Document:

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                                                                    Exhibit 4.22

                           HOTEL MANAGEMENT AGREEMENT

This HOTEL MANAGEMENT AGREEMENT ("AGREEMENT") is made and entered into as of the
date specified in EXHIBIT A attached hereto, by and between the parties
identified in EXHIBIT A as "OPERATOR", "LEASEE" and "OWNER" respectively.

     RECITALS OF FACT

          (A)  Golden Wall Investment Ltd. has the exclusive rights and license
               to use and exercise all rights vested in and derived from the
               trade name and trade mark known as Park Plaza (the "MARK"), all
               as specified in and pursuant to a certain Territory License
               Agreement dated 30 September 2002 by and among Park Global
               Holding, Inc., on the first part, and Golden Wall Investment
               Ltd., on the second part (the "2002 TLA"); and

          (B)  As of January 2003, Golden Wall Investment Ltd. granted Operator
               an exclusive sub-license to use the Mark in the Territory, which
               includes inter alia England, pursuant to which Operator has full
               right to manage and market hotels under the Park Plaza Worldwide
               Hotel Management and Franchise System (the "System"), which
               System includes the right to use the name "Park Plaza" and the
               trademarks associated with such name, to use the System's
               international marketing and reservation facilities, and to draw
               upon the technical assistance, training, and management resources
               of Park Plaza Worldwide Hotel Group; and

          (C)  Owner is the owner of the real property located at and described
               in EXHIBIT B attached hereto (the "PROPERTY") upon which there is
               constructed an hotel described in EXHIBIT B (the "HOTEL"); and

          (D)  Owner has leased the Property and Hotel to the Leasee; and

          (E)  Operator's has extensive know-how, experience and expertise in
               the management and operation of 4 & 5 stars class hotels, and has
               available to it qualified personnel to render hotel management
               and operation services.

          (F)  Leasee wishes to engage the services of Operator for the
               management, operation and marketing of the Hotel ("SERVICES").

     NOW, THEREFORE, incorporating the above recitals as though fully set forth,
     and in consideration of the mutual covenants, promises, and obligations set
     forth below, the parties hereto agree as follows:

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                             ARTICLE I : THE HOTEL

1.   THE HOTEL

     1.1. The word "HOTEL" will be used in this Agreement to refer collectively
          to the following :

          1.1.1. the Property comprising the site of the Hotel, as more
               particularly described in EXHIBIT B;

          1.1.2. all of the Hotel buildings and all related installations and
               building systems and facilities as more particularly described in
               Exhibit B;

          1.1.3. the "OPERATING EQUIPMENT" of the hotel, consisting of all
               tools, uniforms, china, glassware, linen, silverware, and other
               similar items used in connection with the operation of the Hotel,
               dining room accessories, kitchen utensils, engineering tools and
               equipment, housekeeping utensils and miscellaneous equipment and
               accessories;

          1.1.4. the "Operating Supplies" of the Hotel, consisting of all
               immediately consumable items used in connection with the
               operation of the Hotel such as food and beverages, cleaning
               materials, matches, stationery, and other similar items;

          1.1.5. the "FF&E" of the Hotel, consisting of all furniture and
               furnishings, fixtures, and equipment used in connection with the
               operation of the Hotel (but excluding the Operating Equipment and
               the Operating Supplies), including : (a) any items contained
               within the walls and ceilings of the structure (which are deemed
               to be part of the Hotel building); (b) all furniture and
               furnishings, which shall include guest room, office, public area,
               and other furniture, carpeting, draperies, lamps and other items;
               (c) kitchen and valet shop equipment; (d) all equipment required
               for the operation of guest rooms (including television, mini-bars
               and safes), banquet rooms, employee locker rooms, and a health
               club (where relevant); (e) office equipment, including computer
               hardware and software as selected by Operator;

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               (f) dining room wagons; (g) material handling equipment; (h)
               cleaning and engineering equipment;

2.   TITLE TO HOTEL:

     2.1. Owner agrees that, subject to the provisions of Paragraph 2.3 below,
          it now has and will hold for the Term of this Agreement, full title to
          the Hotel.

     2.2. Leasee will, at its expense, make all reasonable efforts, including
          litigation if necessary, to enable Operator to peaceably perform its
          management, consulting and marketing services consistent with the
          terms of this Agreement.

     2.3. Nothing in this Paragraph 2 contained shall be deemed to derogate from
          or restrict the free and unfettered rights of Owner :

          2.3.1. to sell, transfer or otherwise dispose of its rights and
               interests in and to the Property and/or the Hotel, subject to
               Operator's rights as specified in Paragraph 50.3 below; and

          2.3.2. To charge, mortgage or otherwise encumber its rights and
               interests in and to the Property and/or the Hotel (in addition to
               those which are recorded and registered in favor of any party as
               at the date hereof and of which Operator has been made aware),
               provided that any such liens, encumbrances, exceptions,
               covenants, and charges do not materially or adversely affect the
               operation of the Hotel and/or Operator's rights and/or the
               ability of Operator to reasonably fulfill its obligations under
               this Agreement.

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                                   ARTICLE II

                              TERM OF THE AGREEMENT

3.   TERM OF THE AGREEMENT

     Initial Term

     3.1. The "INITIAL TERM" of this Agreement will commence on October 1st,
          2004 (hereinafter referred to as the "COMMENCEMENT DATE") and will
          continue uninterrupted until midnight on December 31st, 2019.

     3.2. Each contract year in terms of this Agreement shall be a calendar year
          commencing on January 1st and expiring on December 31st of that year.
          The first contract year in terms of this Agreement commenced on
          October 1st 2004 and expire on December 31st 2004.

     Extended Term

     3.3. The Term of this Agreement shall be automatically extended for a
          further period of 10 (ten) years commencing on January 1st 2020 and
          terminating on December 31st 2030 (hereinafter "THE EXTENDED TERM"),
          unless either party shall serve notice on the other party that it does
          not intend to renew the term of this Agreement for the Extended Term.
          Such notice shall be furnished in writing by not later then January
          1st 2019.

     Usage of "Term"

     3.4. Subject to the provisions of Paragraph 3.3 above, the expression "the
          Term" wheresoever used in this Agreement shall be deemed to apply to
          both the Initial Term and the Extended Term, mutatis mutandis.

     Reservation of Rights

     3.5. Nothing in this Paragraph 3 contained shall be deemed to derogate from
          the rights of either party to terminate this

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          Agreement in accordance with the provisions of Article XIII below.

                                   ARTICLE III

                         USE AND OPERATION OF THE HOTEL

4.   APPOINTMENT OF OPERATOR:

     4.1. Leasee hereby engages Operator for the Initial Term as its exclusive
          agent for purposes of the management and operation of the Hotel, and
          for purposes of directing and managing all advertising, promotion,
          marketing, sales, and reservations for the Hotel, all in accordance
          with the System.

     4.2. In the event that the Term of this Agreement is extended to include
          the Extended Term in accordance with the provisions of Paragraph 3.3
          above, then and in such event the appointment of the Operator in terms
          of Paragraph 4.1 above shall apply equally to the Extended Term.

     4.3. Operator will have for the purpose of performing its duties under this
          Agreement and within the limits of this Agreement the right and the
          duty to manage, supervise, direct, and control Leasee's employees,
          agents, suppliers, contractors and all operations of and relating to
          the Hotel, the management thereof and its promotion, marketing, and
          reservations, and will have full control and discretion with respect
          to all the aforesaid, all within the scope of this agreement.

     4.4. For the avoidance of doubt, it is hereby clarified that,
          notwithstanding anything to the contrary stipulated in this agreement,
          the carrying of the business of the Hotel and the Hotel's operations,
          including the advertising, promotion, marketing, sales and
          reservations, shall be performed by Operator by directing, supervising
          and inspecting the business and operations of the Hotel doing so as
          agent of Leasee, at Leasees cost and expense, through the Leasee's
          employees and with Leasees resources under the management,
          supervision, direction and control of the Operator. Whenever using in
          this agreement the expression "Operator shall operate" or Operator
          shall

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          manage" it shall mean doing so in the manner stipulated in this
          section.

5.   OPERATOR'S SERVICES AND AUTHORITY:

Operator will provide its Services to the best of its ability and act as
necessary to ensure that the Hotel staff uses and operates the Hotel within the
System and in conformity with its standards, and in the provision of such
services will have, inter alia, the following duties and authorities:

     A.   to use all reasonable efforts to maximize patronage of the Hotel's
          facilities;

     B.   to provide corporate marketing, sales, advertising, and if
          appropriate, group and convention sales, marketing, and reservation
          services, publicity and public relations, departmental supervision,
          and other services and facilities customarily offered by Hotels chain
          operators;

     C.   to cause the Hotel staff to use all reasonable efforts to collect all
          charges, rents, and other amounts due from Hotel guests, patrons,
          tenants, subtenants, concessionaires, and all others, which efforts
          shall include, where necessary or desirable, the following -

          (I)  demanding and giving receipts for charges, rents, and other
               amounts due;

          (II) giving notice to quit or surrender space occupied or used by the
               party in question;

          (III) suing for and instituting summary proceedings in the name of
               Leasee and Owner in connection with any amounts due;

     D.   to direct the establishment of a policy regarding association with any
          credit card system in conformity with Operator's general policy on
          that subject and to arrange for association with all major credit card
          systems;

     E.   to establish and maintain bank accounts, accounting records, and books
          as set forth in Article V below;

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     F.   to supervise and direct the recruiting, employment, compensation,
          promotion, supervision, and discharge on Leasee's behalf, of all Hotel
          employees;

     G.   to cause the appropriate Hotel employees:

          (I)  to negotiate, on Leasee's behalf and with Leasee's consultation,
               with any labor union lawfully entitled to represent any Hotel
               employees;

          (II) to arrange in Leasee's name for utility, telephone, vermin
               extermination, detective agency protection, trash removal, and
               other services necessary for the operation of the Hotel;

          (III) to purchase on the credit of Leasee and pay for out of the
               Hotel's accounts all equipment, all food, beverages, Operating
               Supplies and expendables, and such other services and merchandise
               as are necessary or proper for operation of the Hotel and to
               enter into contracts in the name of Leasee with respect to all
               goods and services for Hotel;

          (IV) to make all purchases and provide for all services, materials,
               Operating Equipment, FF&E, and provisions all for Leasee's
               account;

          (V)  to maintain and repair or provide for the maintenance and repair
               of the Hotel;

          (VI) to grant concessions for services customarily subject to
               concession in hotels, if desirable in Operator's opinion;

          (VII) to determine and set all rates and charges for rooms, food and
               beverage service, and other facilities at the Hotel;

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          (VIII) to commence such legal actions or proceedings concerning the
               Hotel as are necessary or required in the opinion of Operator to
               advise Leasee of the commencement of any legal action or
               proceeding concerning the Hotel, and in connection therewith, to
               retain counsel satisfactory to Leasee;

          (IX) to settle and compromise claims where appropriate in Operator's
               opinion, provided that settlement of any claim in excess of
               US$50,000 shall be with Leasee's consent.

     H.   to periodically make available its personnel for the purpose of--

          (I)  reviewing plans and specifications for any alteration of the
               Hotel premises,

          (II) assisting in the replacement of FF&E, including the design and
               quantities required,

          (III) eliminating in general, operating problems, and

          (IV) improving operations;

     I.   in cooperation with Leasee, to cause all such other things to be done
          within its reasonable control in and about the Hotel as are necessary
          to ensure compliance with -

          (I)  all statutes, ordinances, laws, rules, regulations, orders, and
               requirements of any federal, state, or local government and
               appropriate departments, and

          (II) the orders and requirements of any local board of fire
               underwriters or any other body which may exercise similar
               functions; provided that either Operator or Leasee shall have the
               right to contest by legal proceedings,

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               until final determination, the validity or application of any
               such statute, ordinance, law, rule, regulation, order, or
               requirement to the extent and in the manner provided or permitted
               by law.

     J    arrange the insurance policies to be maintained by Leasee pursuant to
          section 35 below and maintain itself insurance policies to be
          maintained by Operator pursuant to section 36 below and to comply with
          the terms of all applicable insurance policies.

     K    generally, to render any such services as are reasonably to be implied
          from the scope and nature of the management and operation services to
          be provided in terms of this Agreement in respect of the Hotel,
          notwithstanding that same are not specifically mentioned hereinabove.

6.   CENTRAL AND REGIONAL OFFICE SERVICES.

     Operator shall provide administrative services in support of the Hotel,
     including general supervision, consultation, planning, monitoring
     compliance with the sub license agreement, corporate finance, personnel and
     employee relations, research and development, and the services of
     Operator's technical, operational and marketing experts making periodic
     inspections and consultation visits to the Hotel.

     Operator shall also provide various marketing services and advertising.

     (All the said services shall herein be called "CENTRAL OFFICE SERVICES").

     The Central Office Services shall be rendered to the Hotel together with
     the other hotels operated by Operator in any respective year by Operators
     regional and central offices.

     All the cost of the performance of the Central Office Services, including
     all the employment costs of the personnel employed in the performance of
     the Central Services and all the general and administrative costs to be
     incurred in connection to the performance

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     of the Central Services shall, weather incurred by any of the hotels
     operated by Operator or by Operator, shall be born and defrayed by the
     hotels operated by Operator so that Operator shall be fully reimbursed for
     all these costs. Leasee shall bear its pro rata share of such cost as shall
     be budgeted in the Annual Budget.

     Notwithstanding the aforesaid, the cost of employment of the CEO of
     Operator and maintaining his office shall be born by Operator without
     reimbursement from the Hotel or the other hotels operated by Operator.

7.   LEASEE'S OBLIGATIONS

     7.1. Leasee will appoint from time to time an individual to act as Leasee's
          representative, to whom Operator will direct all communications,
          information, and reports.

     7.2. Throughout the Term of this Agreement, Leasee -

          7.2.1. will where necessary provide funds in excess of those generated
               from operations to pay for all items necessary to fully operate
               and maintain the Hotel and to comply with the terms of this
               Agreement, including the payment of all mortgage or other
               indebtedness, taxes, and insurance; and

          7.2.2. will provide at all times working capital sufficient to assure
               the uninterrupted and efficient operation of the Hotel, the
               amount of which shall not exceed in any event a sum equal to the
               average expenses to be incurred over the next 3 (three) months,
               in accordance with the then in effect Approved Budget, as
               provided in Paragraph 19 below.

8.   STANDARDS AND CONTROL OF OPERATION.

     Standards of Operation.

     8.1. Operator shall operate the Hotel under standards required in terms of
          the System and those comparable to standards prevailing in hotels of
          the same grading as the Hotel which are operated in accordance with
          the System and under the Trade Name and for all activities in
          connection therewith which are customary and usual to such an
          operation. Operator shall conduct such operations in accordance with
          the laws of the Territory in which the Hotel is

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          located and, insofar as feasible and in its opinion advisable, local
          character and traditions.

     Control of Operation.

     8.2. Subject to the terms and conditions of this Agreement, Leasee hereby
          grants to Operator: (a) the exclusive and irrevocable right to manage
          and operate the Hotel for and on behalf of Leasee; and (b) complete
          control and discretion in the operation and management of the Hotel.

9.   LEASES AND CONCESSIONS

     9.1. Operator shall operate in the Hotel all facilities and provide all
          services and shall not lease or grant concessions in respect of such
          services or facilities, except that Operator shall have the right in
          its own name as agent for and on behalf of Leasee or, if appropriate,
          in the name of Leasee (who shall execute the necessary documents upon
          request of Operator), to lease or grant concessions in respect of
          specified commercial spaces or services within the Hotel that are
          customarily subject to lease or concession in comparable hotels. The
          rentals or other payments received by Operator and on behalf of Leasee
          or by Leasee under each such lease or concession shall be included in
          the Operating Revenues.

10.  CONSULTATIONS WITH LEASEE.

     10.1. Within thirty (30) days following :

          10.1.1. delivery of the Annual Budget by Operator to Leasee in terms
               of Paragraph 19 below; and/or

          10.1.2. Leasee's receipt of the profit and loss and quarterly
               financial statements for the periods ending March 31, June 30,
               September 30 and December 31 of each contract year during the
               Term in accordance with the provisions of Paragraph 20.4.1 below;

     10.2. Operator shall, at Leasee's request, make available one of its
          executives to explain and discuss with Leasee the contents of such
          Annual Plan and/or the said profit and loss statements. Operator
          undertakes to implement Leasee's opinions and recommendations in that
          regard.

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11.  OPERATOR'S RIGHT TO CONTRACT

     11.1. In order to carry out its duties under this Agreement, Operator shall
          have the right, in the name of Leasee or in its own name as agent for
          and on behalf of Leasee to incur expenses and to enter into contracts
          with third parties in the ordinary course of business of the Hotel,
          which contracts shall include, without limitation, contracts for sales
          of rooms, food and beverages and other facilities of the Hotel; the
          purchase of food and beverages and Operating Supplies; employment of
          personnel, advertising and business promotion; repairs and
          maintenance; administration, heat, light and power; insurance, legal
          and accounting services; and other goods and services. Pursuant to
          Paragraph 25 below, all amounts due and payable to the suppliers of
          goods and services in accordance with the terms of such contracts
          shall be paid from the Operating Account.

     11.2. Notwithstanding the foregoing, Operator shall not enter into any
          contract on behalf of Leasee that does not, by its terms, terminate
          simultaneously with or prior to the expiration or earlier termination
          of this Agreement.

     11.3. Operator shall consult with Leasee with respect to suppliers for
          goods and services required in the ordinary course of business of the
          Hotel and shall consider in good faith Leasee's recommendations.

12.  AGENCY RELATIONSHIP.

     12.1. In the performance of its duties as manager and operator of the
          Hotel, Operator shall act solely as agent for and on behalf of Leasee.
          Operator and Leasee are not to be regarded as joint venture partners.

          During the Term and the Extended Term, if applicable, the Operator
          shall be deemed to have granted the Leasee a sub-license for the right
          to use the Trade Name, designations and other distinctive trademarks
          of the System as detailed below in Article XII below.

13.  EMPLOYEES OF THE HOTEL.

     13.1. Each employee of the Hotel, including the General Manager, shall be
          the employee of Leasee and/or of Leasee's personnel management
          company, but not of Operator. Operator shall not be liable to such
          employees for their wages or compensation, and

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          every person performing services on behalf of the Hotel in connection
          with this Agreement shall be acting on behalf of Leasee. On Leasee's
          behalf, Operator will recruit, hire, train, reassign, and discharge
          the Hotel staff. Leasee, with Operator's assistance, will comply with
          all applicable laws and regulations concerning employment of the Hotel
          employees.

14.  THE GENERAL MANAGER.

     14.1. The parties understand that Operator shall have the right to nominate
          the General Manager of the Hotel, subject to Leasee's rights of
          approval in terms of Paragraph 14.3 below. The General Manager to be
          employed by Leasee and/or by Leasee's personnel company, and shall :

          14.1.1. be familiar with Operator's method of hotel operation;

          14.1.2. be furnished with Operator's policies and systems and
               procedures manuals from time to time in effect; and

          14.1.3. have his major activities reviewed and supervised by Operator
               while he shall retain full autonomy to make day-to-day decisions
               with respect to such operations.

     14.2. To such purpose, Leasee shall grant such power of attorney to said
          General Manager as shall be required. Any employment contract entered
          into between Operator, as agent of Leasee and said General Manager
          shall, by its terms, terminate upon the expiration or earlier
          termination of this Agreement.

     14.3. Leasee shall have the right to approve the appointment of the General
          Manager, which approval shall not be unreasonably withheld or delayed.
          Subject to the Operator's approval, which approval shall not be
          unreasonably withheld or delayed, the Leasee shall also have the right
          to request that the General Manager be replaced.

15.  OPERATOR'S MANAGEMENT MANUALS.

     15.1. The parties understand further that all of Operator's management
          manuals including, but not limited to, policies and procedures,
          operations, accounting and training, which are furnished by Operator
          in connection with its management of the Hotel are and shall be at all
          times, without further act or action, the exclusive property of Park
          Global Holdings, Inc., Golden Wall Investments Ltd. and/or Operator,
          who shall have the right to remove such

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          management manuals from the Hotel upon the expiration or earlier
          termination of this Agreement.

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16.  INFORMATION:

     16.1. The Leasee shall be entitled to receive information, clarifications
          and any pertinent detail at any reasonable time concerning any matter
          related to this Agreement and/or to the operation and management of
          the Hotel from the Operator's senior officers. Requests for
          clarifications shall be transferred to the Operator with a copy to the
          Hotel Manager, and shall be promptly addressed.

17.  RIGHT OF INSPECTION AND REVIEW

     17.1. The duly authorized officers, accountants, employees, agents, and
          attorneys of Leasee shall have the right, upon reasonable notice to
          the General Manager, to enter upon any part of the Hotel at all
          reasonable times during the Term for the purpose of examining or
          inspecting the Hotel or examining or making extracts from the
          operational books and records, or for any other purpose which Leasee,
          in its sole discretion, shall deem necessary or advisable.

18.  FINANCIAL RESPONSIBILITY

     18.1. All debts, liabilities, obligations, and expenses arising from the
          business and operation of the Hotel are those of the Leasee and are to
          be paid by the Leasee. In no event will Operator be required to bear
          any loss, cost, or expense, or advance any of its funds for the
          operation or maintenance of the Hotel, save where it has: (a)
          negligently exceeded the Approved Budget or (b) exceeded the powers
          and authorities awarded to it in terms hereof. Subject to the
          preceding provisos, Operator will be entitled to prompt reimbursement
          of any sums actually advanced by it, together with interest as
          provided for in Article X below.

19.  ANNUAL BUDGET

     19.1. Thirty (30) days prior to the commencement of each contract year,
          Operator will submit to Leasee for its approval an annual budget in a
          form reasonably acceptable to Leasee (the "ANNUAL BUDGET"). The Annual
          Budget will be in the form attached as EXHIBIT F.

     19.2. If Leasee shall disapprove of the proposed Annual Budget presented by
          Operator or any part of it, then Leasee shall specify the reasons for
          its disapproval and Operator shall, after consultation with Leasee
          submit to Leasee an amended proposed budget or part thereof within 14
          (fourteen) days, in form and content which are satisfactory to Leasee.
          The foregoing procedure

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          shall be followed until the Annual Budget is fully approved by Leasee
          or until such time as any of the Parties will chose to refer the
          differences with Leasee to an Umpire ("UMPIRE") to be agreed between
          the parties. If the parties shall fail to appoint the Umpire within 21
          days from notice of either of them requesting the appointment, the
          Umpire shall be appointed by whoever at that time shall act as the
          chairman of the Carlson Group. Until such time as the new proposed
          Annual Budget is approved by the Leasee, the portion approved, if any,
          shall become effective and the Annual Budget of the previous contract
          year, adjusted to reflect changes, if any, in the room occupancy of
          the Hotel compar to the room occupancy in the previous contract year,
          shall remain in effect until the approval of the proposed Annual
          Budget by the Leasee.

     19.3. As to projected revenues and operating expenses, Operator will use
          its best efforts to cause the Hotel to perform financially in
          accordance with the Annual Budget; however, Leasee acknowledges that
          the Annual Budget consists of projections and assumptions which are in
          large measure beyond the control of the Hotel employees and Operator.

     19.4. Notwithstanding the above, the Parties shall meet periodically at a
          time and place designated by the Leasee, for the purpose of reviewing
          the Hotel's operation, including profit and loss and quarterly
          financial statements, Operator's performance, capital expenditures and
          for making any revisions to the approved Annual Budget. In such
          meetings or following such meetings Leasee shall have the right to
          request that certain actions, which the Leasee will deem necessary in
          the circumstances, will be undertaken in connection to the Hotel
          operations.

     19.5. If at any time during the Initial Term or the Extended Term of this
          Agreement circumstances shall arise, that in the opinion of Operator
          may cause material negative deviation of the actual results of the
          Hotel operations in comparison to the current approved Annual Budget -
          Operator shall give notice in writing to Leasee of such circumstances.
          With said notice Operator shall produce to Leasee, for Leasee's
          approval, action plan which shall contain Operator's recommendations
          on the actions that should be undertaken in the Hotel operations to
          mitigate the circumstances.

     19.6. Leasee and Operator will make all efforts to agree on the actions
          requested by Leasee pursuant to Paragraph 19.4 and/or the action plan
          proposed by Operator pursuant to Paragraph 19.5 above. If, after
          consultation, Operator and Leasee shall fail to agree on any

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          action requested by Leasee pursuant to Paragraph 19.4 above or any
          action proposed by Operator pursuant to Paragraph 19.5 above, either
          Leasee or Operator may chose to refer the matter to the Umpire, as
          provided for in Paragraph 19.2 above, and his decision shall be final
          and binding.

     19.7. Default by Operator to perform material action set out in an agreed
          action plan under Paragraph 19.4 or 19.5 above, and/or in action plan
          confirmed by the Umpire, which shall not be cured by Operator within
          60 days from notice of Leasee requesting such cure shall be deemed a
          breach which shall constitute event of default which shall grant
          Leasee right of early termination pursuant to Paragraph 45 below.

     19.8. Notwithstanding anything to the contrary stipulated in this agreement
          Operator's authority to incur expenditures on behalf of Leasee
          relating to any given month shall be limited to 115% of the current
          approved Annual Budget increased or decreased in the same rate as the
          occupancy of rooms in the Hotel increased or decreased in comparison
          to the approved Annual Budget for the respective month.

