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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 2)

Tower Semiconductor Ltd.

(Name of Issuer)

 

Ordinary Shares, NIS 1.00 par value per share

(Title of Class of Securities)

 

M87915-10-0

(CUSIP Number)

 

 

Eyal Issaharov Bank Hapoalim B.M. 50 Rothschild Blvd. Tel Aviv 66883, Israel 972-3-5676532		Jennifer Janes Bank Leumi le-Israel B.M. 34 Yehuda Halevi Street Tel Aviv 65546, Israel 972-3-5149419

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

 

September 29, 2008

(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  ¨

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

 

*

The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

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CUSIP No. M87915-10-0		13D		Page 2 of 18

 

1.		Names of Reporting Persons.   Bank Hapoalim B.M.   I.R.S. Identification Nos. of above persons (entities only).   Not applicable.
2.		Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.		SEC Use Only
4.		Source of Funds (See Instructions)   OO
5.		Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)		¨
6.		Citizenship or Place of Organization -   Israel

Number of   Shares   Beneficially   Owned by   Each   Reporting   Person   With		7.    Sole Voting Power -   102,012,197
		8.    Shared Voting Power -   448,298
		9.    Sole Dispositive Power -   102,012,197
		10.    Shared Dispositive Power -   448,298

11.		Aggregate Amount Beneficially Owned by Each Reporting Person -   102,460,495
12.		Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)		x
13.		Percent of Class Represented by Amount in Row (11) - 39.1% (1)
14.		Type of Reporting Person (See Instructions)   BK

 

(1)

Based on ordinary shares outstanding as at July 31, 2008, as adjusted to reflect the issuance of ordinary shares to former shareholders of Jazz Technologies, Inc., as reported by the Issuer in its 424(b)(3) Prospectus filed on August 12, 2008 under Registration Statement No. 333-151919 and calculated in accordance with Rule 13d-3(d)(1)(i).

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1.		Names of Reporting Persons.   Tarshish Hahzakot Vehashkaot Hapoalim Ltd.   I.R.S. Identification Nos. of above persons (entities only).   Not applicable.
2.		Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.		SEC Use Only
4.		Source of Funds (See Instructions)   OO
5.		Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)		¨
6.		Citizenship or Place of Organization -   Israel

Number of   Shares   Beneficially   Owned by   Each   Reporting   Person   With		7.    Sole Voting Power -   0
		8.    Shared Voting Power -   448,298
		9.    Sole Dispositive Power -   0
		10.    Shared Dispositive Power -   448,298

11.		Aggregate Amount Beneficially Owned by Each Reporting Person -   448,298
12.		Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)		x
13.		Percent of Class Represented by Amount in Row (11) - less than 0.01% (1)
14.		Type of Reporting Person (See Instructions)   CO

 

(1)

Based on ordinary shares outstanding as at July 31, 2008, as adjusted to reflect the issuance of ordinary shares to former shareholders of Jazz Technologies, Inc., as reported by the Issuer in its 424(b)(3) Prospectus filed on August 12, 2008 under Registration Statement No. 333-151919 and calculated in accordance with Rule 13d-3(d)(1)(i).

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CUSIP No. M87915-10-0		13D		Page 4 of 18

 

1.		Names of Reporting Persons.   Bank Leumi le-Israel B.M.   I.R.S. Identification Nos. of above persons (entities only).   Not applicable.
2.		Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.		SEC Use Only
4.		Source of Funds (See Instructions)   OO
5.		Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)		¨
6.		Citizenship or Place of Organization -   Israel

Number of   Shares   Beneficially   Owned by   Each   Reporting   Person   With		7.    Sole Voting Power -   101,989,907
		8.    Shared Voting Power -   0
		9.    Sole Dispositive Power -   101,989,907
		10.    Shared Dispositive Power -   0

11.		Aggregate Amount Beneficially Owned by Each Reporting Person -   101,989,907
12.		Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)		x
13.		Percent of Class Represented by Amount in Row (11) - 39.0% (1)
14.		Type of Reporting Person (See Instructions)   BK

 

(1)

Based on ordinary shares outstanding as at July 31, 2008, as adjusted to reflect the issuance of ordinary shares to former shareholders of Jazz Technologies, Inc., as reported by the Issuer in its 424(b)(3) Prospectus filed on August 12, 2008 under Registration Statement No. 333-151919 and calculated in accordance with Rule 13d-3(d)(1)(i).

