creditors of the
      Company pursuant to Section 350 of the Companies Law (other than for
      merging with another company and/or restructuring of the Company) against
      the Company and this order or motion is not cancelled within 90 days of
      commencement thereof.

              
	 	 	 	 
	 
      	 
      	
                6.1.10

              	
                If
      the Company is wound up or struck for any reason.

              
	 	 	 	 
	 
      	 
      	
                6.1.11

              	
                A
      fundamental breach of the terms of the Debentures and the Deed of Trust,
      including if it is found that the undertakings of the Company in the
      Debentures or herein are incorrect and/or incomplete, provided a notice
      has been given to the Company to rectify the violation and the Company
      does not correct such a violation within 14 Business Days of issue of the
      notice, and provided that the payments to the Debenture Holders and/or the
      rights thereof are infringed or may be infringed as a
    result.

              
	 	 	 	 
	 
      	 
      	
                6.1.12

              	
                If
      there is material concern that the Company will discontinue the payments
      of the Debentures and/or there is material concern that it will cease
      managing its business affairs as shall be from time to
    time.

              
	 	 	 	 
	 
      	 
      	
                6.1.13

              	
                In
      the occurrence of any other event that constitutes material infringement
      and/or may cause material infringement of the rights of the Debenture
      Holders (Series D).

              
	 	 	 	 
	 
      	 
      	For
      the purposes of this entire section, "Material Asset" is an asset whose
      value in the books of the Company exceeds 20% of the income of the Company
      according to its last (audited) consolidated annual statements on the date
      of the event.
	 	 	 	 
	 
      	
                6.2

              	
                In
      the occurrence of any of the events listed in Section 6.1 above, the
      following provisions will apply:

              
	 	 	 	 
	 
      	 
      	
                6.2.1

              	
                (A)     
      In the case of any of the events in Sections 6.1.1 to 6.1.10
      (inclusive) above, the Trustee will be required to call a Meeting of the
      Debenture Holders (Series D); or

                 

                 (B)    
      In the case of any of the events in Sections 6.1.11 to 6.1.13
      (inclusive) 

              

      

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	
                above,
      the Trustee will be allowed (but not required) to call a meeting of the
      Debenture Holders (Series D), but the Trustee will be required to call a
      Meeting of Holders by a written request of Holders of at least ten percent
      (10%) of the par value of the unsettled balance of the principal of the
      Debentures in circulation, as specified in Section 1.1 of the second
      addendum hereto.

              
	 	 	 	 
	 
      	 
      	
                6.2.2

              	
                The
      date of convening the meeting, which will be called in accordance with the
      provisions of Section 6.2.1 A or B above, will be 30 days after the date
      of its calling (or a shorter term in accordance with the provisions of
      Section 6.2.5 below), whose agenda will have a resolution concerning
      calling for immediate repayment the entire unsettled balance of the
      Debentures (Section D), due to the occurrence of any of the events
      specified in Section 6.1 above, as relevant.

              
	 	 	 	 
	 
      	 
      	
                6.2.3

              	
                In
      the case that until the date of convening of the Meeting, none of the
      events specified in Section 6.1 above has been canceled or removed, and
      the Meeting of the Debenture Holders as stated resolve to call all of the
      unsettled balance of the Debentures for immediate repayment as a Special
      Resolution (as defined in the second addendum hereto), the Trustee will be
      required, within a reasonable time, to call all of the unsettled balance
      of the Debentures (Series D) for immediate repayment, as long as it has
      given the Company at least 15 days written warning of its intent to do so
      and the event for which the resolution was adopted has not been canceled
      or removed within this period.

              
	 	 	 	 
	 
      	 
      	
                6.2.4

              	
                A
      copy of the
      notice for calling the Meeting will be sent by the Trustee to the Company
      as soon as the notice is published and will constitute advance written
      warning to the Company of the intent to act to call the Debentures for
      immediate repayment.

              
	 	 	 	 
	 
      	 
      	
                6.2.5

              	
                The
      Trustee is entitled, at its discretion, to reduce the count of 30 days (in
      Section 6.2.2 above) and/or the said 15 days of warning (in Section 6.2.3)
      in the case of the Trustee opining that any deferral in calling the debt
      of the Company for repayment endangers the rights of the Debenture Holders
      (Series D), but in any case the Trustee shall not do so without first
      applying to the Company in writing 7 Business Days before the date of the
      meeting, indicating the reasons for reducing the time, at the discretion
      of the Trustee in the circumstances at hand.

              
	 	 	 	 
	 
      	 
      	
                6.2.6

              	
                The Trustee will be
      responsible for reporting to the Debenture Holders of the occurrence of
      any of the events specified in Sections 6.1.11 to 6.1.13 (inclusive)
      above, whether pursuant to publications that the Company has made or
      according to a notice of the Company that will be sent to it according to
      the 

              

      

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	
                provisions
      of Section 24 below, soon after it being brought to its attention or
      delivered to it.

              
	 	 	 
	
                7.

              	Claims and Proceedings
      by the Trustee
	 	 	 
	 
      	
                7.1

              	
                Without
      derogating from any other provision of the Deed of Trust, the Trustee
      shall be allowed, at its discretion, and will be required to do so by a
      special resolution that is adopted by a meeting of the Debenture Holders
      and after issue of written notice to the Company immediately after the
      adoption of the resolution, to take all of the proceedings, including
      legal proceedings and motions for receiving orders as, it deems fit and
      subject to the provisions of the law, for enforcing the undertakings of
      the Company according to the Deed of Trust, exercising rights of the
      Debenture Holders and protection of their rights according to the Deed of
      Trust. The Trustee shall be allowed to instigate legal and/or other
      proceedings even if the Debentures are not called for immediate repayment,
      for protecting the rights of the Debenture Holders and subject to the law.
      Notwithstanding the provisions of this section, the right of calling for
      immediate repayment will apply only in accordance with the provisions of
      Section 6 of thus Deed and not pursuant to this
section.

              
	 	 	 
	 
      	
                7.2

              	
                The
      Trustee is allowed, at its exclusive discretion and without a need for
      notice to the Company, to apply to the appropriate court for a motion for
      receiving orders on any matter that is related to and/or arises from this
      Deed of Trust, whether before or after the Debentures are called for
      immediate repayment.

              
	 	 	 
	 
      	
                7.3

              	
                Subject
      to the provisions of the Deed of Trust, the Trustee is allowed, but not
      compelled, to call at any time a general Meeting of the Debenture Holders
      in order to discuss and/or receive its instructions on any matter related
      to the Deed of Trust, and is allowed to call it
  repeatedly.

              
	 	 	 
	 
      	
                7.4

              	
                The
      Trustee is allowed, at its exclusive discretion, to delay the execution of
      any action thereby pursuant to this Deed of Trust, for applying to the
      Meeting of the Debenture Holders or the court until it receives
      instructions from the Meeting of the Debenture Holders and/or orders from
      the court on how to act. Notwithstanding the foregoing, the Trustee is not
      allowed to delay proceedings for calling for immediate repayment that have
      been decided upon by a Meeting of the Debenture Holders pursuant to the
      provisions of Section 6.2 hereto.

              
	 	 	 
	
                8.

              	Distribution of the
      Receipts
	 	 	 
	 
      	
                8.1

              	
                All
      of the receipts that are received by the Trustee as a result of calling
      the Debentures for immediate repayment and/or as a result of proceedings
      that it takes, if it takes any, against the Company, will be by it in the
      trust and will serve it for the following purposes and in the following
      order of priority:

              

      

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	 
      	
                Firstly,
      for settling all expenses, payments, duties and undertakings expended by
      the Trustee, imposed thereupon or caused due to or as a result of the
      actions of the Trust or in another manner otherwise connected to the terms
      of this Deed, including the fee thereof (on the condition that the Trustee
      does not receive a double fee from both the Company and the Debenture
      Holders); secondly – in order to pay the Debenture Holders the arrears
      interest due to them in accordance with the terms of the Debentures and
      subject to the terms of the linkage in the Debentures, pari passu, in
      proportion to the sum of the arrears interest due to each of them, without
      preference or priority for any of them; thirdly, in order to pay the
      Debenture Holders the sums of the principal that are due to them pursuant
      to the Debentures held thereby, pari passu, and subject
      to the terms of linkage in the Debentures, whether the principal sums have
      matured or not, in proportion with the sums due thereto, without any
      preference concerning priority in time of issue of the Debentures by the
      Company or otherwise, and the surplus, if any, will be paid by the Trustee
      to the Company or the successors thereof. Withholding tax will be deducted
      at source from the payments to the Debenture Holders, to the extent that
      there is a duty to deduct it by law.

              
	 	 	 
	 
      	
                8.2

              	
                Payment
      of the sums by the Trustee to the Debenture Holders out of the receipts
      that are received thereby, will be subject to rights of other creditors of
      the Company, which precede or are equal to those of the Debenture Holders
      by law, relative to the said receipts, if there are any, in accordance
      with the provisions of the law.

              
	 	 	 
	
                9.

              	Authority to Delay
      Distribution of Money
	 	 	 
	 
      	
                9.1

              	
                Notwithstanding
      the provisions of Section 8 of this Deed, if the sum of money that is
      received as a result of taking the proceedings stated above that is
      available for distribution at any time, as stated in that section, will be
      less than ten percent (10%) of the balance of the unsettled principal of
      the Debentures and the interest, subject to the terms of the linkage in
      the Debentures, the Trustee shall not be required to distribute it and it
      will be allowed to invest the said sum, in part or in full, in investments
      that are permitted according to the Deed of Trust and replace these
      investments from time to time with other permitted investments, as it sees
      fit.

              
	 	 	 
	 
      	
                9.2

              	
                On
      the first payment date of the principal and/or the interest to the
      Debenture Holders that is paid after receipt of the sum stated in Section
      9.1 above by the Trustee, or earlier, once the aforementioned investments,
      with their profits and other sums that are received by the Trustee for the
      said purpose, reach a sum that will suffice to pay at least ten percent
      (10%) of the unsettled balance of the principal of the Debentures and the
      interest (subject to the terms of linkage in the Debentures), the Trustee
      shall pay them to the Debenture Holders as stated in section 8
      hereof.

              
	 	 	 
	
                10.

              	Notice of Distribution
      and Depositing with the Trustee

      

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                10.1

              	
                The
      Trustee shall inform the Debenture Holders of the day and place on which
      any payment is made out of the payments stated in Sections 8 and 9 of this
      Deed, by 14 days prior notice that is delivered in the manner stated in
      section 23 to this Deed hereof.

              
	 	 	 
	 
      	
                10.2

              	
                After
      the day stated in the notice, the Debenture Holders will be entitled to
      interest for the Debentures in accordance with the rate stated in the
      Debentures only for the balance of the principal sum (if any) after
      deducting the sum that has been paid or offered to them for such
      payment.

              
	 	 	 
	
                11.

              	Abstention from
      Payment for a Reason that does not depend on the
  Company
	 	 	 
	 
      	
                11.1

              	
                Any
      sum that is due to the debenture Holder that is not actually paid for a
      reason that does not depend on the Company, while the Company was prepared
      to pay it, will cease to bear interest and linkage differences from the
      date stated for its payment, whereas the debenture Holder will be entitled
      only to the sums that it would have been entitled to on the date stated
      for repayment of that sum on the account of the principal, the linkage
      differences or the interest.

              
	 	 	 
	 
      	
                11.2

              	
                The
      Company will deposit with the Trustee by no later than 14 business days
      from the date stated for that payment, the sum of the payment that has not
      been paid for a reason that does not depend on the Company, and such a
      deposit will be considered as settlement of that payment, and in the case
      of settlement of all dues pursuant to the debenture, as redemption of the
      debenture.

              
	 	 	 
	 
      	
                11.3

              	
                The
      Trustee shall deposit in a bank the sums that will be transferred thereto
      as stated in Section 11.2 of this Deed, to the credit of those Debenture
      Holders and will invest it in investments permitted hereby that are
      securities of the State of Israel or other securities that the laws of the
      State of Israel permit investment of the trust money in, as the Trustee
      deems fit and subject to the provisions of the law. Should the Trustee do
      so, it will not owe the beneficiaries sums other than the remuneration
      that is received from realizing the investments less the expenses,
      commissions and mandatory payments, if any that are related to the said
      investment in managing the trust account less its fee.

              
	 	 	 
	 
      	
                11.4

              	
                The
      Trustee shall transfer to each debenture Holder for which sums and/or
      funds due to the Debenture Holders have been deposited with the Trustee,
      out of sums thus deposited, less all expenses, commissions, the mandatory
      payments and its fee, against presentation of the proof that is required
      by the Trustee, to the full satisfaction thereof.