20.  FISCAL YEAR, REPORTS AND ACCOUNTS:

     Fiscal Year

     20.1. The fiscal year of the Hotel shall commence on January 1st and
          terminate on December 31st of each calendar year throughout the Term
          of the Agreement.

     Books of Account

     20.2. Operator undertakes to keep and maintain throughout the Term full and
          adequate books of account and other records reflecting the results of
          the operation of the Hotel. Such books and records shall be kept in
          the currency of the Territory on the accrual basis and in all material
          respects in accordance with the then latest edition of the "Uniform
          System of Accounts for Hotels", as adopted by the American Hotel and
          Motel Association, and in accordance with generally accepted
          accounting principles applicable in the Territory and in accordance
          with the laws of the Territory. All such books of account shall be the
          sole property of Leasee.

     20.3. Immediately on termination or expiration of this Agreement, all books
          and records relating to the operation of the Hotel will be delivered
          to Leasee; however, thereafter Operator will have the

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          right to inspect or make copies of any of these records for its
          own purposes.

     Periodic Reportings

     20.4. Operator shall deliver to Leasee :

          20.4.1. On or prior to the end of each month a profit and loss
               statement showing the results of the operation of the Hotel for
               the preceding month and the year to date, and containing
               computations of the Gross Operating Profit, Operator's Fees and
               Leasee's Profit Participation. The figures contained in such
               statement shall be taken from the books of account maintained by
               Operator. Such statement shall reflect the terms of this
               agreement and shall be prepared, insofar as feasible, in all
               material respects in accordance with the then latest edition of
               the "Uniform System of Accounts for Hotels" referred to
               hereinabove and in terms of generally accepted accounting
               principles; and

          20.4.2. Within: (a) thirty (30) days of each quarter in any contract
               year (excluding the last quarter); and (b) sixty (60) days after
               the end of each Contract Year, with the exception of the last
               Contract Year; Operator shall cause the preparation of a profit
               and loss and financial statement in respect of the relevant
               period, certified by an independent public accountant selected by
               mutual agreement of Operator and Leasee and retained by Operator
               for and on behalf of Leasee, taken from the books of account of
               the Hotel and showing the results of the operation of the Hotel
               during the relevant period, containing a computation of the Gross
               Operating Profit, Operator's fees and Leasee's Profit
               Distribution for such period, and with a schedule annexed thereto
               showing all deposits in and withdrawals from the Replacement Fund
               made during such period and the balance thereof. The cost of the
               audit shall be charged to Operating Costs.

          20.4.3. Within sixty (60) days after the end of the last Contract
               Year, Leasee shall deliver to Operator a profit and loss and
               financial statement certified by the aforesaid independent public
               accountant, showing the results of the operation of the Hotel
               during such last Contract Year, containing computations of
               Operating Revenue and Gross Operating Profit and the Operator's
               Fee payable to Operator for such period.

                                       18
<PAGE>

          20.4.4. The accountant's opinions and certified statements as
               aforesaid shall be deemed correct and conclusive for all
               purposes.

          20.4.5. All profit and loss statements referred to above shall be in
               substantially the same form as the illustration attached hereto
               and marked as EXHIBIT C.

                                     ARTICLE IV

                            OPERATOR'S FEES AND LEASEE'S

                                PROFIT PARTICIPATION

21.  OPERATOR'S FEES

     Operator's Fees

     21.1. In consideration for the fulfillment of the Operator's of its
          undertakings and obligations pursuant to the provisions of this
          Agreement, Operator shall be entitled to receive:

          a.   an annual Base Fee (hereinafter, the "BASE FEE") at the fixed
               rate of 2% (two per cent) of the Room Revenues (as calculated in
               accordance with the provisions of Paragraph 22 (the "ROOM
               REVENUES"), and

          b.   an annual Incentive Fee (hereinafter, the "INCENTIVE FEE") at the
               fixed rate of 7% (seven per cent) of the Gross Operating Profit
               (as calculated in accordance with the provisions of Paragraph 22
               below("THE GROSS OPERATING PROFIT").

               The Base Fee and the Incentive Fee shall be referred to
               hereinafter as the "OPERATOR'S Fee".

     21.2. The Base Fee shall be paid in monthly installments on or before the
          20th (twentieth) day of each month for the preceding month. The Base
          Fee shall be paid out of the Operating Account, directly into a bank
          account designated from time to time by Operator.

     21.3. The Incentive Fees for each contract year shall be paid by the Leasee
          on an quarterly basis out of the Operating Account, by no later than
          the last day of the month following the last month of

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<PAGE>

          the last preceding quarter, directly into a banking account designated
          from time to time by Operator. The calculation of the Incentive Fee in
          each quarter shall be made on a "year to-date" basis. Within 30 days
          from the signing by the auditors of the annual financial statements
          for any Year the final amount of the Incentive Fee for that year will
          be calculated. Any deficiency not paid in the quarterly payments
          relating to that year (excluding amounts set-off as excess paid in
          previous Year) shall be paid out of the Operating Account, by no later
          than the 1st day of the subsequent month. Any excess paid in the
          quarterly payments relating to that year (excluding amounts set-off as
          excess paid in previous Year) shall be set-off from the next quarterly
          payment(s) relating to the current year.

     Additional Fees

     21.4. It is hereby specifically declared and understood that the Operator's
          Fees provided for in this Paragraph 21 shall be in addition to, and
          shall not derogate from, the franchise fees and expense participations
          which Operator is entitled to receive in terms of the provisions of
          Article XII below and EXHIBIT D.

     Reimbursement of General Costs

     21.5. Leasee will reimburse Operator for all reasonable out-of-pocket
          expenses incurred by Operator in performing its duties under this
          Agreement, including food, lodging, and travel expenses of Operator's
          employees. Operator will estimate these costs and include them in the
          Annual Budget. In the event that any Operator personnel perform duties
          at the Hotel on a temporary basis until a replacement for the Hotel
          employee who normally performs those duties can be obtained, then
          Leasee will reimburse Operator for the total employment cost of such
          personnel.

22.  GROSS OPERATING PROFIT AND ROOM REVENUES.

     22.1. For the purpose of this Agreement, the term "Room Revenues" shall be
          calculated on the accrual method of accounting and in accordance with
          the Uniform System of Accounting for Hotels as adopted and modified
          from time to time by the American Hotel and Motel Association, but
          excluding sales or similar taxes and gratuities

     22.2. The term "Gross Operating Profit" as used in this Agreement shall
          mean the amount computed as follows:

          22.2.1. All Operating Revenues, namely :

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<PAGE>

               (i)  revenues and income of any kind derived directly or
                    indirectly from the operation of the Hotel including "Room
                    Revenues", service charges collected from guests and not
                    distributed to employees and rental or other payments from
                    lessees or concessionaires (but not the gross receipts of
                    such lessees or concessionaires); and

               (ii) the proceeds (after deducting therefrom necessary expenses
                    in connection with the adjustment or collection thereof) of
                    use and occupancy (business interruption) insurance actually
                    received.

          22.2.2. From the Operating Revenue shall be deducted the Operating
               Costs, namely the entire cost and expense of maintaining,
               conducting and supervising the operation of the Hotel, which
               shall include, without limiting the generality of the foregoing,
               the following:

               (i)  The cost of all food and beverages and Operating Supplies
                    sold or consumed and the total salaries, wages, provisions
                    for severance payments and other compensation of all
                    employees of the Hotel, including the General Manager, and
                    their social benefits, which shall include, inter-alia, the
                    life, disability and health insurance, for which they may be
                    qualified;

               (ii) The cost of replacements of or additions to Operating
                    Equipment and other operating equipment but not exceeding 4%
                    of Gross Revenue of the Hotel per the respective Fiscal
                    Year;

               (iii) All costs and expenses of any advertising and business
                    promotion for the Hotel specifically provided for in the
                    Annual Budget;

               (iv) The cost of all other goods and services;

               (v)  Out-of-pocket expenses incurred by Operator and Leasee and
                    their affiliates for the account of or in connection with
                    the operation and management of the Hotel, including
                    reasonable traveling expenses of employees, executives or

                                       21

<PAGE>

                    other representatives or consultants of Operator and Leasee
                    and their affiliates, provided that such persons shall be
                    afforded reasonable accommodations, food, beverages,
                    laundry, valet and other such services by and at the Hotel
                    without charge to such persons, Operator or Leasee;

               (vi) All costs and expenses of any personnel training of the
                    Hotel staff;

               (vii) All expenditures made by Operator for maintenance and
                    repairs to keep the Hotel in good operating condition in
                    accordance with Paragraph 30 below;

               (viii) Payments to the Replacement Fund as provided in accordance
                    with Paragraph 31 below for replacements of and additions to
                    the FF&E and the cost in excess of the amount in the
                    Replacement Fund; or depreciation where applicable;

               (ix) The cost of alterations, additions and improvements in
                    accordance with Paragraph 32 below;

               (x)  The cost of changes, replacements, additions, or
                    improvements in accordance with Paragraph 33 below to the
                    extent that Operator and Leasee have agreed that such cost
                    will be deducted from Revenue in calculating Gross Operating
                    Profit;

               (xi) Premiums for insurance maintained in accordance with Article
                    VIII below - other than premiums on property insurance,
                    immovables and movables, - (premiums on policies for more
                    than one year to be pro-rated over the period of insurance)
                    and losses incurred on self-insured or uninsured risks;

               (xii) All taxes and public dues, other than income taxes, payable
                    by or assessed with respect to the operation of the Hotel
                    including all real property taxes levied or imposed on the
                    Hotel or its contents, but excluding all other taxes

                                       22

<PAGE>

                    levied or imposed against Leasee, such as personal property
                    taxes levied or imposed against Leasee, the Hotel or its
                    contents;

               (xiii) Legal, auditing and other professional fees payable with
                    respect to the operation of the Hotel; and

               (xiv) A reasonable provision for uncollectable accounts
                    receivable.

23.  LEASEE'S PROFIT PARTICIPATION

     23.1. Subject to the provisions hereinafter set forth, and subject always
          to the retention of working capital sufficient, as mutually agreed by
          the parties, to assure the uninterrupted and efficient operation of
          the Hotel, Operator shall during the Term pay to Leasee out of the
          Operating Account the "LEASEE'S PROFIT PARTICIPATION", namely the
          Gross Operating Profit after deduction of Operator's Fees provided for
          in Paragraph 21 above.

     23.2. The Leasee's Profit Participation for each contract year shall be
          paid out of the Operating Account on a quarterly basis, no later than
          the last day of the following month, directly into a banking account
          designated from time to time by Leasee.

24.  INTERIM PAYMENTS

     24.1. Notwithstanding the provisions of Paragraphs 21.3 and 23.2 above, in
          the event that the Parties so agree, payment of the Operator's Fee and
          the Leasee's Profit Participation may be effected on a quarterly or
          semi-annual basis in accordance with the Gross Operating Profit
          calculated in accordance with the relevant interim reports, subject
          however to the provisions of Paragraph 24.2 below.

     24.2. In the event that interim payments have been effected as provided for
          in Paragraph 24.1 above, then and in such event year end adjustments
          will be carried out on the basis of the Gross Operating Profit for the
          relevant contract year as reflected in the audited annual financial
          statements for that year. Such year end adjustments shall be made by
          not later than a date 14 days after the publication of the annual
          financial statements. Payments of any shortfalls to, or the
          reimbursement of any excess payments received by, either party shall
          be executed within 21 days of the publication of the audited financial
          statements.

                                       23

<PAGE>

                                    ARTICLE V

                          ACCOUNTING AND BANK ACCOUNTS

25.  OPERATING ACCOUNT

     25.1. Operator shall deposit all and any Operating Revenues, payments and
          incomes received by it from the operation of the Hotel and/or in
          connection therewith into the "OPERATING ACCOUNT" only.

     25.2. The Operating Account shall be opened, maintained and conducted
          exclusively by Operator in trust for and as agent of Leasee. In the
          event that Operator shall in its discretion elect to open more than
          one Operating Account, the provisions of this Agreement shall apply
          mutatis mutandis thereto in all respects.

     25.3. Operator shall designate the persons who are authorized signatories
          for the making of withdrawals from the Operating Account and all other
          Hotel bank accounts. The Operator's funds shall not be commingled in
          such accounts and all funds which are deemed by Operator to be in
          excess of the financial needs of the Hotel, including reasonable
          reserves, will be transferred to Leasee. Notwithstanding the above,
          the Leasee shall be entitled, at all times, to designate persons as
          authorized signatories for the making of withdrawals from the
          Operating Account and all other Hotel bank accounts, for any purposes
          other than withdrawals for the purpose of distribution of the
          Operating Costs of the Hotel or payment of the Operator's Fees.

     25.4. All Operating Costs without exception shall be disbursed by Operator
          from the Operating Account which shall include without limitation :

          25.4.1. disbursements of the entire cost and expense of maintaining,
               conducting and supervising the operation of the Hotel;

          25.4.2. capitalized alterations, additions and improvements pursuant
               to Article VII below; and

          25.4.3. any other expenditures in accordance with the terms of this
               agreement shall be made by such employees of the

                                       24

<PAGE>

               Hotel whose signatures shall be authorized by resolution of the
               Board of Directors of Operator and approved by Leasee.

     25.5. Operator shall be entitled to withdraw from the Operating Account its
          Operator's Fees in respect of that Contract Year in accordance with
          the provisions of Paragraph 20 above.

     25.6. The amount remaining out of the Operating Revenues for any one
          Contract Year, after the disbursement of all Operating Costs and the
          payment of all Operator's Fees, shall constitute the Leasee's Profit
          Participation in respect of that Contract Year.

26.  PROVISION FOR REPLACEMENT OF OPERATING EQUIPMENT:

     Operator and Leasee agree that it is desirable to make provision for
     replacements of Operating Equipment in each Year. Operator will include in
     the Annual Budget the estimated total cost of replacing and restocking the
     Operating Equipment as required during the applicable contract year. During
     that contract year Operator will cause the Hotel employees to make all
     replacements of Operating Equipment reasonably deemed by it to be necessary
     or desirable and all such expenditures will be charged against this
     account. At the end of each contract year, the account will be increased or
     reduced to reflect the actual expenditures made for replacement of
     Operating Equipment.

27.  RESERVE FOR REPLACEMENT OF AND ADDITIONS TO FF&E AND CAPITAL EXPENDITURES

     27.1. As a component of the Annual Budget, Operator and Leasee will agree
          upon an amount to be charged in the following contract year for the
          creation of a reserve for the replacement of and additions to FF&E and
          capital expenditures.

     27.2. Leasee will establish an interest-bearing account in a bank approved
          by Leasee (the "RESERVE ACCOUNT") in the name of the Leasee into which
          there will be deposited each month the amount established in the
          Annual Budget for monthly additions to the account, and Operator will
          cause expenditures for replacements of and additions to the FF&E and
          capital expenditures to be made from the Reserve Account. Any proposed
          expenditure in excess of the amounts set forth in the Annual Budget
          for such items may only be made with Leasee's consent.

     27.3. The funds deposited in the Reserve Account shall bear interest, which
          interest, less any income taxes assessed thereon, shall be

                                       25

<PAGE>

          credited to the Replacement Fund referred to in Paragraph 31 below,
          and accumulated in the Reserve Account or, if the parties so mutually
          agree, otherwise invested.

28.  FINAL DISPOSITION OF HOTEL ACCOUNTS:

     28.1. At the termination or expiration of this Agreement, a full final
          accounting will be made to Leasee and Leasee will be paid all amounts
          generated by Hotel operations, including the balances in the Hotel's
          bank accounts, after all sums due Operator under the terms of this
          Agreement are deducted.

                                   ARTICLE VI

                          TRANSACTIONS WITH AFFILIATES

29.  TRANSACTIONS WITH AFFILIATES

     29.1. The Operator shall not purchase goods, supplies and services from or
          through any of its Affiliated Entities without express authorization
          from Leasee after disclosure of all material terms of the affiliated
          relationship and the consideration received by them. Unless clearly
          set forth as a separate item for transactions with Affiliates in the
          proposed Annual Budget and approved as part of the Annual Budget,
          Operator shall not pay or permit or cause to be paid to any such
          Affiliated Entity, a fee, rebate, discount or other consideration for
          the negotiation of contracts, the purchase from independent suppliers
          of goods and services or other act pursuant to Operator's agency
          hereunder, without Leasee's prior written authorization.

                                   ARTICLE VII

                      REPAIRS, MAINTENANCE, AND ALTERATIONS

30.  NORMAL REPAIRS AND MAINTENANCE.

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<PAGE>

     At Leasees cost and expense, operator will cause the Hotel to be maintained
     in good order, repair and condition, ordinary wear and tear excepted.

31.  REPLACEMENTS OF AND ADDITIONS TO FF&E

     31.1. The Parties shall make a provision in the Annual Budget for
          replacements of and additions to FF&E and other capital expenditures.
          All amounts provided for in the Annual Budget for replacements and
          additions as aforesaid, together with the proceeds from the sale of
          FF&E which are no longer needed for the operation of the Hotel, shall
          be credited to the "Replacement Fund', and shall be transferred
          monthly by Operator from the Operating Account into the Reserve
          Account.

     31.2. Operator shall be entitled to withdraw from the Replacement Fund and
          shall charge against the Reserve Account any amounts required to make
          all replacements of and additions to FF&E deemed by it to be necessary
          (except as provided under Paragraph 32 below) or desirable, which FF&E
          shall be and become, forthwith upon acquisition and installation and
          without further act or action, the property of Leasee.

     31.3. Replacements of and additions to FF&E deemed by Operator to be
          necessary or desirable, the cost of which shall exceed the balance in
          the Replacement Fund or the amounts held in the Reserve Account for
          that purpose, shall be subject to the approval of Leasee. In the event
          that Leasee shall approve such cost items as aforesaid, then and in
          such event Leasee shall make available to Operator, as additional
          working capital, the necessary funds therefor, and the cost thereof
          shall be charged directly to the Operating Costs or shall be
          capitalized on the books of account in accordance with sound
          accounting practices. The costs of such replacements and additions
          that are capitalized shall be depreciated by charges to the Operating
          Costs over their estimated useful lives.

     31.4. Any amounts remaining in the Replacement Fund at the termination or
          expiration of the Operating Term shall be credited to Gross Operating
          Profit in the last contract year of the Term.

32.  ALTERATIONS

     Operator shall have the right to make, from time to time, such alterations,
     or improvements in or to the Property, building(s), installations and
     building systems which are customarily made in the operation of similar
     hotels of the type herein contemplated. The cost of such alterations,
     additions or improvements shall be

                                       27

<PAGE>

     charged directly to Operating Costs or shall be capitalized on the books of
     account in accordance with sound accounting practices. The costs of
     alterations, additions or improvements that are capitalized in excess of 4%
     of Gross revenue of the Hotel shall not be amortized or depreciated by
     charges to the Operating Costs.

33.  ESSENTIAL REPAIRS, CHANGES, AND REPLACEMENTS.

     33.1. If at any time during the Term, repairs to the building(s),
          installations or building systems, changes in the Hotel, or
          replacements :

          33.1.1. shall be required by reason of any laws, ordinances or
               regulations, or by any order of governmental authority; or

          33.1.2. shall be related to the structural integrity of the Hotel;

          such repairs or replacements shall be made by Leasee, shall be paid
          for by Leasee, at its expense and not as a charge against Operating
          Costs as aforesaid. Such repairs, replacements and changes shall be
          made promptly and with as little hindrance to the operation of the
          Hotel as possible.

34.  CONSULTATION WITH LEASEE

     34.1. Operator shall consult with Leasee with respect to suppliers of
          equipment and services required in connection with expenditures
          incurred pursuant to this Agreement and shall consider in good faith
          Leasee's recommendations. Leasee shall have the right to approve any
          individual purchase of materials required in connection with such
          alterations, additions or improvements where the purchase price
          exceeds US$10,000.

                                  ARTICLE VIII

                                    INSURANCE

35.  INSURANCE TO BE MAINTAINED BY LEASEE

     35.1. Leasee shall at all times during the Term, procure and maintain
          adequate insurance :

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<PAGE>

          35.1.1. for the full replacement value of the Hotel with financially
               responsible insurance companies against all risk of physical loss
               or damage to the Hotel and its contents from, including, but not
               limited to, fire, boiler explosion, and such other risks and
               casualties for which insurance is customarily provided for Hotels
               of similar character; and

          35.1.2. workmen's compensation, employers' liability or other such
               insurance as may be required under applicable laws or which
               Leasee, in consultation with Operator, shall deem advisable.

     35.2. All policies shall provide that Leasee (and, at Leasee's request, any
          mortgagee) be named insured parties, and that Operator be named as
          additional insured parties. The fire and extended coverage policy
          insuring damage to the building and contents shall provide that the
          insurance company agrees to waive any rights of subrogation against
          Operator.

36.  INSURANCE TO BE MAINTAINED BY OPERATOR

     36.1. Operator shall for and on behalf of Leasee maintain at all times
          during the Term the following insurance, on usual terms and at
          customary rates:

          36.1.1. Public liability insurance including personal injury/bodily
               injury, property damage, innkeeper's liability and advertising
               liability; automobile liability; and crime insurance including
               employee fidelity in such amounts as Operator shall deem
               necessary;

          36.1.2. Use and occupancy (business interruption) insurance covering
               loss of profits of Leasee and fees of Operator resulting from
               loss due to perils covered under standard fire and boiler and
               machinery policies, and such other perils as Operator deems
               necessary; and

          36.1.3. In its discretion, Operator may maintain such other insurance
               as it shall deem necessary for protection against claims,
               liabilities and losses, wherever asserted, determined or
               incurred, arising from the operation of the Hotel.

     36.2. Operator shall, upon request, furnish to Leasee satisfactory evidence
          of all insurance maintained by Operator pursuant to this Paragraph 36.

                                       29

<PAGE>

                                   ARTICLE IX

                     DAMAGE TO AND DESTRUCTION OF THE HOTEL

37.  DAMAGE TO AND DESTRUCTION OF THE HOTEL

     37.1. If the Hotel or any portion thereof shall be damaged or destroyed at
          any time or times during the Term by fire or any insured casualty and
          Leasee repairs, rebuilds or replaces the same, Operator be required
          and hereby undertakes to continue to operate and manage the rebuilt
          Hotel under the substantially similar to the terms of this Agreement.

38.  CONDEMNATION

     38.1. If the whole of the Hotel shall be taken or condemned in any eminent
          domain, condemnation, compulsory acquisition or like proceeding by any
          competent authority for any public or quasi-public use or purpose, or
          if such portion thereof shall be taken or condemned so as to make it
          imprudent or unreasonable, in Leasee's reasonable opinion, to use the
          remaining portion as a hotel and/or commercial center of the type and
          class immediately preceding such taking or condemnation, then the Term
          shall terminate as of the date of such taking or condemnation.

     38.2. If only a part of the Hotel shall be taken or condemned and if
          Operator and Leasee mutually determine that the taking or condemnation
          of such part does not make it unreasonable or imprudent to operate the
          remainder as a hotel and/or a commercial center of the type and class
          immediately preceding such taking or condemnation, this Agreement
          shall not terminate, but shall continue to be implemented mutatis
          mutandis in respect of that portion which remains under operation as
          aforesaid.

                                       30

<PAGE>

                                    ARTICLE X

                           RIGHT TO PERFORM COVENANTS

                               OF THE OTHER PARTY

39.  RIGHT TO PERFORM COVENANTS OF THE OTHER PARTY

     39.1. If either Operator or Leasee fails to make any payment or perform any
          act required under this Agreement, the other party may elect to do so
          after giving ten (10) days written notice. Such notice is not
          required, however, in the event of an emergency. Any such election
          will not release the other party from its obligations, and the
          electing party will not be deemed to have waived any right or remedy.

     39.2. Any payment made by the electing party will be immediately repaid,
          together with interest at 150 basis points above the 30-day LIBOR rate
          ("INTEREST"), but not in excess of the maximum rate allowed by
          applicable law.

                                   ARTICLE XI

                                     DEFAULT

40.  DEFAULTS AND TERMINATION

     Events of Default.

     40.1. The following shall constitute events of default:

          40.1.1. The failure of either party to make any payment to the other
               provided for herein for a period of thirty (30) calendar days
               after such payment is payable;

          40.1.2. The filing of a voluntary petition in bankruptcy or insolvency
               or a petition for reorganization under any bankruptcy law by
               either party;

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<PAGE>

          40.1.3. The consent to an involuntary petition in bankruptcy or the
               failure to vacate within sixty (60) calendar days from the date
               of entry thereof of any order approving an involuntary petition
               by either party;

          40.1.4. The appointment of a final receiver for all or any substantial
               portion of the property of either party;

          40.1.5. The entering of an order, judgment or decree by any court of
               competent jurisdiction, on the application of a creditor,
               adjudicating either party as bankrupt or insolvent or approving a
               petition seeking reorganization or appointing a receiver, trustee
               or liquidator of all or a substantial part of such party's
               assets, and such order, judgment or decree shall continue
               unstayed and in effect for any period of one hundred twenty (120)
               consecutive calendar days;

          40.1.6. The termination, expiry or lapse of the Trade Name License at
               any time during the Term, or the loss and/or forfeiture by
               Operator of the rights to use and/or operate under the Trade Name
               in respect of the Hotel during the Operating Term;

          40.1.7. The failure by either party to perform, keep or fulfill any of
               the other material covenants, undertakings, obligations or
               conditions set forth in this agreement, and the continuance of
               any such default for a period of thirty (30) calendar days after
               notice of said failure.