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Item 2.

Identity and Background

See Schedules A and B below, which Schedules have been amended to read in their entirety as set forth below.

 

Item 3.

Source and Amount of Funds or Other Consideration

The following paragraph is hereby added to this Item 3:

This Amendment No. 2 to this Statement relates to a further debt restructuring that became effective on September 9, 2008 (the “2008 Debt Restructuring”) whereby each of Hapoalim and Leumi converted all US $15,000,000 of loans separately made by each Bank to Tower pursuant to separate equipment finance facilities and approximately US $85,000,000 of loans made to Tower pursuant to the Facility Agreement (which was further amended and restated effective September 29, 2008) (the “2008 Restated Facility Agreement”) into a Capital Note in the principal amount of US $100,000,000, each such Capital Note being convertible into 70,422,535 Ordinary Shares.

 

Item 4.

Purpose of Transaction

The following paragraph is hereby added to this Item 4:

The purpose of the acquisition of the Capital Notes was to effectuate the 2008 Debt Restructuring.

 

Item 5.

Interest in Securities of the Issuer

The following paragraphs (a)(1) and (a)(2) of this Item 5 are hereby amended to read in their entirety as follows:

 

(a)    (1)

Leumi is the beneficial owner of 101,989,907 Ordinary Shares, consisting of 96,409,377 Ordinary Shares issuable upon conversion of its currently convertible Capital Notes and 5,580,530 Ordinary Shares issuable upon exercise of its currently exercisable warrants. Leumi’s ownership represents approximately 39.0% of the Ordinary Shares outstanding based on the most recently available filing with the Securities and Exchange Commission (the “Commission”) by Tower and calculated in accordance with rule 13d-3(d)(1)(i).

 

(2)

Hapoalim is the beneficial owner of 102,460,495 Ordinary Shares, consisting of 96,409,377 Ordinary Shares issuable upon conversion of its currently convertible Capital Notes and 6,051,118 Ordinary Shares issuable upon exercise of currently exercisable warrants (including warrants to purchase 5,602,820 Ordinary Shares held by Hapoalim and a warrant to purchase 448,298 Ordinary Shares held by Tarshish, its wholly-owned subsidiary). Hapoalim (and Tarshish’s ownership, as aforesaid) represents approximately 39.1% of the Ordinary Shares outstanding based on the most recently available filing with the Commission by Tower and calculated in accordance with rule 13d-3(d)(1)(i).

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The following paragraphs (b)(1) and (b)(2) of this Item 5 are hereby amended to read in their entirety as follows:

 

(b)    (1)

Leumi has sole voting and dispositive power over 101,989,907 Ordinary Shares consisting of 96,409,377 Ordinary Shares issuable upon conversion of currently convertible Capital Notes and 5,580,530 Ordinary Shares issuable upon exercise of currently exercisable warrants to purchase Ordinary Shares.

 

(2)

Hapoalim has sole voting and dispositive power over 102,012,197 Ordinary Shares consisting of 96,409,377 Ordinary Shares issuable upon conversion of currently convertible Capital Notes and 5,602,820 Ordinary Shares issuable upon exercise of currently exercisable warrants and Hapoalim and Tarshish share voting and dispositive power over 448,298 Ordinary Shares issuable upon exercise of a currently exercisable warrant held by Tarshish.

The following paragraphs are hereby added to the end of this Item 5:

Neither the filing of this Amendment No. 2 to this Statement nor any of its contents shall be deemed to constitute an admission by any Reporting Person (as defined above) that any such Reporting Person and any other persons or entities constitute a “group” for purposes of Section 13(d) of the Exchange Act and the rules promulgated thereunder. Further, the filing of this Amendment No. 2 to this Statement shall not be construed as an admission that any Reporting Person is, for the purposes of Section 13(d) or 13(g) of the Exchange Act, or for any other purpose, the beneficial owner of any Ordinary Shares other than those Ordinary Shares over which the Reporting Person has voting and dispositive power, as reported herein. Other than Hapoalim’s interest in Tarshish, each Reporting Person disclaims any pecuniary interest in any securities of Tower owned by any other Reporting Person, and expressly disclaims the existence of a group.

