---

---

Exhibit 4.(a).60



STATE OF ISRAEL
MINISTRY OF COMMUNICATIONS

EXCLUSIVE GENERAL LICENSE OF
PARTNER FIXED COMMUNICATION SOLUTIONS
LIMITED PARTNERSHIP1FOR THE PROVISION OF DOMESTIC FIXED-LINE
TELECOMMUNICATION SERVICES

Consolidated version,
correct for January 15, 2007

This consolidated version is based on
the following documents:

The
original license dated January 15, 2007.

| | This
consolidated version has been prepared for the convenience of the reader; the determining
version is that of the original license, in Hebrew, including amendments to the original
license. This version does not include Appendices that are not published for use by the
public.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

1    
          A limited partnership within which the general partner is Partner Future
          Communications 2000 Ltd., company number 51-293450-6, and the limited partner is
          Partner Communications Ltd., company number 52-004431-4.

---

|                                                                 |                     
|---------------------------------------------------------------- | --------------------
|
|
|
|
|Ministry of Communications, Engineering and Licensing Department | Tel:  03-5198230/264
|9 Echad Ha'am Street, The Shalom Tower, Tel-Aviv                 | Fax:  03-5198244    

- i -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Table of Contents

|Topic                                                                     |                                                               | Page
|------------------------------------------------------------------------- | ------------------------------------------------------------- | ----
|
|
|
|
|Grant of License                                                          |                                                              
|                                                                         
|Chapter A - General                                                       | 2                                                            
|                                                                         
|Part A - Definitions and Interpretations                                  | 2                                                            
|1.                                                                        | Definitions                                                   | 2   
|2.                                                                        | Interpretation                                                | 7   
|3.                                                                        | The "Blue Pencil" Principle                                   | 7   
|                                                                         
|Part B - Legal Instructions and Administrative Instructions               | 7                                                            
|4.                                                                        | Applicability of Laws and Instructions                        | 7   
|5.                                                                        | Obligatory per any other Law                                  | 7   
|                                                                         
|Chapter B - The License - Its Scope, Validity and Cancellation            | 8                                                            
|                                                                         
|Part A - Scope and Validity of the License                                | 8                                                            
|6.                                                                        | The Scope of the License                                      | 8   
|7.                                                                        | The Term of the License                                       | 8   
|8.                                                                        | Extension of the License Time Period                          | 8   
|9.                                                                        | Ministerial Pronouncement of an Extension to the License      | 9   
|10.                                                                       | Ending of the License Period                                  | 9   
|                                                                         
|Part B - Alteration of Terms or Revocation of the License                 | 10                                                           
|11.                                                                       | Alteration of the Terms of the License                        | 10  
|12.                                                                       | Revocation of the License                                     | 10  
|                                                                         
|Chapter C - Structural Separation, Ownership and Controlling Interest     | 12                                                           
|                                                                         
|Part A - Structural Separation in the Provision of Services               | 12                                                           
|13.                                                                       | Structural Separation                                         | 12  
|14.                                                                       | Prohibition of Partiality                                     | 12  
|                                                                         
|Part B - Constraints in respect to Transfer of License Assets             | 13                                                           
|15.                                                                       | Definitions                                                   | 13  
|16.                                                                       | Limited Transfer of License Assets                            | 13  
|                                                                         
|Part C - Controlling Interests - Changes and Restrictions                 | 14                                                           
|17.                                                                       | Licensee Details                                              | 14  
|18.                                                                       | Essential Holding Interest                                    | 14  
|19.                                                                       | Transfer and Acquisition of Controlling Interests             | 14  
|                                                                         
|Chapter D - Network Establishment, Maintenance, Development and Operation | 17                                                           
|                                                                         
|Part A - Establishment and Development of the Network                     | 17                                                           
|20.                                                                       | Establishment of Network                                      | 17  
|21.                                                                       | Modification of Engineering Plan During Setup and Development | 17  
|22.                                                                       | Report of Development Works                                   | 17  
|23.                                                                       | Precautions, Safety and Hazard Prevention                     | 17  
|                                                                         
|Part B - Inspections and Maintenance                                      | 18                                                           
|24.                                                                       | Definitions                                                   | 18  
|25.                                                                       | Performance of Inspections                                    | 18  
|26.                                                                       | Inspections, Malfunctions and Maintenance Log                 | 18  
|27.                                                                       | Repair of Defects and Flaws                                   | 19  

- ii -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Table of Contents (Continued)

|Topic                                                                    |                                                                        | Page
|------------------------------------------------------------------------ | ---------------------------------------------------------------------- | ----
|
|
|
|
|                                                                        
|Part C - Inspections and Maintenance                                     | 19                                                                    
|28.                                                                      | Definitions                                                            | 19  
|29.                                                                      | Allocation of Frequencies                                              | 19  
|30.                                                                      | Reservation in Use of Frequencies                                      | 19  
|31.                                                                      | Safety in the Use of Frequencies and Prevention of Interference        | 20  
|                                                                        
|Part D - Numbering                                                       | 21                                                                    
|32.                                                                      | Definitions                                                            | 21  
|33.                                                                      | Operation in Accordance with the Numbering Plan                        | 21  
|34.                                                                      | Prohibition on the Transfer of Telephone Numbers and Ranges of Numbers | 22  
|35.                                                                      | Preparation of a Telephone Numbers Plan                                | 22  
|36.                                                                      | Number Portability                                                     | 22  
|37.                                                                      | Telephone Numbers Plan and Interconnection                             | 23  
|                                                                        
|Part E - Implementation of the License                                   | 23                                                                    
|38.                                                                      | Operation of the Licensee's Network and Provision of Services          | 23  
|39.                                                                      | Backup in Cooperation with Another                                     | 23  
|40.                                                                      | Non-Infringement of Competition                                        | 23  
|41.                                                                      | Service File                                                           | 24  
|42.                                                                      | Issuing of Instructions to the Licensee                                | 24  
|                                                                        
|Part F - Interconnection and Use                                         | 25                                                                    
|43.                                                                      | Mandatory Interconnection                                              | 25  
|44.                                                                      | Rules with Respect to Carrying Out Interconnection                     | 25  
|45.                                                                      | Payment for Interconnection                                            | 27  
|46.                                                                      | Prohibition on Delaying Interconnection                                | 27  
|                                                                        
|Part G - Operation of the Licensee's Network During a State of Emergency | 28                                                                    
|47.                                                                      | Network Activities in a State of Emergency                             | 28  
|48.                                                                      | Services to the Security Forces                                        | 29  
|49.                                                                      | Security Provisions                                                    | 29  
|                                                                        
|Chapter E - Provision of Services to Service Recipients                  | 30                                                                    
|                                                                        
|Part A - Contractual Agreement with Subscribers                          | 30                                                                    
|50.                                                                      | The Contractual Agreement                                              | 30  
|51.                                                                      | Amendment of the Contractual Agreement                                 | 30  
|52.                                                                      | Prohibition of Discrimination                                          | 31  
|53.                                                                      | Provision of Service                                                   | 31  
|                                                                        
|Part B - Service Level                                                   | 31                                                                    
|54.                                                                      | Service Call Center                                                    | 31  
|55.                                                                      | Ombudsman                                                              | 31  
|56.                                                                      | Dispute Resolution                                                     | 32  
|57.                                                                      | Fault Repair Center                                                    | 32  
|58.                                                                      | Terminal Equipment                                                     | 32  
|59.                                                                      | Access to Public Emergency Services                                    | 33  
|60.                                                                      | Blocking of Service to a Nuisance Subscriber                           | 34  
|61.                                                                      | Protection of Privacy                                                  | 35  
|62.                                                                      | Prevention of Fraudulent Acts                                          | 35  
|63.                                                                      | Bills to Subscribers                                                   | 36  
|64.                                                                      | Telephone Number Information Services (Directory Assistance)           | 37  
|65.                                                                      | Erotic Service                                                         | 38  
|                                                                        