     40.2. In any of such events of default, the non-defaulting party may give
          to the defaulting party notice of intention to terminate this
          agreement after the expiration of a period of thirty (30) calendar
          days from the date of such notice, and upon the expiration of such
          period, this Agreement shall terminate if the default has not been
          remedied by that date, in which event the provisions of Paragraph 42
          below shall apply.

     40.3. If, however, upon receipt of such notice, the defaulting party shall
          promptly cure the default, then such notice shall be of no force and
          effect, or, when such default is not susceptible of being cured within
          thirty (30) calendar days, if the defaulting party shall take action
          to cure such default with all due diligence, then the effective date
          of the termination notice shall be extended for such reasonable time
          as shall be required for the defaulting party to cure such default.

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<PAGE>

     40.4. Notwithstanding the foregoing, neither party shall be deemed to be in
          default under this agreement if a bona fide dispute with respect to
          any of the foregoing events of default has arisen between the parties
          and such dispute has been submitted to arbitration in terms of
          Paragraph 46 below.

     Force Majeure

     40.5. Except as otherwise provided in this agreement, should either party
          hereto be delayed in or prevented, in whole or in part, from
          performing any obligation or condition hereunder with the exception of
          the payment of money, or from exercising its rights by reason or as a
          result of any force majeure, such party shall be excused from
          performing such obligations or conditions while such party is so
          delayed or prevented. The term "FORCE MAJEURE" as used herein means :
          acts of God, acts of government, strikes, lockouts, or other
          industrial disturbances, acts of public enemy, blockades, wars,
          insurrections or riots, epidemics, landslides, fires, storms, floods,
          explosions, or other similar causes beyond the control of such party
          and which could not have been reasonably anticipated by that party.

     Rights of Prior Termination

     40.6. Nothing in this Paragraph 40 contained shall be deemed to derogate
          from or to restrict rights of each party to terminate this Agreement
          prior to the expiration of the Initial Term or the Extended Term, as
          the case may be, as provided for in Paragraph Article XIII below.

                                   ARTICLE XII

                  PROPRIETARY TRADE NAME AND MARKS, SUB-LICENSE

41.  LICENSE, SUB-LICENSE AND PROPRIETARY RIGHTS

     41.1. The Operator affirms, declares, covenants and undertakes that it has
          duly been awarded, and shall maintain throughout the Term of this
          Agreement, the exclusive rights under license to operate the Hotel
          under the names "Park Plaza", "Park Plaza International" and all
          related trademarks, service marks, and logos (the "TRADE NAME") under
          the System.

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<PAGE>

     41.2. The Operator hereby grants the Leasee a sub-license that shall
          entitle Leasee to make use of the Trade Name and to make use of the
          System, subject to the terms, provisions and conditions set forth in
          EXHIBIT D attached hereto.

     41.3. Leasee acknowledges the Trade Name trademarks, service marks,
          copyrights, logos, and other indicia, whether registered or not, are
          the exclusive property of Park Plaza.

     41.4. Leasee agrees not to make any use of the name "Park Plaza" or any
          combination or variation thereof or the Trade Name in any way other
          than in accordance with the provisions of the Sub-License.

42.  REMOVAL UPON TERMINATION/EXPIRATION

     42.1. Upon any termination or expiration of this Agreement, Leasee will, at
          its expense, immediately remove and discontinue the use of all signs,
          furnishings, printed material, emblems, slogans, or other
          distinguishing characteristics which are now or hereafter connected
          with the Park Plaza name or the Trade Name. Upon such termination or
          expiration, Leasee will not operate or do business at the Hotel under
          any name or in any manner that may tend to give the general public the
          impression that Leasee or the Hotel are in any way connected with
          Operator or the System, and Leasee will, at its own expense,
          immediately make such modifications or alterations as may be necessary
          to distinguish the Hotel so clearly from its former appearance as to
          prevent any possible confusion therewith by the public. If Leasee
          fails to take any of the foregoing actions, Park Plaza, Operator, or
          their designated agents may enter the Hotel and adjacent areas at any
          time to take such actions, at Leasee's sole risk and expense, without
          liability for trespass or other tort or criminal act.

43.  RESTRICTION UPON USE

     43.1. Proper use of the Trade Name pursuant to this Agreement applies only
          to their use in connection with the operation of the Hotel subject to
          the terms of this Agreement and the Sub-License, and includes only
          such Trade Names as are designated herein or as may be designated by
          Park Plaza and Operator from time to time in writing.

     43.2. Nothing in this Agreement will ever be construed as giving Leasee any
          right, title or interest whatsoever in or to the Trade Name or giving
          Leasee or others permission to use the Trade Name or any colorable
          imitation thereof in any manner, except in

                                       34

<PAGE>

          accordance with this Agreement and the Sub-License or with the prior
          written approval of Operator.

     43.3. Leasee will not use any Trade Names as part of Leasee's corporate or
          other formal business name, except as may result as a consequence of
          operating the Hotel under the name "Park Plaza International" or "Park
          Plaza" with Operator's prior written consent. Leasee may include in
          its corporate and promotional literature references to the fact that
          the Hotel is operated under the Trade Name, provided that Operator's
          rights in and to the Trade Name are not thereby jeopardized.

     43.4. Leasee will not register or attempt to register any of the Trade Name
          in any state, nation or political subdivision thereof.

     43.5. The use by Leasee of the Trade Name outside the scope of the
          Sub-License, without Operator's prior written consent, will be an
          infringement of Operator's exclusive right, title and interest in and
          to the Trade Name, and Leasee expressly covenants that during the term
          of the Sub-License, and after the expiration or termination hereof,
          Leasee will not, directly or indirectly, commit an act of infringement
          or contest or aid in contesting the validity or ownership of Park
          Plaza's Trade Names, or take any other action in degradation thereof.

44.  OWNERSHIP AND GOODWILL:

     44.1. It is expressly recognized that any and all goodwill associated with
          the Trade Name, including any goodwill which might be deemed to have
          arisen from use of the Trade Name at the Hotel, inures directly and
          exclusively to the benefit of Park Plaza and is the property of Park
          Plaza or of companies affiliated with it. Upon expiration or
          termination of this Agreement, no monetary value will be assigned as
          attributable to any goodwill associated with Leasee or the operation
          of the Hotel arising from the use of the Trade Name.

                                       35
<PAGE>

                                  ARTICLE XIII

                                   TERMINATION

45.  EARLY TERMINATION FOR CAUSE

     45.1. In the event that either party shall have committed an event of
          default and shall have failed to rectify such breach as provided for
          in Paragraph 40.2 above, then and in such event the aggrieved party
          shall be entitled to terminate this Agreement with immediate effect.

     45.2. The rights granted hereunder shall not be in substitution for, but
          shall be in addition to any and all rights and remedies for breach of
          contract granted by applicable provisions of law.

                                   ARTICLE XIV

                                   ARBITRATION

46.  ARBITRATION

     46.1. Any dispute, controversy, dispute or claim arising out of and/or
          pertaining to and/or in connection with this Agreement, its
          interpretation, execution or validity, or the breach and termination
          hereof, shall be settled by final and binding arbitration in
          accordance with the Rules of Arbitration of the London Court of
          International Arbitration (LCIA) in London, England, which rules are
          deemed to be incorporated by reference into this Paragraph.

     46.2. The arbitration shall be heard and determined by one arbitrator, who
          shall be selected by the parties. If within forty-five (45) days
          following the date upon which a claim is received by the respondent,
          the parties cannot agree on who the arbitrator is to be, the
          appointing authority under such Rules shall select the arbitrator.

                                       36

<PAGE>

     46.3. The place of arbitration shall be London, England (or at such
          alternative venue to be agreed between the Parties or as determined by
          the Arbitrator), and the English language shall be used in the
          arbitral proceedings.

     46.4. In adjudicating any dispute referred to herein in terms of this
          Paragraph, the Arbitrator shall not be bound by the rules of evidence,
          nor by the rules of civil procedure, nor by the terms of the
          substantive law, but rather shall endeavour to adjudicate the dispute
          in accordance with the principles of "Natural Justice". In the event
          that the Arbitrator shall nevertheless elect to be guided by and/or
          governed by the provisions of the substantive law, then and in such
          event the Governing Law determined in EXHIBIT A shall apply. The
          Arbitrator shall have the powers of an amicable compositeur.

     46.5. The Arbitrator shall be empowered to issue temporary orders and
          injunctions, and the Parties undertake to abide by such orders and
          injunctions pending the making of the final arbitral award.

     46.6. The Arbitrator shall use his best endeavours to ensure that the
          Arbitration proceedings are conducted expeditiously and diligently,
          and that the arbitral award is given as soon as possible. The
          Arbitrator shall be required to furnish reasons for his decision. The
          Parties hereby agree and undertake that the arbitral award shall be
          final and binding upon them, and shall not be subject to further
          appeal.

     46.7. The fees and expenses of the Arbitrator and/or of the arbitration
          proceedings shall be borne by the Parties in equal shares, unless
          specifically determined to the contrary by the Arbitrator in his
          award.

     46.8. The parties hereby declare that the bone fide referral of any dispute
          to arbitration shall not entitle either of the parties to dis-continue
          the fulfillment of their undertakings and obligations in terms hereof,
          save in those instances where the dispute relates to the termination
          of this Agreement.

     46.9. This Paragraph constitutes a separate agreement to arbitrate which
          shall survive the termination of this Agreement for any reason.

     46.10. The award of the arbitrator shall be the sole and exclusive remedy
          between the parties regarding any and all claims and counterclaims
          presented to the arbitrator; provided, however, that

                                       37

<PAGE>

          the parties may seek court ordered temporary injunctive relief pending
          the determination of final award under the arbitration.

                                   ARTICLE XV

                               GENERAL PROVISIONS

47.  TAXES AND IMPOSITIONS:

     47.1. Leasee will pay, prior to delinquency, all real estate taxes and
          assessments, which may become a lien on the Hotel and which become due
          and payable during the Term of this Agreement, unless payment is in
          good faith being contested by Leasee and enforcement of payment has
          been stayed. If requested, Leasee will provide to Operator documentary
          evidence of payment.

48.  CURRENCY:

     48.1. All amount to be reimbursed or paid to either party under the terms
          of this Agreement will be in GBP. At Operator's option, amounts due to
          it may be paid directly or deposited in a bank account designated in
          writing by Operator.

49.  NOTICES:

     49.1. The terms "Notice" and "Notify" mean notice given as prescribed in
          this Paragraph. Any Notice or other document to be given hereunder may
          be delivered by courier or sent by prepaid registered air mail or by
          telex or facsimile to the party to be served at that party's address
          as set forth in EXHIBIT A or to such other address as the party may
          subsequently designate by this notice procedure.

     49.2. Any such Notice or document will be deemed to have been served (i) if
          delivered by courier, three days after dispatch; or (ii) if posted,
          seven days after posting; or (iii) if sent by facsimile, upon the date
          of transmission with confirmation of receipt by the addressee's
          terminal; or (iv) immediately, if delivered by hand. If a party has a
          facsimile terminal, Notice must include a facsimile transmission,
          unless the documents are bulky or otherwise unsuitable for service by
          fax.

                                       38

<PAGE>

     49.3. In providing such service it will be sufficient to prove that
          delivery by courier was made or refused, or that the envelope
          containing such Notice or document was properly addressed and posted
          as a prepaid registered letter and was signed for or refused on
          delivery to the addressee, or that the telex was dispatched after
          receiving confirmation of the answer back, or that the facsimile was
          received in legible form.

50.  ASSIGNMENT

Assignment by Operator

     50.1. Subject to the provisions of Paragraph 50.2 below, Operator shall not
          be entitled to assign, transfer and make over its rights and interests
          and its undertakings and obligations in terms of this Agreement to any
          third party without the prior express written consent of Leasee.

     50.2. Notwithstanding the provisions of Paragraph 50.1 above, Operator
          shall be entitled to assign and transfer its rights and obligations in
          terms hereof to its wholly owned and controlled subsidiary company,
          provided that the assignor shall remain jointly and severally liable
          for the fulfillment by the assignee of the undertakings made and
          obligations assumed by the "Operator" in terms hereof.

Assignment by Leasee

     50.3. Leasee shall have the right to assign its rights and obligations
          under this Agreement and/or to sell and transfer its rights and
          interests in and to the Hotel to any third party without requiring the
          consent or approval of Operator, provided that such assignment and/or
          sale shall be made subject to this Agreement. The provisions of this
          Paragraph shall be in addition to, and shall not derogate from, the
          rights of Leasee in terms of Paragraph 45 above.

Successors and Assigns

     50.4. The terms, provisions, covenants, undertakings, agreements,
          obligations and conditions of this Agreement shall be binding upon and
          shall inure to the benefit of the successors in interest and the
          assigns of the parties, except that no assignment, transfer, pledge,
          mortgage or lease by or through Operator or by or through Leasee, as
          the case may be, in violation of the provisions of this Agreement
          shall vest any rights in the assignee, transferee, mortgagee, pledgee,
          lessee or in any occupant.

                                       39

<PAGE>

51.  SPECIAL PROVISIONS

     51.1. Any special provisions, if any, which have been agreed upon between
          Leasee and Operator which relate specifically to the Hotel which is
          the subject matter of this Agreement, are set forth in EXHIBIT E
          attached hereto.

52.  APPROVALS, CONSENTS, AND OTHER ACTIONS:

     52.1. Whenever the approval, consent, satisfaction, request, agreement,
          judgment, determination, or other discretionary action of Operator or
          Leasee is required or permitted by this Agreement, such discretionary
          action will be given, taken, or exercised reasonably and in good
          faith. Any such discretionary action of one party that is requested by
          the other party will not be withheld unreasonably.

     52.2. Except where otherwise provided, where approvals or consents by
          either Leasee or Operator are called for under this Agreement, the
          procedures set forth below will be followed. All information,
          documentation or Notices regarding approval or consents requested by
          one party will be submitted to the other party pursuant to Paragraph
          49 above. Where approvals of documents or written materials are
          requested, the responding party will have thirty (30) days after
          receipt thereof within which to respond. Where approvals of actions or
          proposed actions are requested, the responding party will have thirty
          (30) after receipt of Notice regarding same within which to respond.
          If no Notice expressing disapproval is given by the responding party
          to the other party within the designated time period, approval is
          deemed to have been given.

53.  AMENDMENTS

     53.1. The conditions, covenants, agreements, and terms of this Agreement
          may only be waived, altered, or modified by a writing signed by both
          parties.

54.  PARTIAL INVALIDITY

     54.1. If any clause or term of this Agreement should be invalid,
          unenforceable or illegal, then the remaining terms of this Agreement
          shall be deemed to be severable therefrom and shall continue in full
          force and effect unless such invalidity, unenforceability or
          illegality goes to the root of this Agreement.

                                       40

<PAGE>

55.  HEADINGS AND EXHIBITS

     55.1. The headings or titles used in this Agreement are for the purpose of
          convenience only and may not be employed in the interpretation or
          construction of this Agreement

     55.2. The various Exhibits attached to this Agreement constitute an
          integral part of this Agreement as if same had been specifically
          incorporated into the body hereof.

56.  ENTIRE AGREEMENT

     56.1. This Agreement constitutes the entire agreement and understanding
          between Leasee and Operator on the subject matter hereof and
          supersedes all prior agreements, written or oral, and all prior
          writings.

57.  COUNTERPARTS

     57.1. This Agreement may be executed by the parties hereto in counterparts,
          and when so executed will be given the same force and effect as if one
          copy was executed by all parties.

                            [SIGNATURE PAGE FOLLOWS]

                                       41

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date specified in EXHIBIT A.

For: LEASEE

Name:
      -------------------------------
Title:
       ------------------------------

For: OPERATOR

Name:
      -------------------------------
Title:
       ------------------------------

                                       42

<PAGE>

                           HOTEL MANAGEMENT AGREEMENT

                                    EXHIBIT A

                  EXECUTION DATE AND IDENTIFICATION OF PARTIES

1. DATE OF EXECUTION This Agreement is executed as of _________________

2. OPERATOR          Park Plaza Hotels Europe B.V., a company, organized and
                     existing under the laws of the Netherlands, whose address
                     for all purposes in terms of this Agreement is:

                     Hasselaerssteeg 11
                     1012 MB Amsterdam
                     The Netherlands
                     Tel.: 0031-20-7138206
                     Fax.: 0031-20-5240651

3. LEASEE            ___________ Ltd.

4. OWNER             _____________________., a company, organized and existing
                     under the laws of the Netherlands, whose address for all
                     purposes in terms of this Agreement is :
                     _____________________

5. THE TERRITORY :   England

6. GOVERNING LAW :   The laws of the Netherlands

                                       43

<PAGE>

                           HOTEL MANAGEMENT AGREEMENT

                                    EXHIBIT B

                            DESCRIPTION OF THE HOTEL

1.   HOTEL NAME _______________

2.   HOTEL CLASSIFICATION: Four Star

3.   COMMON ADDRESS OF THE HOTEL AND HOTEL SITE : ________________

4.   DESCRIPTION OF THE REAL PROPERTY WHICH IS THE HOTEL SITE: ________________

5.   DESCRIPTION OF THE HOTEL AND ALL RELATED FACILITIES: _______________

     Guest Rooms: (Singles, Jr. Suites, Suites)
     11 floors with a total of 462 rooms & suites:

     -    396 four-star deluxe guest rooms & suites:

          -    301 Superior rooms

          -    64 Executive rooms

          -    31 Executive suites

     -    66 five-star luxurious, self-contained, suites with striking views:

          -    10 Studios

          -    41 one bedroom suites

          -    15 two bedroom suites

     Hotel Guest Room Amenities & Features

     Air-conditioning, flat screen TVs, direct telephone with 3 extensions,
     EU/UK/US power sockets, fax & modem points, Wireless Internet, movie &
     music channels

                                       44

<PAGE>

     on demand, laptop safe, mini-bar, hair-dryer, iron & ironing board, tea &
     coffee making facilities, bath & separate shower as standard

     Suites Guest Room Amenities & Features

     All facilities as in the hotel rooms plus:

     Striking views, self-contained kitchen unit with washer/drier, dishwasher,
     microwave oven, fridge, high quality coffee machine and Plasma screen with
     surround sound, Bose CD/DVD player, pillow menu, fax & printer, luxury
     linen, exclusive bath towels and toiletries.

     The suites benefit from all services & facilities offered by the hotel and
     guests can charge to their room. Other exclusive services available
     include:

     nanny / babysitting service, children's toys, play station, business cards,
     possibility to book a private chef, dedicated butler service / concierge,
     relocation assistance and valet parking.

     Restaurants:

     Concept restaurant (80 seats, located on ground floor)
     Lobby bar & lounge (located on ground floor)
     Bar (1st floor)
     Breakfast club lounge (basement level 1)
     Executive lounge (11th floor)
     Bars: See above
     Banquet Facilities:
     13 meetings rooms, including:

     -    1 Ballroom accommodating up to 800 Theatre style

     -    1 Ballroom accommodating up to 568 Theatre style

     -

     State-of-the-art audiovisual equipment onsite and a business centre is also
     available.

     Separate entrance for groups & functions.

     Other Function Space:

     Commercial Space, including Concessions and Shops: 1 retail unit

     Parking Facilities: 120 car parking spaces

     Recreational Facilities: Fitness centre, indoor swimming pool, spa, sauna,
     steam room, beauty treatment rooms

     Other Details and Information: 120 car parking spaces

                                       45

<PAGE>

                           HOTEL MANAGEMENT AGREEMENT

                                    EXHIBIT C

                         FORM OF PROFIT AND LOSS ACCOUNT

Rooms

     Revenue

     Payroll and related expenses

     Other expenses

          Departmental income

Food and beverage

     Revenue

          Food

          Beverage

     Cost of Sales

          Food

          Beverage

     Other income

     Payroll and related expenses

     Other expenses

          Departmental income

Casino

     Revenue

     Payroll and related expenses

                                       46

<PAGE>

     Other expenses

          Departmental income

Telephone departmental income

Net income from minor

     operated departments

Rentals and other income

Total Operating Department Income

Undistributed operating expenses

     Administrative and general

          Payroll and related expenses

          Other expenses

     Marketing

     Energy costs

     Property operation and maintenance

     Replacements of and additions to

          Furnishings and Equipment

Gross Operating Profit

Operator's Fee

Leasee's Profit Participation

                                       47
<PAGE>

                           HOTEL MANAGEMENT AGREEMENT

                                    EXHIBIT D

                              SUB-LICENSE AGREEMENT

1.   AWARD OF SUB-LICENSE

     1.1  Pursuant to Article XV of the Agreement, the Operator hereby grants
          the Leasee a sub-license to use the name "Park Plaza" together with
          the associated logos and certain other services comprising the Park
          Plaza international System developed by Park Plaza Global Holdings,
          Inc., as detailed below.

     1.2  Operator hereby warrants, declares and covenants that pursuant to the
          provisions of the Territory License Agreement entered into between it
          and Plaza Global Holdings, Inc. ("the Principal License"), it is fully
          entitled, authorized and empowered to award the Sub-License to Leasee
          in terms of this Agreement.

     1.3  The sub-license awarded to the Leasee to make use of the Trade Name
          and to make use of the hotel operation and management system developed
          by Park Plaza International ("the System") which includes the right to
          the System's international marketing and reservation system, to
          receive advertising and promotional materials; to participate in any
          association of international hotels which may be organized by Park
          Plaza; to receive advise and assistance in the design, development and
          enhancement of hotels within the System; to receive training and
          education of hotel management and key personnel; to be included in the
          Park Plaza International Directory and to receive manuals and other
          materials disseminated by Park Plaza.

2.   FEES AND ASSESSMENTS

     2.1  In consideration for the award of the sub-license, it is hereby agreed
          that Leasee shall pay the Operator a Franchise Fee (Monthly Fee) equal
          to 1% (one per cent) of the Gross Room Revenues, payable on or before
          the 20th day of each calendar month during the Term.

          For the purposes of this Exhibit, the term Gross Room Revenues shall
          be calculated on the accrual method of accounting and in accordance
          with the Uniform System of Accounts for Hotels as adopted and modified
          from time to time by the American Hotel

                                       48

<PAGE>

          and Motel Association. Gross Room Revenues shall not include sales or
          similar taxes, or gratuities.

     2.2  In Addition, for each calendar month during the Term, Leasee will pay
          to Operator a Reservation System Users Fee equal to the actual cost
          pursuant to an outsourcing agreement for the provision of such
          service.

3.   TERMS AND CONDITIONS OF SUB-LICENSE

     3.1  Operator's Obligations

          The Operator shall continue to maintain high standards of quality,
          cleanliness, appearance and service for the Park Plaza System and to
          promote, protect and enhance the public image and reputation of the
          System and reputation of the System so as to increase the demand for
          lodging and other services offered under the System.

          The Operator shall undertake to perform or cause others to perform the
          following :

          (a)  Training: In co-operation with the Leasee, offer educational and
               training courses for Leasee's employees.

          (b)  Reservation System: Maintain and make available to all hotels in
               the System an international reservation system.

          (c)  Directory: Publish and make available to all hotels in the
               System the Park Plaza International Directory;

          (d)  Advertising : Cause materials to be prepared for advertising,
               promotion and marketing of the System for the benefit of the
               hotels in the System in the country or area in which the Hotel is
               located, to administer advertising and marketing programs and
               review proposed marketing materials prepared by Leasee for
               approval.

                                       49

<PAGE>

          (e)  Manual: Provide and maintain a Systems operations and Building
               Standards Manual ("Manual") containing standards and requirements
               for construction, conversion, equipping, furnishing and supplying
               hotels within the system and setting forth management operational
               standards, procedures and techniques.

          (f)  Inspection: Conduct periodic inspections of the services and
               facilities provided to the public at the Hotel.

          (g)  Advice and Consultation : Provide continuing consultation and
               advise to Leasee in the management, operation and marketing of
               the Hotel.

     3.2  Leasee's Obligations

          Leasee acknowledges that the value of the hotel operation and
          management system developed by Park Plaza International (the "System")
          can only be preserved and enhanced by maintaining a high standard of
          performance in the operating and maintenance of the Hotels within the
          System. In this respect, Leasee will do the following:

          (a)  Maintenance of the System : Maintain the high standards and
               public image of the System, preserve the value and reputation of
               all service marks, trademarks, trade names and related goodwill,
               and otherwise use all reasonable means to promote and encourage
               the use of Park Plaza hotels and facilities everywhere by the
               public.

          (b)  Maintenance of the Hotel : Maintain the Hotel in a clean,
               attractive and orderly condition,

                                       50

<PAGE>

               using standards established by Park Plaza applicable to such
               hotels in the System, and make such repairs, additions or
               improvements as are necessary to maintain the agreed upon
               standards of the System.

          (c)  Service : Provide efficient, courteous and high quality service
               to the public in accordance with the System.

          (d)  Health Standard : Meet and maintain high health standards and
               ratings applicable to the operations of the Hotel.

          (e)  Right of Inspection : Allow Operator and its agents to enter the
               Hotel at any reasonable time for conducting inspections to ensure
               compliance with the standards and policies of the System.