Without limiting the generality of the foregoing, although each Bank entered into an Amendment No. 1 to its Tag Along Agreement with Israel Corporation Ltd. (“TIC”), Tower’s largest shareholder, each as described in Item 6 below, each of the Reporting Persons expressly disclaims the existence of a group with TIC. Based on Amendment No. 7, dated September 25, 2008, to TIC’s Statement on Schedule 13D with respect to the Ordinary Shares, TIC may be deemed to have voting and dispositive control over approximately 63.2% of the Ordinary Shares. Leumi owns ordinary shares in TIC representing 17.96% of TIC’s issued share capital (18.16% of the voting rights) and a representative of Leumi is a member of TIC’s board of directors.

 

Item 6.

Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

The seventh paragraph of this Item 6 is hereby amended to read in its entirety as follows:

As part of the 2008 Debt Restructuring, the spread over LIBOR applicable to Tower’s quarterly interest payments on its remaining approximately $200 million of loans to the Banks was increased by 1.4 percentage points back to 2.5% from 1.1%, effective September 29, 2008. The 2008 Restated Facility Agreement provides that, subject to the conditions described below, Tower will issue to the Banks on January 30, 2011 such number of shares (or Capital Notes or convertible debentures) that equals the aggregate amount of interest that would have been payable but for the decrease in the spread over LIBOR applicable to Tower’s quarterly interest payments on its loans during the period of May 17, 2006 through September 29, 2008 to the Banks (the “2008 Decreased Amount”) divided by the average closing price of the Ordinary Shares during the fourth quarter of 2010 (the “Fourth Quarter 2010 Price”). If, during the second half of 2010, the closing price of Tower’s Ordinary Shares on every trading day during this period exceeds $3.49, then the Banks will only be granted such number of

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Ordinary Shares (or Capital Notes or convertible debentures) that equals the 2008 Decreased Amount divided by 200% of the Fourth Quarter 2010 Price. If, during the period ending December 31, 2010, the Banks sell a portion of the Capital Notes issued to the Banks on September 28, 2006 (or shares issuable upon the conversion of such Capital Notes) at a price per share in excess of $3.49, then the consideration payable for the interest rate reduction will be reduced proportionately. The adjusted 2008 Decreased Amount is $12,086,670, subject to downward adjustment as set forth above.

The first two paragraphs under the heading “Restated Facility Agreement” are hereby amended to read in their entirety as follows:

2008 Restated Facility Agreement

The 2008 Restated Facility Agreement imposes a number of restrictions on Tower, including restrictions on debt, investments, mergers, acquisitions, disposals, prohibitions on the payment of dividends and changes in ownership.

A change of ownership will be deemed to occur if (a) the Lead Investors shall, directly or indirectly through subsidiaries, cease to nominate, in aggregate, more than 50% of the board of directors of Tower (excluding, for this purpose, external directors (Dahaz), 1 (one) independent director under Nasdaq Marketplace Rules, officers of Tower (including the chief executive officer) who are ex-officio directors of Tower and any directors appointed by a purchaser of the Banks’ shares); or (b) at any time TIC shall cease to hold (directly or indirectly through subsidiaries) in the aggregate at least 48,164,483 Ordinary Shares and/or capital notes convertible into Ordinary Shares.

The following is hereby added to the end of this Item 6:

2008 Conversion Agreements and 2008 Capital Notes

On September 25, 2008, each of Leumi and Hapoalim entered into a Conversion Agreement (the “2008 Conversion Agreement”) with Tower pursuant to which each Bank converted $100 million of its loans to Tower into a Capital Note (the “2008 Capital Note”) in the principal amount of $100,000,000 which, in turn, is fully convertible, at any time and from time to time, in whole or in part, into an aggregate of 70,422,535 Ordinary Shares, at an initial conversion price of $1.42 per Ordinary Share. The initial conversion price was 200% of the average of the closing prices of the Ordinary Shares on the NASDAQ Stock Market for the ten trading days prior to August 7, 2008, the date of Tower’s public announcement with respect to its negotiations with the Banks regarding the debt restructuring.

The terms of each 2008 Conversion Agreement and each 2008 Capital Note are substantially similar to those of the comparable Conversion Agreement and Capital Note entered into and issued, respectively, in 2006 except that only the Conversion Agreements in 2006 apply to the issuance of securities by Tower to the Banks in January 2011 with respect to the 2008 Decreased Amount.