- iii -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Table of Contents (Continued)

|Topic                                                           |                                                                                 | Page
|--------------------------------------------------------------- | ------------------------------------------------------------------------------- | ----
|
|
|
|
|Part C - Interruption, Disconnection or Cancellation of Service | 39                                                                             
|66.                                                             | Definitions                                                                     | 39  
|67.                                                             | Prohibited Interruption, Disconnection or Cancellation of Service               | 39  
|68.                                                             | Cancellation of Service                                                         | 39  
|69.                                                             | Disconnection of Service following a Service Recipient Request                  | 39  
|70.                                                             | Discontinuation of Service following a Service Recipient Request                | 40  
|71.                                                             | Discontinuation or Disconnection of Service Due to a Violation of the Agreement | 40  
|72.                                                             | Disconnection of Service due to Interference or Maintenance Activities          | 40  
|73.                                                             | Service Disconnect due to Safety Hazard                                         | 41  
|                                                               
|Chapter F - Tariffs                                             | 42                                                                             
|                                                               
|Part A - Determination and Publication of Tariffs               | 42                                                                             
|74.                                                             | Definitions                                                                     | 42  
|75.                                                             | Determination of Tariffs and Rates                                              | 42  
|76.                                                             | Publication of Tariffs                                                          | 44  
|                                                               
|Part B - Miscellaneous                                          | 45                                                                             
|77.                                                             | Delayed Payments                                                                | 45  
|78.                                                             | Billing for Installation Fees                                                   | 45  
|79.                                                             | Infringement of Competition or Consumers                                        | 45  
|                                                               
|Chapter G - Licensee Payments, Warranty, Insurance and Surety   | 46                                                                             
|                                                               
|Part A - Royalties                                              | 46                                                                             
|80.                                                             | Definitions                                                                     | 46  
|81.                                                             | Payment of Royalties                                                            | 46  
|82.                                                             | Prohibited Offset of Royalty Fees                                               | 46  
|                                                               
|Part B - Insurance                                              | 47                                                                             
|83.                                                             | Definition                                                                      | 47  
|84.                                                             | Execution of an Insurance Contract                                              | 47  
|85.                                                             | Conditions with Respect to Insurance                                            | 47  
|                                                               
|Part C - Guarantee for Fulfilment of the License Conditions     | 48                                                                             
|86.                                                             | The Guarantee and its Purpose                                                   | 48  
|87.                                                             | Forfeiture of the Guarantee                                                     | 48  
|88.                                                             | The Manner of Forfeiting the Guarantee                                          | 49  
|89.                                                             | The Validity of the Guarantee                                                   | 49  
|90.                                                             | Preservation of Remedies                                                        | 49  
|                                                               
|Chapter H - Oversight and Accountability                        | 50                                                                             
|                                                               
|Part D - Supervision of Licensee Activities                     | 50                                                                             
|91.                                                             | Power to Oversee                                                                | 50  
|92.                                                             | Preservation of Confidentiality                                                 | 50  
|93.                                                             | Entry into Premises and the Examination of Documents                            | 50  
|94.                                                             | Cooperation                                                                     | 50  
|                                                               
|Part E - Reports and Correction of Faults                       | 51                                                                             
|95.                                                             | Filing of Reports                                                               | 51  
|96.                                                             | Types of Reports and Due-Dates for Filing                                       | 51  
|97.                                                             | Notification Regarding Defects                                                  | 52  
|                                                               

- vi -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Table of Contents (Continued)

|Topic                                                                                                                                                                                                                                                                                                                                                                                                                |                                                             | Page
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------- | ----
|
|
|
|
|Part F - Fiscal Sanctions                                                                                                                                                                                                                                                                                                                                                                                            | 52                                                         
|98.                                                                                                                                                                                                                                                                                                                                                                                                                  | Fiscal Sanctions                                            | 52  
|                                                                                                                                                                                                                                                                                                                                                                                                                    
|Chapter I - Miscellaneous                                                                                                                                                                                                                                                                                                                                                                                            | 54                                                         
|99.                                                                                                                                                                                                                                                                                                                                                                                                                  | The License as an Exhaustive Document                       | 54  
|100.                                                                                                                                                                                                                                                                                                                                                                                                                 | Access to License Documents                                 | 54  
|101.                                                                                                                                                                                                                                                                                                                                                                                                                 | Postponement for Carrying Out the Provisions of the License | 54  
|102.                                                                                                                                                                                                                                                                                                                                                                                                                 | Maintenance of Responsibility                               | 55  
|103.                                                                                                                                                                                                                                                                                                                                                                                                                 | The Manner of Delivering Notices                            | 55  
|104.                                                                                                                                                                                                                                                                                                                                                                                                                 | Responsibility of General Partner                           | 55  
|105.                                                                                                                                                                                                                                                                                                                                                                                                                 | Conviction of a Functionary                                 | 55  
|List of Appendices                                                                                                                                                                                                                                                                                                                                                                                                   | 56                                                         
|Appendix A - Not published to the public.
     Appendix B - A list of services provided by the Licensee
     Appendix C - Erotic Service
     Appendix D - Level of Services to a Subscriber
     Appendix E - Rules of Accessibility to International Telecom Services
     Appendix F - Not published to the public.
     Appendix G - Not published to the public.
     Appendix H - Not published to the public. |                                                            

- v -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.



STATE OF ISRAEL
MINISTRY OF COMMUNICATIONS

EXCLUSIVE GENERAL LICENSE OF
PARTNER FIXED COMMUNICATION SOLUTIONS
LIMITED PARTNERSHIP
FOR THE PROVISION OF DOMESTIC FIXED-LINE
TELECOMMUNICATION SERVICES

# GRANT OF LICENSE

| | By
virtue of my authority under the Communication Law (Telecommunications and Broadcasting)),
1982, and the Wireless Telegraph Ordinance [New Version], 1972, I hereby grant an
Exclusive General License to Partner Fixed-Line Communication Solutions,
limited partnership, for the setup, subsistence, maintenance, operation and conduct of a
Fixed-Line Domestic Telecommunication Services Network, and for the effecting of
Telecommunication Activities and the provision of Telecommunication Services by means of
this network, as set forth in this license.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | This
license is granted for a time period as detailed within the License, and as subject to
conditions of the License, as follows:
| | ----------------------------------------------------------------------------------------------------------------------------------

- 1 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

Chapter A  General

Part A - Definitions and Interpretations

|1. | Definitions
|-- | -----------

|1.1 | Within
the Scope of this License:
|--- | ---------------------------------

| | Service Area |  | A geographical area within which a General License Holder is
obligated, by the terms of his License, to establish, maintain, and operate a Public
Telecommunication Network, and to provide Telecom Services to the general public by the
means thereof.
| | ------------ | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Type Approval |  | Approval which is given in accordance with the Law to a model
of Terminal Equipment for the purpose of connecting it to the Licensee's Network.
| | ------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------

| | Telecom(s) |  | The broadcasting, transfer or reception of signs, signals, writing, visual forms, sounds
or information by means of wire, wireless, optical system or other electromagnetic
systems.
| | ---------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Licensee |  | An entity who has received a General License, an Exclusive General License or a Special
License for the conduct of Telecommunications Activities and for the provision of
Telecommunication Services, other than the Licensee.
| | -------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Technical and
Service Quality Requirements |  | Standards of availability and service quality as
specified in Appendix C, standards for Telecommunications
                                        Facilities and instructions for installation,
operation and maintenance, [all] in accordance with this License, and in accordance with
the instructions issued by the Director from time to time with respect to the Licensee's
Services.
| | ------------------------------------------ | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Contractual Agreement |  | A standard contract used for contracting between the Licensee and a
Subscriber for the provision of the Licensee's Services, in whole or in part.
| | --------------------- | - | -------------------------------------------------------------------------------------------------------------------------------------------------