              
	 	 	 
	 
      	
                11.5

              	
                The
      Trustee shall keep these sums and invest them in the above mentioned
      manner until one year elapses from the final redemption date of the
      Debentures. After this date, the Trustee shall transfer to the Company
      these sums, including profits that result from their investment, less its
      expenses and other expenses expended in accordance with the
    

              
	 	 	 

      

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	provisions
      of this Deed of Trust (such as service provider fees, etc.) to the extent
      that these remain in its possession on that date. The Company will keep
      these sums in trust for an additional year from the day of their transfer
      thereto by the Trustee, for the Debenture Holders that are entitled to
      those sums, and with regard to the sums that are transferred thereto by
      the Trustee as stated above, the provisions of Section 11.3 of this Deed
      of Trust will apply, mutatis
      mutandis. Upon the transfer of the sums from the Trustee to the
      Company, to the satisfaction of the Trustee, the Trustee shall be exempt
      from payment of such sums to the entitled Debenture Holders. The Company
      will approve to the Trustee in writing the holding of the sums and the
      receipt thereof in trust for the said Debenture Holders, and will
      indemnify the Trustee for any claim and/or expense and/or damage of any
      type that it sustains due to and for the said money transfer, as long as
      the Trustee has acted reasonably. The Company will keep these sums in
      trust for the Debenture Holders that are entitled to these sums for an
      additional year from the day of their transfer to it from the Trustee.
      Sums that are not demanded from the Company by a Debenture Holder two
      years from the final repayment date of the Debentures will be transferred
      to the Company, which will be entitled to use the remaining sums for any
      purpose.
	 	 	 
	
                12.

              	Receipt from the
      Debenture Holders as Proof
	 	 	 
	 
      	
                12.1

              	
                A receipt from the
      Debenture Holder for the sums of the principal, the interest and the
      linkage differences that have been paid thereto by the Trustee for that
      Debenture will release the Trustee categorically in all matters related to
      payment of the sums stated on the receipt.

              
	 	 	 
	 
      	
                12.2

              	
                Until
      the end of the period specified in Section 11.5 above, a receipt from the
      Trustee concerning the deposit of the sums of the principal, the interest
      and the linkage differences in its possession to the benefit of the
      Debenture Holders as stated in this Deed will be considered as a receipt
      from the Debenture Holders for the sums specified
  therein.

              
	 	 	 
	 
      	
                12.3

              	
                The
      sums distributed as stated in Sections 11 and 12 hereof will be considered
      as payment on the account of the repayment of the
    Debentures.

              
	 	 
	
                13.

              	Presentation of a
      Debenture to the Trustee and Noting Concerning Partial
      Payment
	 	 	 
	 
      	
                13.1

              	
                The
      Trustee shall be entitled to demand that a Debenture Holder present to the
      Trustee, at the time of payment of any interest or partial payment of
      principal, interest and linkage differences in accordance with Sections
      8-10 hereof, the debenture for which the payments are being
      made.

              
	 	 	 
	 
      	
                13.2

              	
                The
      Trustee shall note on the Debenture a comment concerning the sums paid as
      above and the date of payment
thereof.

              

      

       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                13.3

              	
                The
      Trustee shall be entitled, in any special case, at its discretion, to
      waive the presentation of the Debentures after it is given a statement of
      indemnification letter and/or a sufficient guarantee, to its satisfaction,
      for damages that may be sustained due to not noting the said comment, as
      it deems fit. In such a case, the Company will not assume any liability
      for the payments stated in Section 13.1 towards that
    Holder.

              
	 	 	 
	 
      	
                13.4

              	
                Notwithstanding
      the foregoing, the Trustee shall be entitled, at its discretion, to make
      notes in other ways concerning such partial
  payments.

              

      

    

     

    
      
        	
                14.

              	Reporting and
      Undertakings of the Company towards the Trustee
	 	 	 	 	 
	 
      	
                14.1

              	The
      Company hereby undertakes towards the Trustee, for as long as the
      Debentures (including linkage differences thereupon) have not been repaid,
      as follows:
	 	 	 	 	 
	 
      	 
      	
                14.1.1

              	To
      inform the Trustee upon its notice to the public in writing of reasonable
      concern on the part of the Company that any or all of the events specified
      in Section 6.1 above may occur and the occurrence of any or all of the
      events specified in Section 6.1 above.
	 	 	 	 
	 
      	 
      	
                14.1.2

              	To
      give to the Trustee by no later than 30 days of the date hereof
      an  amortization table for payment of the Debentures (principal
      and interest) in an Excel file.
	 	 	 	 
	 
      	 
      	
                14.1.3

              	To
      inform the Trustee in a written notice signed by the Company's senior
      financial officer, within 4 Business Days, of effecting any payment to the
      Debenture Holders and the balance of the Sums that the Company will owe on
      that date to the Debenture Holders after effecting this
  payment.
	 	 	 	 
	 
      	 
      	
                14.1.4

              	To give to the
      Trustee immediately upon their publication a copy of the annual audited
      and consolidated financial statements (including the periodical statement)
      and the reviewed consolidated financial statements of the
    Company.
	 	 	 	 
	 
      	 
      	
                14.1.5

              	To
      deliver to the Trustee, immediately upon its delivery, any statement that
      it must submit to the Securities Authority.
	 	 	 	 
	 
      	 
      	
                14.1.6

              	To
      deliver to the Trustee notices concerning the purchase of Debentures by
      the Company or the subsidiary, as stated in this Deed of
  Trust.
	 	 	 	 
	 
      	 
      	
                14.1.7

              	On
      December 31 of each year, as long as the Deed of Trust is in effect, the
      Company will provide the Trustee with a confirmation signed by the CEO of
      the Company whereby to the best of his knowledge, the Company has not
      violated the Deed of Trust (including violation of the terms of the
      Debenture), unless explicitly stated otherwise.
	 	 	 	 
	 
      	 
      	
                14.1.8

              	To
      give the Trustee copies of notices and invitations that the Company gives
      to the shareholders in the Company and the Debenture Holders, as stated in
      

      

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	Section 23.1 hereof.
	 	 	 	 
	 
      	 
      	
                14.1.9

              	To
      cause a senior financial officer in the Company  to give, within
      a reasonable time, to the Trustee and/or the persons as he instructs, any
      explanation, document, calculation or information related to the Company,
      its business affairs and/or assets that are reasonably required for the
      purpose of inquires conducted by the Trustee for protecting the Debenture
      Holders.
	 	 	 	 	 
	 
      	 
      	
                14.1.10

              	To
      keep regular account books in accordance with generally accepted
      accounting principles. To keep the books and the documents used for them
      as references (including deeds of pledge, mortgage, bills and receipts)
      and allow the Trustee and/or the party that the Trustee appoints in
      writing for this purpose, to inspect at any reasonable time any such book
      and/or document and/or confirmation, to the extent required for protecting
      the Debenture Holders. The Trustee undertakes to inform whichever party is
      appointed thereby as above that the Trustee has undertaken to keep
      information that is given to it in confidence.
	 	 	 	 	 
	 
      	 
      	
                14.1.11

              	To
      allow the Trustee or a party that is appointed by the Trustee in writing
      for this purpose to enter its offices and anywhere where its assets may be
      found, at any reasonable time, for inspecting its assets, at the
      discretion of the Trustee, for protecting the Debenture
  Holders.
	 	 	 	 	 
	 
      	 
      	
                14.1.12

              	To
      summon the Trustee to all of its general meetings (whether annual general
      meetings or special general meetings of the shareholders of the Company),
      without granting the Trustee a voting right in these
meetings.
	 	 	 	 	 
	 
      	 
      	
                14.1.13

              	To
      give the Trustee, upon his demand, an affidavit and/or declarations and/or
      documents and/or details and/or information, as required by the Trustee,
      in accordance with its reasonable discretion, for applying and exercising
      the authorities, powers and authorizations of the Trustee and/or its
      proxies according to this Deed of Trust.
	 	 	 	 	 
	 
      	 
      	
                14.1.14

              	The
      Trustee undertakes, by signing the Deed of Trust, to keep in confidence
      all information that is given to it by the Company and any information
      that the Trustee and/or its representative and/or agent and/or proxy has
      inspected and not make any use thereof other than for the fulfillment of
      its undertakings according to this Deed. Notice of the authorization of a
      representative and/or agent for the Trustee shall be given to the Company
      in advance and in writing. The Trustee declares that any representative
      and/or agent and/or proxy on its part will be committed towards the
      Trustee and towards the Company to keep in confidence the information that
      reaches it in its activities for the Trustee. It is

      

       

      
        
          
          

        

        
          -15-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	clarified
      that subject to the law, the transfer of the relevant information only to
      the Debenture Holders for making a decision that is related to their
      rights in accordance with the Debentures or for giving a report on the
      state of the Company does not constitute a violation of its undertaking
      for confidentiality.
	 	 
	
                15.

              	Additional
      Undertakings
	 	 	 
	 
      	
                15.1

              	After
      and to the extent that the Debentures are
      called for immediate repayment, as defined in Section 6 hereof, the
      Company will perform, from time to time and at any time it is required to
      do so by the Trustee, all of the reasonable actions in order to provide
      for the exercising of all of the authorities granted to the Trustee, and
      in particular the Company will perform all of the following actions, to
      the extent that they are reasonable.
	 	 	 	 
	 
      	 
      	
                15.1.1

              	It
      will declare the declarations and/or sign all of the documents and/or
      execute and/or have executed all of the actions that are necessary and/or
      required by law for validating the exercise of the authorities, the powers
      and the authorizations of the Trustee and/or the agent
  thereof.
	 	 	 	 	 
	 
      	 
      	
                15.1.2

              	It
      will give all of the notices, the orders and the instructions that the
      Trustee considers beneficial and will demand them.
	 	 	 	 
	 
      	 
      	
                15.1.3

              	For
      the purposes of this section – a written notice signed by the Trustee that
      confirms that an action that is required thereby, within his authorities,
      is a reasonable action, will constitute prima facie evidence
      thereof.
	
                16.

              	Agents
	 	 	 
	 
      	
                16.1

              	The
      Company hereby irrevocably
      appoints the Trustee as its agent, to effect and execute on its behalf and
      in its place all of the actions that it will be required to execute
      according to the conditions of this Deed, and in general to act on its
      behalf with regard to the actions that the Company is required to perform
      according to this Deed, which it has not performed, or exercise some of
      the authorities granted thereto, and appoint any other person as the
      Trustee deems fit for performing its duties according to this Deed,
      subject to the Company not having performed the actions that it must
      perform pursuant to the terms of this Deed within a reasonable time from
      the date of the demand of the Trustee, provided it has acted in good faith
      and reasonably.
	 	 	 
	 
      	
                16.2

              	The
      appointment pursuant to Section 16.1 above does not bind the Trustee to
      perform any action.
	 	 
	
                17.

              	Other
      agreements
	 	 
	 
      	Subject
      to the provisions of the law and the restrictions imposed on the Trustee
      by law, the performance of the duty of the Trustee according to this Deed
      or pursuant to its status as a 

      

       

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

      

       

      
        	 	Trustee will not prevent it from associating with the Company by
      various contracts or executing transactions with it within the normal
      course of its business affairs.
	 	 
	
                18.

              	Reporting by the
      Trustee
	 	 
	 
      	
                18.1

              	The
      Trustee shall prepare, at the end of each year following the date hereof,
      an annual report on the trust affairs (the “Annual
  Report”)
	 	 	 
	 
      	
                18.2

              	The
      Annual Report will include a breakdown of the following subjects: current
      details of the course of affairs of the Trust in the elapsing year; a
      report on extraordinary events concerning the Trust that have occurred
      during the elapsing year.
	 	 	 
	 
      	
                18.3

              	The
      Debenture Holders will be allowed to review the Annual Report in the
      offices of the Trustee during acceptable business hours and will be
      allowed to receive a copy thereof upon demand. A copy of the report will
      be provided to the Company along with it being made available for review
      by the Debenture Holders.
	 	 	 
	 
      	
                18.4

              	The
      Trustee shall give the Debenture Holders notice of the date of submission
      of the report as stated in Section 23 hereof. Should the Trustee learn of
      a material violation hereof on the part of the Company, it will inform the
      Debenture Holders of the violation and of the steps that it has taken for
      preventing it or for fulfilling the undertakings of the Company, as
      relevant.
	 	 
	
                19.

              	Fee and coverage of
      expenses of the Trustee
	 	 
	 
      	
                19.1

              	The
      Company shall pay the Trustee for its services hereby as elaborated
      below:
	 	 	 	 
	 
      	 
      	
                19.1.1

              	For
      the first year of Trust, i.e. until 12 months from the date of the issue,
      a sum of NIS 12,000. This sum will be paid within 30 days of the end of
      the month on which the Company has received from the Trustee a proforma
      invoice for this payment. The Trustee will be allowed to provide the
      Company with a proforma invoice within one business day of publishing the
      results of the issue.
	 	 	 	 
	 
      	 
      	
                19.1.2

              	For
      each of the years from the second year (i.e. from the end of 12 months
      from the date of issue) in which Debentures (Series D) will be in
      circulation and not yet paid up, a sum of NIS 10,000, linked to the index
      known on the date of publication of the Prospectus, but in any case the
      sum will not be less than the sum specified above (“the Annual Fee”). The
      Annual Fee will be paid to the Trustee within 30 days of the end of the
      month on which the Company received from the Trustee a proforma invoice
      for the Annual Fee. The Trustee will be allowed to provide the Company a
      proforma invoice at the beginning of each year of Trust. The Annual Fee
      shall be paid to the Trustee for the period through to the end of the term
      of the Trust hereby even if a receiver and/or administrative receiver is
      appointed for the Company and/or if the Trust hereby

      

       

      
        
          
          

        

        
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        	 	 	 	is managed under the supervision of a court.
	 	 	 	 