          (f)  Reservation System : Participate in the International reservation
               system and observe all terms and conditions of participating in
               the international reservation system.

          (g)  Legal Compliance : Comply with all governmental laws and
               requirements, pay all taxes and maintain all governmental
               licenses and permits necessary for operating the Hotel in
               accordance with the System.

          (h)  Compliance with Agreement : Comply in all respect with the System
               Operations and Building Standards Manual, as amended from time to
               time and with all other requirements of the Agreement.

                                       51

<PAGE>

     3.3  Records, Reporting And Payments

          Leasee will be responsible for maintaining accurate records with
          respect to all matters affecting the performance hereof. Within ten
          (10) days after each month, Leasee will provide monthly reports on
          Room Revenues, occupancies, average daily rates, food and beverage and
          miscellaneous revenues, gross operating profit and such other
          information as Operator from time to time specifies.

     3.4  Proprietary Rights

          (a)  Proprietary Marks. Leasee acknowledges the name "Park Plaza
               International" and all related names, trademarks, service marks,
               copyrights, logos and other indicia, whether registered or not
               ("Marks") are the exclusive property of Plaza Global Holdings,
               Inc. which granted a license to Golden Wall Investments Ltd.
               which grant a sub License to the Operator as more fully detailed
               in the preamble to this agreement. Leasee agrees not to use the
               name Park Plaza, Park Plaza, Park Suites or similar combination
               or variation thereof or the Marks other than in terms hereof
               without the prior written consent of Park Plaza.

          (b)  Proper Use of the Marks : Proper use of the Marks pursuant to
               this Agreement applies only to their use in connection with the
               operation of the Hotel subject to the terms of this Agreement,
               and includes only such Marks as are designated herein or as may
               be designated by Park Plaza and Operator from time to time in
               writing.

          (c)  Reservation of Rights. Nothing herein contained will ever be

                                       52

<PAGE>

               construed as giving Leasee any right, title or interest
               whatsoever in or to the Marks or giving Leasee or others
               permission to use the Marks or any imitation thereof in any
               manner, except in accordance with the terms and provisions hereof
               or with the prior written approval of Park Plaza and/or the
               Operator, Leasee will not use any Marks as part of Leasee's
               corporate or other formal business name, except as may result as
               a consequence of operating the Hotel under the name "Park Plaza
               International" or "Park Plaza" or with the prior written consent
               of Park Plaza and Operator.

          (d)  Undertaking not to Register Rights. Leasee will not register or
               attempt to register any of the Marks in any state, nation or
               political subdivision thereof. The use by Leasee of the Marks
               outside the scope of this sub-license, without the prior written
               consent of Park Plaza and Operator, will be an infringement of
               Park Plaza's exclusive right, title and interest in he Marks, and
               Leasee expressly covenants that during the term of this
               sub-license, and after the expiration or termination thereof,
               Leasee will not directly or indirectly commit an act of
               infringement or contest or aid in contesting the validity of
               ownership of Park Plaza's Marks, or take any other action in
               derogation thereof.

          (e)  Rights upon Termination. Upon any termination or expiration of
               the Principal Agreement for any

                                       53

<PAGE>

               reason and upon its terms, the sub-license awarded in terms
               hereof shall automatically lapse, and in such event Leasee will,
               at its expense, immediately remove and discontinue the use of all
               signs, furnishing, printed material, emblems, slogan or other
               distinguishing characteristics which are now or hereafter
               connected with the Park Plaza name or the Marks. Upon such
               termination or expiration, Leasee will not operate or do business
               at the Hotel under any name or in any manner that may tend to
               give the general public the impression that Leasee or the Hotel
               are in any way connected with Operator or Park Plaza or the
               System, and Leasee will, at its own expense, immediately make
               such modifications or alterations as may be necessary to
               distinguish the Hotel so clearly from its former appearance as to
               prevent any possible confusion therewith by the public. If he
               fails to take any of the foregoing action, Operator or its
               designated agents may enter the Hotel and adjacent areas at any
               time to take such actions, at Leasee's sole risk and expense
               without liability for trespass or other tort or criminal act.

          (f)  Goodwill. It is expressly recognized that any and all goodwill
               associated with the Marks, including any goodwill which might be
               deemed to have arisen from the use of the Marks at the Hotel,
               inures directly and exclusively to the benefit of Park Plaza and
               is the property of Park

                                       54

<PAGE>

               Plaza or of the companies affiliated with it. Upon expiration or
               termination of the Principal Agreement, no monetary value will be
               assigned as attributable to any goodwill associated with Leasee
               or the operation of the Hotel.

                                       55

<PAGE>

                           HOTEL MANAGEMENT AGREEMENT

                                    EXHIBIT E

                           SPECIAL CONTRACT PROVISIONS

This Exhibit contains agreements and provisions which have been concluded
between the Parties, and which relate specifically and only to the Hotel
designated in Exhibit A.

                                       56

<PAGE>

                           HOTEL MANAGEMENT AGREEMENT

                                    EXHIBIT F

                                  ANNUAL BUDGET

                                       57

<PAGE>

                                 FIRST ADDENDUM

     to the Hotel Management Agreement dated _____ (the "MANAGEMENT AGREEMENT")
     signed between the parties identified in EXHIBIT A thereto as "Operator"
     "Leasee" and "Owner" respectively.

                              Dated ______________

WITNESSING THAT IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES TO REVISE THE
PROVISIONS OF THE MANAGEMENT AGREEMENT AS FOLLOWS:

1.   AS TO GENERAL

     All the provisions of the Management Agreement and its exhibits, which are
     not being amended in this First Addendum, shall stay in full force and
     effect.

2.   EARLY TERMINATION

          New section 45A shall be added to read -

          "45A Notwithstanding anything to the contrary contained above, and
               without derogating from the rights of either party to terminate
               this Agreement for cause in terms of Paragraph 45 above, each
               party shall be entitled to terminate this Agreement on the giving
               of not less than six (6) months advance written notice.

          Early Termination Fee

               In the event that Leasee shall terminate this Agreement as
               provided in this section 45A, then and in such event Leasee shall
               be obliged and undertakes to pay to Operator an early termination
               fee in an amount equal to MFxMM.

               MF means 1/12 of the Operator's Fee, and the Franchise Fee
               provided for under EXHIBIT D attached hereto, paid to the
               Operator in respect of the accounting year immediately preceding
               the effective date of termination.

               MM means 18 less the number of advance notice months provided for
               in the advanced written termination notice.

                                       58

<PAGE>

               Operator shall not be entitled to receive an early
               termination fee in the event that: (a) Leasee shall have
               terminated this Agreement for cause in terms of the provisions of
               section 45 above; or (b) either Leasee or Operator shall have
               elected not to extend the Term of this Agreement to include the
               Extended Term as provided for in Paragraph 3.3 above.

3.   Paragraph 2.3.1 shall be amended to read -

     "2.3.1 to sell, transfer or otherwise dispose of its rights and interests
          in and to the Property and/or the Hotel, subject to Operator's rights
          as specified in Paragraphs 45A and 50.3 below."

4.   Paragraph 50.3 shall be amended to read -

     "Assignment by Leasee

     Leasee shall have the right to assign its rights and obligations under this
     Agreement and/or to sell and transfer its rights and interests in and to
     the Hotel to any third party without requiring the consent or approval of
     Operator, provided that such assignment and/or sale shall be made subject
     to this Agreement. The provisions of this Paragraph shall be in addition
     to, and shall not derogate from, the rights of Leasee in terms of
     Paragraphs 45 or 45A above."

5.   EFFECT

     This Addendum is effective as from ___________.

                            [SIGNATURE PAGE FOLLOWS]

                                       59

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this First Addendum as of
the date specified above.

For: LEASEE

Name:
      -------------------------------------
Title:
       ------------------------------------

For: OPERATOR

Name:
      -------------------------------------
Title:
       ------------------------------------

                                       60

<PAGE>

                                 SECOND ADDENDUM

    TO THE HOTEL MANAGEMENT AGREEMENT DATED _____(THE "Management Agreement")
    SIGNED BETWEEN THE PARTIES IDENTIFIED IN Exhibit A THERETO AS "OPERATOR"
                       "LEASEE" AND "OWNER" RESPECTIVELY.

                                  Dated _______

WITNESSING THAT IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES TO REVISE THE
PROVISIONS OF THE MANAGEMENT AGREEMENT AS FOLLOWS:

1.   AS TO SECTION 6

     Section 6: Central and Regional Office Services, shall be amended to read:

     Operator shall provide administrative services in support of the Hotel,
     including general supervision, consultation, planing monitoring compliance
     with the sub license agreement, corporate finance, personal and employee
     relations, research and development, and the services of Operator's
     technical operational and marketing experts making periodic inspections and
     consultation visits to the Hotel.

     Operator shall also provide various marketing services and advertising.

     (All the said services shall herein be called "CENTRAL OFFICE SERVICES").

     The Central Office Services shall be rendered to the Hotel together with
     the other hotels operated by Consultant in any respective year by
     Operator's regional and central offices.

     All the cost of the performance of the Central Office Services including
     all the employment costs of the personnel employed in the performance of
     the Central Office Services and all the general and administrative costs to
     be incurred in connection to the performance of the Central Office Services
     shall, whether incurred by any of the hotels operated by Operator, be borne
     and defrayed by the hotels operated by Operator so that operator shall
     reimbursed for all these costs. Leasee shall bear its pro rata share of
     such actual and substantiated costs incurred by Operator, provided however
     that the total amount of such costs to be borne by Leasee shall not exceed
     3% (three percent) of the Gross Operating Profit of the Hotel.

     Notwithstanding the aforesaid, the costs of employment of the CEO of
     Operator and maintaining his office shall be borne by Operator without
     reimbursement from the Hotel or the other hotels operated by Operator.

2.   AS TO SECTION 22

                                       61

<PAGE>

     Section 22.2.2: a new subsection (xv) shall be inserted after section (xiv)
     to read:

     (xv) The Base Fee (as calculated in accordance with the provisions of
     section 21.1.a. above).

3.   AS TO GENERAL

     All the provisions of the Management Agreement and its exhibits, which are
     not being amended in this Second Addendum, shall stay in full force and
     effect.

                            [SIGNATURE PAGE FOLLOWS]

                                       62

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Second Addendum as of
the date specified above.

For: LEASEE

Name:
      -------------------------------------
Title:
       ------------------------------------

For: OPERATOR Park Plaza Hotels Europe B.V.

Name:
      -------------------------------------
Title:
       ------------------------------------

                                       63

<PAGE>

                                                                    Dated, _____

On the date hereof we the undersigned, _________________. ("LEASEE") and Park
Plaza Hotels Europe B.V. ("OPERATOR"), entered into a Hotel Management Agreement
(the "HOTEL MANAGEMENT AGREEMENT") pursuant to which Operator shall manage the
__________ Park Plaza Hotel in London (the "HOTEL").

Notwithstanding any thing contained in the Hotel Management Agreement, it is
hereby agree between the parties that in the event that the Leasee and/or the
Owner shall introduce and offer a time sharing program in the Hotel - the
revenue in consideration for the sale of such program units itself (in
distinction to maintenance fees or other payment of a category similar to
maintenance fee such as annual club membership fee) SHALL NOT be part of the
Hotel's "Gross Operating Profit" or the "Room Revenues" in accordance with
section 22 of the Hotel Management Agreement and accordingly shall not be part
of the basis of calculation of the fees payable to Operator pursuant to the
Hotel Management Agreement or its early termination.

     IN WITNESS WHEREOF,

For: LEASEE

Name:
      -------------------------------------
Title:
       ------------------------------------

For: OPERATOR Park Plaza Hotels Europe B.V.

Name:
      -------------------------------------
Title:
       ------------------------------------

                                       64<PAGE>

                                                                    EXHIBIT 4.23

                                                               EXECUTION VERSION

                              AMENDED AND RESTATED
                                 LOAN AGREEMENT

                                DATED 9 July 2003

                                U.S.$ 57,950,000

                             MULTICURRENCY TERM LOAN

                                     BETWEEN

                           ELBIT MEDICAL IMAGING LTD.
                                   as Borrower

                                       AND

                               BANK HAPOALIM B.M.
                                     as Bank

                               HERZOG FOX & NEEMAN
                          ASIA HOUSE, 4 WEIZMANN STREET
                                TEL-AVIV, ISRAEL
                                TEL: 03 692 2020
                                FAX: 03 696 6464

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                           <C>
1.  INTERPRETATION ........................................................    1
    1.1   DEFINITIONS .....................................................    1
    1.2   CONSTRUCTION ....................................................   16

2.  LOAN ..................................................................   17

3.  PURPOSE ...............................................................   17

4.  CONDITIONS PRECEDENT ..................................................   17

5.  REPAYMENT .............................................................   17
    5.1   TRANCHE A .......................................................   17
    5.2   TRANCHE B .......................................................   18
    5.3   CURRENCY ........................................................   18
    5.4   REPAYMENT SCHEDULE ..............................................   18
    5.5   LOAN AMOUNT .....................................................   18

6.  PREPAYMENT AND CANCELLATION ...........................................   18
    6.1   VOLUNTARY PREPAYMENT OF TRANCHE A AND TRANCHE B .................   18
    6.2   MANDATORY PREPAYMENT ............................................   18
    6.3   MISCELLANEOUS PROVISIONS ........................................   21

6A. CONVERSION OF AVAILABLE CURRENCY ......................................   22
    6A.1  REQUEST .........................................................   22
    6A.2  AMOUNT OF AVAILABLE CURRENCY ....................................   22
    6A.3  PREPAYMENT ......................................................   23
    6A.4  LOAN AMOUNT .....................................................   23

7.  INTEREST PERIODS ......................................................   23
    7.1   SELECTION .......................................................   23
    7.2   NON-BUSINESS DAYS ...............................................   23

8.  INTEREST ..............................................................   23
    8.1   INTEREST RATE ...................................................   23
    8.2   DUE DATES .......................................................   23
    8.3   CONSOLIDATION ...................................................   23
    8.4   DEFAULT INTEREST ................................................   24
    8.5   NOTIFICATION ....................................................   24

9.  PAYMENTS ..............................................................   24
    9.1   PLACE ...........................................................   24
    9.2   FUNDS ...........................................................   24
    9.3   APPLICATION .....................................................   24
    9.4   CURRENCY ........................................................   25
    9.5   SET-OFF AND COUNTERCLAIM ........................................   25
    9.6   NON-BUSINESS DAYS ...............................................   25
    9.7   PARTIAL PAYMENTS ................................................   25
</TABLE>

<PAGE>

<TABLE>
<S>                                                                           <C>
10. TAXES .................................................................   25

11. MARKET DISRUPTION .....................................................   26
    11.1  ABSENCE OF QUOTATIONS ...........................................   26
    11.2  MARKET DISRUPTION ...............................................   26
    11.3  ALTERNATIVE BASIS FOR OUTSTANDING ADVANCES ......................   26

12. INCREASED COSTS .......................................................   27
    12.1  INCREASED COSTS .................................................   27
    12.2  EXCEPTIONS ......................................................   27

13. ILLEGALITY ............................................................   28

14. REPRESENTATIONS AND WARRANTIES ........................................   28
    14.1  REPRESENTATIONS AND WARRANTIES ..................................   28
    14.2  STATUS ..........................................................   28
    14.3  POWERS AND AUTHORITY ............................................   28
    14.4  LEGAL VALIDITY ..................................................   28
    14.5  NON-CONFLICT ....................................................   29
    14.6  NO DEFAULT ......................................................   29
    14.7  AUTHORIZATIONS ..................................................   29
    14.8  LITIGATION ......................................................   29
    14.9  INFORMATION .....................................................   29
    14.10 FINANCIAL STATEMENTS ............................................   30
    14.11 COMPLIANCE ......................................................   30
    14.12 INSURANCES ......................................................   30
    14.13 TITLE AND OWNERSHIP .............................................   30
    14.14 STATUS OF SECURITY ..............................................   30
    14.15 PARI PASSU RANKING ..............................................   31
    14.16 INDEBTEDNESS ....................................................   31
    14.17 TAXES ON PAYMENTS ...............................................   31
    14.18 STAMP DUTIES ....................................................   31
    14.19 IMMUNITY ........................................................   31
    14.20 JURISDICTION/GOVERNING LAW ......................................   31
    14.21 TIMES FOR MAKING REPRESENTATIONS AND WARRANTIES .................   32

15. UNDERTAKINGS ..........................................................   32
    15.1  DURATION ........................................................   32
    15.2  FINANCIAL INFORMATION ...........................................   32
    15.3  OTHER INFORMATION ...............................................   33
    15.4  NOTIFICATION OF DEFAULT .........................................   33
    15.5  COMPLIANCE CERTIFICATES .........................................   34
    15.6  AUTHORISATIONS ..................................................   34
    15.7  PARI PASSU RANKING ..............................................   34
    15.8  NEGATIVE PLEDGE .................................................   34
    15.9  TRANSACTIONS SIMILAR TO SECURITY ................................   34
    15.10 BORROWINGS ......................................................   35
    15.11 DISPOSALS .......................................................   35
    15.12 MERGERS AND ACQUISITIONS ........................................   35
    15.13 COMPLIANCE WITH LAWS AND PAYMENT OF TAXES .......................   35
    15.14 CHANGE OF BUSINESS ..............................................   36
    15.15 SHARE CAPITAL ...................................................   36
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                           <C>
    15.16 DISTRIBUTIONS ...................................................   36
    15.17 INSURANCES ......................................................   36
    15.18 CONDUCT OF BUSINESS .............................................   36
    15.19 USE OF PROCEEDS .................................................   37
    15.20 AMENDMENTS AND AGREEMENTS .......................................   37
    15.21 FINANCIAL COVENANTS .............................................   37
    15.22 EBRD ............................................................   39

16. DEFAULT ...............................................................   40
    16.1  EVENTS OF DEFAULT ...............................................   40
    16.2  NON-PAYMENT .....................................................   40
    16.3  BREACH OF OTHER OBLIGATIONS .....................................   40
    16.4  MISREPRESENTATION ...............................................   41
    16.5  LEGAL VALIDITY ..................................................   41
    16.6  CROSS-DEFAULT ...................................................   41
    16.7  INSOLVENCY ......................................................   42
    16.8  INSOLVENCY PROCEEDINGS ..........................................   43
    16.9  APPOINTMENT OF RECEIVERS AND MANAGERS ...........................   44
    16.10 CREDITORS' PROCESS ..............................................   44
    16.11 CESSATION OF BUSINESS ...........................................   44
    16.12 ILLEGALITY ......................................................   44
    16.13 EFFECTIVENESS OF SECURITY .......................................   44
    16.14 CHANGE IN CONTROL ...............................................   44
    16.15 ABANDONMENT OR NATIONALISATION ..................................   45
    16.16 MATERIAL ADVERSE EFFECT .........................................   45
    16.17 REGISTRATION FOR TRADE ..........................................   45
    16.18 ACCELERATION ....................................................   45

17. ACCOUNTS ..............................................................   46
    17.1  OPENING OF ACCOUNTS .............................................   46
    17.2  LOAN ACCOUNT ....................................................   47
    17.3  REVENUE ACCOUNT .................................................   47
    17.4  GENERAL PROVISIONS RELATING TO ACCOUNTS .........................   47

18. SECURITY ..............................................................   49
    18.1  EFFECTIVE DATE ..................................................   49
    18.2  CHARGES .........................................................   49
    18.3  PLEDGE OF ELSCINT SHARES ........................................   49

19. FEES AND EXPENSES .....................................................   49
    19.1  ARRANGEMENT FEE .................................................   49
    19.2  INITIAL AND SPECIAL COSTS .......................................   49
    19.3  ENFORCEMENT COSTS ...............................................   50
    19.4  RETENTION .......................................................   50
    19.5  VAT .............................................................   50

20. STAMP DUTIES ..........................................................   50

21. INDEMNITIES ...........................................................   50
    21.1  CURRENCY INDEMNITY ..............................................   50
    21.2  OTHER INDEMNITIES ...............................................   51
</TABLE>

                                       iii

<PAGE>

<TABLE>
<S>                                                                           <C>
22. EVIDENCE AND CALCULATIONS .............................................   51
    22.1  ACCOUNTS ........................................................   51
    22.2  CERTIFICATES AND DETERMINATIONS .................................   51
    22.3  INTEREST CALCULATIONS ...........................................   51

23. AMENDMENTS AND WAIVERS ................................................   52
    23.1  AMENDMENTS ......................................................   52
    23.2  WAIVERS AND REMEDIES CUMULATIVE .................................   52

24. CHANGES TO THE PARTIES ................................................   52
    24.1  TRANSFERS BY BORROWER ...........................................   52
    24.2  TRANSFERS BY BANK ...............................................   52
    24.3  REFERENCE BANKS .................................................   52

25. DISCLOSURE OF INFORMATION .............................................   53

26. SET-OFF ...............................................................   53

27. SEVERABILITY ..........................................................   53

28. COUNTERPARTS ..........................................................   53

29. NOTICES ...............................................................   53
    29.1  GIVING OF NOTICES ...............................................   53
    29.2  ADDRESSES FOR NOTICES ...........................................   54

30. JURISDICTION ..........................................................   55
    30.1  SUBMISSION ......................................................   55

31. WAIVER OF IMMUNITY ....................................................   55

32. GOVERNING LAW .........................................................   55

33. THIRD PARTIES .........................................................   55

SCHEDULE 1 CONDITIONS PRECEDENT ...........................................   57
    1. CONSTITUTIONAL DOCUMENTS ...........................................   57
    2. BORROWER CORPORATE AUTHORISATIONS ..................................   57
    3. FINANCE DOCUMENTS AND RELATED DOCUMENTS ............................   57
    4. AUTHORISATIONS .....................................................   57
    5. SECURITY MATTERS ...................................................   57
    6. ACCOUNTS ...........................................................   58
    7. LEGAL OPINIONS .....................................................   58
    8. FEES ...............................................................   58

SCHEDULE 2 INITIAL COMMERCIAL CENTERS .....................................   60

SCHEDULE 3 BORROWER'S FUNDED SUBSIDIARIES AND PROJECTS ....................   61

SCHEDULE 4 SUBORDINATION AGREEMENT ........................................   62

SCHEDULE 5 FORM OF THE GUARANTEE ..........................................   63
</TABLE>

                                       iv

<PAGE>

<TABLE>
<S>                                                                           <C>
SCHEDULE 6 REPAYMENT SCHEDULE .............................................   64

SCHEDULE 7 FORM OF LOAN ASSIGNMENT ........................................   65

SIGNATORIES ...............................................................   66
</TABLE>

                                        v
<PAGE>

                                                               EXECUTION VERSION

THIS AMENDED AND RESTATED LOAN AGREEMENT is dated this 9th day of July 2003
between:

(1)  ELBIT MEDICAL IMAGING LTD. a public company (with company number
     52-004303-5) organised and existing under the laws of the State of Israel,
     having its registered office at 13 Moses Street, Tel Aviv, Israel, as
     borrower (the "BORROWER"); and

(2)  BANK HAPOALIM B.M, a banking corporation incorporated in the State of
     Israel, acting through its Main Tel Aviv branch, whose address is at 41-45
     Rothschild Boulevard, Tel Aviv, Israel, as Bank (the "BANK").

WHEREAS the Borrower entered into a Letter of Undertaking in favour of the Bank
     ("LOU") dated 27 September 2000; and

WHEREAS the parties wish to make certain amendments in the nature of the Loan
     provided under the LOU and in the collateral furnished therefor, and to
     amend the LOU in certain other respects, all subject to and in accordance
     with the terms and conditions set out herein.

NOW, THEREFORE, IT IS AGREED as follows:

1.   INTERPRETATION

1.1  DEFINITIONS

     In this Agreement:

     "ACCOUNTS"

     means:

     (a)  the Loan Account; and

     (b)  the Revenue Account.

     "ADVANCE"

     means the principal amount of loans advanced under the LOU and/or to be
     advanced under this Agreement, which are from time to time outstanding.

     "AFFILIATE"

     means a Subsidiary or a Holding Company of the Bank or any other Subsidiary
     of that Holding Company.

<PAGE>

                                        2

     "AGENCY"

     includes, in relation to a state or supranational organisation, any agency,
     authority, central bank, department, government, legislature, ministry,
     official or public person (whether autonomous or not) of, or of the
     government of, that state or supranational organisation.

     "AGREEMENT"

     means this agreement.

     "AUTHORISED INVESTMENTS"

     has the meaning ascribed to such term in Clause 17.5(c).

     "AVAILABLE CURRENCY"

     means Dollar and Euro.

     "BANK'S SPOT RATE OF EXCHANGE"

     means the Bank's spot rate of exchange for the purchase of the relevant
     Available Currency in the London foreign exchange market at or about
     11.00a.m. on a particular day.

     "BORROWER FUNDED SUBSIDIARY"

     means any direct or indirect Subsidiary of the Borrower engaged in the
     Business, where the Equity Contributions of the Borrower in such Subsidiary
     have been funded, in whole or in part, by utilising the proceeds of the
     Facility, namely those Subsidiaries specified in SCHEDULE 3.

     "BUSINESS"

     means the business of owning and operating commercial and entertainment
     centers in Central and Eastern Europe, including the development,
     acquisition, refurbishment, conversion, extension and construction of
     commercial and entertainment centers in Central and Eastern Europe, whether
     directly or indirectly by the Borrower, or via its Borrower Funded
     Subsidiaries and whether by way of direct acquisition of rights in real
     estate or acting through any other legal entity.