| | Significant Influence |  | The capability to significantly influence the activity of a
corporation, whether alone or together with or
                                     through others, whether in a direct or indirect
manner, arising from holding Means of Control in that
                                     corporation or in another corporation, including
capability that derives from the corporation's articles of
                                    association, from a written, oral or other kind of
agreement, or capability deriving from any other source,
                                     excluding capability that derives solely from the
performance of an office holder's duties in the
                                    corporation. Without derogating from the generality
of the foregoing, a person shall be deemed to hold
                                    Significant Influence over a corporation if he holds
twenty-five per cent (25%) or more of any means of
                                     control in that corporation.
| | --------------------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The Licensee |  | "Partner" Fixed-Line Communication Solutions
| | ------------ | - | --------------------------------------------

| | Parent Company |  | A company with Significant Influence over another company.
| | -------------- | - | ----------------------------------------------------------

| | Sister Companies |  | Companies where the entity holding Significant Influence over one
company also has Significant Influence over the other company.
| | ---------------- | - | --------------------------------------------------------------------------------------------------------------------------------

| | Linked Company |  | A Parent Company, a Subsidiary Company, a Sister Company and a
Connected Company.
| | -------------- | - | ---------------------------------------------------------------------------------

- 2 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | Subsidiary Company |  | A company over which another company exerts Significant Influence.
| | ------------------ | - | ------------------------------------------------------------------

| | Connected Company |  | A company whose investments in another company amount to 25% or
more of its equity, whether in shares or in some other manner, other than a loan extended
in the ordinary course of business.
| | ----------------- | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The Law |  | The Communications Law (Telecommunications and
Broadcasting) -1982.
| | ------- | - | -------------------------------------------------------------------

| | Security Forces |  | The I.D.F. [Israel Defense Force], the Israel Police Force, the
General Security Service and the Institute
                                                  for Intelligence and Special Tasks
["Mossad"].
| | --------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | I.O. (International
Operator |  | The recipient of a General License for the provision of
International Telecommunication Services.
| | ---------------------------- | - | -------------------------------------------------------------------------------------------------

| | Sector of
Activity |  | An area of services provided throughout Israel or in any
part thereof, including Telephony Service, Transmission Service, Data Communication
Service, M.R.T. Service, International Telecommunication Services, and multi-channel
subscriber broadcasting services, including a distinct part of an area of services.
| | ------------------ | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Interface |  | A connection device, which facilitates physical contact between Telecommunications
Facilities with different functionality.
| | --------- | - | ---------------------------------------------------------------------------------------------------------------------------

| | Telecommunications Facility |  | A facility or apparatus, which is primarily intended for Telecommunication
purposes, including Terminal Equipment.
| | --------------------------- | - | ------------------------------------------------------------------------------------------------------------------

| | Director |  | The Director-General of the Ministry of Communications, or any person whom the Minister
has empowered with respect to licenses in general or with respect to this License,
whether generally or with respect to a particular matter.
| | -------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Subscriber |  | Any person who has entered into a Contractual Agreement with the Company for the purpose
of receiving its services as an end-user.
| | ---------- | - | ----------------------------------------------------------------------------------------------------------------------------------

| | International Telecommunication
System |  | A system of Telecommunications Facilities installed in Israel, other than
Terminal Equipment, including an
                                                  international exchange, international
N.T.P. and Interface with international transmission infrastructure,
                                                  which serves or which is meant to serve
for the transfer of Telecommunication Messages originating in
                                                  Israel but whose destination is in
another country or vice-versa, or for the transfer of Telecommunication
                                                  Messages between destinations located
in different countries.
| | -------------------------------------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | M.R.T.System
(Mobile Radio-Telephone System) |  | A system of wireless, cellular Facilities and other
Facilities, through which Mobile Radio- Telephone
                                                   Services are provided to the public,
including Mobile Radio-Telephone exchanges, cellular radio base
                                                  stations, and wireless or cable
transmission channels, which connect cellular radio base stations, a single
                                                  cellular base station to a Mobile
Radio-Telephone Switch, or a Mobile Radio-Telephone Switch to another
                                                  Public Telecommunication Network.
| | -------------------------------------------- | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | D.O. (Domestic
Operator) |  | The recipient of a General License, or an Exclusive General
License, for the provision of Domestic Fixed-Line Telecommunication Services.
| | ------------------------ | - | -----------------------------------------------------------------------------------------------------------------------------------------

| | M.R.T. Operator |  | The recipient of a General License for the provision of M.R.T.
Services.
| | --------------- | - | ------------------------------------------------------------------------

| | Service Recipient |  | A customer of the Licensee, including a Subscriber, an occasional
customer or a Licensee.
| | ----------------- | - | -----------------------------------------------------------------------------------------

- 3 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | Switch [or
Exchange] |  | A Telecommunications Facility in
which switching, routing and transmission facilities are contained and operated, which facilitate communication between different
pieces of Terminal Equipment attached or
                                                  connected to it and the transfer of
Telecommunication Messages between them, including control and
                                                  monitoring Facilities, as well as other
Facilities which enable the provision of different
                                                  Telecommunication Services to the
Licensee's Subscribers or to the Subscribers of another Licensee.
| | -------------------- | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The Ministry |  | The Ministry of Communications
| | ------------ | - | ------------------------------

| | N.T.P. (Network
Termination Point) |  | An Interface to which a Public Telecommunication Network is
connected on one side, and Terminal Equipment,
                                                  a Private Network or a different Public
Telecommunication Network on the other side, as the case may be.
| | ---------------------------------- | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | International N.T.P. |  | An N.T.P., which serves or is meant to serve as the connection
between an International Telecommunication
                                                  System and another Public
Telecommunication Network.
| | -------------------- | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Telecom(s) Activity |  | The operation, installation, construction or maintenance of a
Telecommunications Facility, all for the
                                                  purpose of Telecommunication.
| | ------------------- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Ordinance |  | The Wireless Telegraph Ordinance [New Version], 1972.
| | --------- | - | -----------------------------------------------------

| | Telecommunications Order |  | The Telecommunications Order (Determination of Essential Service Provided
by "Bezeq", The Israel
                                                  Telecommunication Corp. Limited), 1997,
as amended from time to time, and including any Order which may
                                                  take its place.
| | ------------------------ | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Terminal Equipment |  | Telecommunication equipment for use by Subscribers, which connects
or is meant to connect between the
                                                  Subscriber's premises or any other
location and a Public Communication Network, by means of the Interface
                                                  designated for this purpose.
| | ------------------ | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | P.T.P. Line
(Point to Point) |  | A line used for the transfer of Telecommunication Messages,
which provides a permanent physical or logical
                                                  connection between two points,
including by means of a switched or routed network.
| | ---------------------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Interconnection |  | A connection between a Public Telecommunication Network of one Licensee and a Public
Telecommunication                                                   Network of another
Licensee, in either a physical or logical manner, which enables the transfer of
                                                  Telecommunication Messages between the
Licensees' Subscribers or the provision of services by one Licensee
                                                  to the Subscribers of the other
Licensee.
| | --------------- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The License |  | This License, including all the Appendices thereto, as well
as any other document or provision, which the
                                                  License incorporates by reference as an
integral part thereof. ["...which the License determines will
                                                  constitute an integral part of the
License or of the provisions thereof."]
| | ----------- | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Public Telecommunication
Network |  | A system of Telecommunications Facilities which serve or are meant to
serve for the provision of
                                                  Telecommunication Services to the
general public, nationwide or at the very least in a Service Area, and
                                                  which includes switching and routing
equipment, transmission equipment and an Access Network, including an
                                                  M.R.T. System and an International
Telecommunication System, but excluding Terminal Equipment.
| | -------------------------------- | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 4 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | Fixed-Line Public
Telecommunication Network |  | A Domestic Public Telecommunication Network, with the
exception of an M.R.T. System and an International
                                                  Telecommunication System.
| | ------------------------------------------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Access Network |  | Components of a Public Telecommunication Network used for
connecting [the "last mile"] between a Switch
                                                  (PSTN) and a N.T.P. using terrestrial
infrastructure, wireless infrastructure or a combination of the two.
| | -------------- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The Licensee's
Network |  | The Public Telecommunication Network which the Licensee uses
for the provision of the Licensee's Services
                                                  in accordance with this License as well
as for other Telecommunication Services provided according to the
                                                  Law, whether by the Licensee or by a
third party.
| | ---------------------- | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Private Network |  | A Telecommunication Network which serves or is meant to serve a
particular person or a particular group of
                                                  people with a common interest, which
connects or is meant to connect to a Public Telecommunication Network
                                                  by means of a N.T.P., including
switching equipment, connection devices, cables, Transmission equipment and
                                                  any other Telecommunications Facility,
provided that the common interest is not merely the very existence
                                                  of the Network.
| | --------------- | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Use |  | Access to a Telecommunication Facility of the Licensee, including the Licensee's Network,
its Access                                                   Network or any part of the
above, and the possibility of using them for the purpose of conducting
                                                  Telecommunication Activities and
providing Telecommunication Services via same, as well as allowing the
                                                  installation of another Licensee's
Telecommunication Facility in a Telecommunication Facility of the
                                                  Licensee or on its premises.
| | --- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Telecommunication Service |  | Conducting Telecommunication Activities on behalf of a third party.
| | ------------------------- | - | -------------------------------------------------------------------