	 
      	 
      	
                19.1.3

              	If
      the tenure of the Trustee expires, as stated in Section 27 below, the
      Trustee will not be entitled to payment of the fee thereof from the day of
      the expiry of its tenure. If the tenure of the Trustee expires during the
      Trust year, the fee that was paid for the months for which the Trustee did
      not serve as the trustee of the Company will be refunded. It is clarified
      that this refund will not apply to the first year of Trust.
	 	 	 
	 
      	
                19.2

              	The
      Trustee is
      entitled to a refund of reasonable expenses incurred within the
      performance of its duty and/or by the authorities granted thereto hereby,
      including for publications in the press, as long as for the expenses of an
      expert opinion, as elaborated in Section 20.2 below, the Trustee will give
      advance notice of its intent to receive an expert opinion.
	 	 	 
	 
      	
                19.3

              	The Trustee is
      entitled to additional payment, for an action that results from a
      violation hereof by the Company or for an action of calling the Debenture
      (Series D) for immediate repayment and for special actions that it will be
      required to perform, if required, for fulfillment its duties hereby,
      without prejudice to the entirety of this Section 19.
	 	 	 
	 
      	 
      	It
      is agreed hereby between the parties that the Trustee will be entitled to
      a fee of 120 US dollars for each hour of work that is required as stated
      above.
	 	 	 
	 
      	
                19.4

              	For
      each annual meeting of shareholders or Meeting of Debenture Holders that
      the Trustee participates in, an additional fee of NIS 500 per meeting will
      be paid, linked to the Index in accordance with the provisions of Section
      19.1.2 above.
	 	 	 
	 
      	
                19.5

              	If
      changes occur
      in the provisions of the Law whereby the Trustee will be required to
      perform actions and/or checks and/or prepare additional reports, the
      Company undertakes to bear all of the reasonable expenses that the Trustee
      incurs as a result, including reasonable fee for these actions. The
      Trustee will inform the Company in advance and in writing before incurring
      the expenses, of changes as stated in this section.
	 	 	 
	 
      	
                19.6

              	VAT,
      if charged, will be added to the payments that are due to the Trustee
      pursuant to the provisions of this section and will be paid by the
      Company. The Trustee will transfer to the Company a tax invoice for these
      payments, within 14 days of the date of payment thereof to the Trustee by
      the Company.

      

       

      
        	
                20.

              	Special
      Authorities
	 	 	 
	 
      	
                20.1

              	The
      Trustee shall be entitled to deposit all of the deeds and documents that
      attest, represent and/or determine its right concerning any asset then in
      its possession, in a  

      

       

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	safe and/or in any other place of its choice, in the possession of any banker and/or any banking company
      and/or an advocate.
	 	 	 
	 
      	
                20.2

              	The
      Trustee is entitled, within the performance of the Trust affairs
      hereby, to act in accordance with the opinion and/or advice of any
      advocate, certified public accountant, appraiser, assessor, surveyor,
      mediator or other expert, whether such an opinion and/or advice has
      been prepared at the request of the Trustee and/or by the Company. The
      Trustee shall allow the Company to review any such opinion that the
      Company as paid for, upon demand. The provisions of this section do not
      exempt the Trustee of its responsibility by law.
	 	 	 
	 
      	
                20.3

              	Any
      such advice and/or opinion may be given, sent or received by a letter,
      telegram, facsimile and/or any other electronic data transfer
      medium.
	 	 	 
	 
      	
                20.4

              	The
      Trustee shall not be required to inform any party of the signing of this
      Deed of Trust and is not allowed to intervene in any way in the management
      of the business or affairs of the Company other than pursuant to the
      authorities that have been granted to the Trustee herein.
	 	 	 
	 
      	
                20.5

              	The
      Trustee shall faithfully use the powers, authorizations and authorities
      granted thereto hereby in good faith and reasonably.
	 	 
	
                21.

              	Authority of the
      Trustee to Employ Proxies
	 	 
	 
      	The
      Trustee shall be entitled to appoint a proxy/ies for acting in its place,
      whether an advocate or another party, in order to perform or participate
      in the performing of special actions that must be performed concerning the
      Trust, including, but not limited to, taking legal proceedings. In
      addition, the Trustee shall be entitled to settle, at the expense of the
      Company, the reasonable fee of any such proxy, and the Company will return
      to the Trustee immediately upon the first demand thereof any such
      reasonable expense, on the condition that the Trustee gives the company
      advance notice of such appointment of proxies.
	 	 
	 
      	The
      Company will be allowed to object to such an appointment on reasonable
      grounds, including in the case of the proxy competing directly or
      indirectly with the business of the Company.
	 	 	 	 	 
	 
      	The
      Trustee is allowed at any time to delegate from the Trusteeships, powers,
      authorizations and authorities granted thereto hereby, in part or in full,
      to another person or persons, and any such delegation will be made under
      the conditions and instructions (including permission for a proxy to
      appoint a proxy) that the Trustee deems suitable, but such delegation of
      authority will not release the Trustee from any responsibility assumed
      thereby in case the authorities were not delegated.
	 	 	 	 	 
	 
      	Such
      proxies and/or delegates will be bound by the confidentially provisions
      stated in Section 

      

      
        
          
          

        

        
          -19-

          
            

          

        

        
          
          

        

      

       

      
        	 	14 above.
	 	 
	
                22.

              	Indemnification of the
      Trustee
	 	 	 
	 
      	
                22.1

              	The
      Trustee shall be entitled to receive indemnification from the Debenture
      Holders or from the Company, as relevant, for reasonable expenses that it
      has incurred and/or will incur in connection with the actions that it has
      performed or must perform pursuant to its duty hereby, and/or by law
      and/or by order of a competent authority and/or any statute and/or upon
      the demand of the Debenture Holders and/or according to the demand of the
      Company. Notwithstanding the above, it is clarified and agreed hereby
      that:
	 	 	 	 	 
	 
      	 
      	
                22.1.1

              	The
      Trustee shall not be entitled to demand such indemnification in advance on
      a matter that is urgent.
	 	 	 	 	 
	 
      	 
      	
                22.1.2

              	The
      Trustee shall be entitled to indemnification for liability for torts, in
      the case of being found thus liable by a final court ruling or a concluded
      settlement towards a third party that is not one of the Debenture
      Holders.
	 	 	 
	 
      	
                22.2

              	The
      Indemnification right detailed in section 22.1 above will be subject to
      the following terms:
	 	 	 	 	 
	 
      	 
      	
                 

              	22.2.1
      The expenses for liability for damages is reasonable.
	 	 	 	 	 
	 
      	 
      	
                 

              	22.2.2 The Trustee acted in good
      faith and the appropriate care, and the action was preformed within the
      fulfillment of its duty, according to the provisions of law and this
      Deed.22.3
      Subject to the provisions of Sections 22.1 and 22.2 above,
      without prejudice to the rights to compensation and indemnification that
      are granted to the Trustee by law and/or the commitments of the Company
      and the Debenture Holders hereby, the Trustee, its proxy, manager, agent
      or other person appointed by the Trustee hereby will be entitled to
      receive indemnification out of the sums that are received by the Trustee
      out of the proceedings taken and/or otherwise hereby, concerning
      undertakings that they have assumed, concerning expenses they incurred due
      to the  performance of the Trust or related to such actions,
      which in their opinion were required for executing the aforesaid and/or
      concerning the exercising of authorities and authorizations granted hereby
      and concerning all kinds of legal proceedings, opinions of advocates and
      other experts, negotiations, discussions, expenses, claims and demands
      concerning any matter and/or thing that are made and/or not made in any
      way concerning the subject matter, and the Trustee may withhold the funds
      that are in its possession and pay out of them the sums that are necessary
      for payment of the said indemnification. The said sums will take
      precedence over the rights of the Debenture Holders, subject to the
      provisions of the law.
	 	 	 
	 	
                22.3

              	For as long as the Trustee is required pursuant to the terms hereof
      an/or any statute

      

       

      
        
          
          

        

        
          -20-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                 

              	and/or
      an order of a competent authority and/or the law and/or upon the demand of
      the Debenture Holders and/or the demand of the Company to perform any
      action, including, but not limited to instigating proceedings or filing
      claims upon the demand of the Debenture Holders, as stated herein, the
      Trustee shall be allowed to abstain from taking any such action until it
      receives, to its satisfaction, a letter of indemnification from any or all
      of the Debenture Holders, and if the action is performed owing to a demand
      of the Company, from the Company, for any liability for damages and/or
      expenses that may be incurred by the Trustee and by the Company or either
      of them, due to performing such an action. It is clarified that the
      foregoing does not exempt the Trustee from taking an urgent action that is
      required for preventing material infringement to the rights of the
      Debenture Holders.
	 	 	 
	 
      	
                22.4

              	Notwithstanding the provisions of
      this Section 22, as long as the trustee deems it right for protecting
      and/or exercising the rights of the Debenture Holders, and/or it is
      required hereby and/or by law and/or by an order of a competent authority
      and/or any statute and/or upon the demand of the Company and/or the
      Debenture Holders, to take legal proceedings, in the case of taking such
      an action due to a demand of the Company, the Company will deposit in the
      hands of the Trustee a sum that will be determined by the Trustee as the
      expected sum of the expenses of the Trustee concerning the proceedings. In
      any other case, the Trustee shall immediately call a Meeting of Debenture
      Holders in order to confirm their responsibility for covering the expenses
      involved in proceedings that the Trustee takes. In the case of the
      Debenture Holders refusing to assume the expenses involved in taking
      proceedings by the Trustee, the Trustee shall assume no duty to take such
      proceedings. In addition, all of the sums that are received from the
      realization proceedings will also be used for refunding and covering
      expenses that the Debenture Holders thus undertake to bear. It is
      clarified that the foregoing does not exempt the Trustee from taking an
      urgent action that is required for preventing material infringement of the
      rights of the Debenture Holders.
	 	 
	
                23.

              	Notices
	 	 	 	 
	 
      	
                23.1

              	Any
      notice from the Company and/or the Trustee to the Debenture Holders, as
      relevant, shall be given as follows:
	 	 	 	 	 
	 
      	 
      	
                23.1.1

              	By
      reporting in the MAGNA system of the Securities Authority; the Trustee is
      allowed to instruct the Company and the Company will be required to report
      forthwith in the MAGNA system on behalf of the Trustee any report in the
      format as forwarded in writing by the Trustee to the Company); and
      by
	 	 	 	 	 
	 
      	 
      	
                23.1.2

              	A
      notice that will be published in two widely distributed daily newspapers
      that are published in Israel in Hebrew;

      

       

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	 
	 
      	 
      	 
      	Any
      notice or demand from the Trustee to the Company may be given by a letter
      that is sent by registered mail to the address stated herein, or to any
      other address that the Company informs the Trustee of in writing, or by
      transmission by facsimile or by courier and any such notice or demand will
      be considered as having been received by the Company: (1) in the case of
      sending by registered mail – three business days from the day of mailing
      thereof; (2) in the case of transmission by facsimile (along with a
      telephone check of receipt thereof) – one business day from the day of its
      transmission; (3) and in the case of sending by courier – upon its
      delivery by the courier to the addressee or the offering thereof to the
      addressee for receipt, as relevant.
	 	 	 
	 
      	
                23.2

              	Any
      notice or demand from the
      Company to the Trustee may be given by a letter that is sent by registered
      mail to the address stated herein, or to another address that the Trustee
      informs the Company of in writing, or by transmission by facsimile or by
      electronic mail (“email”) or by courier and any such notice or demand will
      be considered as having been received by the Trustee: (1) in the case of
      sending by registered mail – three business days from the day of mailing
      thereof; (2) in the case of transmission by facsimile or email (along with
      a telephone check of receipt thereof) or of sending by courier – upon its
      delivery by the courier to the addressee or the offering thereof to the
      addressee for receipt, as relevant.
	 	 	 
	 
      	
                23.3

              	Copies
      of notices and invitations that the Company gives to the Debenture Holders
      will also be sent by the Company in an Immediate Report, a copy of which
      will be given to the Trustee.
	 	 
	
                24.

              	Waiver; Settlement;
      and Changes in the Terms of the Deed of Trust
	 	 	 
	 
      	
                24.1

              	Subject to the provisions
      of the Law and the regulations promulgated and/or that will
      be  promulgated thereby, the Trustee shall be allowed, from time
      to time and at any time, if it is convinced that this does not in its
      opinion infringe upon the rights of the Debenture Holders, to waive any
      violation or non-fulfillment of any of the terms hereof by the Company, as
      long as these do not relate to the terms of repayment of the Debentures
      and the grounds for calling for immediate repayment as specified in
      Section 6 hereof.
	 	 	 
	 
      	
                24.2

              	Subject
      to the provisions of the Law and the regulations promulgated and/or that
      will be promulgated thereby, the Trustee is allowed, whether before or
      after the principal of the Debentures is called for immediate repayment,
      to settle with the Company concerning any right or claim of the Debenture
      Holders and agree with the Company to any arrangement concerning the
      rights of the Debenture Holders, including waiving any right or claim of
      the Debenture Holders towards the Company hereby. If the Trustee settles
      with the Company after having received prior approval of the Debenture
      

      

       

      
        
          
          

        

        
          -22-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	Holders as stated above, the Trustee shall be exempt of liability
      for this action, as approved by the general Meeting. The foregoing does
      not exempt the Trustee from responsibility for its actions until the date
      of making a decision of the Meeting of the Holders and/or its actions
      concerning its application. 
	 	 	 