     "BUSINESS DAY"

     means a day (other than a Saturday or a Sunday) on which banks are open for
     business in London, Tel-Aviv and New York.

<PAGE>

                                        3

     "BUSINESS GROUP"

     means the Borrower, the Holding Subsidiaries and the Borrower's Funded
     Subsidiaries.

     "CHARGES"

     means each of the following pledges:

     (a)  share pledge to be executed by Plaza Centers in favour of the Bank
          over its shares in Sadyba Center S.A.;

     (b)  share pledge dated the date hereof executed by Elbit Ultrasound
          (Netherlands) B.V. and Stichting L'Orage in favour of the Bank over
          their shares in Plaza Centers, comprising the entire issued and paid
          up share capital of Plaza Centers; and

     (c)  a pledge dated 28 January 2002 over 615,500 ordinary shares, par value
          NIS 0.5 in Elscint Ltd., which shares are deposited in the Revenue
          Account and pledged in favour of the Bank.

     "CHARGE OVER ACCOUNTS"

     means the charge dated the date hereof executed by the Borrower in favour
     of the Bank over the Loan Account and the Revenue Account.

     "COST BASE"

     means:

     (a)  in relation to an Advance in Dollars, LIBOR; and

     (b)  in relation to an Advance in Euro, EURIBOR.

     "DEFAULT"

     means an Event of Default, or an event or circumstance which but for the
     giving of notice, passage of time, the making of any determination or
     fulfillment of any other applicable condition (or any combination of the
     foregoing) would constitute an Event of Default.

     "DISTRIBUTION"

     means any monies received from and/or transfers made by any Borrower Funded
     Subsidiary deriving from the Business which are made in respect of and/or
     deriving from dividends, returns on capital, repayments of share premium,
     payments with respect to repayment of shareholder loans, award of loans
     made to the Borrower by

<PAGE>

                                        4

     any Borrower Funded Subsidiary, redemption, and/or any other distribution
     of any kind or description constituting a repayment or return on
     investment, in all cases net of bank charges, reasonable brokerage fees and
     withholding taxes, but, excluding Free Funds.

     "DOLLAR" OR "$"

     means the lawful currency for the time being of the United States of
     America.

     "ELBIT ULTRASOUND LOAN AGREEMENT"

     means the loan agreement between the Bank and Elbit Ultrasound
     (Netherlands) B.V., dated the date hereof.

     "EBRD"

     means the European Bank for Reconstruction and Development.

     "EBRD CONVERSION OPTION"

     means the option awarded to EBRD in terms of the EBRD Equity Financing
     Facility, in terms of which EBRD has the option to convert the amount of
     the EBRD Equity Financing Facility into shares of Plaza Centers,
     constituting up to ten percent (10%) of the issued share capital of Plaza
     Centers, to be issued and allotted to EBRD.

     "EBRD EQUITY FINANCING FACILITY"

     means the loan facility to be awarded by EBRD to Plaza Centers in an amount
     of Euro 35,000,000 (thirty five million Euros) for the funding of equity in
     Subsidiaries of Plaza Centers engaged in the Business, in relation to
     which EBRD has been awarded the EBRD Conversion Option;

     "EQUITY AMOUNT"

     means the amount of the Equity Contributions in relation to each Project
     funded by the Bank, as set out in SCHEDULE 3 (as updated by written
     agreement of both the Bank and the Borrower, from time to time).

     "EQUITY CONTRIBUTIONS"

     means the investments (whether in the form of shareholder loans or as
     equity investment) which have been made by the Borrower (directly or
     indirectly through a Borrower Funded Subsidiary or Holding Subsidiary) into
     the capital of each special purpose company which is established by the
     Borrower for the purpose of the Business, namely those amounts specified
     against the name of each Project comprising the Business as detailed in
     SCHEDULE 3.

<PAGE>

                                        5

     "EURO"

     means the single currency of Participating Member States introduced in
     accordance with the provisions of Article 109(1)4 of the Treaty.

     "EURIBOR"

     means, in relation to an Advance or unpaid sum denominated in Euro for an
     Interest Period:

     (a)  the rate per annum equal to the rate for deposits in Euro determined
          by the Banking Federation of the European Union for the relevant
          period, displayed on the Telerate Screen page 248 or any equivalent
          successor to that page or other page as appropriate (as reasonably
          determined by the Bank) (for the purposes of this definition, the
          "TELERATE SCREEN"); or

     (b)  if the relevant rates do not appear on the Telerate Screen for the
          purposes of paragraph (a) above, or the Bank reasonably determines
          that no rate for a period of comparable duration to the relevant
          Interest Period appears on the Telerate Screen) the arithmetic mean
          (rounded upwards to five decimal places) of the rates, as supplied to
          the Bank at its request, quoted by the Reference Banks to leading
          banks in the European Interbank Market,

     at or about 11.00 a.m. on the relevant Rate Fixing Day for the offering of
     deposits in Euro for a period comparable to the relevant Interest Period or
     relevant period in respect of any unpaid sum.

     "EUROPE ISRAEL LOAN AGREEMENT"

     means the loan agreement between the Bank and the Shareholder, dated 4 May
     1999 (as amended or replaced, from time to time).

     "EVENT OF DEFAULT"

     means an event specified as such in Clause 16.1 (Events of Default).

     "FACILITY"

     means the Loan awarded in terms of this Agreement.

     "FINAL MATURITY DATE"

     means 31st December 2012.

<PAGE>

                                        6

     "FINANCE CHARGES"

     means:

     (a)  interest, commissions, fees and costs payable by the Borrower under
          the Finance Documents;

     (b)  amounts ascertained as being payable by the Borrower under Clause 10
          (Taxes), Clause 12 (Increased Costs), Clause 20 (Stamp Duties) and
          Clause 21 (Indemnities) of this Agreement; and

     (c)  any value added or other taxes payable by the Borrower in respect of
          the above,

     but excluding Financing Principal.

     "FINANCE DOCUMENTS"

     means:

     (a)  this Agreement;

     (b)  each Security Document; and

     (c)  the Documentation required to open or operate the Accounts,

     and any other document designated as such by the Bank and the Borrower.

     "FINANCIAL INDEBTEDNESS"

     means any indebtedness in respect of:

     (a)  moneys borrowed or debit balances at banks and other financial
          institutions;

     (b)  any charge, bond, note, loan stock or other security;

     (c)  any documentary credit;

     (d)  receivables sold or discounted (otherwise than on a non-recourse
          basis);

     (e)  the acquisition cost of any asset to the extent payable before or
          after the time of acquisition or possession by the party liable where
          the advance or deferred payment is arranged primarily as a method of
          raising finance or financing the acquisition of that asset;

<PAGE>

                                        7

     (f)  any lease entered into primarily as a method of raising finance or
          financing the acquisition of the asset leased;

     (g)  any currency swap or interest swap, cap or collar arrangement or any
          other derivative instrument;

     (h)  any amount raised under any other transaction having the commercial
          effect of a borrowing or raising of money; or

     (i)  any guarantee, indemnity or similar assurance against financial loss
          of any person.

     "FINANCING PRINCIPAL"

     means principal amounts outstanding from time to time under this Agreement.

     "FREE FUNDS"

     means any cash attributable to operating profits generated by a Project
     which may become available to the relevant Borrower Funded Subsidiary after
     all debt service reserve and other retention and security obligations in
     terms of the Project's senior debt facility have been satisfied and
     fulfilled.

     "GAAP"

     means:

     (a) in relation to Borrower - the Israeli accounting standards promulgated
     from time to time by the Israeli Accounting Standards Committee (or
     equivalent body); and

     (b) in relation to Plaza Centers - international accounting standards
     promulgated from time to time by the International Accounting Standards
     Committee.

     "GROUP"

     means, at any time, the Borrower and its Subsidiaries at that time.

     "GUARANTEE"

     means the guarantee entered into by Plaza Centers in favour of the Bank,
     dated the date hereof, in which Plaza Centers guarantees the obligations of
     the Borrower pursuant to this Agreement in the form and text attached
     hereto as marked as SCHEDULE "6".

     "HOLDING COMPANY"

     in relation to a person, means an entity of which that person is a
     Subsidiary.

<PAGE>

                                        8

     "HOLDING SUBSIDIARY"

     means:

     (a)  Elbit Medical Holdings Ltd.

     (b)  Elbit Ultrasound Ltd.

     (c)  Elbit Ultrasound (Netherlands) B.V.; and

     (d)  Plaza Centers.

     "INDEX"

     means the consumer price index (also known as the cost of living index),
     including fruit and vegetables, published by the Central Bureau of
     Statistics in Israel (the "Bureau"), including the same index even if
     published by any other government institution and also including any
     official index replacing the same, whether based on the same data on which
     the existing index is based or not. If another index replaces the existing
     index, the Bureau shall determine the conversion ratio between them, and if
     the Bureau does not determine the conversion ratio between them within
     three (3) months of the publication of the other index, it shall be
     reasonably determined by the Bank in consultation with economic experts.

     "INITIAL COMMERCIAL CENTERS"

     the eight (8) commercial centers listed on SCHEDULE 2 (Initial Commercial
     Centers).

     "INSURANCE PROCEEDS"

     means all proceeds of Insurances payable to or for the account of the
     Borrower whether by way of claims, return of premiums or otherwise.

     "INSURANCES"

     means all contracts and policies of insurance and re-insurance of any kind
     which pertain to the Business and which are taken out by or on behalf of
     the Business Group in accordance with the Finance Documents or (to the
     extent of its interest) in which the Borrower has an interest.

     "INTEREST PERIOD"

     means each period determined in accordance with Clause 7 (Interest
     Periods).

<PAGE>

                                        9

     "LIBOR"

     means:

     (a)  the rate per annum for deposits in Dollarswhich appears on Telerate
          Screen page 3750 or any equivalent successor to such page or other
          page as appropriate (as reasonably determined by the Bank) (for the
          purposes of this definition, the "TELERATE SCREEN"); or

     (b)  if the relevant rates do not appear on the Telerate Screen for the
          purposes of paragraph (a) above, or the Bank reasonably determines
          that no rate for a period of comparable duration to the relevant
          Interest Period appears on the Telerate Screen, the arithmetic mean
          (rounded upwards to five decimal places) of the rates, as supplied to
          the Bank at its request, quoted by the Reference Banks to leading
          banks in the London Interbank Market,

          at or about 11.00 a.m. on the applicable Rate Fixing Day for the
          offering of deposits in the currency of the relevant Advance for a
          period comparable to the relevant Interest Period.

     "LOAN"

     means the aggregate amount of:

     (a)  Tranche A; and

     (b)  Tranche B.

     "LOAN ACCOUNT"

     means the account so designated to be maintained in accordance with this
     Agreement with account number 600/664513 at the Loan Office in the name of
     the Borrower.

     "LOAN ASSIGNMENT"

     means the assignment by way of security dated the date hereof entered into
     by the Borrower in favour of the Bank in relation to the Plaza Centers
     Loans, in the form attached hereto as SCHEDULE "7".

     "LOAN OFFICE"

     means the central Tel Aviv branch of the Bank or such other branch in
     Israel as may be designated by the Bank by written notice to the Borrower
     at least fifteen (15) days in advance.

     "LOAN PERIOD"

<PAGE>

                                       10

     means the period commencing on the date hereof and ending on the Final
     Maturity Date.

     "MANDATORY COST"

     means the cost imputed to the Bank for compliance with any applicable
     regulatory or central bank requirement relating to any Advance made through
     a branch in the jurisdiction of the currency of the Advance.

     "MARGIN"

     means 3.35% (three and thirty five hundredths percent) per annum.

     "MATERIAL ADVERSE EFFECT"

     means any effect which, in the opinion of the Bank:

     (a)  is or is likely to be materially adverse to the ability of the
          Borrower to perform or comply with its obligations under the Finance
          Documents (including any of its payment obligations under the Finance
          Documents) in a timely manner; or

     (b)  is or is likely to be materially prejudicial to:

          (i)  the interests of the Bank under the Finance Documents; or

          (ii) the business, operations or financial condition of the Borrower;

     "NET LOAN AMOUNT"

     means all outstanding:

     (a)  Tranche A Advances; and

     (b)  Tranche B Advances; plus

     (c)  amounts pursuant to the Elbit Ultrasound Loan Agreement;

     (d)  loans or other facilities provided by the Bank which, at the date
          hereof, includes the loan provided by the Bank to the Borrower for the
          purposes of an investment in Insightec Image Guided Treatment Ltd.
          ("Insightec") in the amount of US$ 10 million (ten million US
          Dollars); and

     (e)  the guarantee provided by the Borrower in favour of the Bank in
          relation to the loan provided by the Bank to InSightec in the amount
          of US$ 5 million (five million US Dollars),

     together with all Finance Charges accruing thereon.

<PAGE>

                                       11

     "NIS"

     means the lawful currency for the time being of the State of Israel.

     "ORIGINAL GROUP ACCOUNTS"

     means the audited and consolidated financial statements of the Borrower and
     Plaza Centers for the financial year ended 31st December, 2002.

     "OUTSTANDING EQUITY LOAN AMOUNT"

     means the outstanding amounts of :

     (a)  the Tranche A Advances;

     (b)  the Tranche B Advances; and

     (c)  the Elbit Ultrasound Loan Agreement.

     "PARTICIPATING MEMBER STATE"

     means a member state of the European Union that has adopted the single
     currency in accordance with the Treaty;

     "PARTY"

     means a party to this Agreement.

     "PERMITTED SECURITY INTEREST"

     means:

     (a)  any Security Interest arising under the Security Documents;

     (b)  any Security Interest created by the Borrower or a Borrower Funded
          Subsidiary either before or after the date hereof to a financial
          institution in respect of the Refinancing by the Borrower and/or the
          relevant Borrower Funded Subsidiary of an existing Project (subject to
          the prior written consent of the Bank); and

     (c)  any Security Interest (other than those set out above) created by the
          Borrower or a Borrower Funded Subsidiary after the date hereof, to a
          financial institution in respect of the purchase of a new asset and/or
          in respect of the development and construction of a new Project
          provided that the financial institution is funding such new asset or
          Project,

<PAGE>

                                       12

     provided, that no Security Interest created by the Borrower or any Borrower
     Funded Subsidiary after the date hereof shall impair or rank ahead of any
     Security Interest arising under the Security Documents (other than in the
     circumstances provided in the charge over the shares of Plaza Centers in
     Sadyba Center S.A.).

     "PLAZA CENTERS"

     means Plaza Centers (Europe) B.V., a company organized and existing in the
     Netherlands with its registered office at 239 Keizersgracht, EA1016
     Amsterdam, The Netherlands.

     "PLAZA CENTERS LOANS"

     means any and all shareholders loans made by the Borrower to Plaza Centers
     directly or by way of any Holding Subsidiary and outstanding from time to
     time.

     "PROJECT"

     means all those projects comprising the Business which have been and/or
     shall be developed, constructed and operated by Borrower's Funded
     Subsidiaries.

     "PREPAYMENT AMOUNT"

     means, in relation to the events set out in Clause 6.2, as follows:

     (a)  where all or part of Plaza Centers is sold, the percentage of Plaza
          Centers sold in the Trigger Event multiplied by the Outstanding Equity
          Loan Amount on the date of the occurrence of the Trigger Event; or

     (b)  where all or part of a Project is sold, the percentage of the Project
          sold in the Trigger Event multiplied by the Equity Amount for that
          Project on the date of the occurrence of the Trigger Event.

     "RATE FIXING DAY"

     means the second Business Day before the first day of an Interest Period
     for an Advance (or such other day as is generally treated as the rate
     fixing day by market practice in the London interbank market).

     "REFERENCE BANKS"

     means, subject to Clause 24.3 (Reference Banks), HSBC plc, Citibank, The
     Royal Bank of Scotland and Barclays Bank.

     "REFINANCING"

     means any loan facility awarded to a Borrower Funded Subsidiary in respect
     of a Project, the proceeds of which are applied in part to the repayment of
     either:

<PAGE>

                                       13

     (a)  the construction loan facility awarded to that Borrower Funded
          Subsidiary in respect of the development of the relevant Project; or

     (b)  any previous refinancing loan facility awarded to that Borrower Funded
          Subsidiary in respect of the relevant Project.

     "REVENUE ACCOUNT"

     means the account so designated to be maintained in accordance with this
     Agreement with account number 600/665765 at the Loan Office in the name of
     the Borrower.

     "REVENUES"

     means all net amounts payable to and/or received by the Borrower and/or to
     its account pertaining to the Business including, without limitation:

     (a)  all revenues, loan repayments and Distributions received from any of
          the Borrower Funded Subsidiaries;

     (b)  interest and other income earned on balances standing to the credit of
          any bank accounts conducted by (i) Borrower in respect of the
          Business; and (ii) Borrower's Funded Subsidiaries (to the extent not
          subject to a Security Interest in terms of the senior debt facility
          taken out by that Borrower Funded Subsidiary);

     (c)  all Insurance Proceeds and

     (d)  all proceeds received upon a Refinancing, sale, public offering or
          private placement.

     "SABYBA PROJECT"

     means the commercial and entertainment center situated in the Sadyba
     District of Warsaw, Poland, owned by Sadyba Center S.A. in which Plaza
     Centers presently holds a fifty per cent (50%) interest.

     "SADYBA OPTION"

     means either:

     (a)  the call option in favour of Plaza Centers to acquire the remaining
          fifty per cent (50%) of the issued share capital of Sadyba Center SA;
          or

     (b)  the put option in favour of I.T. Sadyba BV (a subsidiary of the Israel
          Theaters Group) to demand the acquisition by Plaza Centers of the
          fifty per cent (50%) shareholding held by it in Sadyba Center SA.

<PAGE>

                                       14

     "SECURITY ASSET"

     means any asset which is the subject of any Security Interest under the
     Security Documents.

     "SECURITY DOCUMENTS"

     means:

     (a)  the Charges;

     (b)  the Charge over Accounts;

     (c)  the Subordination Agreements;

     (d)  the Guarantee; and

     (f)  the Loan Assignment,

     and any other document evidencing or creating any Security Interest over
     any asset of the Borrower to secure any obligations of the Borrower to the
     Bank under the Finance Documents.

     "SECURITY INTEREST"

     means any mortgage, pledge, lien, charge, assignment, hypothecation or
     security interest or any other agreement or arrangement having the effect
     of conferring security.

     "SHAREHOLDER"

     means Europe Israel M.M.S. Ltd., a company organized and existing in the
     State of Israel with its registered office at 13 Moses Street, Tel Aviv
     67442.

     "SUBORDINATED CREDITOR"

     means any Subsidiary or Holding Company of the Borrower that has, from time
     to time, provided debt funding to the Borrower.

     "SUBORDINATION AGREEMENTS"

     means:

     (a)  the subordination agreement dated the date hereof between the Bank,
          the Borrower and the Subordinated Creditor named therein, and

<PAGE>

                                       15

     (b)  each subordination agreement to be entered into from time to time
          (substantially in the form of SCHEDULE 4 (Subordination Agreement)) in
          accordance with the terms of Clause 15.10.

     "SUBSIDIARY"

     means an entity from time to time of which a person has direct or indirect
     control, or owns directly or indirectly more than twenty five per cent.
     (25%) of the share capital or similar right of ownership.

     "TAXES"

     includes all present and future income and other taxes, levies, imposts,
     deductions, charges and withholdings in the nature of taxes whatsoever
     together with interest thereon and penalties with respect thereto, if any,
     and any payments made on or in respect thereof and "TAXATION" shall be
     construed accordingly.

     "TRANCHE A "

     means US$40,450,000 (forty million four hundred and fifty thousand US
     Dollars) to the extent not cancelled, transferred or reduced under this
     Agreement.

     "TRANCHE B"

     means US$17,500,000 (seventeen million five hundred thousand US Dollars) to
     the extent not cancelled, transferred or reduced under this Agreement.

     "TRANCHE A ADVANCE"

     means any Advance made under Tranche A.

     "TRANCHE B ADVANCE"

     means any Advance made under Tranche B.

     "TREATY"

     means the Treaty establishing the European Economic Community, being the
     Treaty of Rome of 25 March 1957 as amended by the Single European Act 1986
     and the Maastricht Treaty (which was signed on 7 February 1992 and came
     into force on 1 November 1993) as amended, varied or supplemented from time
     to time.

     "TRIGGER EVENT"

     has the meaning ascribed to such term in Clause 6.2(b)(Mandatory
     Prepayment).
<PAGE>

                                       16

1.2  CONSTRUCTION

(a)  In this Agreement, unless the contrary intention appears, a reference to:

     (i)  an "AMENDMENT" includes a supplement, novation or re-enactment and
          "AMENDED" is to be construed accordingly;

          "ASSETS" includes properties, revenues and rights of every
          description;

          an "AUTHORISATION" includes an authorisation, consent, approval,
          resolution, licence, exemption, filing and registration;

          "CONTROL" means the power to direct the management and policies of an
          entity, whether through the ownership of voting capital, by contract
          or otherwise;

          a "MONTH" is a reference to a period starting on one day in a calendar
          month and ending on the day before the numerically corresponding day
          in the next calendar month, except that if there is no numerically
          corresponding day in the month in which that period ends, that period
          shall end on the last day in that calendar month;

          a "PERSON" includes any person, firm, company, corporation,
          partnership, association, government, state, Agency or other entity or
          one or more of them;

          a "REGULATION" includes any regulation, rule, official directive,
          request or guideline (whether or not having the force of law) of any
          governmental, inter-governmental or supranational body, Agency,
          department or regulatory, self-regulatory or other authority or
          organisation;

          a "SCREEN" or a "PAGE" " on a "Screen" in the definition of "LIBOR"
          and "EURIBOR" includes any replacement screen or page nominated by the
          British Bankers Association as the information vendor for the purpose
          of displaying British Bankers Association Interest Settlement Rates
          for deposits in various currencies;

     (ii) a provision of law is a reference to that provision as amended or
          re-enacted;

     (iii) a Clause or a Schedule is a reference to a clause of or a schedule to
          this Agreement;

     (iv) a person includes its successors and/or assigns;

     (v)  a Finance Document or another document is a reference to that Finance
          Document or other document as amended, subject to compliance with the
          terms of this Agreement;

     (vi) a time of day is a reference to Tel Aviv time; and

<PAGE>

                                       17

     (vii) any representation by the Borrower, being to the best of its
          knowledge shall be deemed to be to the best of such person's knowledge
          after due inquiry.

(b)  Unless the contrary intention appears, a term used in any other Finance
     Document or in any notice given under or in connection with any Finance
     Document has the same meaning in that Finance Document or notice as in this
     Agreement.

(c)  The index to and the headings in this Agreement are for convenience only
     and are to be ignored in construing this Agreement.

(d)  In this Agreement, words denoting the singular include the plural and vice
     versa; words denoting any gender include all genders.

2.   LOAN

     Subject to the terms of this Agreement, the Bank has advanced a loan to the
     Borrower consisting of two tranches, as follows:

     (i)  Tranche A; and

     (ii) Tranche B.

3.   PURPOSE

The Borrower has applied the proceeds of each Advance of Tranche A and Tranche B
solely to fund its Equity Contributions to the Borrower Funded Subsidiaries in
respect of the Business. Without affecting the obligations of the Borrower in
any way, the Bank has no duty to monitor or verify the application of any
Advance.

4.   CONDITIONS PRECEDENT

The obligations of the Bank to the Borrower under this Agreement are subject to
the condition precedent that the Bank has received originals, or where
appropriate, copies certified as true, complete and up-to-date by an authorised
signatory of all of the documents set out in SCHEDULE 1 (Conditions Precedent
Documents) in form and substance satisfactory to the Bank.

5.   REPAYMENT

5.1  TRANCHE A

     The Borrower shall repay the Tranche A Advance in 18 (eighteen) semi-annual
     installments commencing on 30 June 2004 and with the final installment due
     and payable on the Final Maturity Date, and same in accordance with the
     Repayment Schedule, as provided in Clause 5.4 (Repayment Schedule).

<PAGE>

                                       18

5.2  TRANCHE B

     The Borrower shall repay the Tranche B Advance as follows:

     (a)  $8 million (eight million US Dollars) on 30 September 2003; and

     (b)  $9.5 million (nine million five hundred thousand US Dollars) on 31
          December 2003.

5.3  CURRENCY

     Each Advance shall be repaid in the Available Currency in which such
     Advance was borrowed.

5.4  REPAYMENT SCHEDULE

     SCHEDULE 6 (Repayment Schedule) sets out, on the basis of the outstanding
     Tranche A and Tranche B Advances on the date hereof, the amounts to be
     repaid by the Borrower on the last day of each Interest Period up to and
     including the Final Maturity Date. In the event that any prepayment of the
     Loan shall be effected by Borrower in accordance with Clauses 6.1 to 6.3
     inclusive below, the amount of such prepayment shall be applied pro rata to
     all future repayment installments and the Repayment schedule amended
     accordingly.

5.5  LOAN AMOUNT

     If, on the last day of an Interest Period, the outstanding debit balance of
     the Loan Account (howsoever arising) including, inter alia, Tranche A
     Advances in Dollars (or, if in another Available Currency, when converted
     into Dollars on the basis of the Bank's Spot Rate of Exchange), bank
     charges, expenses, commissions, interest payments, exceed the amount
     scheduled to be outstanding on such date as set down in SCHEDULE 6
     (Repayment Schedule) ("Scheduled Amount"), the Borrower shall prepay any
     amount in excess of the Scheduled Amount within 5 (five) Business Days.