| | Other Service |  | Any service which is not a Basic Service or Ancillary Service,
as detailed in section 4 of Appendix A to
                                                  the License.
| | ------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Telephone Service |  | Switched or full duplex routed transfer, including via modem, of
speech or speech-like Telecommunication
                                                  Messages, such as facsimile signals.
| | ----------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Telephony Service |  | Telephone Service and Ancillary Services to such Service.
| | ----------------- | - | ---------------------------------------------------------

| | Value Added
Service |  | A service provided on the basis of a Basic Service, and
which by its nature can also be provided by
                                                  another, including another Licensee,
who is not the provider of the Basic Service.
| | ------------------- | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | M.R.T.(Mobile
Radio-Telephone) Service |  | Telecommunication Service provided to the public by
means of a M.R.T. System of a M.R.T. Operator.
| | -------------------------------------- | - | --------------------------------------------------------------------------------------------------

| | Infrastructure Service |  | Allowing another Licensee or a Broadcasting Licensee to use the
Licensee's Network, including by providing
                                                  Transmission Service for the purpose of
conducting Telecommunication Activities or in order for them to
                                                  provide Telecommunication Services.
| | ---------------------- | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | International Telecommunication
Services |  | International  Telephone Service,  International Data Communication
 Service and International  Transmission
                                                            Service.
| | ---------------------------------------- | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 5 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | Domestic Fixed-Line
Telecommunication Services |  | Infrastructure, Transmission,
Data Communication and Telephony Services provided by means of a Fixed-Line
                                                  Public Telecommunication Network.
| | ---------------------------------------------- | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The Licensee's Services |  | Those services the Licensee is entitled to provide to Service
Recipients in accordance with the License.
| | ----------------------- | - | --------------------------------------------------------------------------------------------------------

| | Basic Services |  | Domestic Fixed-Line Telecommunication Services as specified in
section 2 of Appendix A to the License.
| | -------------- | - | ------------------------------------------------------------------------------------------------------

| | Ancillary Services |  | Those services, which are ancillary to Basic Service, as specified
in section 3 of Appendix A to the
                                                  License.
| | ------------------ | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The Minister |  | The Minister of Communications, including any person to whom
the Minister has delegated his powers with
                                                  respect to this License, in whole or in
part.
| | ------------ | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Transmission Service |  | Carrying out transmission on behalf of a third party.
| | -------------------- | - | -----------------------------------------------------

| | Data Communication Service |  | Carrying out Data Communications on behalf of a third party.
| | -------------------------- | - | ------------------------------------------------------------

| | Transmission |  | The transfer of electromagnetic signals or a sequence of bits between Telecommunications
Facilities of a                                                   Licensee, excluding
Terminal Equipment.
| | ------------ | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Supervisory Regulations |  | The Telecommunication Regulations (Supervision Over Activities of a
Licensee), 1986.
| | ----------------------- | - | ------------------------------------------------------------------------------------

| | Data Communication |  | The transfer of Information and Software, excluding speech, between
pieces of Terminal Equipment, including
                                                  Computers; for the purpose of this
definition.
| | ------------------ | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Information |  | data, signals, concepts or instructions, excluding software, which are expressed in a
computer-readable                                                   format and stored on
Computer or on another storage medium.
| | ----------- | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Computer |  | a device that operates by means of Software in order to perform arithmetic or logical
processing of data,                                                   and its peripheral
equipment, including a system of computers.
| | -------- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Software |  | a set of instructions expressed in a computer readable format, which is capable of
causing a computer to                                                   function or to
perform an action.
| | -------- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | International Infrastructure |  | A system of Telecommunication Facilities, which includes wireless
Transmission channels or submarine or
                                                  terrestrial cable Transmission
channels, or via satellite, which serve or are meant to serve for carrying
                                                  out international Transmission.
| | ---------------------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.2 | Other
words and phrases in the License, insofar as not defined in section 1.1 above, shall have
the meaning set forth in the Law, in the Regulations enacted pursuant thereto, in the
Telecommunications Order, in the Interpretation Law  19812, or as specified in the
appropriate places in the License, unless the language or context indicate a different
meaning.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 6 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|2. | Interpretation
|-- | --------------

|2.1 | The
titles of the sections in the License have been provided solely for reading convenience,
and are not to be used for purposes of construction or elucidation of the content of any
of the terms of the License.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.2 | In
the event of a prima facie contradiction between provisions of the License, the Minister
will determine the meaning of the provisions or the manner in which the contradiction
between them shall be resolved.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3 | The
instructions of the Interpretation Law shall apply to the interpretation of this License,
with the necessary modifications.
|--- | -------------------------------------------------------------------------------------------------------------------------------

|3. | The
Blue Pencil Principle
|-- | ---------------------------

|3.1 | The
cancellation or a determination in respect to such cancellation of a condition in the
License will apply only to the specific part of same, or the part of same, and shall not
in itself effect the mandatory validity of the license or any other condition herein,
other than if such is required due to the cancellation or cancellation of any other
implication.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Part B  Legal
Instructions and Administrative Instructions

|4. | Applicability
of Laws and Instructions
|-- | --------------------------------------

|4.1 | In
all applicable to the setup, maintenance and operation of the network, as well as for the
performance of telecommunication activities and the provision of telecommunication
services, the Licensee will act in accordance with the following terms and conditions of
the License.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Instructions
of the law, the edict any subsidiary legislation of these.
| | --- | -----------------------------------------------------------------------

| | (b) | Instructions
of the administration, as instructed according to the law, the           edict or any
subsidiary legislation of these.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------

| | (c) | International
treaties, to which Israel is a part, as related to telecoms and           radio.
| | --- | ----------------------------------------------------------------------------------------------

|4.2 | Any
legislation or administrative edicts, as aforesaid in section 4.1, shall apply to the
Licensee as issued from time to time, including any remedies as to their violation, and
these instructions shall be seen as being an inseparable part of the conditions of the
License.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Obligatory
per any other Law
|-- | ----------------------------

|5.1 | To
remove any doubt, the granting of this License shall not be construed as exempting the
Licensee from the fulfillment of any other legal obligations, including the obligation to
obtain all the required licenses, permits, approvals or agreements, as required by law.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 7 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