	 
      	
                24.3

              	Subject
      to the provisions of the Law and the regulations promulgated and/or to be
      promulgated thereby, the Trustee and the Company may, whether before or
      after the principal of the Debentures is called for immediate repayment,
      change the Deed of Trust (including a change in the conditions of the
      Debentures), if one of the following is fulfilled:
	 	 	 
	 
      	 
      	
                24.3.1

              	The
      Trustee is satisfied that the change does not adversely affect the
      Debenture Holders.
	 	 	 	 
	 
      	 
      	
                24.3.2

              	The
      Debenture Holders have agreed to the proposed change, by a special
      decision as specified in Sections 2.4 and 2.10 of the second addendum
      hereinafter.
	 	 	 	 
	 
      	
                24.4

              	The
      Trustee shall be entitled, at the request of the Company from time to
      time, to make changes in the Deed of Trust and/or in the Debentures, as
      required by a Securities Authority and/or the Stock Exchange and/or any
      other governmental authority, for the purpose of listing the Debentures
      for trade on the Stock Exchange, as long as the Trustee is satisfied that
      the change does not cause a material adverse effect to the Debenture
      Holders.
	 	 	 
	 
      	
                24.5

              	The
      Company shall give the Debenture Holders a notice of any such change, in
      accordance with Section 23 hereof, as soon as possible after its
      execution.
	 	 	 
	 
      	
                24.6

              	The
      general meetings as stated in this section above will be convened, as
      stated in the second addendum hereto.
	 	 	 
	 
      	
                24.7

              	In
      any case of use of the right of the Trustee in accordance with this
      section above, the Trustee shall be entitled to demand that the Debenture
      Holders give to it or to the Company their certificates, for noting a
      comment concerning any such settlement, waiver, change or amendment and
      according to the demand of the Trustee, the Company shall note such a
      comment in the certificates that are given to it. In any case of use of
      the right of the Trustee pursuant to this section, the Trustee shall
      announce this, within a reasonable time, in writing, to the Debenture
      Holders.
	 	 	 
	
                25.

              	Register of Debenture
      Holders and Transfer of Debentures
	 	 	 	
                 

              	 
	 	 	
                25.1.1

              	The
      Company shall keep and maintain in its Registered office a register of the
      Debenture Holders, listing the names of the Debentures Holders, their
      addresses and the number and par value of the Debentures registered to
      their name. The 

      

       

      
        
          
          

        

        
          -23-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	 
      	
                 

              	register
      will also list any transfer of title to the Debentures. The Trustee and
      any Debenture Holder will be entitled, at any reasonable time, to inspect
      this Register. The  Company is entitled to close the register from
      time to time or for a period or periods that do not exceed an aggregate of
      thirty (30) days a year.
	 	 	 	 
	 
      	 
      	
                25.1.2

              	The
      Company will not be required to note in the Registers of Debenture Holder
      any notice concerning explicit, implicit or putative Trust, or
      hypothecation or pledging of any kind or any equity, claim or offset right
      or any other right, concerning the Debentures. The Company will only
      recognize the ownership by the person whose name the Debentures are listed
      under, as long as the legal heirs, administrators of estate or executors
      of the will of the registered owner or any person who will be entitled to
      the Debentures due to the bankruptcy of any registered owner (and in the
      case of a corporation - due to the liquidation thereof) will be entitled
      to register as the Holders thereof, after giving evidence that in the
      opinion of the Company is satisfactory for proving the right of any of the
      above to be registered as the Holder thereof.
	 	 	 	 	 
	
                26.

              	Release
	 	 	 	 	 
	 
      	
                26.1

              	Once
      it is proved to the satisfaction of the Trustee that all of the Debentures
      have been paid up, redeemed or when the Company deposits in the trust of
      the Trustee sums of money that are enough for redeeming all of the
      Debentures, and once it is proved to the satisfaction of the Trustee that
      all of the undertakings and expenses made or sustained by the Trustee
      concerning the Deed of Trust and the instructions thereof have been fully
      paid up, the Trustee shall be required, upon the first demand of the
      Company, to act with the sums that have been deposited for Debentures
      whose redemption is not required according to the conditions stated
      herein.
	 	 
	
                27.

              	Appointment of a New
      Trustee and Expiry of the Tenure of the Trustee
	 	 
	 
      	
                27.1

              	The
      provisions of the Securities Law will apply to the tenure of the Trustee
      and the expiration thereof and the appointment of a new Trustee. Subject
      to the provisions of the Law, the Trustee and any Trustee replacing it
      will be entitled to resign from their functions as Trustees after giving
      written notice to the Company three (3) months in advance, elaborating the
      reasons for resignation.
	 	 	 
	 
      	
                27.2

              	The
      resignation will take effect only after it is confirmed by the court, from
      the day established in the confirmation. In the case of such resignation
      or in the case of expiry of the tenure of the Trustee, the court is
      entitled to appoint another Trustee instead of the Trustee, for a period
      and under conditions as it deems fit.
	 	 	 
	 
      	
                27.3

              	The
      court will be entitled to dismiss a Trustee if it does not fulfill its
      duty properly or if the court finds another reason for the dismissal
      thereof.

      

       

      
        
          
          

        

        
          -24-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                27.4

              	The
      Holders of ten percent (10%) of the unsettled balance of the Debentures
      are entitled to call a general meeting of the Debenture certificate
      Holders owners. Each Meeting thus convened is allowed to decide, according
      to a vote of Holders of at least fifty percent (50%) of the unsettled
      balance of the Debentures, for the transfer of Trustee from its
      duty.
	 	 	 
	 
      	
                27.5

              	The
      Securities Authority is allowed to apply to the Court with a motion to
      conclude the tenure of the Trustee, in accordance with Section 35 N of the
      Law.
	 	 	 
	 
      	
                27.6

              	The
      Trustee and the Company will submit an immediate report to the Securities
      Authority of any such event in this section, concerning the tenure of the
      Trustee.
	 	 	 
	 
      	
                27.7

              	Each
      new trustee will have the same powers, authorities and other
      authorizations and may act in all senses as though appointed as the
      Trustee from the outset, subject to the provisions of Section 35 N of the
      Law.
	 	 	 
	 
      	
                27.8

              	The
      Trustee shall transfer to the new Trustee all of its records concerning
      the Debenture Holders, if there are any, information about the payments
      made by the Trustee through to that time, if such were effected, any
      report and any information given hereby and any information that is
      reasonably required for the new Trustee, and the Trustee shall transfer to
      the new Trustee any sum that will be held thereby at that time concerning
      the Debentures.
	 	 	 
	
                28.

              	Meeting of Debenture
      Holders
	 	 
	 
      	Meetings
      of the Debenture Holders will be managed, as stated in
      the second addendum hereto.
	 	 	 	 	 
	
                29.

              	Investments of
      Funds
	 	 
	 
      	
                29.1

              	All
      sums that the
      Trustee is allowed to invest hereby will be invested thereby in bank/s, in
      its name or to its order, in investments that the laws of the State of
      Israel permit investing trust funds in, as it deems suitable, subject to
      the terms hereof and the provisions of the law, as long as any investment
      in securities will be in securities that have been given a rating of not
      less than AA. If the Trustee has done so, it will not owe  the
      beneficiaries of these sums other than the remuneration received from
      realizing the investments less the expenses related to this investment and
      managing the trust accounts, the commissions, after deducting the
      mandatory payments imposed on the trust account. Out of these sums, the
      Trustee shall transfer sums to the Debenture Holders that are entitled
      thereto, as soon as possible after the Trustee is provided proof and
      confirmations of their right to these sums to the full satisfaction of the
      Trustee, after deducting its expenses and commission at the rate that is
      generally employed thereby at that time.

      

       

      
        
          
          

        

        
          -25-

          
            

          

        

        
          
          

        

         

      

      
        	
                30.

              	Applicability of the
      Law
	 	 	 	 	 
	 
      	This
      Deed and the Debentures are subject to Israeli law. On any matter that has
      not been mentioned herein and in any case of a contradiction between the
      provisions of the law and this Deed, the parties will act in accordance
      with the provisions of Israeli law. In any case of a contradiction between
      the provisions described in the Prospectus concerning this Deed and/or the
      Debentures, the provisions hereof will take precedence.
	 	 	 	 	 
	
                31.

              	Exclusive
      Jurisdiction
	 	 	 	 	 
	 
      	The
      only court that will be authorized for hearing matters related hereto and
      to the Debentures attached as an appendix hereto will be competent court
      in Tel Aviv Yaffo.
	 	 	 	 	 
	
                32.

              	General
	 	 	 	 	 
	 
      	Without
      derogating from the other provisions hereof and of the Debentures, any
      waiver, extension, accommodation, silence, abstention from action (“waiver”) on the part of
      the Trustee concerning the non-fulfillment or partial or incorrect
      fulfillment of any of the undertakings towards the Trustee hereby and in
      accordance with the Debenture will not be considered as a waiver by the
      Trustee of any right but as limited consent for the particular instance on
      which it has been given. Without derogating from the other provisions
      hereof and the Debenture, any change in the undertakings to the Trustee
      necessitates receipt of the prior written consent of the Trustee. Any
      other consent, whether oral or by waiver or abstention from action or in
      any way that is not in writing, will not be considered as any consent. The
      rights of the Trustee hereby are independent and unconditional of each
      other and are in addition to any right that the Trustee has and/or will
      have by law and/or agreement (including this Deed and the
      Debenture).
	 	 	 	 	 
	
                33.

              	Addresses
	 	 	 	 	 
	 
      	The
      addresses of the parties will be as specified in the preamble hereto, or
      any other address for which an appropriate written notice is given to the
      counterparty.
	 	 	 	 	 
	
                34.

              	Certification for
      MAGNA
	 	 	 	 	 
	 
      	In
      accordance with the provisions of the Securities Regulations (Signing and
      Electronic Reporting) 5763 2003, the Trustee hereby approves that the
      competent party of the Company report electronically to the Securities
      Authority of this Deed of Trust.

      

       

      In
witness whereof the parties have set their hands hereunto

       

      
        
          	 	 	 	 
	Cellcom Israel
      Ltd. 	 	Hermetic Trust (1975)
      Ltd.	 

        

      

       

      I, the
undersigned, Tamar Einav, Adv., confirm that this Deed of Trust has been signed
by Cellcom Israel Ltd. by Messrs. Tal Raz and Liat Menachemi Stadler and that
their signature binds the Company concerning this Deed of Trust.

      

         

        
          
            	 	 	 	 
	Tamar Einav,
      Adv.	 	 	 

          

        

         

        
          
            
            

          

          
            -26-

            
              

            

          

          
            
            

          

        

      

      
         

        Cellcom
Israel Ltd.

        First
Addendum

        Debentures
(Series D)

         

         

        Issue of a
series of up to NIS ________________________________ par value of
registered to name Debentures (Series D), bearing annual interest at a rate of
__%, linked (principal and interest) to the consumer price index published in
August 2007, for repayment in 5 equal annual installments on July 1 of each of
the years 2013 to 2017. The interest on the Debentures will be paid once a year
on July 1 in each of the years 2008 to 2017 (inclusive).

         

        Registered
to name Debentures (Series D)

         

        Number
1

         

        Part value
NIS ______________

         

        Interest
of __% annually.

         

        
          	
                  1.

                	
                  This
      certificate attests that Cellcom Israel Ltd. (hereinafter: “the Company”) shall pay
      the Israel Discount Bank nominees Ltd. or any party that will be the
      registered owner of this Debenture (hereinafter: the “Debenture Holder (Series
      D”) at the end trading on June 19 of each year before the date of
      payment of the appropriate installment for the Debentures (Series D) out
      of the principal of the par value of the Debentures (Series D) that are in
      circulation, subject to the terms of linkage and all other terms listed in
      the terms of the overleaf.

                

        

         

        
          	
                  2.

                	
                  The
      payments of the principal of the Debentures and the payments of the
      interest will be made against delivery of the Debenture to the Company at
      its registered office, as stated in the conditions of the overleaf or at
      any other place announced by the company by no later than five Business
      Days before the payment date.

                

        

         

        
          	
                  3.

                	
                  Debentures
      (Series D) are issued pursuant to the Deed of Trust (hereinafter: the
      “Deed of Trust”)
      of September 20 that has been signed between the Company and Hermetic
      Trust (1975). (hereinafter: the “Trustee”).

                

        

         

        
          	
                  4.

                	
                  The
      Debentures are not secured by any collateral. All of the Debentures
      (Series D) will have an equal degree of security among each other (pari passu) concerning
      the undertakings of the Company pursuant to the Debentures (Series D),
      without a preferential right or priority over one
  another.

                

        

         

        
          	
                  5.

                	
                  This
      Debenture (Series D) is issued subject to the conditions listed in the
      overleaf, the conditions listed in the Deed of Trust and in the
      Prospectus.

