ENGLISH SUMMARY OF THE LETTER AGREEMENT (ORIGINAL LANGUAGE – HEBREW) BY AND BETWEEN POINTER (EDEN TELECOM GROUP) LTD. AND BANK HAPOALIM LTD. Dated November 16, 2004 (the “Agreement”)
Exhibit 4.18
ENGLISH SUMMARY OF THE
LETTER AGREEMENT
(ORIGINAL LANGUAGE – HEBREW)
BY AND BETWEEN
POINTER (EDEN TELECOM GROUP) LTD.
AND
BANK HAPOALIM LTD.
Dated November 16,
2004
(the
“Agreement”)
| Description: Credit Line Amount Term and Interest: Security |
Letter Agreement pursuant to which Bank Hapoalim Ltd. (the "Bank") shall provide Pointer (Eden Telecom Group) Ltd. ("Pointer") with an NIS 70 million credit line until March 1, 2013 and an NIS 30 million credit line until March 31, 2007, in connection with the purchase by Pointer of certain activities and assets of Shagrir Towing Services Ltd. and its subsidiary, Shagrir (1985) Ltd (the "Shagrir Deal"). NIS 100 million (in total). The sums drawn down shall be repaid quarterly from June 30, 2006 at a rate of NIS 1,250,000 per quarter. The interest on the principal sum will be prime +0.5% with respect to the NIS 30 million credit line, and with respect to the NIS 70 million credit line, interest of 7.39% on NIS 35 million and 5.5% and linkage to the Israeli CPI on the remaining NIS 35 million. The interest shall be payable quarterly from June 30, 2005. As security on the credit line, Pointer shall grant the Bank: (i) a first ranking fixed charge over all of Pointer's rights in connection with the Shagrir Deal; (ii) a first ranking mortgage over a certain property in Haifa, Israel; and (iii) a first ranking fixed charge over a certain NIS 10 million deposit in a certain bank account. In addition, as security on the credit line, Nexus shall grant the Bank, in addition to the first degree floating charge (over all its assets) it granted the Bank prior to the consummation of the Shagrir Deal, a first ranking fixed charge over its shareholdings in Pointer. |
Comments:
| — | Pointer has drawn down NIS 100 million under the credit line. |