Chapter B -The License - Its Scope,
Validity and Cancellation

Part A - Scope and Validity of the License

|6. | The
Scope of the License
|-- | ------------------------

|6.1 | The
Licensee, in accordance with the License, and subject to all its provisions and terms,
shall do the following:
|--- | ------------------------------------------------------------------------------------------------------------------

| | (a) | Will
construct, install, sustain, maintain, operate and utilize a Fixed Public
               Telecommunication Network, insofar as necessary for the provision of the
               Licensees Services.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Will
supply those receiving the Licensees services the services as
               detailed in Appendix B; services as provided will be at a scope of no less
than                fifty (50) million NIS, over an accumulated period of up to three
years from                start of provision of the service, upon notification of same
per the                instructions of section 20.3;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | May
permit a third party to carry out Telecommunication Activities by means of
               the Licensees facilities, to the extent that these will be required
in                order to obtain the services of the Licensee.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2 | The
Licensee will not conduct Telecommunication Activities nor will it provide
Telecommunication Services unless permitted to do so by this License or pursuant thereto,
or by another license granted to the Licensee by the Minister, except as set forth within
framework of the License, or within another License, in accordance with the Law or Edict.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | The
Term of the License
|-- | -----------------------

|7.1 | The
License shall remain in force for a time period of twenty (20) years, starting from the
day that the License was granted (hereinafter  the first period).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.2 | The
Minister may extend the time period of the License for additional ten (10) year periods,
as described in section 8 below (hereinafter  additional period).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | Extension
of the License Time Period
|-- | ------------------------------------

|8.1 | The
Minister may, upon request of the Licensee, extend the validity of the License for an
additional period, after having given due consideration to the issues detailed in 4 (b)
of the Law, including the following:
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
Licensee has complied with the conditions of the License to the considered
               satisfaction of the Minister.
| | --- | ---------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Licensee has complied with the instructions as detailed in section 4.
| | --- | -------------------------------------------------------------------------

| | (c) | No
action or inaction has been taken by the by the Licensee that could have a
               detrimental effect on the competitiveness of telecoms in Israel or could
have a                constraining effect on these.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The
Licensee acted consistently for the enhancement of telecom services and
               their scope, availability and quality, and for the technological upgrading
of                the network.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | The
Licensee is able to continue the provision of high level telecom services,
               and possesses the investment capabilities necessary for technological
upgrading                of the network, and for enhancing of the scope of telecom
services, their                availability and quality.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 8 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|8.2 | The
Licensee will submit a request for extension of the License within forty five (45) days
prior to the eighteen (18) month period, before termination of the License period.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.3 | As
required to examine said request by the Licensee for extension of the License period, the
Minister will have the right to request submission, within a time period as determined
and in a manner as determined, any information and data as requested, without detracting
from the generality of the aforesaid, and the Minister will have the right to 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Request
the submission of a summarizing report from the Licensee, including the
               following:
| | --- | ---------------------------------------------------------------------------------------------------------

| | (1) | A
report including a consolidation of all the annual reports submitted by the
               Licensee, whether at start of the License or at any other time upon
request.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | A
comparison between the data as detailed in the report, for every year, versus
               those of the previous year, and explanations of any data.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | A
review of the means, activities and investments as enacted or performed by the
               Licensee, in respect to improvements in the quality of telecom services,
their                scope and availability, and for the development and upgrading of
network                technologies.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Require
the Licensee to attach a report summarizing any document as necessary to
               authenticate the data detailed in the report, to complete the report and
to                provide any additional data that was not included in the report.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | To
invite the Licensee to meet in person with the Minister and to answer any
               questions or queries, and to show any documents in his possession or under
his                control, that relate to the data as provided in the report.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | To
demand from the Licensee the submission of an engineering plan describing the
               Licensees plans for the upgrading of network technologies and for the
               advancement of the Licensees services within the first five (5) years of
the                additional time period.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | To
demand from the Licensee a presentation of his business plan, including
               proforma reports, balance sheets, and cash-flow reports, for the first
five (5)                years of the additional period, and to provide clarifications in
respect to any                planned investments and the financing of these.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | Ministerial
Pronouncement of an Extension to the License
|-- | --------------------------------------------------------

|9.1 | The
Minister will notify the Licensee in writing in respect to his decision as regards the
extension of the License, no later than one year prior to ending of the License period.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.2 | In
the event that the Minister has decided to reject the request, after an adequate
opportunity has been provided to the Licensee to state his case, he will so notify the
Licensee in writing, with reasons for said rejection.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Ending
of the License Period
|--- | ----------------------------

|10.1 | Upon
ending of the first License period per section 7.1, or an additional period per section
7.2, and the License has not been extended, or if the License has been revoked per
section 12, the Minister may:
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Instruct
the Licensee to continue operation of the network and the provision of
               services as detailed in the License for a time period to be determined
               (hereinafter  end of service period), until all steps required for
               handover of the network and the rights and obligations of those receiving
               services will be transferred to an alternate Licensee, as described in
10.2; the                end of service period will in no event exceed three (3) years
from date of the                instruction.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 9 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (b) | If
the Licensee has not fulfilled the instruction of the Minister per subsection
               (a), and after an adequate opportunity has been granted to the Licensee to
state                his case, the Minister will have the right to appoint a trustee for
management                and operation of the network, pending the granting of a license
to an alternate                Licensee.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2 | Within
the end of service period, and if an approach has been made by one or more alternate
Licensees, with a request to purchase the network and the rights and obligations of
service recipients, negotiations will be effected between the Licensee and the alternate
Licensee as required for acquisition of the network as described at its economic value as
a viable concern. In the event that no conclusion is reached between the parties within
six (6) months of end of the License period, and no agreed arbitrator has been appointed
by the parties, the minister will have the right to instruct that the network acquisition
conditions will be determined by an arbitrator appointed by the chairman of the certified
public accountants council, when requested to do so by one or both of the negotiating
parties.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.3 | The
arbitrator will give his decision after hearing both the Licensees, and has given due
opportunity to appear before him. The decision of the arbitrator will be given no later
than three (3) months of his appointment.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.4 | Within
this section an Alternate Licensee is an entity that has satisfied the
Minister that he is fully qualified to receive an Exclusive General License, if the
network is transferred to his ownership.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Part B -
Alteration of Terms or Revocation of the License

|11. | Alteration
of the Terms of the License
|--- | --------------------------------------

|11.1 | The
Minister may alter the terms of the License, including with respect to the scope of the
License as set forth in section 6, add or detract there from, after taking into account
the considerations specified in section 4(e) of the Law, and after affording the Licensee
a reasonable opportunity to plead its case.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. | Revocation
of the License
|--- | -------------------------

|12.1 | The
Minister may revoke the License, limit it or suspend it, as the case may be, provided the
Licensee has been given a reasonable opportunity for a hearing, in one of the following
instances:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | In
any of the cases as detailed in section 6 of the law.
| | --- | --------------------------------------------------------

| | (b) | If
any of the instructions of ordinance 22 of the exclusive domestic operator
               are no longer being supported, and in respect to clause 11(a)(3) of the
               exclusive domestic operator regulations, if any one of these is no longer
a                citizen of the State of Israel or a resident of the state.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1) | The
CEO of the Licensee partnership, or a person in a position of responsibility
               as aforesaid within the partnership, even if the title of same has been
changed;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | A
director or a person fulfilling a role equivalent to a director within the
               general partnership of the Licensee, to whom implementation authorizations
have                been granted, and any person fulfilling a role within the Licensee
partnership,                even if the title of same has been changed;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 10 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (3) | A
majority of the directors of the Licensee general partnership and a majority
               of those fulfilling a role as aforesaid within the Licensee partnership,
even if                the titles of these have been changed.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | If
the Licensee of a partner of the Licensee has violated any instruction of
               those detailed in clause 19a and 19b.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------