                

        

         

        
          Signed
with the stamp of the Company, affixed
on__________________________________

        

         

        Chairman
of the board: _________________________

         

                                                                                                       

        
          
            
            

          

          
            -27-

            
              

            

          

          
            
            

          

        

      

      
         

        
          	
                  The Conditions Listed
      Overleaf

                

        

         

        
          	
                  1.

                	
                  General

                

        

         

        In this
Debenture (Series D), the following expressions will have the following
meanings, unless another meaning is implied by the context, as
follows:

         

        
          	 	
                  “The
      Company”  and/or "the
      Issuer"

                	
                  –

                	
                  Cellcom
      Israel Ltd.

                
	 	 	 	 
	 	
                  The
      “Deed of
      Trust”

                	
                  –

                	
                  The
      Deed of Trust that was signed between the Company and the Trustee on
      September 20, 2007, including the appendices attached thereto, which
      constitute an integral part thereof;

                
	 	 	 	 
	 	
                  The “Prospectus”

                	
                  –

                	
                  The
      prospectus of the Company that is due to be published, inter alia, for the
      issue of the Debentures (Series D);

                
	 	 	 	 
	 	
                  The “Debentures (Series D)”
      or the “Debentures”

                	
                  –

                	
                  The
      Debentures (Series D) of the Company, registered to name, that will be
      issued in accordance with the Prospectus;

                
	 	 	 	 
	 	
                  The “Trustee”

                	
                  –

                	
                  Hermetic
      Trust (1975) Ltd. and/or any party serving from time to time as a trustee
      of the Debenture Holders (Series D) pursuant to the Deed of
      Trust;

                
	 	 	 	 
	 	
                  “Register”

                	
                  –

                	
                  Register
      of the Debenture Holders (Series D) as stated in Section 25 of the Deed of
      Trust;

                
	 	 	 	 
	 	
                  The “Debenture Holders (Series D)”
      and/or the “Debenture Holders”
      and/or the “Debenture Owners
      (Series D)” and/or the “Debenture
      Owners”

                	
                  –

                	
                  The
      persons whose names are listed at the time in question in the register of
      the Debenture Holders (Series D) and in the case of a number of joint
      Holders, the joint Holder first listed in the register;

                
	 	 	 	 
	 	
                  The “Debenture Certificate (Series
      D)” and/or the “Debenture
      Certificate”

                	
                  –

                	
                  A
      Debenture certificate (Series D) whose text appears as the first addendum
      to this deed;

                

        

         

        
          
            
            

          

          
            -28-

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  The “Law”

                	
                  –

                	
                  The
      Securities Law, 5728 – 1968 and the regulations thereby, as effective from
      time to time;

                
	 	 	 	 
	 	
                  “Principal”

                	
                  –

                	
                  The
      par value of the Debentures (Series D) in circulation;

                
	 	 	 	 
	 	
                  The “Consumer Price Index” (“the
      Index”)

                	
                  –

                	
                  The
      price index known by the name of "the Consumer Price Index", which
      includes fruit and vegetables, as published by the Central Bureau of
      Statistics, including that index even if published by another official
      body or institute, and including any official index that replaces it,
      whether composed of the same data as the existing index or not. If it is
      replaced by another index that is published by such a body or institute,
      and that body or institute did not determine the ratio between it and the
      index thus replaced, the ratio will be determined by the Central Bureau of
      Statistics, and in the case of such a ratio not being determined, it will
      be determined by the Trustee, who will determine, following consultation
      with economic experts of his choice, the ration between the other index
      and the replaced index;

                
	 	 	 	 
	 	
                  The “Known Index”

                	
                  –

                	
                  The
      last known consumer price index;

                
	 	 	 	 
	 	
                  The “Basic Index”

                	
                  –

                	
                  The
      consumer price index for August 2007 that was published on September 12,
      2007.

                
	 	 	 	 
	 	
                  The “Payment Index”

                	
                  –

                	
                  The
      consumer price index known on the date of making any payment on the
      account of the principal and/or the interest;

                
	 	 	 	 
	 	
                  “Business
      day”

                	
                  –

                	
                  A
      day on which most of the banks in Israel are open for conducting
      transactions;

                
	 	 	 	 
	 	
                  The “Stock Exchange”

                	
                  –

                	
                  The
      Tel Aviv Stock Exchange Ltd.

                
	 	 	 	 
	 	
                  “Trade
      Day”

                	
                  –

                	
                  A
      day on which transactions are made on the Tel

                

        

         

        
          
            
            

          

          
            -29-

            
              

            

          

          
            
            

          

        

         

        
          	 	 	 	Aviv
      Stock Exchange Ltd;
	 	 	 	 
	 	
                  “Meeting”

                	
                  –

                	
                  A
      meeting of the Debenture Holders, including a class
    meeting.

                
	 	 	 	 
	 	
                  “Class
      meeting”

                	
                  –

                	
                  A
      meeting of the Debenture Holders, who have an interest that is materially
      different from the interest of other Debenture Holders on the matter that
      is being discussed in the meeting.

                
	 	 	 	 
	 	
                  The “Nominee Company”

                	
                  –

                	
                  The
      Israel Discount Bank Nominees
Ltd.

                

        

      

    

     

    
      
        	 
      	
                1.1

              	
                This
      Debenture is one of a series of registered to name Debentures (Series D)
      to a total specified sum that will be determined in accordance with
      Section 2.2 of the Prospectus. The Debentures of this series will have an
      equal, pari passu
      degree of security among each other concerning the undertakings of the
      Company pursuant to the Debentures (Series D), without a right of
      preference or priority of one over another concerning the sums
      due.

              
	 	 
	
                2.

              	Securing the
      Debentures (Series D)
	 	 
	 
      	
                2.1

              	
                The
      undertaking of the Company to repay the Debentures (principal, interest
      and linkage differences) is not secured by any
  collateral.

              
	 	 	 
	 
      	
                2.2

              	
                The
      Company will be allowed to pledge its assets, in part or in full, by any
      pledge and in any way, to the benefit of any third party, without the need
      for any consent from the Trustee and/or the Debenture
    Holders.

              
	 	 	 
	 
      	
                2.3

              	
                The
      Company will be allowed to sell, lease, assign, deliver or transfer in any
      other way its assets, in part or in full, in any way, for benefit of any
      third party, without the need for any consent of the Trustee and/or the
      Debenture Holders.

              
	 	 	 
	 
      	
                2.4

              	
                For
      the removal of doubt, it is clarified that the Trustee has no duty to
      examine, and in fact the Trustee has not examined, the need for providing
      collateral for securing the payments to the Debenture Holders. In its
      entering the engagement in this Deed of Trust, and with the consent of the
      Trustee to serve as the trustee for the Debenture Holders, the Trustee
      does not express its opinion, implicitly or explicitly, as to the ability
      of the Company to fulfill its undertakings towards the Debenture Holders.
      The foregoing does not derogate from the duty of the Trustee by law
      and/or, nor does it derogate from the duty of the Trustee (to the extent
      that this duty applies to the Trustee according to any law) to examine the
      effect of changes in the Company from the date of the Prospectus onwards,
      to the extent that these may adversely affect the ability of the Company
      to fulfill its undertakings to the Debenture
  Holders.

              

      

       

      
        
          
          

        

        
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                2.5

              	
                The
      Debentures will be in an equal pari passu degree of
      security among themselves concerning the undertakings of the Company
      pursuant to the Debentures, without precedence or preference over each
      other.

              

      

       

      
        	
                3.

              	
                Date of Repayment of
      the Principal of the Debentures (Series D)

              
	 	 
	 
      	
                Subject
      to all of the other terms of the Debentures (Series D), the principal of
      the Debentures (Series D) will be repaid in five (5) equal annual
      installments on July 1 in each of the years 2013 to 2017 (inclusive). The
      principal of the Debentures (Series D) is linked to the Consumer Price
      Index as specified in Section 5 below.

              
	 	 
	
                4.

              	
                The
      Interest

              
	 	 
	 
      	
                The
      unsettled balance of the principal of the Debentures (Series D) in
      circulation will bear annual interest at a rate that will be determined in
      accordance with Section 2.2 of the Prospectus. The interest for the
      Debentures (Series D) is linked to the Consumer Price Index as specified
      in Section 5 below.

              
	 	 
	 
      	
                The
      interest for the Debentures (Series D) will be paid in annual
      installments, on July 1 of each of the years 2008 to 2017 (inclusive), For
      the period of the twelve (12) months ending on the last day before each
      such date, except the first interest period, for which the proportionate
      part of the interest will be paid (calculated based on 365 days a year)
      for the period starting on the first day of trading after the tender (the
      settlement day) and ending on June 30, 2008. The first interest payment
      for the Debentures (Series D) will be on July 1, 2008.

              
	 	 
	 
      	
                The
      Company will announce by immediate report, within a Business Day of the
      date of establishing the interest for the tender, the interest rate during
      the first interest period. The last payment of the interest for the
      Debentures (Series D) will be made on July 1, 2017, with the last payment
      of the principal of the Debentures (Series D), against the handover of the
      Debentures Certificates (Series D) to the Company.

              
	 	 
	 
      	
                Income
      tax (see Section 2.3 of the Prospectus) will be deducted from each payment
      of interest for the Debentures (Series D), according to the
      law.

              
	 	 
	
                5.

              	
                Terms of Linkage of
      the Principal and the Interest

              
	 	 
	 
      	
                The
      principal of the Debentures and the interest for the principal will be
      linked to the Consumer Price Index based on the Basic Index, as
      follows:

              
	 	 
	 
      	
                If
      it is found, on the date of repayment of any installment on the account of
      the principal and/or the interest for the Debentures, that the payment
      index for that date has increased relative to the Basic Index, the Company
      will pay that installment of principal and/or interest increased relative
      to the rate of the change in the Payment Index compared to the Basic
      Index. However, if it is found that the Payment Index is identical to the
      Basic Index or is lower, the Payment Index will be the Basic
      Index.

              

      

       

      
        
          
          

        

        
          -31-

          
            

          

        

        
          
          

        

      

       

      
        	
                6.

              	Payments of the
      Principal and the Interest of the Debentures
	 	 
	 
      	
                6.1

              	
                Each
      installment on the account of the principal for the Debentures (Series D)
      will be paid to the Debenture Holders (Series D) whose names are listed in
      the Register of Debenture Holders (Series D) of the Company as Holders on
      the end of June 19 of each year before the date of payment of the
      appropriate installment for the Debentures (Series D) (the “Determinant Day for Payment of
      the Principal of the Debentures (Series D)”).

              
	 	 	 
	 
      	 
      	
                Each
      installment on the account of the interest for the Debenture (Series D)
      will be paid to the Debenture Holders (Series D) whose names are listed in
      the in the Register of Debenture Holders (Series D) of the Company as
      Holders on the end of June 19 of each year before the date of payment of
      the appropriate installment for the Debentures (Series D) (the “Determinant Day for Payment of
      the Interest of the Debentures (Series D)”).

              
	 	 	 
	 
      	 
      	
                Notwithstanding
      the foregoing, the last installment of the principal and the interest for
      the Debentures (Series D) will be paid against delivery of the Debentures
      Certificates (Series D) to the Company, at its registered office or
      anywhere else as advised by the Company, by no later than five (5)
      Business Days before the day stated for payment of the last
      installment.

              
	 	 	 
	 
      	
                6.2

              	
                In
      any case of the date of payment of the last installment on the account of
      principal and/or interest falls on a day that is not a Business Day, the
      payment date will be deferred to the first Business Day thereafter without
      additional payment, interest or linkage.

              
	 	 	 
	 
      	
                6.3

              	
                Payment
      to beneficiaries will be made by checks or by bank transfer to the credit
      of the bank account of the persons whose names are listed in the Register
      of the Debenture Holders and that is indicated in the details that they
      give to the Company in writing in advance, in accordance with the
      provisions of subsection 6.4 below. If the Company cannot, for any reason
      that does not depend thereupon, pay any sum to the entitled parties, the
      provisions of Section 7 below will apply.

              
	 	 	 
	 
      	
                6.4

              	
                A
      Debenture Holder that will be interested in informing the Company of the
      details of the bank account for crediting it with payments pursuant to the
      Debentures as stated above, or change these account detail or instructions
      concerning the mode of payment, may do so by notice to the company by
      registered letter. However, the Company will fulfill the instruction only
      if it reaches its registered office at least thirty (30) days before the
      determining Date for payment of any installment pursuant to the
      Debenture.

              
	 	 	 
	 
      	 
      	
                In
      the case of the notice being received by the Company belatedly, the
      Company shall act thereby only concerning installments whose Determinant
      Payment Date  is after the

              

      

       

      
        
          
          

        

        
          -32-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	date
      of payment  which is near to the day of receipt of the
      notice. 
	 	 	 
	 
      	
                6.5

              	
                If a
      Debenture Holder who is entitled to such a payment has not given the
      Company in advance details concerning its bank account, any installment on
      the account of the principal and interest will be made out by a check that
      will be sent by registered mail to its last address listed in the Register
      of the Debenture Holders. Sending of a check to a beneficiary by
      registered mail as stated above will be considered, for all intents and
      purposes, as payment of the sum specified therein on the date of its
      mailing, as long as it is duly paid upon its presentation for
      collection.

              
	 	 
	
                7.