6.   PREPAYMENT AND CANCELLATION

6.1  VOLUNTARY PREPAYMENT OF TRANCHE A AND TRANCHE B

The Borrower may, by giving not less than 30 days' prior notice to the Bank,
prepay the Tranche A Advance and, following prepayment of the entire Tranche A
Advance, the Tranche B Advance in whole or in part (but, if in part, at least
the equivalent of US$100,000 (one hundred thousand US Dollars)) provided that
the prepayment is made on the last day of an Interest Period for that Advance.

6.2  MANDATORY PREPAYMENT

(a)  The Borrower shall, upon the occurrence of any Trigger Event (as such term
     is defined in sub-clause (b) of this Clause 6.2) and subject to Clause
     6.2(h), deposit all Revenues

<PAGE>

                                       19

     arising from such Trigger Event in the Revenue Account immediately upon
     receipt thereof. On the last day of the Interest Period in which the
     Revenues deriving from a Trigger Event have been deposited into the Revenue
     Account as aforesaid, the Bank shall apply the amount of such Revenues
     required to be prepaid pursuant to this Clause 6.2, in prepayment as
     follows:

     (i)  first, against Tranche A Advances; and

     (ii) thereafter, against Tranche B Advances.

(b)  For the purposes of this Clause 6.2 (Mandatory Prepayment) each of the
     following events constitutes a Trigger Event:

     (i)  any public offering or private placement of any securities of the
          Borrower, or any Borrower Funded Subsidiary;

     (ii) a merger or consolidation of the Borrower or any Borrower Funded
          Subsidiary with any other entity;

     (iii) a sale, assignment, lease, or other disposal of (whether in one
          transaction or a series of transactions) any of the assets of the
          Borrower or any Borrower Funded Subsidiary assets including any
          shareholdings in any such Borrower Funded Subsidiary and any
          intellectual property to any person or entity;

     (iv) a sale of any asset of the Borrower or Borrower Funded Subsidiary;

     (v)  a Refinancing of any debt of the Borrower or any Borrower Funded
          Subsidiary; or

     (vi) the receipt by the Borrower of any Distributions; or

     (vii) the exercise by EBRD of the EBRD Conversion Option.

(c)  Upon any Refinancing of the Initial Commercial Centers at such time as the
     Net Loan Amount is $40,000,000 (forty million US Dollars) or more, the
     total Revenues from such Refinancing shall be paid into the Revenue Account
     and applied in accordance with Clause 6.2(a) until such time as all
     outstanding Tranche B Advances have been repaid in full, provided that,
     should the aggregate Revenues from the Refinancing of the Initial
     Commercial Centers exceed US$57,000,000 (fifty seven million US Dollars),
     such excess Revenues shall be deemed to be a "future Refinancing" for the
     purposes of sub-clause (d) below.

(d)  Upon the Refinancing of any Project, a Borrower Funded Subsidiary or Plaza
     Centers (other than the Initial Commercial Centers) or any future
     Refinancing of the Initial Commercial Centers at such time as the Net Loan
     Amount is $40,000,000 (forty million US Dollars) or more, the Borrower
     shall subject to Clause 6.2(h), procure that forty percent (40%) of the
     Revenue from such Refinancing, less:

<PAGE>

                                       20

     (i)  any sums in prepayment of any senior construction loans or any
          refinancing loans in place prior to the date hereof in relation to
          such Project;

     (ii) reasonable expenses, costs and commissions incurred in respect of the
          award of the Refinancing Facility; and

     (iii) other expenses approved by the Bank,

     shall be paid into the Revenue Account and applied in accordance with
     Clause 6.2(a).

(e)  Upon:

     (i)  a sale of Plaza Centers (in whole or in part); or

     (ii) a sale of a Project (in whole or in part), including the sale of all
          or part of the shares of the Borrower Funded Subsidiary which is the
          owner of the relevant Project; or

     (ii) a public offering or private placement of any securities of Plaza
          Centers or a Borrower Funded Subsidiary owning a Project;

     the Borrower shall subject to Clause 6.2(h), procure that the Revenues
     equal to the Prepayment Amount shall be paid into the Revenue Account and
     applied in accordance with Clause 6.2(a).

(f)  In the event that EBRD shall elect to exercise the EBRD Conversion Option,
     the Borrower undertakes to procure that the amount which is equivalent to:

     (i)  the Outstanding Equity Loan Amount at the date of the exercise of the
          EBRD Conversion Option; multiplied by

     (iii) the percentage of the outstanding share capital

     (iv) of Plaza Centers allotted to EBRD in consequence of the exercise of
          the EBRD Conversion Option,

     shall be deposited into the Revenue Account by not later than the last day
     of the Interest Period during which such share allotment is consummated,
     which amount shall be applied in the manner provided for in Clause 6.2(a)
     above.

(g)  Notwithstanding the provisions of Clause 6.2(d) above, in the event that
     Plaza Centers:

     (i)  elects to exercise the Sadyba Option; and

     (ii) obtains senior debt financing for the Sadyba Project,

     then and in such event the proceeds of such senior debt financing shall be
     applied as follows:

<PAGE>

                                       21

     (aa) to the payments due in respect of the exercise of the Sadyba Option;

     (bb) thereafter, to the acquisition of the freehold ownership rights in and
          to the property upon which the Sadyba Project is constructed; and

     (cc) thereafter, pari passu to the repayment of equity loan facilities
          taken out by Plaza Centers specifically in respect of the Sadyba
          Project from:

          (A)  Bank Leumi in the amount of US$1,700,000 (one million seven
               hundred thousand US Dollars); and

          (B)  the Bank in accordance with the amount provided in Schedule C;
               and

     (dd) thereafter, the Borrower undertakes to procure, subject to Clause
          6.2(h), that any Revenues remaining after the execution of the above
          payments, if any, shall be deposited into the Revenue Account and
          applied in the manner provided for in Clause 6.2(d) above.

(h)  (i)  If, upon the occurrence of any Trigger Event, Plaza Centers is
          required to pay Revenues to EBRD pursuant to the terms of the EBRD
          Equity Financing Facility (due to a portion of the EBRD Equity
          Financing Facility having been applied to the Borrower Funded
          Subsidiary in relation to which the Trigger Event occurs) as well as
          to the Revenue Account (in accordance with this Clause 6.2), then the
          Borrower shall - notwithstanding the other provisions of this Clause
          6.2 - apply such Revenues pari passu between the Revenue Account and
          EBRD, pro rata to the Equity Amount and the portion of the EBRD Equity
          Financing Facility applied in relation to such Borrower Funded
          Subsidiary.

     (ii) In the event that, pursuant to the terms of the EBRD Equity Financing
          Facility, Plaza Centers is required to pay all Revenues resulting from
          a particular Trigger Event first to EBRD, the Borrower shall not be
          obliged to pay such Revenues to the Revenue Account and the Equity
          Contributions in relation to the other Borrower Funded Subsidiaries
          (other than any Borrower Funded Subsidiary in relation to which a
          Trigger Event shall have occurred since the date of this Agreement)
          shall be increased pro rata by the amount of the Equity Contribution
          in relation to that Borrower Funded Subsidiary, so that the total
          Equity Contributions shall not be reduced as a result of such Trigger
          Event.

6.3  MISCELLANEOUS PROVISIONS

(a)  Any notice of prepayment or cancellation under this Agreement is
     irrevocable.

(b)  Any partial prepayment of Tranche A or Tranche B shall be applied in equal
     shares to all future Tranche A or Tranche B principal repayment
     installments.

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                                       22

(c)  Any prepayments under this Agreement shall be made together with accrued
     interest and all other amounts accrued under the Finance Documents
     (including, without limitation pursuant to Clause 21 (Indemnities)).

(d)  No prepayment or cancellation is permitted except in accordance with the
     express terms of this Agreement.

(e)  Any amount prepaid may not subsequently be re-borrowed (save as provided in
     terms of Section 6A.2 below).

(f)  To the extent that the payment of amounts to the Revenue Account after any
     of the Trigger Events set out in Clause 6.2 (Mandatory Prepayment) is
     dependent upon a Distribution being made by a Borrower Funded Subsidiary
     and/or by a Holding Subsidiary, the Borrower shall procure that such
     Distributions are made in order that such amounts may be paid by the
     Borrower into the Revenue Account in accordance with Clause 6.2 (Mandatory
     Prepayment).

(g)  No pre-payment penalties shall be imposed upon a pre-payment in accordance
     with the provisions of this Clause 6.

6A.  CONVERSION OF AVAILABLE CURRENCY

6A.1 REQUEST

     (a)  The Borrower may request that a portion of Tranche A (not exceeding
          fifty per cent (50%) of the total amount outstanding under the
          Facility at such time) (the "LOAN COMPONENT") be converted into an
          Available Currency for the next Interest Period by submitting a
          written request to the Bank not later than ten (10) Business Days
          before the commencement of the forthcoming Interest Period.

     (b)  The Loan Component shall remain denominated in such Available Currency
          for all future Interest Periods unless the Borrower submits a further
          request in accordance with this Clause 6A.1 (Request).

6A.2 AMOUNT OF AVAILABLE CURRENCY

     If a Loan Component, or any portion thereof, is to be continued during its
     next Interest Period in a different currency (the "NEW CURRENCY") from that
     in which it is currently denominated (the "OLD CURRENCY"), the Loan
     Component shall be repaid by the Borrower in full at the end of its current
     Interest Period in the old currency and, subject to the terms of this
     Agreement, shall be promptly thereafter re-advanced by the Bank in the new
     currency on the same terms and conditions specified in this Agreement,
     mutatis mutandis; the repaid amount shall be re-advanced in the new
     currency in an amount to be determined on the basis of the Bank's Spot Rate
     of Exchange between the old currency and the new currency, two (2) Business
     Days before the commencement of that Interest Period.

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                                       23

6A.3 PREPAYMENT

     A repayment or prepayment of an Advance shall be in the currency in which
     each Loan Component was denominated in the Interest Period immediately
     prior to the date of such repayment or prepayment.

6A.4 LOAN AMOUNT

     The provisions of this Clause 6A (Conversion of Available Currency) do not
     derogate from the provisions of Clause 5.5 (Loan Amount).

7.   INTEREST PERIODS

7.1  SELECTION

     Each Interest Period shall be a six-month period provided, however, that:

     (a)  the first Interest Period shall commence on the date of this Agreement
          and shall end on 31 December 2003; and

     (b)  the final Interest Period shall end upon the Final Maturity Date.

7.2  NON-BUSINESS DAYS

     If an Interest Period would otherwise end on a day which is not a Business
     Day, that Interest Period shall instead end on the next Business Day in
     that calendar month (if there is one) or the preceding Business Day (if
     there is not).

8.   INTEREST

8.1  INTEREST RATE

     The rate of interest on each Advance for each of its Interest Periods is
     the rate per annum determined by the Bank to be the aggregate of:

     (a)  the Margin; and

     (b)  the Cost Base.

8.2  DUE DATES

     Accrued interest on each Advance is payable by the Borrower on the last day
     of each Interest Period for that Advance.

8.3  CONSOLIDATION

     All outstanding Advances for Tranche A and Tranche B, respectively, shall
     be consolidated on the date hereof to form one single Advance for Tranche A
     and Tranche B, respectively.

<PAGE>

                                       24

8.4  DEFAULT INTEREST

(a)  If the Borrower fails to pay any amount payable by it under the Finance
     Documents, it shall, forthwith on demand by the Bank, pay interest on the
     overdue amount from the due date up to the date of actual payment, after as
     well as before judgment, at the default rate of interest customary at the
     Bank at such time for loans in the Available Currency provided that the
     default rate shall, in no event, be lower than 5.5% (five and one-half
     percent) above the Interest Rate of the Advance over due amount under
     Clause 8.1 (Interest Rate) immediately before the due date.

(b)  If the Bank determines that deposits in the currency of the overdue amount
     are not at the relevant time being made available by the Reference Banks to
     leading banks in the London interbank market, the default rate will be
     determined by reference to the cost of funds to the Bank from whatever
     sources it may select.

(c)  Default interest shall be due and payable on demand and shall be compounded
     periodically as customary in the Bank from time to time.

8.5  NOTIFICATION

     The Bank shall promptly notify the Borrower of the determination of a rate
     of interest under this Agreement.

9.   PAYMENTS

9.1  PLACE

     All payments by the Borrower under the Finance Documents shall be made to
     the Bank to its account at the Loan Office or such other place as the Bank
     may notify to the Borrower for this purpose five (5) Business Days in
     advance.

9.2  FUNDS

     Payments under the Finance Documents to the Bank shall be made for value on
     the due date at such times and in such manner as the Bank may specify to
     the Borrower as being customary at the time for the settlement of
     transactions in the currency of the relevant Advance.

9.3  APPLICATION

     The Bank may apply any amount received by it for the Borrower in or towards
     payment (on the date and in the currency and funds of receipt) of any
     amount due from the Borrower under the Finance Documents or in or towards
     the purchase of any amount of any currency to be so applied, provided that
     the Bank shall not apply such funds to the repayment or mandatory
     pre-payment of the Loan other than in accordance with the provisions of
     Clauses 5.1, 5.2, 5.3 and 6.2 above.

<PAGE>

                                       25

9.4  CURRENCY

(a)  Amounts payable in respect of costs, expenses and Taxes and the like are
     payable in the currency in which they are incurred.

(b)  Any other amount payable under the Finance Documents is, except as
     otherwise provided in the Finance Documents, payable in Dollars.

9.5  SET-OFF AND COUNTERCLAIM

     All payments made by the Borrower under the Finance Documents shall be made
     without set-off or counterclaim.

9.6  NON-BUSINESS DAYS

(a)  If a payment under the Finance Documents is due on a day which is not a
     Business Day, the due date for that payment shall instead be the next
     Business Day in the same calendar month (if there is one) or the preceding
     Business Day (if there is not).

(b)  During any extension of the due date for payment of any principal under the
     Finance Documents interest is payable on that principal at the rate
     prevailing on the original due date.

9.7  PARTIAL PAYMENTS

(a)  If the Bank receives a payment insufficient to discharge all the Advances
     then due and payable by the Borrower under the Finance Documents, the Bank
     shall apply that payment towards the obligations of the Borrower under the
     Finance Documents in the following order:

     (i)  FIRST, in or towards payment of any unpaid fees, costs (including
          Mandatory Costs) and expenses of the Bank;

     (ii) SECONDLY, in or towards payment of any Finance Charges due but unpaid
          under this Agreement;

     (iii) THIRDLY, in or towards payment of any Financing Principal due but
          unpaid under this Agreement; and

     (iv) FOURTHLY, in or towards payment of any other sum due but unpaid under
          the Finance Documents.

(b)  Paragraph (a) above shall override any appropriation made by the Borrower.

10.  TAXES

     All payments by the Borrower under the Finance Documents shall be made
     without any deduction and free and clear of and without deduction for or on
     account of any

<PAGE>

                                       26

     Taxes, except to the extent that the Borrower is required by law to make
     payment subject to any Taxes. If any Tax or amounts in respect of Tax must
     be deducted, or any other deductions must be made, from any amounts payable
     or paid by the Borrower, or paid or payable by the Bank under the Finance
     Documents, the Borrower shall pay such additional amounts as may be
     necessary to ensure that the Bank receives a net amount equal to the full
     amount which it would have received had payment not been made subject to
     Tax or other deduction.

11.  MARKET DISRUPTION

11.1 ABSENCE OF QUOTATIONS

     If a Reference Bank does not supply an offered rate by 1.00 p.m. two
     Business Days before the first day of an Interest Period, the applicable
     LIBOR shall, subject to Clause 11.2, be determined on the basis of the
     quotations of the remaining Reference Banks.

11.2 MARKET DISRUPTION

     If in relation to any Interest Period the Bank determines (which
     determination shall be conclusive and binding) that:

(a)  by reason of circumstances affecting the London interbank market generally,
     adequate and fair means do not exist for ascertaining LIBOR or EURIBOR for
     that Interest Period; or

(b)  deposits in Dollars or Euros in the amount required for that Interest
     Period are not available to the bank in the London interbank market,

     the Bank shall promptly notify the Borrower accordingly.

11.3 ALTERNATIVE BASIS FOR OUTSTANDING ADVANCES

     If a notification under Clause 11.2 (Market Disruption) applies to an
     Advance which is outstanding, then, notwithstanding any other provision of
     this Agreement:

(a)  within five Business Days of receipt of the notification, the Borrower and
     the Bank shall enter into negotiations for a period of not more than 30
     days with a view to agreeing to an alternative basis for determining the
     rate of interest or funding or both applicable to that Advance or any other
     Advances;

(b)  any alternative basis agreed under paragraph (a) above shall be binding on
     the Parties;

(c)  if no alternative basis is agreed, the Bank shall certify, on or before the
     last day of the Interest Period to which the notification relates, an
     alternative basis for maintaining the Advance;

(d)  any such alternative basis may include an alternative method of fixing the
     interest rate, alternative Interest Periods or alternative currencies but
     it must reflect the cost to the

<PAGE>

                                       27

     Bank of funding its participation in the Advance from whatever sources it
     may select plus the Margin; and

(e)  each alternative basis so certified shall be binding on the Borrower and
     the Bank and treated as part of this Agreement.

12.  INCREASED COSTS

12.1 INCREASED COSTS

(a)  Subject to Clause 12.2 (Exceptions), the Borrower shall forthwith on demand
     which shall include a computation of the relevant amount in reasonable
     detail by the Bank pay to the Bank the amount of any increased cost
     incurred by it or any of its Affiliates as a result of:

     (i)  the introduction of, or any change in, or any change in the
          interpretation or application of, any law or banking regulation; or

     (ii) compliance with any regulation made after the date of this Agreement,

     (including any law or regulation relating to taxation (excluding income
     tax), monetary union, or reserve asset, special deposit, cash ratio,
     liquidity or capital adequacy requirements or any other form of banking or
     monetary control).

(b)  In this Agreement "INCREASED COST" means:

     (i)  an additional cost incurred by the Bank or any of its Affiliates as a
          result of it having entered into, or performing, maintaining or
          funding its obligations under, any Finance Document;

     (ii) that portion of any additional cost incurred by the Bank or any of its
          Affiliates in making, funding or maintaining all or any advances
          comprised in a class of advances formed by or including the Bank's
          participations in any Advance made or to be made under this Agreement
          as is attributable to the Bank making, funding or maintaining those
          participations; and

     (iii) the amount of any payment made by the Bank or any of its Affiliates,
          or the amount of any interest or other return foregone by the Bank or
          any of its Affiliates, calculated by reference to any amount received
          or receivable by the Bank or any of its Affiliates from any other
          Party under this Agreement.

12.2 EXCEPTIONS

     Clause 12.1 (Increased costs) does not apply to any increased cost:

(a)  compensated for by the operation of Clause 10 (Taxes); or

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                                       28

(b)  attributable to any change in the rate of, or change in the basis of
     calculating, Tax on the overall net income of the Bank (or the overall net
     income of a division or branch of the Bank) imposed in the jurisdiction in
     which its principal office or Loan Office is situate.

13.  ILLEGALITY

     If it is or becomes unlawful in any jurisdiction for the Bank to give
     effect to any of its obligations as contemplated by this Agreement or to
     fund or maintain its participation in any Advance, then:

(a)  the Bank may notify the Borrower accordingly; and

(b)  (i)  the Borrower shall forthwith prepay that Advance together with all
          other amounts payable by it to the Bank under the Finance Documents
          (including, without limitation, pursuant to Clause 21 (Indemnities));
          and

     (ii) the Bank's undrawn Loan will forthwith be cancelled.

14.  REPRESENTATIONS AND WARRANTIES

14.1 REPRESENTATIONS AND WARRANTIES

     The Borrower makes the representations and warranties set out in this
     Clause 14 (Representations and Warranties) to the Bank, in reliance on
     which the Bank has entered into the Agreement.

14.2 STATUS

(a)  It is a company, duly organised and validly existing under the laws of the
     State of Israel; and

(b)  each member of the Group has the power to own its assets and carry on its
     business as it is being conducted.

14.3 POWERS AND AUTHORITY

     It has the power to enter into and perform, and has taken all necessary
     action to authorise the entry into, performance and delivery of, the
     Finance Documents to which it is or will be a party and the transactions
     contemplated by those Finance Documents.

14.4 LEGAL VALIDITY

     Each Finance Document to which it is or will be a party constitutes, or
     when executed in accordance with its terms will constitute, its legal,
     valid and binding obligation enforceable in accordance with its terms.

<PAGE>

                                       29

14.5 NON-CONFLICT

     The entry into and performance by it of, and the transactions contemplated
     by, the Finance Documents do not and will not:-

(a)  conflict with any law or regulation or judicial or official order; or

(b)  conflict with the constitutional documents of any member of the Group; or

(c)  conflict with any document which is binding upon any member of the Group or
     any asset of any member of the Group.

14.6 NO DEFAULT

(a)  No Default is outstanding or might result from the making of any Advance;
     and

(b)  no other event is outstanding which constitutes (or with the giving of
     notice, passage of time, the making of any determination or fulfillment of
     any other applicable condition or any combination of the foregoing, might
     constitute) a default under any document which is binding on the Borrower
     or any member of the Group or any asset of the Borrower or any member of
     the Group.

14.7 AUTHORIZATIONS

     All authorizations required in connection with the entry into, performance,
     validity and enforceability of the Finance Documents and the transactions
     contemplated by the Finance Documents have been obtained or effected and
     are in full force and effect.

14.8 LITIGATION

     No material litigation, arbitration or administrative proceedings are
     current or, to the best of its knowledge, pending or threatened, which
     might, if adversely determined, have a Material Adverse Effect, which are
     not reflected in the Original Group Accounts.

14.9 INFORMATION

(a)  All information provided or delivered by it to the Bank was true, correct
     and complete in all material respects and not misleading in any material
     respect as of the date that it was delivered; and

(b)  all information provided or delivered by it to the Bank did not omit, as at
     the date that it was delivered, any information which, if disclosed, might
     adversely affect the decision of a financial institution considering
     whether to enter into this Agreement.

<PAGE>

                                       30

14.10 FINANCIAL STATEMENTS

(a)  The audited and consolidated financial statements or the reviewed financial
     statements (as the case may be) of the Borrower and Plaza Centers most
     recently delivered to the Bank (which, at the date of this Agreement, are
     the Original Group Accounts):-

     (i)  have been prepared in accordance with GAAP, consistently applied; and

     (ii) give a true and fair view of the financial condition of the Borrower
          and of Plaza Centers as of the date to which they were drawn up,

     and there has been no material adverse change in the financial condition of
     the Borrower and of each of the Borrower Subsidiaries since the date on
     which those financial statements were drawn up.

14.11 COMPLIANCE

     It is currently complying with applicable laws and regulations in all
     material respects and there is no event or circumstance which would be
     likely to cause it to cease to comply with such laws and regulations in any
     material respect.

14.12 INSURANCES

     All Insurances are or, at the time they are required to be maintained or
     effected, will be, in full force and effect and so far as it is aware no
     event or circumstance has occurred, nor has there been any omission to
     disclose a fact, which would in either case entitle any insurer to avoid or
     otherwise reduce its liability under any policy relating to the Insurances.

14.13 TITLE AND OWNERSHIP

     The Borrower and each of its Funded Subsidiaries have good and marketable
     title to its assets (including without limitation, in the case of the
     Borrower, to any securities held by it in any Borrower Funded Subsidiary)
     free and clear of all Security Interests (other than Permitted Security
     Interests).

14.14 STATUS OF SECURITY

     Each Security Document confers the Security Interests it purports to confer
     over all of the assets referred to in it and those Security Interests:

(a)  are not subject to any prior or higher ranking or pari passu Security
     Interests (other than any Permitted Security Interests); and

(b)  are not void or liable to avoidance, due to the insolvency of the Borrower
     on the date of execution of the relevant Security Document, on liquidation
     or bankruptcy, composition or any other similar insolvency proceedings.
<PAGE>

                                       31

14.15 PARI PASSU RANKING

     The Borrower's obligations under the Finance Documents rank and will rank
     at least pari passu with all its other unsecured obligations, except for
     obligations mandatorily preferred by law applying to companies generally.

14.16 INDEBTEDNESS

     The Borrower does not have any outstanding indebtedness to any of its
     shareholders, to any holding company of its shareholders and to any other
     member of the Group other than indebtedness in favour of the Shareholder
     which, in the aggregate, does not exceed US$1,000,000 (one million US
     dollars).

14.17 TAXES ON PAYMENTS

     All amounts payable by the Borrower under the Finance Documents shall be
     made free and clear of, and without deduction for, or on account of, any
     Tax.

14.18 STAMP DUTIES

     The Borrower shall bear and pay all stamp or registration duty or similar
     taxes or charges which shall be payable in respect of any Finance Document.

14.19 IMMUNITY

(a)  The execution by the Borrower of each Finance Document constitutes, and its
     exercise of its rights and performance of its obligations under each
     Finance Document will constitute, private and commercial acts done and
     performed for private and commercial purposes; and

(b)  the Borrower will not be entitled to claim immunity from suit, execution,
     attachment or other legal process in any proceedings taken in the State of
     Israel or any other jurisdiction in relation to any Finance Document.