The foregoing summary of the 2008 Capital Notes is qualified in its entirety by reference to the form of Capital Note attached as Exhibit 1 to each of the 2008 Conversion Agreements. The 2008 Conversion Agreement entered into between Tower and Hapoalim is included as Exhibit 17 to this Schedule 13D and the Conversion Agreement entered into between Tower and Leumi is included as Exhibit 18 to this Schedule 13D. Each of these Agreements in their entirety is incorporated herein by reference and the summary herein with respect to the 2008 Conversion Agreements is qualified in its entirety by such reference.

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Amended and Restated Registration Rights Agreements

The Registration Rights Agreements entered into by Tower with each of the Banks in 2006 were amended and restated principally to provide each Bank with demand registration rights from time to time with respect to all or any portion of such Bank’s Registratable Securities, including Ordinary shares issuable upon conversion of the 2008 Capital Notes. The Amended and Restated Registration Rights Agreements replace and supersede the Registration Rights Agreements entered into on September 28, 2006.

The foregoing summary of the Amended and Restated Registration Rights Agreements is qualified in its entirety by reference to the Amended and Restated Registration Rights Agreement entered into between Tower and Leumi which is included as Exhibit 3 to this Schedule 13D and the Amended and Restated Registration Rights Agreement entered into between Tower and Hapoalim which is included as Exhibit 4 to this Schedule 13D. Each of these Amended and Restated Agreements in their entirety is incorporated herein by reference.

Amendments to Tag Along Agreements

On September 25, 2008, each Bank and TIC entered into an Amendment No. 1 to each Tag Along Agreement entered into in 2006, so as to include the 2008 Capital Note and the Ordinary Shares issuable on conversion thereof within the tag-along right granted by TIC to each Bank pursuant to each Tag Along Agreement entered into in 2006.

The foregoing summary of Amendment No. 1 to each Tag Along Agreement is qualified in its entirety by reference to Amendment No. 1 to the Tag Along Agreement entered into between TIC and Hapoalim which is included as Exhibit 19 to this Schedule 13D and Amendment No. 1 to the Tag Along Agreement entered into between TIC and Leumi which is included as Exhibit 20 to this Schedule 13D. Each of these Amendments in their entirety is incorporated hereby by reference.

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Item 7.

Material to Be Filed as Exhibits

 

1.	Conversion Agreement, dated September 28, 2006, between Tower Semiconductor Ltd. and Bank Hapoalim B.M.*

 

2.	Conversion Agreement, dated September 28, 2006, between Tower Semiconductor Ltd. and Bank Leumi le-Israel B.M.*

 

3.	Amended and Restated Registration Rights Agreement, dated September 25, 2008, between Tower Semiconductor Ltd. and Bank Leumi le-Israel B.M.

 

4.	Amended and Restated Registration Rights Agreement, dated September 25, 2008, between Tower Semiconductor Ltd. and Bank Hapoalim B.M.

 

5.

Warrants, each dated August 4, 2005, granted by Tower Semiconductor Ltd. to Bank Leumi le-Israel B.M. and Bank Hapoalim B.M. (incorporated by reference to Exhibit 4.47 to the Annual Report on Form 20-F of Tower Semiconductor Ltd. for the Fiscal Year ended December 31, 2005 (Commission File No: 0-24790)).

 

6.	First Amendment, dated September 28, 2006, between Tower Semiconductor Ltd. and Tarshish Hahzaka Vehashkaot Hapoalim Ltd. to Warrant dated December 11, 2003.*

 

7.	First Amendment, dated September 28, 2006, between Tower Semiconductor Ltd. and Bank Leumi le-Israel B.M. to Warrant dated December 11, 2003.*

 

8.	First Amendment, dated September 28, 2006, between Tower Semiconductor Ltd. and Bank Leumi le-Israel B.M. to Warrant dated August 4, 2005.*

 

9.	First Amendment, dated September 28, 2006, between Tower Semiconductor Ltd. and Bank Hapoalim B.M. to Warrant dated August 4, 2005.*

 

10.	Tag Along Agreement, dated September 28, 2006, between Israel Corporation Ltd. and Bank Hapoalim B.M.*

 