              	Abstention from
      Payment for a Reason that does not Depend on the
      Company
	 	 
	 
      	
                7.1

              	
                Any
      sum that is due to the debenture Holder that is not actually paid for a
      reason that does not depend on the Company, while the company was prepared
      to pay it, will cease to bear interest and linkage differences from the
      date stated for its payment, whereas the Debenture Holder will be entitled
      only to the sums that it would have been entitled to on the date stated
      for repayment of that sum on the account of the principal, the linkage
      differences or the interest.

              
	 	 	 
	 
      	
                7.2

              	
                The
      Company will deposit with the Trustee by no later than 14 business days
      from the date stated for that payment, the sum of the payment that has not
      been paid for a reason that does not depend on the Company, and such a
      deposit will be considered as settlement of that payment, and in the case
      of settlement of all dues pursuant to the Debenture, as redemption of the
      Debenture.

              
	 	 	 
	 
      	
                7.3

              	
                The
      Trustee shall deposit in a bank the sums that will be transferred thereto
      as stated in Section 7.2 above, to the credit of those Debenture Holders
      and will invest it in investments permitted hereby that are securities of
      he State of Israel or other securities that the laws of the State of
      Israel permit investment of the trust money in, as the Trustee deems fit
      and subject to the provisions of the law. Should the Trustee do so, it
      will not owe the beneficiaries for sums other than the remuneration that
      is received from realizing the investments less the expenses, commissions
      and mandatory payments, if any that are related to the said investment in
      managing the trust account less its fee.

              
	 	 	 
	 
      	
                7.4

              	
                The
      Trustee shall transfer to each Debenture Holder for which sums and/or
      funds due to the Debenture Holders have been deposited with the Trustee,
      out of sums thus deposited, less all expenses, commissions, the mandatory
      payments and its fee, against presentation of the proof that is required
      by the Trustee, to the full satisfaction
  thereof.

              

      

      
         

        
          	 
      	
                  7.5

                	
                  The
      Trustee shall keep these sums and invest them in the above mentioned
      manner until one year elapses from the final redemption date of the
      Debentures. After this date, the Trustee shall transfer to the Company
      these sums, including profits that result from

                

        

      

       

      
        
          
          

        

        
          -33-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                 

              	
                their
      investment, less its expenses and other expenses incurred in accordance
      with the provisions of this Deed of Trust (such as service provider fees,
      etc.) to the extent that these remain in its possession on that date. The
      Company shall keep these sums in trust for an additional year from the day
      of their transfer thereto by the Trustee, for the Debenture Holders that
      are entitled to those sums, and with regard to the sums that are
      transferred thereto by the Trustee as stated above, the provisions of
      Section 7.3 of this Deed of Trust will apply, mutatis mutandis. Upon
      the transfer of the sums from the Trustee to the Company, to the
      satisfaction of the Trustee, the Trustee shall be exempt from payment of
      such sums to the entitled Debenture Holders. The Company shall approve to
      the Trustee in writing the holding of the sums and the receipt thereof in
      trust for the said Debenture Holders, and will indemnify the Trustee for
      any claim and/or expense and/or damage of any type that it sustains due to
      and for the said money transfer, as long as the Trustee has acted
      reasonably. The Company shall keep these sums in trust for the Debenture
      Holders that are entitled to these sums for an additional year from the
      day of their transfer to it from the Trustee. Sums that are not demanded
      from the Company by a Debenture Holder two years from the final repayment
      date of the Debentures will be transferred to the Company, which will be
      entitled to use the remaining sums for any purpose.

              
	 	 
	
                8.

              	The register of the
      Debenture Holders and transfer of Debentures
	 	 
	 
      	
                8.1

              	
                The
      Company shall keep and maintain in its registered office a Register of the
      Debenture Holders, listing the names of the Debentures Holders, their
      addresses and the number and par value of the Debentures registered to
      their name. The register will also list any transfer of title to the
      Debentures. The Trustee and any Debenture Holder will be entitled, at any
      reasonable time, to review this Register. The Company is entitled to close
      the Register from time to time or for a period or periods that do not
      exceed an aggregate of thirty (30) days a year.

              
	 	 	 
	 
      	
                8.2

              	
                The
      Company will not be required to note in the Debenture Holder registers any
      notice concerning explicit, implicit or putative Trust, or hypothecation
      or pledging of any kind or any equity, claim or offset right or any other
      right, concerning the Debentures. The Company shall only recognize the
      ownership of the person whose name the Debentures are listed under, as
      long as the legal heirs, administrators of estate or executors of the will
      of the registered owner or any person who will be entitled to the
      Debentures due to the bankruptcy of any registered owner (and in the case
      of a corporation - due to the liquidation thereof) will be entitled to
      register as the Holders thereof, after giving evidence that in the opinion
      of the Company is satisfactory for proving the right of any of the above
      to be registered as their Holder thereof.

              
	 	 
	
                9.

              	The Debenture
      Certificates (Series D), their Split and
  Transfer

      

       

      
        
          
          

        

        
          -34-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                9.1

              	
                For
      the Debentures that are listed to one Holder, one certificate will be
      issued, or at its request, a number of certificates will be issued (the
      certificates referred to in this section will be referred to hereinafter
      as: the “Certificates”).

              
	 	 	 
	 
      	
                9.2

              	
                Each
      Certificate may be split into certificates whose total principal equals
      the sum of the par value of the Debentures that have been included in a
      Certificate whose split has been requested, as long as the new Debenture
      Certificates that are issued will be to par value sums in whole New
      Israeli Shekels, in accordance with a split request that has been signed
      by the registered owner of that Debenture Certificate, against the
      provision of that Debenture Certificate to the Company at its registered
      office for effecting the split. The split shall be made within seven (7)
      days of the end of the month on which the Certificate along with its split
      request were provided at the registered office of the Company. All of the
      expenses and commissions involved in the split, including stamp tax and
      other duties, if any, will apply to the party requesting the
      split.

              
	 	 	 
	 
      	
                9.3

              	
                The
      foregoing will apply accordingly to allocation letters, as long as they
      have not been replaced with Certificates.

              
	 	 	 
	 
      	
                9.4

              	
                The
      Debentures may be transferred concerning any par value sum, as long as it
      is in whole New Israeli Shekels. Any transfer of the Debentures that is
      not performed through the trading system of the Stock Exchange will be
      made out according to a transfer deed that is made out in a generally
      accepted format for transferring shares, duly signed by the registered
      owner or the legal representatives thereof, and by the transferee or the
      legal representatives thereof, which will be delivered to the Company at
      its registered office along with any other proof that is required by the
      Company for proving the right of the transferor to their transfer and the
      identity thereof. If any stamp tax or other mandatory payment applies to
      the deed of transfer of the Debentures, the company will be given proof of
      their payment by the requester of the transfer, which will be to the
      satisfaction of the Company.

              
	 	 	 
	 
      	
                9.5

              	
                It
      is clarified hereby that all of the expenses and commissions involved in
      the transfer, including stamp tax and other mandatory payments and duties,
      if any, will be borne by the party requesting the transfer only. The
      Company shall be allowed to keep the deed of transfer.

              
	 	 	 
	 
      	
                9.6

              	
                In
      the case of a transfer of only part of the sum of the specified principal
      of the Debentures in the Certificate, the Certificate will be split first
      as specified in Section 9.2 above into a number of Debenture Certificates
      as required thereby, in such a manner that the total sums of the principal
      specified therein is equal to the sum of the specified principal of the
      said Debenture Certificate.

              
	 	 	 
	 
      	
                9.7

              	
                After
      fulfillment of all of the conditions stated above, the transfer will be
      registered in 

              

      

       

      
        
          
          

        

        
          -35-

          
            

          

        

        
          
          

        

         

        the Register of the
Debenture Holders.

      

       

      
        	
                10.

              	Delisting of the
      Debentures from trade initiated by the Stock
    Exchange
	 	 
	 
      	If
      the Stock Exchange decides to delist the Debentures (Series D) because the
      value of the series falls below the minimum sum stated in the guidelines
      of the Stock Exchange, the Company will not perform immediate redemption
      of the Debentures (Series D), but the Debentures will be delisted from
      trade.
	 	 
	
                11.

              	Purchase of the
      Debentures (Series D) by the Company and/or by a
    subsidiary
	 	 
	 
      	
                11.1

              	
                The
      Company shall issue the Debentures under conditions as specified in the
      Prospectus and in the Debentures and will not secure them with any
      collateral.

              
	 	 	 
	 
      	
                11.2

              	
                The
      Company reserves the right to purchase at any time, within or without the
      Stock Exchange, Debentures (Series D) at any price of its choosing,
      without prejudice to the obligation of repayment of the Debentures
      remaining in circulation as specified above. The Debentures that will be
      purchased by the Company will be cancelled and delisted from trade on the
      Stock Exchange, and the Company will not be allowed to re-issue
      them.

              
	 	 	 
	 
      	
                11.3

              	
                A
      subsidiary of the Company and/or the controlling shareholder and/or
      companies under the control of the controlling shareholder of the Company
      (“Affiliated Company”) are allowed to purchase and/or sell from time to
      time within or without the Stock Exchange, including by way of issuance by
      the Company, Debentures at any price of their choosing and sell them
      accordingly. The Debentures thus held by the allied corporation will be
      considered as an asset of the affiliated company, and if they are listed
      for trading, they will not be delisted from trade on the Stock Exchange
      other than subject to the rules of the Stock Exchange.

              
	 	 	 
	 
      	 
      	
                On
      the matter of holding Meetings of Holders of Debentures, the provisions of
      Section 2.19 of the second addendum to this Deed will
    apply.

              
	 	 	 
	 
      	
                11.4

              	
                The
      Company is allowed, at any time and from time
      to time, without needing the consent of the Debenture Holders or the
      Trustee, to issue, including to an allied corporation, Debentures of a
      different type and/or of different series and/or other securities, whether
      secured or unsecured, whether granting a right of conversion into shares
      of the Company or not granting such right, whether by public offering
      pursuant to a prospectus or otherwise, under terms of redemption,
      interest, linkage, discounting, repayment rate in the case of liquidation
      and other conditions, as the Company sees fit, whether they are preferable
      to the terms of the Debentures (Series D) issued pursuant to the
      Prospectus, equal to them or inferior to
them.

              

      

       

      
        
          	 
      	
                  11.5

                	
                  Without
      derogating from the foregoing, the Company is allowed, at any time and
      from 

                

        

         

      

      
        
          
          

        

        
          -36-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                 

              	
                time
      to time, without needing the consent of the Debenture Holders or the
      trustee, to issue, including to an affiliated company, additional Series D
      Debentures. The additional Debentures that will be issued, to the extent
      issued, including their conditions and resulting rights, will be identical
      and as the existing Debentures, and will together constitute one series
      for all purposes (it is clarified that in the case of such issuance, the
      offerees to whom additional Debentures will be issued will not be entitled
      to payment of principal and/or interest whose determinant payment date
      preceded the issuance date). The provisions of the Deed of Trust will
      apply to these additional Debentures. The Company shall publish an
      immediate statement on such an issuance of additional Debentures and will
      apply to the Stock Exchange in an application to list these additional
      Debentures for trading these additional Debentures therein. In the case of
      expansion of the series of the Debentures (Series D) as above, the fee of
      the Trustee shall be increased in proportion to the increase of the size
      of the series.

              
	 	 	 
	 
      	 
      	
                The
      Company shall inform the Trustee and the Debenture Holders of the issue of
      these additional Debentures.

              
	 	 	 
	 
      	 
      	
                This
      right of the Company does not exempt the Trustee from examining such an
      issuance, to the extent that such a duty is imposed on the Trustee by law,
      and it does not derogate from the rights of the Trustee and of the Meeting
      of the Debenture Holders according to the Deed of Trust, including their
      right to make the Debentures immediately payable as stated in Section 16
      below.

              
	 	 	 
	 
      	
                11.6

              	
                The
      Debentures have been issued in their par value, i.e. without discount. The
      Company reserves the right to allocate the Debentures following an
      expansion of the series at a different discount rate (higher or lower)
      than the discount rate of the Debentures then in circulation (including
      due to issuance at a price that reflects a different discount rate). The
      discounted allocation of the Debentures originating from expansion of the
      series of the Debentures at a rate exceeding the discount rate established
      for the Debentures before the expansion may adversely affect the state of
      the Debenture Holders.

              
	 	 	 
	 
      	
                11.7

              	
                The
      provisions of this Section 11 above itself do not bind the Company or the
      Debenture Holders to purchase Debentures or sell the Debentures in their
      possession.

              
	 	 	 
	 
      	
                11.8

              	
                Wherever
      the rules of the Stock Exchange apply or will apply to any action
      according to this Deed of Trust, they will have preference over the
      provisions hereof, and the dates of such an action will be determined in
      accordance with the rules of the Stock Exchange.

              
	 	 
	
                12.

              	Waiver; Settlement and
      Changes in the Terms of the Debentures (Series
  D)
	 	 

      

      
        
          	 
      	
                  12.1

                	
                  Subject to the provisions
      of the Law and the regulations promulgated and/or that will
    

                

        

         

      

      
        
          
          

        

        
          -37-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                 

              	
                be
      promulgated thereby, the Trustee shall be allowed, from time to time and
      at any time, if it is convinced that this does not in its opinion infringe
      upon the rights of the Debenture Holders, to waive any violation or
      non-fulfillment of any of the terms hereof by the Company, as long as
      these do not relate to the terms of repayment of the Debentures and the
      grounds for calling for immediate repayment as specified in Section 16
      below.