14.20 JURISDICTION/GOVERNING LAW

     The Borrower's:

     (a)  irrevocable submission under Clause 30 (Jurisdiction) to the
          jurisdiction of the courts of Israel;

     (b)  agreement that this Agreement is governed by Israeli law; and

     (c)  agreement not to claim any immunity to which it or its assets may be
          entitled,

     are legal, valid and binding under the laws of Israel.

<PAGE>

                                       32

14.21 TIMES FOR MAKING REPRESENTATIONS AND WARRANTIES

     The representations and warranties set out in this Clause 14:

(a)  are made by the Borrower on the date of this Agreement; and

(b)  are deemed to be repeated by the Borrower on each day thereafter with
     reference to the facts and circumstances then existing.

15.  UNDERTAKINGS

15.1 DURATION

     The undertakings in this Clause 15 (Undertakings) remain in force from the
     date of this Agreement for so long as any amount is or may be outstanding
     under this Agreement. All of those undertakings (and any undertakings or
     restrictions in any other clause of the Finance Documents) are cumulative,
     and accordingly none of them shall (except to the extent expressly stated)
     be limited by any exception to any other undertaking or by implication from
     the terms of any other undertaking.

15.2 FINANCIAL INFORMATION

     The Borrower shall supply to the Bank:

(a)  as soon as the same are available (and in any event within 90 days of the
     end of each of its financial years), the audited consolidated accounts and
     financial reports of the Borrower and Plaza Centers for that financial
     year.

(b)  as soon as the same are available (and in any event within 60 days of the
     end of the each quarter of each of its financial years) reviewed interim
     financial reports of the Borrower for that quarter.

(c)  as soon as the same are available (and in any event within 60 days of the
     end of each quarter) reviewed financial statements for that quarter of
     Plaza Centers (including a balance sheet, statements of income and cash
     flow);

(d)  as soon as the same are available, the statutory accounts of Plaza Centers
     for each financial year.

(e)  together with the accounts specified in paragraph (a) and (b) above, a
     certificate from the auditors of the Borrower:

     (i)  establishing compliance with Clause 15.21 (Financial covenants) which
          certificate shall, if the Bank requests, also set out in reasonable
          detail computations establishing such compliance; and

     (ii) confirming that the accounts have been prepared in accordance with
          Israeli GAAP and Securities Law Regulations.

<PAGE>

                                       33

(f)  within 60 days of a written request by the Bank (which shall be delivered
     not more than once in any two consecutive calendar years, unless the Bank
     considers that an event has occurred requiring a greater frequency), a
     valuation addressed to the bank (produced by a third party acceptable to
     the Bank) of the assets of the Borrower.

15.3 OTHER INFORMATION

(a)  The Borrower shall supply to the Bank:

     (i)  all documents despatched by it to its shareholders (or any class of
          them) or by it to its creditors (or any class of them) at the same
          time as they are despatched;

     (ii) copies of all "Immediate Reports" issued by it pursuant to Section 30
          of the Securities Regulations (Periodic and Immediate Reports); 1970;

     (iii) promptly upon becoming aware of them, details of any litigation,
          arbitration or administrative proceedings of a material nature
          relating to it which are current, threatened or pending, and,
          together, in each case, with details of how it proposes to conduct the
          litigation, arbitration or proceedings or otherwise resolve the
          dispute in question;

     (iv) reasonably promptly, and in any case, within 20 Business Days such
          further information in the possession or control of the Group
          regarding its financial condition and operations as the Bank may
          reasonably request;

     (v)  forthwith, details of any event of which it is aware which may have a
          Material Adverse Effect; and

     (vi) promptly, upon the earlier of (A) the signing of a term sheet for a
          Refinancing by a Borrower Funded Subsidiary or (B) the finalisation of
          commercial terms for such Refinancing by a Borrower Funded Subsidiary
          (such notification, for the avoidance of doubt, shall not in itself
          constitute a Trigger Event).

(b)  In the event that an Event of Default has occurred, the Borrower shall
     allow the Bank appropriate and reasonable access to its records and
     accounts.

15.4 NOTIFICATION OF DEFAULT

     The Borrower shall notify the Bank of :

     (a)  any Default (and the steps, if any, being taken to remedy it);

     (b)  any event of default or potential event of default arising under any
          loan agreement entered into by any Subsidiary,

<PAGE>

                                       34

     immediately upon its becoming aware thereof.

15.5 COMPLIANCE CERTIFICATES

     The Borrower shall supply to the Bank promptly at any time, if the Bank so
     requests, a certificate signed by two if its senior officers certifying
     that no Default is outstanding or, if a Default is outstanding, specifying
     the Default and the steps, if any, being taken to remedy it.

15.6 AUTHORISATIONS

     The Borrower shall promptly obtain, maintain and comply with the terms of
     any authorisation required at the relevant time under any law or regulation
     to enable it to perform its obligations under, or for the validity or
     enforceability of, any Finance Document.

15.7 PARI PASSU RANKING

     The Borrower shall procure that its obligations under the Finance Documents
     do and will rank at least pari passu with all its other present and future
     unsecured obligations, except for obligations mandatorily preferred by law
     applying to companies generally.

15.8 NEGATIVE PLEDGE

(a)  The Borrower shall not and shall procure that no Borrower Funded Subsidiary
     shall create or permit to subsist any Security Interest on any of its
     present or future assets.

(b)  Paragraph (a) does not apply to any Permitted Security Interest.

(c)  If the Borrower creates or permits to subsist any Security Interest on any
     of its assets contrary to paragraph (a) above, all of the obligations of
     the Borrower under this Agreement shall, to the extent permissible under
     applicable law, automatically and immediately be secured upon the same
     assets, ranking at least pari passu with the other obligations secured on
     those assets.

15.9 TRANSACTIONS SIMILAR TO SECURITY

(a)  The Borrower shall not, without the prior consent of the Bank:

     (i)  sell, transfer or otherwise dispose of any of its assets on terms
          whereby it is or may be leased to or re-acquired or acquired by a
          member of the Group or any of its related entities; or

     (ii) sell, transfer or otherwise dispose of any of its receivables on
          recourse terms, except for the discounting of bills or notes in the
          ordinary course of trading,

     in circumstances where the transaction is entered into primarily as a
     method of raising finance.

<PAGE>

                                       35

(b)  Paragraph (a) does not apply to Permitted Security Interests.

15.10 BORROWINGS

     The Borrower shall not incur any Financial Indebtedness to any Subsidiary
     unless such Subsidiary has first signed a Subordination Agreement in favour
     of the Bank, substantially in the form of Schedule 4 (Subordination
     Agreement).

15.11 DISPOSALS

(a)  The Borrower shall not, either in a single transaction or in a series of
     transactions, whether related or not and whether voluntarily or
     involuntarily, sell, transfer, grant or lease or otherwise dispose of all
     or any substantial part of the assets of the Business (including tax
     losses).

(b)  Paragraph (a) does not apply to:

     (i)  disposals made in the ordinary course of business of the disposing
          entity; or

     (ii) disposals of assets in exchange for other assets comparable or
          superior as to type, value and quality;

     (iii) disposals of obsolete or surplus assets no longer required for the
          relevant business;

     (iv) the payment of cash as consideration for the acquisition of any asset
          or service;

     (v)  Permitted Security Interests; or

     (vi) any other disposal approved by the Bank (such approval not to be
          unreasonably withheld).

15.12 MERGERS AND ACQUISITIONS

     The Borrower shall not, and shall procure that no other member of the
     Business Group will enter into any amalgamation, demerger, merger or
     reconstruction.

15.13 COMPLIANCE WITH LAWS AND PAYMENT OF TAXES

(a)  The Borrower shall comply (and shall procure that each other member of the
     Group complies) with all laws and regulations applicable to it to the
     extent that failure to do so would have a Material Adverse Effect.

(b)  The Borrower shall:

     (i)  file, or procure the filing of, all tax and informational returns that
          are required to be filed by it in any jurisdiction; or

<PAGE>

                                       36

     (ii) pay all its taxes when due, except to the extent the taxes are
          contested in good faith and by appropriate means, and a reserve
          reasonably regarded as adequate has been set aside for payment of
          those taxes.

15.14 CHANGE OF BUSINESS

     The Borrower shall procure that no other member of the Business Group will
     engage in any business or activities other than the Business and any
     business incidental to its implementation, other than with the approval of
     the Bank (such approval not to be unreasonably withheld).

15.15 SHARE CAPITAL

     The Borrower shall not, without the prior consent of the Bank:

(a)  purchase, cancel or redeem any of its share capital or that of Plaza
     Centers (other than consequent upon exercise of the EBRD Conversion
     Option); or

(b)  issue any further securities (including consequent upon exercise of the
     EBRD Conversion Option) if as a result of such the Shareholder would hold,
     directly or indirectly, less than 50.1% (fifty and one-tenth of one per
     cent) of the issued share capital of the Borrower.

15.16 DISTRIBUTIONS

(a)  Except as required by law, the Borrower shall not allow, nor shall it allow
     any member of the Business Group to allow, any block or impediment to be
     placed on the ability of the Borrower or any member of the Business Group
     to declare or pay any Distribution, other than pursuant to the terms of
     senior construction facilities taken by any subsidiary in relation to a
     Project, without the prior written consent of the Bank.

(b)  Provided that no Event of Default has occurred, Borrower shall not be
     obliged to Distribute any Free Funds generated by the Projects and/or the
     Business.

15.17 INSURANCES

     The Borrower shall, and shall procure that each member of the Group shall,
     maintain insurance with financially sound and reputable insurers with
     respect to its assets of an insurable nature against such risks and in such
     amounts as are normally maintained by persons carrying on the same or a
     similar class of business.

15.18 CONDUCT OF BUSINESS

     The Borrower shall:

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                                       37

(a)  in all material respects conduct its business in a reasonable and prudent
     manner in accordance with all applicable laws and regulations and the terms
     of the Finance Documents; and

(b)  meet all of its material obligations as they fall due; and

(c)  promptly perform its material obligations, and enforce its material rights
     under each agreement to which it is a party, to the extent that failure to
     do so would have Material Adverse Effect.

15.19 USE OF PROCEEDS

     The Borrower shall apply the proceeds of the Advances wholly and
     exclusively for the purposes set out in Clause 3 (Purpose).

15.20 AMENDMENTS AND AGREEMENTS

(a)  The Borrower shall not, directly or indirectly, terminate, cancel or
     suspend, or permit or consent to any termination, cancellation or
     suspension of, or enter into or consent to or permit an assignment of the
     rights or obligations of any party to, any material agreement to which it
     is a party and pertaining to the Business without receiving the prior
     written consent of the Bank.

(b)  The Borrower shall not, directly or indirectly, amend, modify, supplement
     or waive, or permit or consent to the amendment, modification, supplement
     or waiver of, any of the provisions of, or give any consent under, any
     material agreement to which it is a party and pertaining to the Business
     without receiving the prior written consent of the Bank.

15.21 FINANCIAL COVENANTS

(a)  The Borrower shall procure that Adjusted Shareholder's Equity shall at all
     times represent at least 20% (twenty per cent) of the Adjusted Balance
     Sheet Value and shall provide an auditor's statement to this effect with
     each audited or reviewed consolidated financial statements of the Borrower
     furnished to the Bank.

     In this Clause 18.21(a):

     "ADJUSTED SHAREHOLDERS EQUITY" means as appearing in the consolidated
     balance sheet plus Capital Reserves.

     "CAPITAL RESERVES" means capital reserves of: (i) Euro 35,000,000 (thirty
     five million Euros) resulting from the acquisition by Elscint Ltd of BEA
     Hotels N.V. from a Subsidiary of the Shareholder in September 1999; and
     (ii) Euro 29,500,000 (twenty nine million five hundred thousand Euros)
     resulting from the acquisition by Elbit Ultrasound (Netherlands) B.V. of
     Plaza Centers from BEA Holdings N.V., in September 2000, both:

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                                       38

     (i)  as linked to the Dutch CPI from a base index of 109.4 (with regard to
          (i)) and 112.65 (with regard to (ii));

     (ii) as converted from Euro to NIS at the Bank's Spot Rate of Exchange; and

     (iii) as reduced from time to time.

     "DUTCH CPI" means the consumer price index published by the Central Bureau
     voor de Statistick in The Netherlands (the "Bureau"), including the same
     index even if published by any other government institution and also
     including any official index replacing the same, whether based on the same
     data on which the existing index is based or not. If another index replaces
     the existing index, the Bureau shall determine the conversion ratio between
     them, and if the Bureau does not determine the conversion ratio between
     them within three (3) months of the publication of the other index, it
     shall be reasonably determined by the Bank in consultation with economic
     experts.

     "ADJUSTED BALANCE SHEET VALUE" means the total value of the balance sheet
     as shown in the latest published audited or reviewed consolidated balance
     sheet of the Borrower less cash balances, deposits and negotiable
     instruments plus Capital Reserves.

(b)  (i)  The Borrower shall procure that its Net Operating Profit (before
          deductions for (A) depreciation and amortisation on items forming part
          of the Net Operating Profit; and (B) research and development costs
          relating to Insightec, all as detailed in the Borrower's audited and
          reviewed accounts) at 30 June 2004 (on an annualized basis) and at 31
          December 2004 (for the financial year 2004) shall be not less than NIS
          90 million (ninety million New Israeli Shekels).

     (ii) The Borrower shall procure that its Net Operating Profit (before
          deductions for depreciation and amortisation on items forming part of
          the Net Operating Profit and (B) fifty per cent (50%) of the research
          and development costs relating to Insightec, all as detailed in the
          Borrower's audited and reviewed accounts) shall at 30 June 2005 (on an
          annualized basis) and at 31 December 2005 (for the financial year
          2005) shall not less than NIS 100 milion (one hundred million New
          Israeli Shekels).

     (iii) The Borrower shall procure that its Net Operating Profit (before
          deductions for depreciation and amortisation relating to the Net
          Operating Profit as detailed in the Borrower's audited and reviewing
          accounts) shall at 30 June 2006 and on each 30 June up to the Final
          Maturity Date (on an annualized basis) and at 31 December 2006 and
          each 31 December thereafter (for the financial year ending on such
          date) shall be not less than NIS 120 million (one hundred and twenty
          million New Israeli Shekels).

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                                       39

     "NET OPERATING PROFIT" means net operating profit, before finance income or
     expenses, as appearing in the audited or reviewed consolidated financial
     statements of the Borrower.

(c)  The Borrower shall procure that the Aggregate Net Value of all the assets
     of Plaza Centers, less all liabilities of Plaza Centers and its
     subsidiaries (including, inter alia, shareholders loans) shall :

     (A)  on the date hereof, be no less than $90,000,000 (ninety million United
          States Dollars);

     (B)  on June 30, 2004, be no less than $100,000,000 (one hundred million
          United States Dollars); and

     (C)  on June 30, 2005 be no less than $125,000,000 (one hundred and twenty
          five million US Dollars).

     "AGGREGATE NET VALUE" shall be as determined by a third party appraiser
     acceptable to the Bank in a written valuation addressed to the Bank ("NET
     VALUE APPRAISAL"). Borrower shall furnish the Net Value Appraisal
     determining the Aggregate Net Value on the date hereof by not later than a
     date 120 (one hundred and twenty) days following the date hereof. Borrower
     shall furnish the Net Value Appraisal determining the Aggregate Net Value
     on June 30, 2004 and June 30, 2005 respectively by not later than 90
     (ninety) days following the relevant determination date.

(d)  These covenants shall be calculated semi-annually on the basis of the
     latest published audited and reviewed consolidated financial statements of
     the Borrower provided to the Bank pursuant to this Agreement. On each 30
     June commencing on 30 June 2004, the Net Operating Profit shall be
     multiplied by two (2) in order to achieve an annualized figure.

(e)  The financial covenants set forth in this Section 15.21 shall not apply at
     such time as the following circumstances shall all exist:

     (i)  the Net Loan Amount is less than $30,000,000 (thirty million US
          Dollars);

     (ii) the total amount outstanding under the Europe Israel Loan Agreement is
          less than $30,000,000 (thirty million US Dollars); and

     (iii) there has been no Event of Default under this Agreement.

15.22 EBRD

(a)  The Borrower shall procure that, without the Bank's prior consent:

     (i)  the EBRD Conversation Option shall provide the right for EBRD to
          acquire no more than ten percent (10%) of the issued share capital of
          Plaza Centers on the basis of a company valuation of the total assets
          (less all bank debt) of Plaza

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                                       40

          Centers of not less than US$275,000,000 (two hundred and seventy five
          million US Dollars); and

     (ii) the EBRD Equity Financing Facility shall require repayments of
          principal commencing no earlier than four (4) years after the grant of
          the EBRD Equity Financing Facility.

(b)  The Borrower shall, unless otherwise agreed by the Bank, provide to the
     Bank provide copies of the definitive documentation setting out the
     provisions of the EBRD Conversion Option and EBRD Equity Financing Facility
     at least ten (10) days prior to the execution thereof.

15.23 MANAGEMENT FEES

     The Borrower shall procure that any management fees paid by any member of
     the Business Group to any entity other than:

     (a)  a Holding Subsidiary or any of its Subsidiaries;

     (b)  the Borrower or any of its Subsidiaries; or

     (c)  a Holding Company of the Borrower or any of its Subsidiaries,

     shall be reasonable and in any event shall be in an amount not exceeding 5%
     (five per cent) of: (a) the development, financing and construction costs
     of any project prior to completion which is being executed by such member
     of the Business Group; or (b) the gross revenues of such member of the
     Business Group.

16.  DEFAULT

16.1 EVENTS OF DEFAULT

     Each of the events set out in Clauses 16.2 to 16.18 (inclusive) of this
     Clause 16 is an Event of Default (whether or not caused by any reason
     whatsoever outside the control of the Group or any other person).

16.2 NON-PAYMENT

     The Borrower does not within three (3) Business Days of the due date pay
     any amount payable by it under the Finance Documents at the place at and in
     the currency in which it is expressed to be payable.

16.3 BREACH OF OTHER OBLIGATIONS

(a)  The Borrower does not comply with any provision under any of Clauses 15.4
     (Notification of Default), 15.7 (Pari Passu Ranking), 15.8 (Negative
     Pledge), 15.9 (Transactions Similar to Security), 15.10 (Borrowings), 15.11
     (Disposals), 15.12

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                                       41

     (Mergers and acquisitions), 15.14 (Change of business), 15.16
     (Distributions), 15.17 (Insurances), or 15.22 (EBRD).

(b)  Any member of the Business Group does not comply with any provision of the
     Finance Documents (other than those referred to in Clauses 16.2 and
     16.3(a)) and, if capable of remedy, that breach is not remedied within 10
     (ten) days of the earlier of receipt of notice from the Bank specifying the
     breach and the member of the Business Group first becoming aware of the
     failure.

16.4 MISREPRESENTATION

     A representation, warranty or statement made or repeated in or in
     connection with any Finance Document or in any document delivered by or on
     behalf of any member of the Group under or in connection with any Finance
     Document is incorrect in any material respect when made or deemed to be
     made or repeated and shall continue to be incorrect for a period of ten
     (10) days from the date such representation or warranty is or is deemed to
     have been made or repeated.

16.5 LEGAL VALIDITY

     Any Finance Document is not or ceases to be a valid, binding and
     enforceable obligation of, or is repudiated by, any member of the Business
     Group or becomes void or unenforceable.

16.6 CROSS-DEFAULT

(a)  (i)  Any Financial Indebtedness of the Borrower is not paid when due or
          within the lesser of:

          (A)  any originally applicable grace period; and

          (B)  seven (7) Business Days;

     (ii) An event of default howsoever described (or any event which with the
          giving of notice, lapse of time, determination of materiality or
          fulfillment of any other applicable condition or any combination of
          the foregoing would constitute such an event of default) occurs under
          any document relating to such Financial Indebtedness of the Borrower;

     (iii) Any Financial Indebtedness of the Borrower becomes prematurely due
          and payable or is placed on demand as a result of an event of default
          (howsoever described) under the document relating to that Financial
          Indebtedness;

     (iv) Any commitment for, or underwriting of, any such Financial
          Indebtedness of the Borrower is cancelled or suspended as a result of
          an event of default (howsoever described) under the document relating
          to that Financial Indebtedness;

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                                       42

     (v)  Any Security Interest securing any Financial Indebtedness over any
          asset of the Borrower becomes enforceable.

(b)  (i)  Any Financial Indebtedness of the Group other than the Borrower is not
          paid when due or within the lesser of:

          (A)  any originally applicable grace period; and

          (B)  seven (7) Business Days;

     (ii) An event of default howsoever described (or any event which with the
          giving of notice, lapse of time, determination of materiality or
          fulfillment of any other applicable condition or any combination of
          the foregoing would constitute such an event of default) occurs under
          any document relating to such Financial Indebtedness of the Group
          other than the Borrower;

     (iii) Any Financial Indebtedness of the Group other than the Borrower
          becomes prematurely due and payable or is placed on demand as a result
          of an event of default (howsoever described) under the document
          relating to that Financial Indebtedness;

     (iv) Any commitment for, or underwriting of, any such Financial
          Indebtedness of the Group other than the Borrower is cancelled or
          suspended as a result of an event of default (howsoever described)
          under the document relating to that Financial Indebtedness;

     (v)  Any Security Interest securing any Financial Indebtedness over any
          asset of the Group other than the Borrower becomes enforceable;

     provided that where such event relates to a member of the Group (other than
     the Borrower or a Holding Subsidiary) such event shall only constitute an
     Event of Default if it has a Material Adverse Effect on Borrower.

(c)  An event of default occurs pursuant to terms of the Elbit Ultrasound Loan
     Agreement.

16.7 INSOLVENCY

(a)  Borrower or any Holding Subsidiary:

     (i)  is, or is deemed unable to pay its debts as they fall due or to be
          insolvent, or admits inability to pay its debts as they fall due;

     (ii) suspends making payments on all or any class of its debts or announces
          an intention to do so, or a moratorium is declared in respect of any
          of its indebtedness; or

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                                       43

     (iii) by reason of financial difficulties, begins negotiations with one or
          more of its creditors with a view to the readjustment or rescheduling
          of any of its indebtedness.

(b)  In the event that any member of the Group other than the Borrower or a
     Holding Subsidiary:

     (i)  is, or is deemed unable to pay its debts as they fall due or to be
          insolvent, or admits inability to pay its debts as they fall due;

     (ii) suspends making payments on all or any class of its debts or announces
          an intention to do so, or a moratorium is declared in respect of any
          of its indebtedness; or

     (iii) by reason of financial difficulties, begins negotiations with one or
          more of its creditors with a view to the readjustment or rescheduling
          of any of its indebtedness.

     provided that where such event relates to a member of the Group other than
     the Borrower or a Holding Subsidiary such event shall only constitute an
     Event of Default if it has a Material Adverse Effect on Borrower.

16.8 INSOLVENCY PROCEEDINGS

(a)  Any step (including petition, proposal or convening a meeting) is taken
     with a view to a composition, assignment or arrangement with any creditors
     of the Group; or

(b)  a meeting of members of any member of the Group is convened for the purpose
     of considering any resolution for (or to petition for) its winding-up or
     for its administration or any such resolution is passed; or

(c)  any person presents a petition for the winding-up or for the administration
     of any member of the Group which is not withdrawn or set aside within
     twenty-one (21) days; or

(d)  an order for the winding-up or administration of any member of the Group is
     made;

provided that where such event relates to a member of the Group (other than the
Borrower or a Holding Subsidiary) such event shall only constitute an Event of
Default if it has a Material Adverse Effect on Borrower.

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                                       44

16.9 APPOINTMENT OF RECEIVERS AND MANAGERS

(a)  Any liquidator, trustee in bankruptcy, judicial custodian, compulsory
     manager, receiver, administrative receiver, administrator or the like is
     appointed in respect of any member of the Group or any material part of its
     assets which is not withdrawn or set aside within twenty-one (21) days; or

(b)  the directors of any member of the Group request the appointment of a
     liquidator, trustee in bankruptcy, judicial custodian, compulsory manager,
     receiver, administrative receiver, administrator or the like; or

(c)  any other steps are taken to enforce any Security Interest over any
     material part of the assets of any member of the Group;

provided that where such event relates to a member of the Group (other than the
Borrower or a Holding Subsidiary) such event shall only constitute an Event of
Default if it has a Material Adverse Effect on Borrower.

16.10 CREDITORS' PROCESS

     Any attachment, sequestration, distress or execution affecting any material
     asset of any member of the Group is issued and not discharged within ninety
     (90) days or such shorter period as may render such asset liable to
     forfeiture, seizure or sale, provided that where such event relates to a
     member of the Group (other than the Borrower or a Holding Subsidiary) such
     event shall only constitute an Event of Default if it has a Material
     Adverse Effect on Borrower.

16.11 CESSATION OF BUSINESS

(a)  The Borrower or a Holding Subsidiary ceases, or threatens to cease, to
     carry on all or a substantial part of its business.

(b)  Any other member of the Group ceases, or threatens to cease, to carry on
     all or a substantial part of its business, provided that where such event
     relates to a member of the Group (other than the Borrower or a Holding
     Subsidiary) such event shall only constitute an Event of default if it has
     a Material Adverse Effect on Borrower.