11.	Tag Along Agreement, dated September 28, 2006, between Israel Corporation Ltd. and Bank Leumi le-Israel B.M.*

 

12.	Agreement, dated September 28, 2006, among Bank Hapoalim B.M., Israel Corporation Ltd., SanDisk Corporation, Alliance Semiconductor Corporation and Macronix International Co. Ltd.*

 

13.	Agreement, dated September 28, 2006, among Bank Leumi le-Israel B.M., Israel Corporation Ltd., SanDisk Corporation, Alliance Semiconductor Corporation and Macronix International Co. Ltd.*

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14.	Joint Filing Agreement among Bank Leumi le-Israel B.M., Bank Hapoalim B.M. and Tarshish Hahzaka Vehashkaot Hapoalim Ltd.*

 

15.	Warrant, dated September 10, 2007, granted by Tower Semiconductor Ltd. to Bank Hapoalim B.M.**

 

16.	Warrant, dated September 10, 2007, granted by Tower Semiconductor Ltd. to Bank Leumi le-Israel B.M.**

 

17.	Conversion Agreement, dated September 25, 2008, between Tower Semiconductor Ltd. and Bank Hapoalim B.M.

 

18.	Conversion Agreement, dated September 25, 2008, between Tower Semiconductor Ltd. and Bank Leumi le-Israel B.M.

 

19.	Amendment No. 1, dated September 25, 2008, to Tag Along Agreement, dated September 28, 2006, between Israel Corporation Ltd. and Bank Hapoalim B.M.

 

20.	Amendment No. 1, dated September 25, 2008, to Tag Along Agreement, dated September 28, 2006, between Israel Corporation Ltd. and Bank Leumi le-Israel B.M.

 

*	Previously filed with the original filing of this Statement on Schedule 13D

 

**	Previously filed with the filing of Amendment No. 1 to this Statement on Schedule 13D

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Signature

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this Amendment No. 2 to this statement is true, complete and correct.

 

October 30, 2008
Date
		/s/ Anat Golan				/s/ Jennifer Janes
Signature		Anat Golan				Jennifer Janes, Adv.
		Senior Manager				Executive Vice President
		Customer Relationship Manager				Group Secretary
		Bank Leumi le-Israel B.M.
		Name/Title
October 30, 2008
Date
		/s/ Ofer Levy				/s/ Eyal Issaharov
Signature		Ofer Levy				Eyal Issaharov
		Chief Accountant				Deputy Department Manager
		Bank Hapoalim B.M.
		Name/Title
October 30, 2008
Date
		/s/ Ofer Levy				/s/ Haim Messing
Signature		Ofer Levy				Haim Messing
		Comptroller				Deputy Department Manager
		Tarshish Hahzakot ve Hashkaot Hapoalim Ltd.
		Name/Title

 

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SCHEDULE A

Information Regarding Senior Officers and Directors of Bank Hapoalim B.M.

Board of Directors

 

Name		Address		Principal Occupation		Citizenship
Dan Dankner		63 Yehuda Halevi St., Tel Aviv, Israel		Chairman of the Board of Bank Hapoalim B.M.; Chairman of the board of: Israel Salt Industries Ltd., Isracard Ltd., Poalim Capital Markets Ltd.		Israeli
Yair Orgler		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies		Israeli
Joseph Dauber		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies		Israeli
Ido Joseph Dissentshik		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies and Journalist		Israeli
Nira Dror		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies		Israeli
Pnina Dvorin		63 Yehuda Halevi St., Tel Aviv, Israel		Lawyer and Companies Director		Israeli
Irit Izakson		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies		Israeli
Moshe Koren		63 Yehuda Halevi St., Tel Aviv, Israel		Banking and Financial Advisor		Israeli
Jay Pomrenze		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies		USA
Mali Baron		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies		Israeli
Nir Zichlinskey		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies		Israeli
Leslie Littner		63 Yehuda Halevi St., Tel Aviv, Israel		Independent Adviser on Risk Management		Israeli
Efrat Peled		63 Yehuda Halevi St., Tel Aviv, Israel		CEO – Arison Holdings (1998) Ltd.		Israeli
Oded Sarig		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies		Israeli
Ronen Israel		63 Yehuda Halevi St., Tel Aviv, Israel		Director in various companies		Israeli