              
	 	 	 
	 
      	
                12.2

              	
                Subject
      to the provisions of the Law and the regulations promulgated and/or that
      will be promulgated thereby, the Trustee is allowed, whether before or
      after the principal of the Debentures is called for immediate repayment,
      to settle with the Company concerning any right or claim of the Debenture
      Holders and agree with the Company to any arrangement concerning the
      rights of the Debenture Holders, including waiving any right or claim of
      the Debenture Holders towards the Company hereby. If the Trustee settles
      with the Company after having received prior approval of the Debenture
      Holders as stated above, the Trustee shall be exempt of liability for this
      action, as approved by the general Meeting. The foregoing does not exempt
      the Trustee from responsibility for its actions until the date of making a
      decision of the Meeting of the Holders and/or its actions concerning its
      application.

              
	 	 	 
	 
      	
                12.3

              	
                Subject
      to the provisions of the Law and the regulations promulgated and/or to be
      promulgated thereby, the Trustee and the Company may, whether before or
      after the principal of the Debentures is called for immediate repayment,
      change the Deed of Trust (including a change in the conditions of the
      Debentures), if one of the following is fulfilled:

              
	 	 	 
	 
      	 
      	
                12.3.1 The Trustee is
      satisfied that the change does not adversely affect the Debenture
      Holders.

              
	 	 	 
	 
      	 
      	
                12.3.2 The Debenture
      Holders have agreed to the proposed change, by a special decision as
      specified in Sections 2.4 and 2.10 of the second addendum
      hereinafter.

              
	 	 	 
	 
      	
                12.4

              	
                The
      Trustee shall be entitled, at the request of the Company from time to
      time, to make changes in the Deed of Trust and/or in the Debentures, as
      required by a Securities Authority and/or the Stock Exchange and/or any
      other governmental authority, for the purpose of listing the Debentures
      for trade on the Stock Exchange, as long as the Trustee is satisfied that
      the change does not cause a material adverse effect to the Debenture
      Holders.

              
	 	 	 
	 
      	
                12.5

              	
                The
      Company will give the Debenture Holders a notice of any such change, in
      accordance with Section 17 hereof, as soon as possible after its
      execution.

              
	 	 	 
	 
      	
                12.6

              	
                The
      general meetings as stated in this section above will be convened, as
      stated in the

              

      

       

      
        
          
          

        

        
          -38-

          
            

          

        

        
          
          

        

      

       

      
        	
              	
                 

              	
                second
      addendum of the Deed of Trust.

              

      

       

      
        	 
      	
                12.7

              	
                In
      any case of use of the right of the Trustee in accordance with this
      section above, the Trustee shall be entitled to demand that the Debenture
      Holders give to it or to the Company their certificates, for noting a
      comment concerning any such settlement, waiver, change or amendment and
      according to the demand of the Trustee, the Company will note such a
      comment in the certificates that are given to it. In any case of use of
      the right of the Trustee pursuant to this section, the Trustee shall
      announce this, within a reasonable time, in writing, to the Debenture
      Holders.

              
	 	 
	
                13.

              	Meeting of Debenture
      Holders (Series D)
	 	 
	 
      	General
      meetings of the Debenture Holders (Series D) will be convened and managed,
      as stated in
      the second addendum of the Deed of Trust.
	 	 
	
                14.

              	Receipts as
      proof
	 	 	 
	 
      	
                14.1

              	
                A receipt from the
      Debenture Holder for the sums of the principal, the interest and the
      linkage differences that have been paid thereto by the Trustee for that
      Debenture will release the Trustee categorically in all matters related to
      payment of the sums stated on the receipt.

              
	 	 	 
	 
      	
                14.2

              	
                Until
      the end of the period specified in Section 7.5 above, a receipt from the
      Trustee concerning the deposit of the sums of the principal, the interest
      and the linkage differences in its possession to the benefit of the
      Debenture Holders as stated in this Deed will be considered as a receipt
      from the Debenture Holders for the sums specified
  therein.

              
	 	 	 
	 
      	
                14.3

              	
                The
      sums distributed as stated in Sections 7 and 14 hereof will be considered
      as payment on the account of the repayment of the
    Debentures.

              
	 	 
	
                15.

              	Replacement of
      Debenture Certificates
	 	 
	 
      	In
      the case of a Debenture Certificate wearing out, being lost or destroyed,
      the Company shall be entitled to issue in its place a new Certificate of
      the Debentures, under the same conditions concerning proof,
      indemnification and coverage of the expenses sustained by the Company for
      inquiring as to the right of ownership of the Debentures that the
      certificate thus replaced relates to, as the Company deems
      fit,  provided that in the case of wear, the worn out Debenture
      certificate will be returned to the Company before the new Certificate is
      issued. Taxes, duties and other expenses involved in the issue of the new
      Certificate will be borne by the party requesting this
    Certificate.
	 	 
	
                16.

              	Immediate
      Repayment
	 	 
	 
      	
                16.1

              	
                In
      one or more of the events enumerated
below:

              

      

    

     

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

    
       

      
        	 
      	
                16.1.1

              	
                If
      the Company does not repay any sum that is due from it connection to the
      Debentures within 45 days of the maturity of that sum.

              
	 	 	 
	 
      	
                16.1.2

              	
                If a
      temporary liquidator has been appointed by a court, or if a valid
      resolution has been adopted to liquidate the Company (other than
      liquidation for merging with another company and/or restructuring of the
      Company) and this appointment or resolution is not cancelled within 30
      Business Days of being given.

              
	 	 	 
	 
      	
                16.1.3

              	
                If
      an attachment is imposed on some or all of the material assets of the
      Company and the attachment is not removed within 60
  days.

              
	 	 	 
	 
      	
                16.1.4

              	
                An
      execution action is carried out against a material asset of the Company,
      in part or in full, and the action is not cancelled within 90
      days.

              
	 	 	 
	 
      	
                16.1.5

              	
                If a
      receiver is appointed for the Company and/or some or all of its material
      assets, and the appointment is not cancelled within 90
    days.

              
	 	 	 
	 
      	
                16.1.6

              	
                If
      the Company ceases the payments of the Debentures and/or announces its
      intent to cease the payments of the Debentures.

              
	 	 	 
	 
      	
                16.1.7

              	
                If
      the Company discontinues its business affairs or managing its business
      affairs, as they are from time to time, and/or announces its intent to
      cease in engaging in or managing its business affairs as shall be from
      time to time.

              
	 	 	 
	 
      	
                16.1.8

              	
                If
      another series of Debentures that the Company has issued is called for
      immediate repayment other than according to a resolution of the
      Company.

              
	 	 	 
	 
      	
                16.1.9

              	
                If
      an order for staying of proceedings is given or if a motion has been filed
      concerning the Company to make an arrangement with the creditors of the
      Company pursuant to Section 350 of the Companies Law (other than for
      merging with another company and/or restructuring of the Company) against
      the Company and this order or motion is not cancelled within 90 days of
      commencement thereof.

              
	 	 	 
	 
      	 16.1.10
      	
                If
      the Company is wound up or struck for any reason.

              
	 	 	 
	 
      	16.1.11
      	
                A
      fundamental breach of the terms of the Debentures and the Deed of Trust,
      including if it is found that the undertakings of the Company in the
      Debentures or herein are incorrect and/or incomplete, provided a notice
      has been given to the Company to rectify the violation and the Company
      does not correct such a violation within 14 Business Days of issue of the
      notice, and provided that the payments to the Debenture Holders and/or the
      rights thereof are infringed or may be infringed as a
      result.  

              
	 	 	 
	 
      	16.1.12
      	
                If
      there is material concern that the Company will discontinue the payments
      of 

              

      

       

      
        
          
          

        

        
          -40-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	the Debentures and/or there is
      material concern that it will cease in managing its business affairs as
      shall be from time to time.
	 	 	 	 
	 	 
      	16.1.13
      	
                In
      the occurrence of any other event that constitutes material infringement
      and/or may cause material infringement of the rights of the Debenture
      Holders (Series D).

              
	 	 	 	 
	 	 
      	For
      the purposes of this entire section, "Material Asset" is an asset whose
      value in the books of the Company exceeds 20% of the income of the Company
      according to its last (audited) consolidated annual statements on the date
      of the event.
	 	 	 	 
	 	
                16.2

              	In
      the occurrence of any of the events listed in Section 6.1 above, the
      following provisions will apply:

      

      

      
        	 
      	
                16.2.1

              	
                (A)  In the
      case of any of the events in Sections 16.1.1 to 16.1.10 (inclusive) above,
      the Trustee will be required to call a Meeting of the Debenture Holders
      (Series D); or

              
	 	 	 
	 
      	 
      	
                (B)  In the case of
      any of the events in Sections 16.1.11 to 16.1.13 (inclusive) above, the
      Trustee will be allowed (but not required) to call a meeting of the
      Debenture Holders (Series D), but the Trustee will be required to call a
      meeting of Holders by a written request of Holders of at least ten percent
      (10%) of the par value of the unsettled balance of the principal of the
      Debentures in circulation, as specified in Section 1.1 of the second
      addendum hereto.

              
	 	 	 
	 
      	
                16.2.2

              	
                The
      date of convening the Meeting, which will be called in accordance with the
      provisions of Section 16.2.1 A or B above, will be 30 days after the date
      of its calling (or a shorter term in accordance with the provisions of
      Section 16.2.5 below), whose agenda will have a resolution concerning
      calling for immediate repayment the entire unsettled balance of the
      Debentures (Section D), due to the occurrence of any of the events
      specified in Section 16.1 above, as relevant.

              
	 	 	 
	 
      	
                16.2.3

              	
                In
      the case that until the date of convening of the Meeting, none of the
      events specified in Section 16.1 above has been canceled or removed, and
      the Meeting of the Debenture Holders as stated resolve to call all of the
      unsettled balance of the Debentures for immediate repayment as a Special
      resolution (as defined in the second addendum hereto), the Trustee will be
      required, within a reasonable time, to call all of the unsettled balance
      of the Debentures (Series D) for immediate repayment, as long as it has
      given the Company at least 15 days written warning of its intent to do so
      and the event for which the resolution was adopted has not been canceled
      or removed within this period.

              
	 	 	 
	 
      	
                16.2.4

              	
                A
      copy of the
      notice for calling the Meeting will be sent by the Trustee to the
      

              

      

       

      
        
          
          

        

        
          -41-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	Company
      as soon as the notice is published and will constitute advance written
      warning to the Company of the intent to act to call the Debentures for
      immediate repayment. 
	 	 	 
	 
      	
                16.2.5

              	
                The
      Trustee is entitled, at its discretion, to reduce the count of 30 days (in
      Section 16.2.2 above) and/or the said 15 days of warning (in Section
      16.2.3) in the case of the Trustee opining that any deferral in calling
      the debt of the Company for repayment endangers the rights of the
      Debenture Holders (Series D), but in any case the Trustee shall not do so
      without first applying to the Company in writing 7 Business Days before
      the date of the meeting, indicating the reasons for reducing the time, at
      the discretion of the Trustee in the circumstances at
  hand.

              
	 	 	 
	 
      	
                16.2.6

              	
                The Trustee will be
      responsible for reporting to the Debenture Holders of the occurrence of
      any of the events specified in Sections 16.1.11 to 16.1.13 (inclusive)
      above, whether pursuant to publications that the Company has made or
      according to a notice of the Company that will be sent to it according to
      the provisions of Section 24 below, soon after it being brought to its
      attention or delivered to it.

              

      

       

    

    
      
        	
                17.

              	Notices
	 	 	 	 
	 
      	
                17.1

              	Any
      notice from the Company and/or the Trustee to the Debenture Holders, as
      relevant, shall be given as follows:
	 	 	 	 
	 
      	 
      	
                17.1.1

              	
                By
      reporting in the MAGNA system of the Securities Authority; the Trustee is
      allowed to instruct the Company and the Company will be required to report
      forthwith in the MAGNA system on behalf of the Trustee any report in the
      format as forwarded in writing by the Trustee to the Company); and
      by

              
	 	 	 	 
	 
      	 
      	
                17.1.2

              	
                A
      notice that will be published in two widely distributed daily newspapers
      that are published in Israel in Hebrew;

              
	 	 	 	 
	 
      	
                17.2

              	Any
      notice or demand from the Trustee to the Company may be given by a letter
      that is sent by registered mail to the address stated herein, or to any
      other address that the Company informs the Trustee of in writing, or by
      transmission by facsimile or by courier and any such notice or demand will
      be considered as having been received by the Company: (1) in the case of sending by registered mail – three business days
      from the day of mailing thereof; (2) in the case of transmission by
      facsimile (along with a telephone check of receipt thereof) – one business
      day from the day of its transmission; (3) and in the case of sending by
      courier – upon its delivery by the courier to the addressee or the
      offering thereof to the addressee for receipt, as relevant.
	 	 	 	 