- 11 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

Chapter C   Structural Separation,
Ownership and Controlling Interest

Part A  Structural Separation
in the Provision of Services

|13. | Structural
Separation1
|--- | ----------------------

|13.1 | The
Minister will have the right, after having provided the Licensee with adequate
opportunities to declare his views and claims, to set constraints and conditions within
the license in respect to the relationship between the Licensee and other companies with
a linkage and affinity to the Licensee, including the manning of positions and the
appointment of functionaries, the transfer of information, the existence of separate
corporate entities or separate accounting systems between activities, and in respect to
technological, geographical or commercial constraints when deploying infrastructures or
when providing services.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13.2 | Without
detracting from the instructions of clause 13.1 of this license and the instructions of
any law, the Director may view the scope of activities of the Licensee as being
accumulative with the scope of activities of another domestic telecommunications operator
or exclusive domestic telecommunications operator, that are in fact companies with an
affinity to the Licensee, and the minister may view these as being the possessors of a
single license, these in respect to the following:
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1) | The
allocation of frequencies as defined by Part C of Chapter D; in this
               respect, The Administration as defined in clause 28.1.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | The
allocation of dialing codes, numbering ranges and access codes as defined by
               the instructions of Part D in Chapter D.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------

| | (3) | A
determination that the services of the operator are essential, and shall be
               provided within at least one service area, as defined by the instructions
of                clause 4(a1)(3) of the law, if so determined by the minister within the
scope of                regulations dealing with essential operators as defined by the
above clause.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14. | Prohibition
of Partiality
|--- | -------------------------

|14.1 | The
Licensee shall not discriminate and shall not favor a company with affinity to the
Licensee, over any other Licensee, in the provision of services, including in respect to
payment for services, service conditions, availability of services, the provision of
information concerning the service, or in all other respects.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14.2 | The
Licensee will not provide commercial information to a company with affinity, which is in
competition with another Licensee, and will not receive such information from a company
with affinity. For this purpose, the Licensee will prepare procedures dealing among
others with the preserving of confidentiality, the limiting of information distribution
to the Licensee, and the limiting of access to data and information by employees not
requiring such access in view of their duties.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

1
          When taking into consideration the identity of the requesting party, individual
          instructions shall be issued in respect to structural separation, as seen fit by
          the Minister of Communications, for the promotion of competition and for the
          benefit of the public.

- 12 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | As
regards this section:
| | ------------------------

| | Commercial Information |  | Data
concerning a Competitor, that are not common knowledge, and that concerns one of the
following:
| | ---------------------- | - | ----------------------------------------------------------------------------------------------------

| | (1) | The
quantity, the type and the destination of Telecommunication Messages           transiting
the Licensees Network.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (2) | The structure of the Telecommunications Facilities system, its deployment and
          the technology by which it operates.
| | --- | ----------------------------------------------------------------------------------------------------------------------------

| | (3) | Plans
for the expansion of the Telecommunications Facilities system, for           alterations
thereto and for the operation of new services by means thereof.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | The
amount of telecommunication messages transmitted by the system, and the           types
and destinations of these messages.
| | --- | -------------------------------------------------------------------------------------------------------------------------------

| | (5) | Marketing
or other technological plans or activities, information in respect of           which has
been given to the Licensee by a Competitor, or another business           activity,
information in respect of which has been classified by a Competitor as
          confidential information.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Competitor |  | Another
Licensee, including a Licensee for transmissions.
| | ---------- | - | ---------------------------------------------------------

# Part B 
Constraints in respect to Transfer of License Assets

|15. | Definitions
|--- | -----------

|15.1 | As
regards this part and Part C:
|---- | --------------------------------

| | Holding |  | Including acquisitions, and both as one, per the implications of these in the Securities
Law - 1968, and                                              including any transfer or
lien thereof, and without detracting from the definition of "Holding", clause 1.
| | ------- | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Essential Holding |  | The holding of controlling means by the Licensee, as a result of which
a person becomes an interested party, a
                                             person with considerable influence, or a
controlling factor of the Licensee.
| | ----------------- | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Transfer |  | In respect to controlling means - whether directly or indirectly, whether for a
remuneration or for no                                              remuneration, whether
permanently or for a period, whether immediately or in parts.
| | -------- | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Banking Corporation |  | As defined by the Bank (Licensing) Law - 1981.
| | ------------------- | - | ----------------------------------------------

|16. | Limited
Transfer of License Assets
|--- | ----------------------------------

|16.1 | The
Licensee is not authorized to transfer to another or to attach any asset of the license
assets, including through mortgage, other than following an agreement received in advance
and in writing from the Minister, and in accordance with conditions as set forth by the
Minister. The Minister shall grant his agreement for such transfer or attachment of any
asset of License assets to a third party, if convinced that Licensee has assured that
said transfer of rights to a third party will not effect in any way whatsoever the
provision of Licensee services, for as long as Licensee is obliged to provide such
services per conditions of the license, including no constraint or limit to said Licensee
services per conditions as set forth in the License, including conditions defining the
level of services, their scope, availability and quality, and that the possibility of
renewal of said services will not be effected, if they have been limited or discontinued
prior to the implementation of rights to the License assets.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 13 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|16.2 | Irrespective
of the aforesaid in section 16.1, the Licensee will have the right to attach an asset of
the License assets to the benefit of a banking corporation that has been duly registered
in Israel, as required for the obtaining of banking credits, on condition that Licensee
has delivered due notice in advance to the Director in respect to the intended
attachment, and on condition that the attachment agreement includes a section according
to which the banking corporation agrees that any implementation of rights as allowed by
the attachment agreement will not impair in any way the provision of services as set
forth per this License.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16.3 | The
instructions of section 16.1 shall not apply to the sale of equipment items within the
scope of upgrading procedures, including the sale of equipment, as aforesaid, by trade-in
method.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Part C 
Controlling Interests  Changes and Restrictions

|17. | Licensee
Details
|--- | ----------------

|17.1 | Details
in respect to the Licensees legal standing, his corporation, controlling interests,
those with significant influence, functionaries, as detailed in Appendix A to the
License; the Licensee will deliver an updated Appendix A to the Director every year, at
the beginning of January.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.2 | The
Licensee will report to the Director in writing in the event of any change to the
information as provided in Appendix A, no later than twenty one (21) days from the change
that has taken place.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | Essential
Holding Interest
|--- | --------------------------

|18.1 | No
person shall hold an essential interest other than if approved by the Minister.
|---- | ----------------------------------------------------------------------------------

|18.2 | The
transfer of a controlling interest in the Licensee by a person will not be allowed, if as
a result of such transfer the receiving person/entity will then possess an essential
holding interest, other than if approved by the Minister.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18.3 | The
holder of a controlling interest in the Licensee or in an interested factor, will not be
allowed to attach such controlling interests in a manner where the implementation of such
attachment will cause the creditor to hold an essential holding, other than if the
attachment agreement included a reservation stating that implementation of the attachment
will not be allowed other than with the express agreement of the Minister in advance and
in writing. Ub respect to this subsection and in respect to an attachment to a banking
corporation, essentialholdings signifies the holding of a
controlling interest in the Licensee, as a result of which a person will gain significant
influence, or will become a controlling factor of the Licensee.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | Transfer
and Acquisition of Controlling Interests
|--- | -------------------------------------------------

|19.1 | Controlling
shares of the Licensee have been transferred, at an amount that could cause essential
holding interests, with no approval from the Minister, the Licensee will notify the
Minister concerning such transfer of interests in writing, immediately having discovered
such transfer, and no later than twenty one (21) of this date.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Said
notification shall not detract from the instructions of section 18 and from the
instructions of the License that are applicable to said violation.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

|19.2 | Regardless
of the stated in section 18, the transfer, acquisition or attachment of traded
controlling shares in the limited partner of the Licensee, that are not considered to be
cause for cancellation of the General License for the provision of cellular mobile
radiotelephone services, as granted to the limited partner of the Licensee (the Cellular
Telephony License), as stated by section 14(h) of the Cellular Telephony License, shall
not be cause for the revocation of this License. Within this section: traded
controlling shares  as defined within section 21.5 of the Cellular
Telephony License.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 14 -