16.12 ILLEGALITY

     It becomes unlawful for any member of the Group to perform any of its
     obligations under the Finance Documents.

16.13 EFFECTIVENESS OF SECURITY

     Any Security Document entered into by any member of the Group is not or
     ceases to be effective or is alleged by any such person to be ineffective
     for any reason.

16.14 CHANGE IN CONTROL

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                                       45

     There is a change of control without the prior written consent of the Bank,
     as a result of which:

     (a)  the Shareholder holds, directly or indirectly, less than fifty and
          one-tenth percent (50.1%) of the issued share capital of the Borrower;
          or

     (b)  the Borrower holds, directly or indirectly, less than one hundred
          percent (100%) of the issued share capital of any Holding Subsidiary
          (save in consequence of the exercise of the EBRD Conversion Option).

16.15 ABANDONMENT OR NATIONALISATION

(a)  The Group abandons any of its material assets.

(b)  Any government or any Agency of that government takes, or states officially
     that it proposes to take, any step with a view to the seizure,
     expropriation, nationalisation or acquisition (whether compulsory or
     otherwise, in whole or in part, and whether or not for fair compensation)
     of any member of the Group or any of its assets, in a manner or to an
     extent that has a Material Adverse Effect.

16.16 MATERIAL ADVERSE EFFECT

     Any event or series of events occurs, which, in the opinion of the Bank, is
     likely to have a Material Adverse Effect.

16.17 REGISTRATION FOR TRADE

(a)  The shares of the Borrower are delisted or suspended for trade on the Tel
     Aviv Stock Exchange or NASDAQ Stock Exchange other than for reasons
     affecting such exchange or the shares traded therein generally, for a
     period exceeding 10 Banking Days.

(b)  The provisions of sub-clause (a) above shall not be applicable in the event
     of a voluntary de-listing carried out with the consent of the Bank.

16.18 ACCELERATION

     On and at any time after the occurrence of an Event of Default, the Bank
     may, by notice to the Borrower:

(a)  cancel the Loan; and/or

(b)  demand that all or part of the Advances, together with accrued interest and
     all other amounts accrued under the Finance Documents (including without
     limitation pursuant to Clause 21 (Indemnities)) be immediately due and
     payable, whereupon they shall become immediately due and payable; and/or
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                                       46

(c)  demand that all or part of the Advances together with accrued interest and
     all other amounts accrued under the Finance Documents (including without
     limitation pursuant to Clause 21 (Indemnities)) be payable on demand,
     whereupon they shall immediately become payable on demand by the Bank;
     and/or

(d)  require the Borrower to procure that all Plaza Centers Loans are forgiven
     and that Plaza Centers has no further obligations or liabilities
     thereunder.

17.  ACCOUNTS

17.1 OPENING OF ACCOUNTS

(a)  So long as any Advance remains outstanding, the Borrower shall maintain in
     its own name at the relevant branch of the Bank the following accounts,
     which shall be charged by way of a first ranking fixed charge in favour of
     the Bank as security:

     (i)  the Loan Account; and

     (ii) the Revenue Account.

(b)  The relevant branch of the Bank is, at the date of this Agreement, the Loan
     Office.

     The Bank may change the place of the relevant branch (or the relevant
     branch to apply to a particular Account) by notice to the Borrower and any
     other party that is required to pay sums into such Account.

(c)  The following provisions of this Clause shall govern the operation of the
     Accounts, provided that:

     (i)  the Borrower shall also complete the Bank's standard account mandate
          form for each Account; and

     (ii) the Bank's standard terms and conditions, if any, applicable to
          similar accounts maintained with the Bank and in force from time to
          time shall apply to the operation of the Accounts and the rights and
          obligations of the Bank and the Borrower in relation thereto (subject
          to any exceptions specifically agreed, in writing, between Borrower
          and the Bank).

     Should there be any conflict between the provisions of this Agreement and
     such standard terms and conditions, then this Agreement shall prevail. The
     Bank shall send the Borrower a copy of any new set of standard terms and
     conditions promptly following their issuance.

(d)  The Bank and the Borrower may agree that a further account(s) is/are
     required to deal with any category of payments or receipts not contemplated
     by the following provisions of this Clause 17 (Accounts). In such case, the
     Bank and the Borrower shall

<PAGE>

                                       47

     agree upon procedures and rules to govern the operation of such further
     account or accounts in a supplement to this Clause and, once agreed, such
     supplement shall be deemed to form part of this Clause 17 (Accounts). The
     Bank shall send a copy of any such supplement to the Borrower.

17.2 LOAN ACCOUNT

(a)  No sums shall be paid into the Loan Account without the prior agreement of
     the Bank.

(b)  Whenever the Borrower requires to make a withdrawal from the Loan Account,
     it shall give to the Bank not less than three (3) Business Days' notice of
     such withdrawal in the form of the Disbursement Request (or in such other
     form as the Bank shall require). Any such withdrawal may only be for the
     purposes of:

     (i)  funding Equity Contributions in terms of Clause 3 above; or

     (ii) as the Bank may otherwise permit in writing.

(c)  Each Disbursement Request shall specify the bank and account number of the
     payee to whom such payment is made and the Bank shall transfer the sum in
     question to such account.

17.3 REVENUE ACCOUNT

     The Borrower shall procure that all Revenues which are required in order to
     execute a mandatory prepayment (in accordance with the terms of Clause 6.2
     above) are paid directly to the Revenue Account.

17.4 GENERAL PROVISIONS RELATING TO ACCOUNTS

(a)  The Borrower undertakes to ensure that no Account is closed without the
     prior written consent of the Bank and the Borrower.

(b)  Without prejudice to any other rights of the Bank under the Financing
     Documents, if at any time a Default has occurred or is continuing, the
     Borrower shall not make any withdrawals from the Accounts (other than in
     order to repay Financing Principal or Financing Charges due to the Bank),
     without the prior written consent of the Bank.

(c)  Each Account shall earn interest at such rate(s) as may be agreed from time
     to time by the Borrower and the Bank. All interest earned on the balance
     standing to the credit of an Account shall be credited to the Account in
     question and the Bank is irrevocably authorised and instructed so to credit
     such interest.

(d)  No Account may go into overdraft and the Borrower shall not issue an
     instruction with respect to an Account, and the Bank shall not comply with
     an instruction, to the extent that it would cause the relevant Account to
     go into overdraft.

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                                       48

(e)  The Borrower shall not create or permit to subsist any Security Interest on
     all or any part of the Accounts, other than any Security Interests created
     by the Security Documents, nor assign transfer or otherwise dispose of all
     or any part of its right or title to or interest in the Accounts.

(f)  The Borrower irrevocably and unconditionally authorises and instructs the
     Bank to act upon instructions received by it from the Borrower and to make
     any other appropriations, payments and transfers into or between any of the
     Accounts which this Agreement expressly provides should be made by the
     Bank.

(g)  To the extent that the Borrower gives any instructions (but only to this
     extent), the Bank acts as agent for the Borrower.

(h)  No person other than the Bank and/or the Borrower may give any instructions
     or requests to the Bank for any payments, transfers or withdrawals from any
     of the Accounts.

(i)  No amounts may be withdrawn or transferred from any of the Accounts, and
     the Borrower may not give any instructions in relation to any of the
     Accounts, except in accordance with the express terms of this Agreement.

(j)  The Borrower shall ensure that all moneys paid to it from an Account in
     response to any instructions given by it are applied only in discharging
     the obligations in respect of which they were paid from the relevant
     Account (or as otherwise permitted under this Agreement).

(k)  The Bank:

     (i)  shall be entitled to act in reliance on any certificate or document
          delivered to it in support of any of the matters contemplated by this
          Clause 20 (Accounts); and

     (ii) shall not be obliged to enquire into any of the underlying
          transactions or to verify any of the contents of any such certificate
          or document.

(l)  The Borrower acknowledges that neither any insufficiency of funds in the
     Accounts (or any of them), nor any inability to apply any funds in the
     Accounts (or any of them) against any or all amounts owing under this
     Agreement, shall at any time limit, reduce or otherwise affect the
     Borrower's payment obligations under this Agreement.

(m)  If on any date the Bank is requested or required to make one or more
     payments from any of the Accounts (not being a sum payable to the Bank) and
     there is an insufficient balance on that Account to meet those payments in
     full, then the Bank may select in which order and to what extent such
     payments shall be made, but without liability or responsibility as a
     consequence of such application.

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                                       49

18.  SECURITY

18.1 EFFECTIVE DATE

     The Borrower shall ensure that the security arrangements set forth in this
     Clause 18 (Security) are in effect and perfected on the date of signing of
     this Agreement, unless otherwise agreed in writing by the Bank.

18.2 CHARGES

     The Charges and Charge over Accounts shall serve as security for the Loan
     provided, however, that the recourse of the Bank shall not be limited to
     such security.

18.3 PLEDGE OF ELSCINT SHARES

     The Bank shall agree to release the pledge over 615,000 ordinary shares of
     Elscint Ltd. upon receipt of a prepayment of principal of Tranche A in the
     amount of US$ 3,000,000 (three million US Dollars). This prepayment shall
     be in addition to any payment due pursuant to Clause 5.2 (Tranche A) or
     Clause 6.2 (Mandatory Prepayment). The provisions of this Clause 18.3 do
     not derogate from the provisions of Clause 15.8 (Negative Pledge) other
     than in the event that such prepayment results from a refinancing of such
     US$3,000,000 which is conditioned upon the granting of a pledge over the
     615,000 ordinary shares of Elscint Ltd.

19.  FEES AND EXPENSES

19.1 ARRANGEMENT FEE

     The Borrower shall pay to the Bank an arrangement fee (which shall not be
     paid out of Advances) in the amount of $100,000 (one hundred thousand US
     Dollars) on the signing of this Agreement.

19.2 INITIAL AND SPECIAL COSTS

     The Borrower shall forthwith on demand pay the Bank the amount of all
     reasonable costs and expenses (including legal fees in a pre-agreed amount)
     incurred by the Bank in connection with:

(a)  the drafting, negotiation and closing of:

     (i)  the Finance Documents and any other documents referred to in this
          Agreement; and

     (ii) any other Finance Document executed after the date of this Agreement;
          and

(b)  the examination of any future Project in respect of which an Equity
     Contribution is to be made; and

<PAGE>

                                       50

(c)  any amendment, waiver, consent or suspension of rights (or any proposal for
     any of the foregoing) requested by or on behalf of the Borrower and
     relating to a Finance Document or a document referred to in any Finance
     Document.

19.3 ENFORCEMENT COSTS

     The Borrower shall forthwith on demand pay to the Bank the amount of all
     costs and expenses (including legal fees) incurred by it in connection with
     the enforcement of, or the preservation of any rights under, any Finance
     Document.

19.4 RETENTION

     The Bank may apply amounts held in any Account toward payment in full of
     any fees, costs and expenses referred to in this Clause 19 (Expenses).

19.5 VAT

     Any fee or expense referred to in this Clause 19 (Fees and Expenses) is
     exclusive of any applicable value added tax or any other tax which might be
     chargeable in connection with that fee or expense. If any value added tax
     or other tax is so chargeable, it shall be paid by the Borrower at the same
     time as it pays the relevant fee or expense.

20.  STAMP DUTIES

     The Borrower shall pay, and forthwith on demand indemnify the Bank against
     any liability it incurs in respect of, any stamp, registration or similar
     tax which is or becomes payable in connection with the entry into,
     registration, recording, performance or enforcement of any Finance Document
     and any ancillary documentation relating thereto.

21.  INDEMNITIES

21.1 CURRENCY INDEMNITY

(a)  If the Bank receives an amount in respect of the Borrower's liability under
     the Finance Documents or if that liability is converted into a claim,
     proof, judgment or order in a currency other than the currency (the
     "CONTRACTUAL CURRENCY") in which the amount is expressed to be payable
     under the relevant Finance Document:

     (i)  the Borrower shall indemnify the Bank as an independent obligation
          against any loss or liability arising out of or as a result of the
          conversion;

     (ii) if the amount received by the Bank, when converted into the
          contractual currency at a market rate in the usual course of its
          business is less than the amount owed in the contractual currency, the
          Borrower shall forthwith on demand pay to the Bank an amount in the
          contractual currency equal to the deficit; and

<PAGE>

                                       51

     (iii) the Borrower shall forthwith on demand pay to the Bank any exchange
          costs and taxes payable in connection with any such conversion.

(b)  The Borrower waives any right it may have in any jurisdiction to pay any
     amount under the Finance Documents in a currency other than that in which
     it is expressed to be payable.

21.2 OTHER INDEMNITIES

     The Borrower shall forthwith on demand indemnify the Bank against any loss
     or liability which the Bank incurs as a consequence of:

(a)  the occurrence of any Default;

(b)  the operation of Clause 16.21 (Acceleration);

(c)  any payment of principal or an overdue amount being received from any
     source otherwise than on the last day of a relevant Interest Period or
     other Interest Period provided for in Clause 8.3 (Default Interest)
     relative to the amount so received; or

(d)  (other than by reason of negligence or default by the Bank) an Advance not
     being made after the Borrower has delivered a request for the Advance, or
     an Advance (or part of the Advance) not being prepaid in accordance with a
     notice of prepayment.

     The Borrower's liability in each case includes any loss of margin or other
     loss or expense on account of funds borrowed, contracted for or utilised to
     fund any amount payable under any Finance Document, any amount repaid or
     prepaid or any Advance.

22.  EVIDENCE AND CALCULATIONS

22.1 ACCOUNTS

     Accounts maintained by the Bank in connection with this Agreement are prima
     facie evidence of the matters to which they relate.

22.2 CERTIFICATES AND DETERMINATIONS

     Any certification or determination by the Bank of a rate or amount under
     the Finance Documents is, in the absence of manifest error, prima facie
     evidence of the matters to which it relates.

22.3 INTEREST CALCULATIONS

     Interest accrues from day to day and is calculated on the basis of the
     actual number of days elapsed and a year of 360 days.

<PAGE>

                                       52

23.  AMENDMENTS AND WAIVERS

23.1 AMENDMENTS

     Any term of the Finance Documents may be amended or waived with the
     agreement of the Borrower and the Bank.

23.2 WAIVERS AND REMEDIES CUMULATIVE

     The rights of the Bank under the Finance Documents:

(a)  may be exercised as often as necessary;

(b)  are cumulative and not exclusive of its rights under the general law; and

(c)  may be waived only in writing and specifically.

     Delay in exercising or non-exercise of any such right is not a waiver of
     that right.

24.  CHANGES TO THE PARTIES

24.1 TRANSFERS BY BORROWER

     The Borrower may not assign, transfer, novate or dispose of any of, or any
     interest in, its rights and/or obligations under the Finance Documents.

24.2 TRANSFERS BY BANK

(a)  The Bank may at any time assign, transfer or novate all or any part of the
     Loan and/or all or any of its rights and/or obligations under this
     Agreement to another bank, financial institution or securitisation vehicle
     ("ASSIGNEE LENDER"). If, as a result of any such assignment, transfer or
     novation, the Bank or its Affiliate will no longer remain responsible under
     this Agreement, such assignment, transfer or novation shall be subject to
     the prior written consent of the Borrower (which consent shall not be
     unreasonably withheld).

(b)  The Borrower shall execute and do all such transfers, assignments,
     novations, assurances, acts and things as the Bank may require for
     perfecting and completing any such assignment, transfer or novation, and
     releasing the Bank from and imposing on the Assignee Lender the Bank's
     obligations under this Agreement to the extent the same are transferred,
     assigned or novated. All agreements, representations and warranties made in
     this agreement shall survive any assignment made pursuant to this clause
     and shall also inure to the benefit of all Assignee Lenders.

24.3 REFERENCE BANKS

     If a Reference Bank ceases to exist, the Bank shall (in consultation with
     the Borrower) appoint another bank or financial institution to replace that
     Reference Bank.

<PAGE>

                                       53

25.  DISCLOSURE OF INFORMATION

     Subject to all applicable laws and regulations, the Bank may disclose to
     its Affiliates or any person with whom it is proposing to enter, or has
     entered into, any kind of transfer, participation or other agreement in
     relation to this Agreement:

     (a)  a copy of any Finance Document; and

     (b)  any information which the Bank has acquired under or in connection
          with any Finance Document.

26.  SET-OFF

     The Bank may set off any matured obligation owed by the Borrower under the
     Finance Documents (to the extent beneficially owned by the Bank) against
     any obligation (whether or not matured) owed by the Bank to the Borrower,
     regardless of the place of payment, booking branch or currency of either
     obligation. If the obligations are in different currencies, the Bank may
     convert either obligation at a market rate of exchange in its usual course
     of business for the purpose of the set-off. If either obligation is
     unliquidated or unascertained, the Bank may set off an amount estimated by
     it in good faith to be the amount of that obligation.

27.  SEVERABILITY

     If a provision of any Finance Document is or becomes illegal, invalid or
     unenforceable in any jurisdiction, that shall not affect:

(a)  the validity or enforceability in that jurisdiction of any other provision
     of the Finance Documents; or

(b)  the validity or enforceability in other jurisdictions of that or any other
     provision of the Finance Documents.

28.  COUNTERPARTS

     Each Finance Document may be executed in any number of counterparts, and
     this has the same effect as if the signatures on the counterparts were on a
     single copy of the Finance Document.

29.  NOTICES

29.1 GIVING OF NOTICES

     All notices or other communications under or in connection with the Finance
     Documents shall be given in writing and, unless otherwise stated may be
     made by letter or facsimile. Any such notice will be deemed to be given as
     follows:

(a)  if by letter, when delivered personally or on actual receipt; and

<PAGE>

                                       54

(b)  if by facsimile, when received in legible form.

     However, a notice given in accordance with the above but received on a
     non-working day or after business hours in the place of receipt will only
     be deemed to be given on the next working day in that place.

29.2 ADDRESSES FOR NOTICES

(a)  The address and facsimile number of the Borrower are:

     Elbit Medical Imaging Limited
     13 Moses Street
     Tel Aviv 67442

     Facsimile: +972 3 6953080
     Attention: Shimon Yitzhaki, President

     or such other as the Borrower may notify to the Bank by not less than five
     Business Days' notice.

(b)  The address and facsimile number of the Bank are:

     Bank Hapoalim B.M.
     Head Office, Corporate Business Division
     41-45 Rothschild St.
     Tel-Aviv, 65874
     Israel

     Facsimile: +972 3 567 3849
     Attention: Manager of the Infrastructure, Tourism and Trade Finance.

     with a copy to:

     Herzog, Fox & Neeman
     Asia House
     4 Weizman Street
     Tel Aviv

     Facsimile: +972-3-696-6464
     Attention: Alan Sacks

     or such other as the Bank may notify to the Borrower by not less than five
     Business Days' notice.

<PAGE>

                                       55

30.  JURISDICTION

30.1 SUBMISSION

     The Borrower irrevocably agrees for the benefit of the Bank that any legal
     action arising out of or relating to any Finance Document may be brought in
     the courts of Tel-Aviv Jaffa and irrevocably submits to the non-exclusive
     jurisdiction of such courts and, without prejudice to the foregoing,
     further submits to the non-exclusive jurisdiction of such other courts as
     shall be designated by the Bank as being an appropriate forum.

31.  WAIVER OF IMMUNITY

     The Borrower irrevocably and unconditionally:

(a)  agrees that if the Bank brings proceedings against it or its assets in
     relation to a Finance Document, no immunity from those proceedings
     (including, without limitation, suit, attachment prior to judgment, other
     attachment, the obtaining or judgement, execution or other enforcement)
     will be claimed by or on behalf of itself with respect to its assets;

(b)  waives any such right of immunity which it or its assets now has or may
     subsequently acquire; and

(c)  consents generally in respect of any such proceedings to the giving of any
     relief or the issue of any process in connection with those proceedings,
     including, without limitation, the making, enforcement or execution against
     any assets whatsoever (irrespective of its use or intended use) of any
     order or judgment which may be made or given in those proceedings.

32.  GOVERNING LAW

     This Agreement is governed by the laws of the State of Israel.

33.  THIRD PARTIES

     The parties intend that no term of the Agreement may be enforced by any
     person who is not a party to the Agreement.

This Agreement has been entered into on the date stated at the beginning of this
Agreement.

                  [THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

<PAGE>

                                       56

                               INDEX OF SCHEDULES

<TABLE>
<CAPTION>
Schedule                   Description
--------                   -----------
<S>        <C>
    1      Schedule of Conditions Precedent
    2      Initial Commercial Centers
    3      Borrower's Funded Subsidiaries and Projects
    4      Subordination Agreement
    5      Form of Guarantee
    6      Repayment Schedule
    7      Form of Loan Assignment
</TABLE>

<PAGE>

                                       57

                                   SCHEDULE 1

                              CONDITIONS PRECEDENT

1.   CONSTITUTIONAL DOCUMENTS

     A copy of the constitutional documents of the Borrower and each Holding
     Subsidiary.

2.   BORROWER CORPORATE AUTHORISATIONS

(a)  Copies of resolutions of the board of directors and shareholders' meeting
     of the Borrower approving the terms of, and transactions contemplated by,
     the Finance Documents executed by it;

(b)  an approval from counsel to the Borrower confirming which persons are
     authorised to sign the Finance Documents on behalf of the Borrower and to
     sign and/or despatch all documents and notices to be signed and/or
     despatched by the Borrower under or in connection with the Finance
     Documents; and

(c)  a certificate of the Borrower confirming that the borrowing of the Loan in
     full would not cause any borrowing limit binding on the Borrower to be
     exceeded.

3.   FINANCE DOCUMENTS AND RELATED DOCUMENTS

     Originals of the following duly executed by all parties to them:

(a)  this Agreement; and

(b)  each Security Document.

4.   AUTHORISATIONS

     A copy of any specific licenses or consents required for the consummation
     of the transactions contemplated under the Agreement.

5.   SECURITY MATTERS

     (a)  Evidence that the Security Documents, other than the pledge over
          shares in Sadyba Center S.A., have been duly executed by the Borrower
          and have been perfected and registered at any relevant companies' or
          other register.

     (b)  Within 90 days of signing this Agreement, evidence that a share pledge
          over its shares in Sadyba Center S.A. shall have been duly executed by
          Plaza Centers and have been perfected and registered at any relevant
          companies or other register.

<PAGE>

                                       58

     (c)  Within 270 (two hundred and seventy) days of signing this Agreement,
          evidence that a mortgage over the Prague commercial center located at
          U. Nekladokaka Padrezi Praha-3. Czech Republic shall have been duly
          executed by the Borrower and shall have been perfected and registered
          at any relevant companies' or other register, provided however that
          the Borrower's obligation to register or to cause the registration of
          such mortgage shall automatically lapse on such two hundred and
          seventieth day if, prior to that date:

          (i)  no Event of Default shall have occurred; and

          (ii) no event of default shall have occurred in any loan agreement
               entered into between the Bank and Europe-Israel or any of its
               Subsidiaries.

6.   ACCOUNTS

     Evidence that the Loan Account has been opened in accordance with the
     Agreement.

7.   LEGAL OPINIONS

     (a)  From Marc Lavine, Israeli in-house legal adviser to the Borrower,
          addressed to the Bank;

     (b)  From Czech legal counsel to the Borrower, addressed to the Bank; upon
          execution of the pledge pursuant to paragraph 5(b) of this Schedule 1;
          and

     (c)  From Polish legal counsel to the Borrower, addressed to the Bank, upon
          registration of the pledge over the shares in Sadyba, and.

     (d)  From Dutch legal counsel to the Borrower, addressed to the Bank, upon
          registration of the pledge over the shares in Plaza Centers.

8.   FEES

     Receipt of evidence that the Borrower has paid all fees, costs and expenses
     of the Bank and its advisers in accordance with the Agreement.

9.   VALUATION

     Within 120 days of signing this Agreement, the Net Asset Appraisal referred
     to in Section 14.11(b) of the Agreement.

10.  LOAN REPAYMENT UNDERTAKING

     An undertaking from Plaza Centers that any repayment by it of loans to the
     Borrower shall be made to the Revenue Account.

11.  GROUP STRUCTURE

<PAGE>

                                       59

     A group structure chart showing each Borrower Subsidiary and the holding
     structure of the Borrower by the Shareholder.

<PAGE>

                                       60

                                   SCHEDULE 2

                           INITIAL COMMERCIAL CENTERS

1.   Alba Plaza

2.   Miskolc Plaza

3.   Szeged Plaza

4.   Debrecen Plaza

5.   Krakow Plaza

6.   Csepel Plaza

7.   Pecs Plaza

8.   Gyor Plaza

<PAGE>

                                       61

                                   SCHEDULE 3

                         BORROWER'S FUNDED SUBSIDIARIES

                                  AND PROJECTS

<PAGE>

                                       62

                                   SCHEDULE 4

                             SUBORDINATION AGREEMENT

<PAGE>

                                       63

                                   SCHEDULE 5

                              FORM OF THE GUARANTEE

<PAGE>

                                       64

                                   SCHEDULE 6

                               REPAYMENT SCHEDULE

<PAGE>

                                       65

                                   SCHEDULE 7

                             FORM OF LOAN ASSIGNMENT

<PAGE>

                                       66

                                   SIGNATORIES

BANK

BANK HAPOALIM B.M.

By:
    ------------------------------------

BORROWER

ELBIT MEDICAL IMAGING LTD.

By:
    ------------------------------------

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