	 
      	
                17.3

              	Any
      notice or demand from the
      Company to the Trustee may be given by a letter that is
  

      

       

      
        
          
          

        

        
          -42-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	sent by registered mail to the address stated herein, or to another
      address that the Trustee informs the Company of in writing, or by
      transmission by facsimile or by electronic mail (“email”) or by courier
      and any such notice or demand will be considered as having been received
      by the Trustee: (1) in the case of sending by registered mail – three
      business days from the day of mailing thereof; (2) in the case of
      transmission by facsimile or by email (along with a telephone check of
      receipt thereof) or sending by courier – upon its delivery by the courier
      to the addressee or the offering thereof to the addressee for receipt, as
      relevant.
	 	 	 
	 
      	
                17.4

              	Copies
      of notices and invitations that the Company gives to the Debenture Holders
      will also be sent by the Company in an Immediate Report, a copy of which
      will be given to the Trustee.

      

       

      

      
        
          
          

        

        
          -43-

          
            

          

        

        
          
          

        

      

       

      
        	
                Cellcom
      Israel Ltd.

              

      

       

      
        	
                Second
      Addendum

              

      

       

      
        	
                Meetings of the
      Debenture Holders (Series D)

              

      

       

      
        	
                1.

              	Calling
      of Meetings of the Debenture Holders:
	 	 
	 
      	
                1.1

              	
                The
      Trustee or the Company may call a Meetings of the Debenture Holders. If
      the Trustee and/or the Company calls such a Meeting, they must send
      immediately a written notice to the Trustee and/or the Company, as
      relevant, regarding the site, the day and the time on which the Meeting
      will be held and on the matters to be brought for discussion therein, and
      the Trustee or the Company, as the case may be, or a representative
      thereof, will be entitled to participate in such a Meeting without them
      having a voting right. The Company will be required to call a general
      meeting by written request of the Trustee or of the Debenture Holders
      holding at least ten percent 10%) of the unsettled balance of the
      principal of the Debentures in circulation, as relevant. The Trustee shall
      be required to call such a Meeting, at the written request of the Holders
      of at least ten percent (10%) of the par value of the unsettled balance of
      the principal of the Debentures in circulation. If the parties asking to
      call the Meeting are the Debenture Holders, the Company and/or the
      Trustee, as relevant, are entitled to demand from the requesting parties
      indemnification for the reasonable expenses involved
    therein.

              
	 	 	 
	 
      	
                1.2

              	
                Fourteen
      (14) days advance notice will be given of each Meeting of the Debenture
      Holders, which will elaborate the place, the day and the time of the
      Meeting, and will indicate in general the subjects that will be discussed
      in the meeting. The Trustee is allowed, at its discretion, to shorten the
      duration of the advance notice if it sees that a deferral in calling the
      Meeting will cause material infringement of the rights of the Debenture
      Holders.

              
	 	 	 
	 
      	
                1.3

              	
                In
      case of the purpose of the Meeting being a discussion and adopting a
      special resolution as defined in Section 2.4 and 2.10 of this addendum
      hereinafter, the notice will elaborate, in addition to the foregoing, the
      principle of the proposed decision. No resolution that has been duly
      adopted in a Meeting thus called will be disqualified if notice is not
      given, erroneously to all of the Debenture Holders, or if such notice has
      not been received by all of the Debenture Holders.

              
	 	 	 
	 
      	
                1.4

              	
                Any
      such notice from the Company and/or the Trustee to the Debenture Holders
      will be given by a notice that is published in two (2) widely distributed
      daily newspapers that are published in Israel in Hebrew. In addition, an
      immediate report will be given by the Company. Any notice that is
      published as stated above will be considered as

              

      

       

      
        
          
          

        

        
          -44-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	having
      been given to the Debenture Holders on the day of its publication as
      above.
	 	 	 
	
                2.

              	Meetings
      of the Debenture Holders:
	 	 	 
	 
      	
                2.1

              	
                The
      chairman of the Meeting will be a person who will be appointed by the
      Trustee. If the Trustee has not appointed a chairman or he is absent from
      the Meeting for half an hour from the determinant time for holding the
      Meeting, the attending Debenture Holders will choose a chairmen from among
      their number.

              
	 	 	 
	 
      	
                2.2

              	
                A
      Meeting of the Debenture Holders will be opened after it is proved that
      there is the legal quorum for starting the discussion
    present.

              
	 	 	 
	 
      	
                2.3

              	
                Subject
      to the legal quorum that is required in a Meeting that is convened for
      adopting a special resolution, and subject to the legal quorum that is
      required for the dismissal of a trustee pursuant to the Securities Law,
      two Debenture Holders who are attending by themselves or by proxy and
      together holding or representing at least a tenth (1/10) of the unsettled
      balance of the Debentures in circulation at that time will constitute a
      legal quorum.

              
	 	 	 
	 
      	
                2.4

              	
                A
      special resolution of the Debenture Holder Meeting will be required on the
      following issues (“Special
      Resolution”):

              

      

       

      
        	 	 
      	
                2.4.1

              	
                A
      change and/or amendment to the Deed of Trust, in the case of this
      requiring a resolution of a general Meeting pursuant to the Deed of
      Trust

              
	 	 	 	 
	 	 
      	
                2.4.2

              	
                Any
      amendment, change and/or arrangement of rights of the Debenture Holders,
      whether these rights result from the Debenture, the Deed of Trust or
      otherwise, or any settlement or waiver concerning these rights, in the
      case of a decision of a general meeting being required for this purpose
      pursuant to the Deed of Trust.

              
	 	 	 	 
	 	 
      	
                2.4.3

              	
                Calling
      the Debentures for immediate repayment, in accordance with the terms of
      the Deed of Trust.

              

      

       

      
        	 
      	
                2.5

              	
                In a
      meeting that is called for adopting a Special Resolution a legal quorum
      will be constituted – if Holders of at least fifty percent (50%) of the
      unsettled balance of the Debentures in circulation at that time are
      present in the general meeting, or in a deferred meeting, if Holders of at
      least ten percent (10%) of the said balance are
present.

              
	 	 	 
	 
      	
                2.6

              	
                If
      within an half an hour of the time set for starting a Meeting, no legal
      quorum is present, the Meeting will be deferred to the same day in the
      following week (and in the case of this day not being a Business Day to
      the Business Day immediately following it) to the same place and time,
      without there being a duty to announce this to the Debenture Holders, or
      to another day, place and time, as chosen by the inviting party,
      

              

      

       

      
        
          
          

        

        
          -45-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	which
      it will announce to the Debenture Holders at least three (3) days in
      advance. If no legal quorum is found in a Meeting thus deferred, half an
      hour after the time established for starting the Meeting, two (2)
      Debenture Holders attending by themselves or by proxy, regardless of the
      par value held thereby, will constitute a legal quorum, and other than the
      legal quorum required for adopting a special resolution, provided that the
      instruction determining the legal quorum as above is published within the
      notice of the original Meeting, provided that the notice to the Debenture
      Holders of the holding of the deferred Meeting is announced in accordance
      with the provisions of Section 1 hereto above, by no later than seven (7)
      days before the date of holding the deferred Meeting. Such a notice may be
      published within the notice of the original meeting (the general Meeting
      that was deferred).
	 	 	 
	 
      	
                2.7

              	
                Other
      than the foregoing, a Debenture Holder will not be entitled to receive any
      notice of a deferred Meeting and/or of matters that will be discussed in
      the deferred Meeting. Only matters that may be discussed in a Meeting will
      be discussed in a deferred Meeting.

              
	 	 	 
	 
      	
                2.8

              	
                With
      the consent of a majority in a Meeting in which a legal quorum has
      attended, the chairman is allowed, and at the demand of the Meeting is
      compelled, to defer the continuation of the Meeting from time to time and
      from place to place, as the Meeting decides. If the continuation of the
      Meeting is deferred by ten (10) days or more, a notice of the continued
      Meeting will be given by way of publishing an immediate report in the
      MAGNA system only.

              
	 	 	 
	 
      	
                2.9

              	
                In
      the vote, each Holder who is present in person or by proxy will have one
      vote for each NIS 1 par value of the total specified unpaid principal of
      the Debentures by which he may vote.

              
	 	 	 
	 
      	
                2.10

              	
                Each
      resolution will be adopted by a counting of votes. The majority that is
      required for a regular resolution is a regular majority of the number of
      votes represented in the vote of the Meeting (except abstainers). The
      majority that is required for a Special resolution in such a Meeting is a
      majority of not less than 75% of the number of votes represented in such a
      vote (except abstainers).

              
	 	 	 
	 
      	
                2.11

              	
                An
      appointment letter that appoints a proxy will be in writing and will be
      signed by the appointer or by the proxy thereof who is duly authorized to
      do so in writing. If the appointer is a corporation, the appointment will
      be made in writing and will be signed by the stamp of the corporation,
      along with the signature of the secretary of the corporation or the
      advocate of the corporation who has the authority to do so. The
      appointment letter of a proxy will be made out in any generally accepted
      form. A proxy is not required to be a Debenture Holder by himself. The
      appointment letter and the power of attorney or the other certificate by
      which the appointment letter is made out

              

      

       

      
        
          
          

        

        
          -46-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	or
      an approved copy of such a power of attorney will be deposited in the
      registered office of the Company or at another address that the Company
      announces not less than forty eight (48) hours before the time of the
      Meeting for which the power of attorney has been given, unless otherwise
      determined in the notice calling the Meeting. The appointment letter will
      also be valid concerning any deferred Meeting of a Meeting that the
      appointment letter relates to, unless stated otherwise in the appointment
      letter. A vote that is made in accordance with the terms in the document
      appointing a proxy will also be valid if the appointer has passed away or
      been declared legally incompetent or if the appointment letter is
      cancelled or the Debenture that the vote has been given for is transferred
      prior to the vote, unless a written notice of the death, decisions of
      legal incompetence, cancellation or transfer, as relevant, received at the
      registered office of the Company before the Meeting. 
	 	 	 
	 
      	
                2.12

              	
                Any
      corporation that owns a Debenture may, by duly signed written
      authorization, empower a person as it deems fit to act as its
      representative in any Meeting of the Debenture Holders, and the person who
      has been authorized will be allowed to act on behalf of the corporation
      that he represents.

              
	 	 	 
	 
      	
                2.13

              	
                Any
      proposal for a resolution that is put to the vote in a Meeting of Holders
      will be decided by a show of hands, unless a vote using a ballot box is
      demanded by the chairman or by at least two (2) Debenture Holders, who are
      present by themselves or by their proxy, whether a vote was made
      previously with a raise of hands or thereafter and the vote by ballot box
      will prevail. In the case of joint Holders, only the vote of the more
      senior Holder wishing to vote will be accepted, whether by himself or by
      his proxy, for which purpose seniority will be determined by the order in
      which the names are listed in the Register of Holders.

              
	 	 	 
	 
      	
                2.14

              	
                The
      Trustee shall not have a right to vote in a Meeting of the Debenture
      Holder.

              
	 	 	 
	 
      	
                2.15

              	
                In a
      vote, a Debenture Holder or the proxy thereof is allowed to vote with some
      of its votes in favor of a proposal that is being discussed, and with some
      against the proposal, as it deems fit.

              
	 	 	 
	 
      	
                2.16

              	
                Declaration
      of the chairman of the Meeting concerning adopting or rejecting a
      resolution and recording of this matter in the minutes book will serve as
      prima facie
      evidence of this fact.

              
	 	 	 
	 
      	
                2.17

              	
                The
      chairman of the meeting will have a minute of the Meeting of the Debenture
      Holders prepared which shall be written in the book of minutes. Each such
      minutes will be signed by the chairman of the meeting or by the chairman
      of the Meeting held thereafter, and all minutes thus signed will serve as
      conclusive testimony of the proceedings in the Meeting, and as long as it
      is not proved otherwise, any resolution

              

      

       

      
        
          
          

        

        
          -47-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	adopted
      in such a Meeting will be considered as having been duly
  adopted.
	 	 	 
	 
      	
                2.18

              	
                A
      person or persons who are appointed by the Trustee, the secretary of the
      Company and any other person or persons authorized by the Company will be
      allowed to be present in Meetings of the Debenture Holders without a
      voting right.

              
	 	 	 
	 
      	
                2.19

              	
                Debentures
      held by an Affiliated Company will not grant their Holders a voting right
      in the general meeting of the Debenture Holders, but they will be
      considered for determining the legal quorum in the general meeting, except
      Debentures that will be held by an Affiliated Company that is an investor
      that is one of the investors listed in the first addendum to the
      Securities Law (concerning Section 15A(B)(1) of the Law) that is not
      investing for itself (an "Affiliated Institutional Investor”), which will
      grant voting rights in a meeting of the Debenture Holders. At the time of
      holding the Meeting of the Debenture Holders, the Trustee shall check for
      conflicting interests among the Debenture Holders in accordance with the
      circumstances at hand and the need for calling Class Meetings in cases in
      which there are differing interests among the Debenture Holders, in
      accordance with the circumstances at hand. The Company and the Trustee
      shall act to call Class Meetings of the Debenture Holders in accordance
      with the provisions of the law, the provisions of the Securities Law and
      the Regulations and promulgated there under. In the case of holding Class
      Meetings, approval of a resolution requires approval in each of the Class
      Meetings that are called, and in the Meeting of all of the Holders
      Debentures, with the majority that is required by the provisions of the
      Deed of Trust and the appendices
thereof.

              

      

       

      -48-

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