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|19a | Organizational
Change of the Licensee Partnership
|--- | -------------------------------------------------

|19a.1 | (a) | No changes will occur in the structure of the Licensee partnership, including a change in
the identity of the Licensee partners, the addition of a limited partner or a general
partner, or the conversion of a general partner to a limited partner or vice versa, other
than if approval for such a change has been granted by the Minister, in advance and in
writing.
|----- | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Partner
Communications Ltd. (Partner) will hold 100% of the
               controlling shares in the general partner of the Licensee, other than if
the                Minister has granted approval in advance and in writing, for the
holding of a                lower percentage of controlling shares.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19b | Israeli
Citizenship
|--- | -------------------

|19b.1 | The
Board of Directors of the Licensee General Partner will appoint a security committee from
among those directors who possess the necessary security clearances and security
standards as determined by the General Security Service (classified directors),
a security matters committee.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | At
least three classified directors will serve in the security committee. Only the said
security committee will discuss security issues, subject to the provisions of section
19.2 below. A decision of the security committee or an action by the committee will be
considered as identical to a decision or action taken by the Board of Directors, and it
will be tabled for discussion at the full Board of Directors of the General Partner only
if such is required according to section 19.2b following and subject to the provisions of
section 19b.2 following. Within the scope of this section  security matters  as
defined by the Telecom Act (the determination of a vital service as provided by Bezeq,
the Israeli Communications Company Ltd.)  1997, on the date of 9/3/2005.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19b.2 | Security
matters to be dealt with by the security committee or auditing committee (if exists) of
the Licensee general partner, per the cogent instructions of the Corporations Law  1999,
or per cogent instructions of any other law applicable to the Licensee general partner,
will be discussed, to the extent that these must be discussed by the Board of Directors
or the auditing committee (if exists), with participation of the security classified
directors only. Unclassified directors of the general partner will not be allowed to
participate in such meetings of the Board of Directors or the auditing committee (if
exists), and will not be allowed access to documents or reports applicable to the matters
being discussed. The legal quorum for any such meeting as described above will include
directors with security clearance only.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Licensee general partner will determine within statutes, that a functionary, if in view
of his duties or as determined by instructions and regulations of the law, or statutes of
the general partner, is required to receive information or participate in meetings where
security matters are being discussed, but such participation has been denied him in view
of section 19.2b, said director will be exempt from responsibility to his obligatory
caution and watchfulness towards the Licensee, if said requirement has been violated due
to his non-participation in a meeting or his non-receipt of information as aforesaid.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19b.3 | The
general meeting of the general partner will not have the right to take, delegate,
transfer or activate powers as provided to another organ of the general partner, where
security matters are concerned.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19b.4 | (a) | The Minister will appoint an observer to meetings of the general partner Board of
Directors, and to committees of same, said observer to possess the necessary security
classifications as determined by the General Security Service.
|----- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (b) | The
observer will be a State employee with capabilities of a Director, per
               Chapter C of the Government Companies Law  1975.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Furthermore,
and without detracting from any obligation imposed by law, said                observer
will be required to observe full secrecy and non-disclosure commitments                in
respect to the Licensee and the partners, other than if required for the
               fulfilling of his duties as an observer. The observer will not serve as
observer                or in any other role with any factor engaged in the provision of
Telecom                services and who may be in direct competition with the Licensee or
a partner to                the Licensee. The observer will further refrain from any
conflict of interest                between his duties as an observer and the Licensee or
a partner of the Licensee,                other than any conflicts that may arise in view
of his being an official of the                state fulfilling his duties as an observer
to actions of the Licensee general                partner. The observer will undertake,
towards the Licensee general partner not                to serve as an observer or an
official, and not to fulfill a position or to be                engaged, whether directly
or indirectly, by any factor that is in direct                competition with the
Licensee or a partner of the Licensee, or who may be in a                conflict of
interests towards these, not including any conflict of interest that                may
arise as aforesaid in view of his being an official of the state performing
               his duty as an observer to the Licensee general partner, throughout his
tenure                as an observer at the Licensee general partner and for eighteen (18) months after termination of this duty.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
any case of a difference of opinion in respect to presence of the observer, in view of a
conflict of interest, the legal advisor to the government or an appointed representative
of same, will resolve the issue.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | An
invitation to meetings of the Board of Directors or committees of the general
               partners, including to meetings of the Security Committee, will submitted
to the                observer as well, and the observer will have the right to
participate, as an                observer in all such meetings as aforesaid.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | The
observer will be entitled to receive information from the Licensee and from
               the general partner of the Licensee, at a level equivalent to that of a
Director                of the general partner. If in view of the general partner to the
Licensee, some                specific information should be considered sensitive
commercial information,                which is not required by the observer for
fulfilling his duties, the general                partner to the Licensee will have the
right to prevent the submission of such                information to the observer, and
will so notify the observer. Where observer                believes that said information
should have been delivered, the issue will be                brought to the Chief of
Security Services for resolution.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | Where
seen by the observer that the general partner to the Licensee has taken,
               or is about to take, a decision in respect to security matters that is in
               conflict with an instruction of the License, in conflict to section 13 of
the                Law or in conflict to section 11 of the General Security Service Law
               2002, he will so notify, in writing and without delay, the general
partner of                the Licensee. Such notification will be delivered to the
Chairman of the Board                of Directors of the general partner and to the
Chairman of the Security                Committee, with a time parameter as relevant to
the case for a correction of the                decision, if such correction is possible.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19c.1 | The
instructions of sections 19a and 19b will be included in the partnership agreement of the
Licensee.
|----- | -------------------------------------------------------------------------------------------------------

| | Partnership Agreement |  | with significance as described in section 61 (a) of the Partnerships Act
(new version)  1975.
| | --------------------- |  | ----------------------------------------------------------------------------------------------

|19c.2 | The
provisions of section 19b will be included in the statute of the general partner to the
Licensee.
|----- | -----------------------------------------------------------------------------------------------------

- 16 -

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Chapter D  Network
Establishment, Maintenance, Development and Operation

Part A -
Establishment and Development of the Network

|20. | Establishment
of Network
|--- | ------------------------

|20.1 | In
all matters concerning network deployment, maintenance, operation and development,
including the technical quality level of the network and its various components, the
Licensee will act according to the instructions of the License, and will observe the
statements of the engineering plan.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.2 | The
Licensee shall follow the rules, standards and technical specifications set by the
Ministry, and will act, wherever possible, according to accepted standards and
recommendations set by standards institutes in Israel and abroad (such as the Israeli
Standards Institute, ITU and ETSI), or by de factoindustry standards forums (such
as WI-FI, ATM, D.S.L.) in the area of Telecommunications and wireless, insofar as these
relate to the establishment of the Licensees Network, its operation, its
maintenance and its development, and to the services provided or meant to be provided
thereby.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.3 | The
Licensee will notify the Director that all preparations have been completed for the
provision of services as required by the License, and the date upon which such services
will commence.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21. | Modification
of Engineering Plan During Setup and Development
|--- | -------------------------------------------------------------

|21.1 | Where
found by the Licensee that a need has arisen to diverge or digress from the original
engineering plan to the extent that could fundamentally effect the provision of services,
Licensee will so notify the Director in writing, will detail the essence and nature of
the engineering change and its effect on the provision of services, and will attach an
updated engineering plan to said notification. The Director may in response issue
instructions to the Licensee, including actions to be taken, as required to maintain the
level of services.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22. | Report
of Development Works
|--- | ---------------------------

|22.1 | Upon
request of the Director, the Licensee will submit reports detailing any network
development works conducted during the time period covered by the report. The Director
may instruct the Licensee as regards a format for submission of the said report.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23. | Precautions,
Safety and Hazard Prevention
|--- | -----------------------------------------

|23.1 | The
Licensee shall deploy and develop its Network while taking suitable safety precautions at
the work site for the prevention of injury and damage to person and property, and for the
prevention of nuisances and hazards to the public; in the event that the Licensee is
required to perform any excavations it will take all necessary measures to prevent damage
to underground systems, including Telecommunication Networks, and will thus make sure to
obtain any permit required according to any law.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