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Senior Officers

 

Name		Business Address		Principal Occupation		Citizenship
Zvi Ziv		63 Yehuda Halevi St., Tel Aviv, Israel		President and Chief Executive Officer		Israeli
Ofer Levy		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director and Chief Accountant		Israeli
David Luzon		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director and Head of Information Technology and Operations		Israeli
Ilan Mazur		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director and Chief Legal Adviser to the Bank		Israeli
Hanna Pri-Zan		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director and Head of Client Asset Management		Israeli
Zion Keinan		63 Yehuda Halevi St., Tel Aviv, Israel		Deputy CEO and Head of Commercial Banking		Israeli
Barry Ben-Zeev		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director, Head of Finance (CFO) and Head of Banking Subsidiaries		Israeli
Doron Klausner		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director and Head of Human Resources, Logistics and Procurement		Israeli
Alberto Garfunkel		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director and Head of International Activity		Israeli
Mario Szuszan		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director and Global Treasurer		Israeli
Lilach Asher-Topilsky		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director, Head of the Centre for Strategic Management		Israeli
Dan Alexander Koller		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director, Head of Risk Management		Israeli
Orit Lerer		63 Yehuda Halevi St., Tel Aviv, Israel		Senior Deputy Managing Director and Chief Internal Auditor of the Bank		Israeli
Yoram Weissbrem		63 Yehuda Halevi St., Tel Aviv, Israel		Secretary of the Bank		Israeli

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PRINCIPAL HOLDERS OF THE ISSUED SHARE CAPITAL OF BANK HAPOALIM B.M.

 

NAME		% OF CAPITAL
ARISON HOLDINGS (1998) LTD		20.02	%
ISRAEL SALT INDUSTRIES LTD		5.75	%

Arison Holdings (1998) Ltd. - Director Information

 

Name		Address		Citizenship		Principal Occupation
Irit Izakson		63 Yehuda Halevi St., Tel-Aviv, Israel		Israeli		Director of: Bank Hapoalim B.M., IDB Development B.M., Israel Corporation Ltd.1, Chemical Industries Ltd.
Shari Arison-Glazer		23 Shaul Hamelech Blvd., Tel-Aviv, Israel		Israeli & USA		Chairman of the Board of Directors - Arison Holdings (1998) Ltd.
James M. Dubin		c/o Paul Weiss, 1285 Avenue of the Americas, New York, NY		USA		Attorney - Paul Weiss
Michael M. Arison		3655 N.W. 87 Avenue Miami, FL 33178		USA		Chairman and CEO of Carnival Corporation
Jason Arison		23 Shaul Hamelech Blvd., Tel-Aviv, Israel		Israeli & USA		Vice-Chairman, The Ted Arison Family Foundation (Israel) Ltd.
David Arison		23 Shaul Hamelech Blvd., Tel-Aviv, Israel		Israeli & USA		Student

 

1)	Israel Corporation is the largest holder of the Issuer’s ordinary shares

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Israel Salt Industries Ltd. - Director Information

 

Name		Address		Citizenship		Principal Occupation
Dan Dankner		63 Yehuda Halevi St., Tel-Aviv, Israel		Israeli		Chairman of the Board of Bank Hapoalim B.M.
Efrat Peled		23 Shaul Hamelech Blvd., Tel-Aviv, Israel		Israeli		CEO – Arison Holdings (1998) Ltd.
Nir Zichlinskey		23 Shaul Hamelech Blvd., Tel-Aviv, Israel		Israeli		Vice President – Arison Holdings (1998) Ltd.
Alon Dankner		P.O box 7 Atlit, Israel		Israeli		Chairman
Iris Dror		15 Tomer St., Reut, Israel		Israeli		Manager at Arison Group
Daliah Rabin		5 Harav Ashi St., Tel-Aviv, Israel		Israeli		Chairman – Rabin Center
Eli Ovadia		69 Sharet St., Afula, Israel		Israeli		Chairman – Airports Authority
Nechama Ronen		Moshav Beit-Herut, Israel		Israeli		Chair – Maman Cargo Terminals and Handling Ltd.
Haim Erez		9A Mendes St., Ramat-Gan, Israel		Israeli		Director in Various Companies

Information Regarding Senior Officers and Directors of Tarshish Hahzakot Vehashkaot Hapoalim Ltd.

Board of Directors

 

Name		Address		Principal Occupation		Citizenship
Alberto Garfunkel		63 Yehuda Halevi St., Tel Aviv, Israel		Head of International Activity - Bank Hapoalim B.M.		Israeli
Yoram Weissbrem		63 Yehuda Halevi St., Tel Aviv, Israel		Secretary of Bank Hapoalim B.M.		Israeli
Yossi Rubinstein		63 Yehuda Halevi St., Tel-Aviv, Israel		Business development and operation at the Global treasury Division - Bank Hapoalim B.M.		Israeli

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SCHEDULE B

 

I.	Information Regarding Executive Officers and Directors of Bank Leumi le-Israel B.M

Board of Directors

 

Name		Business Address		Principal Occupation		Citizenship
Eitan Raff		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Chairman of the Board of Directors of Bank Leumi and its subsidiaries		Israeli
Doron Cohen		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		CEO, Co-Op Blue Square Services Corporation Ltd., Economic and Business Consulting		Israeli
Meir Dayan		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Economist, International Business Consulting		Israeli
Moshe Dovrat		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Company Director		Israeli
Zipora Gal Yam		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Economic Consultant, Company Director		Israeli
Arieh Gans		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Professor of Accounting, Tel Aviv University and Company Director		Israeli
Israel Gilead		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Professor of Law, The Hebrew University of Jerusalem		Israeli
Yaacov Goldman		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		C.P.A. (Isr.), Business Consultant and Company Director		Israeli
Rami Avraham Guzman		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Company Director, Public/Government Company Advisor		Israeli
Miri Katz		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Attorney		Israeli
Zvi Koren		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Economic Advisor		Israeli
Jacob Mashaal		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Company Manager		Israeli

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Name		Business Address		Principal Occupation		Citizenship
Efraim Sadka		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Professor of Economics, Tel Aviv University		Israeli
Nurit Segal		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Business and Economic Consultant, Company Director		Israeli
Moshe Vidman		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Company Director, Representative in Israel of Revlon, Director of Israel Corporation Ltd.1		Israeli

 

1)	Israel Corporation is the largest holder of the Issuer’s ordinary shares

Executive Officers - Members of Management of Bank Leumi le-Israel B.M.

 

Name		Business Address		Principal Occupation – Position held with the Bank		Citizenship
Galia Maor		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		President and Chief Executive Officer		Israeli
Zeev Nahari		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Senior Deputy Chief Executive Officer, Acting CEO in the absence of the President and CEO, Chief Financial Officer, Head of Finance, Accounting and Capital Markets, Head of Finance and Economics Division		Israeli
Gideon Altman		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Acting Head of Commercial Banking Division		Israeli
David Bar-Lev		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Head of Human Resources		Israeli
Nahum Bitterman		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Chief Legal Advisor, Head of Legal Division		Israeli

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Name		Business Address		Principal Occupation – Position held with the Bank		Citizenship
Zvi Itskovitch		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Head of International and Private Banking Division		Israeli
Baruch Lederman		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Head of Banking Division		Israeli
Itzhak Malach		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Head of Operations, Information Systems and Administration		Israeli
Rakefet Russak-Aminoach		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Head of Corporate Division		Israeli
Menachem Schwartz		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Chief Accounting Officer, Head of Accounting		Israeli
Daniel Tsiddon		34 Yehuda Halevi Street, Tel Aviv 65546, Israel		Head of Capital Markets Division		Israeli

 

II.	Information regarding Persons Controlling Bank Leumi le-Israel B.M.

The Government of Israel on behalf of the State of Israel is currently the only shareholder of the Bank holding 10% or more of the means of control, with 11.48% of the issued share capital of the Bank (14.22% of the voting rights). Pursuant to Israeli law, the Government is required to avoid involvement in the ongoing management of the Bank’s affairs, and the Bank shall not be deemed to be a corporation with governmental participation in its management for the purposes of any law and for all intents and purposes.

Further, under Israeli banking legislation, since September 2004 no person may control a banking corporation without receiving a control permit from the Bank of Israel, and no person may hold 5% or more of the means of control of a banking corporation without receiving a holding permit from the Bank of Israel (until that date, 10%). As of the date of this report, no such control permit has been granted to any of the Bank’s shareholders.