Part B  Inspections
and Maintenance

|24. | Definitions
|--- | -----------

|24.1 | In
this part:
|---- | -------------

| | Periodic Inspection |  | Inspection of the Licensee's Network or any part thereof, which is
conducted in accordance with the
                                                  provisions of the License, at fixed
periods and at least once a year.
| | ------------------- | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Special Inspection |  | Inspection of the Licensee's Network or any part thereof, which is
conducted due to a maintenance or repair
                                                  operation following an electromagnetic
disturbance, a malfunction, the investigation of a complaint, a
                                                  technological change, or a change to an
Engineering Plan etc.
| | ------------------ | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Regular Inspection |  | Inspection of the Licensee's Network or any part thereof, which is
conducted in a regular ongoing manner.
| | ------------------ | - | ---------------------------------------------------------------------------------------------------------

|25. | Performance
of Inspections
|--- | --------------------------

|25.1 | The
Licensee shall conduct Periodical Inspections of the Licensees Network, and will
present the results of such Inspections upon the Directors demand, within 30 days
from the date of such demand.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25.2 | The
Licensee shall establish and operate a control system for the constant monitoring of the
performance of the Licensees Network and for regular inspection of the normalcy of
the Licensees Network. The Licensee shall also conduct, in a regular ongoing
manner, Regular Inspections of the Licensees Network or any part thereof, as
necessary.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25.3 | The
Licensee shall conduct regular inspections of all concerning the Quality of Service as
detailed in Appendix D, including for compliance with ITU-T standards, and will submit
the results of such tests upon request of the Director, within 30 days from the date of
such request.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25.4 | The
Director may instruct the Licensee to conduct a Special Inspection; the Licensee shall
conduct such an Inspection in the format and at such time as the Director shall
determine, and shall provide the results of such tests to the Director.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25.5 | The
Director, or any person authorized by him for this purpose, may conduct inspections
himself, insofar as he deems that there is a need to do so; after prior coordination, the
Licensee shall afford the Director, or any person authorized by him, access to the
Facilities and to the equipment, and will place any inspection equipment which it uses
and technical personnel at his disposal.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26. | Inspections,
Malfunctions and Maintenance Log
|--- | ---------------------------------------------

|26.1 | The
Licensee shall keep an Inspections, malfunctions and maintenance log (hereinafter  Maintenance
Log), in which particulars of the malfunctions in the Network and the
Inspections thereto will be recorded.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26.2 | The
Licensee shall keep the Maintenance Log in its registered office, and will allow the
Director, or an authorized representative on his behalf, to examine it at any time,
inspect it or copy it in any manner, and will submit it for the Directors perusal
upon demand.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|27. | Repair of Defects and
Flaws
|--- | ---------------------------

|27.1 | After
observing the Networks performance, complaints from Service Recipients, inspections
which he has conducted or on the basis of inspection reports, documents and information
which he has received from the Licensee, the Director may, after affording the Licensee a
proper opportunity under the circumstances to present its case before him, give written
notice to the Licensee of defects and flaws which he has discovered, and which impair the
standard of service provided to its Service Recipients, impair the survivability and
back-up level of the Network, are deleterious to safety standards, or cause disturbances
to other systems which operate according to law.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27.2 | The
Director may issue directives to the Licensee with respect to the dates by which the
Licensee must repair the said defects and flaws.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------

|27.3 | In
the event that the Licensee receives such notice, it will inform the Director of the
repair of the defects and flaws, by the date set out in the Directors notice and in
the detail requested by the Director.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Part C  Inspections
and Maintenance

|28. | Definitions
|--- | -----------

|28.1 | In
this part, Director  a senior deputy managing director responsible for
spectrum management and for the licensing of frequencies within the Ministry, or a person
with equivalent duties in the Ministry designated to replace said deputy managing
director.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29. | Allocation
of Frequencies
|--- | -------------------------

|29.1 | The
Licensee is authorized to operate wireless telecom facilities only at those frequencies
that have been approved for use by the Licensee, by the Director, within the scope of
individual licenses and within a framework of rules and limitations as instructed by the
Director, all as defined by the Order and the Covenant.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29.2 | The
Director may instruct the Licensee in respect to limitations, among others, in the
operation of wireless telecom installations on specific frequencies and in defined
geographical areas, or in respect to limited operation of wireless telecom installations
at frequencies allowed for use, in parallel to the operators of other services or in
coordination with such operators, all as instructed by the Director.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29.3 | The
Licensee will pay fees for use of the frequencies, and operation and licensing fees, all
as determined by law.
|---- | ------------------------------------------------------------------------------------------------------------------

|29.4 | The
Director may allocate alternate frequencies to the Licensee. Having allocated such
alternate frequencies as aforesaid, the Licensee will effect the necessary changes in the
network, at Licensees expense, as required for operation with the alternate
frequencies, within a time frame as determined by the Director.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|30. | Reservation
in Use of Frequencies
|--- | ---------------------------------

|30.1 | The
Licensee will be allowed use of the frequencies only for the provision of Licensee
services. The Licensee will not be allowed to transfer his rights to the frequencies for
the benefit of other uses or to other parties, and will not allow the use of these
frequencies by others.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|30.2 | The
Licensee will utilize such frequencies only as instructed by the Director; the Director
will determine his instructions for such usage as based, upon others, on the utilization
of frequencies by other factors, and on a plan derived from deployments towards a state
of emergency or special conditions on the home front.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|30.3 | The
Licensee shall not be allowed use, for the provision of his services, of frequencies that
have been detailed in orders stating non-effectiveness of the order, other than if
approval has been obtained from the Director, in writing and in advance, and subject to
conditions as set forth by the Director.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Regardless
of the aforesaid, the Licensee will be allowed use of WLAN technology, within the scope
of the frequencies as set forth by the Wireless Telegraph Order (non-effectiveness of the
order) (No. 2)  1982, all in accordance with the instructions of the Policy
for Regularization of Commercial Use of WLAN Technology document, dated 23.8.03 as
published by the Ministry, or any other policy document that may come in place. The
Licensee will report to the Director in respect to any such use as aforesaid, and the
Director will be authorized to issue instructions relevant to this issue, including an
instruction to refrain from use.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|30.4 | The
Licensee will not be allowed the use of frequencies that have been allocated to others,
other than by express approval of the Director, in advance and in writing.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31. | Safety
in the Use of Frequencies and Prevention of Interference
|--- | ---------------------------------------------------------------

|31.1 | Where
the Network includes a wireless telegraph station as defined by the order, being
established and operated by the Licensee as allowed by any law, in compliance with
Pharmaceutical Regulations (radioactive substances and byproducts)  1980
(hereinafter  Pharmaceutical Regulations, and having received a permit
as required by said Pharmaceutical Regulations.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31.2 | The
Licensee will submit to the Director, during the month of January of every year, an
updated annual report as regards the wireless telecom facilities being operated by the
Licensee, including among others the location of each facility, transmission and
reception frequencies, the gain levels of antennas, antenna heights, transmission power
and transmission bandwidth. But in special cases the Director may demand submission by
the Licensee at any time and within five (5) days, an updated report as regards the
operation of wireless telecom installations, radio channels and the use of frequencies.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31.3 | The
Licensee will establish and operate the network in a manner designed to avoid any mutual
interference between the Licensees network and other systems operating as required
by law. Without detracting from the generality of the aforesaid, the Licensee will act,
in this respect and among others, as follows:
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Prior
to the activation of any wireless element on the Network, will conduct
               tests and measurements as required to prevent any electromagnetic
interferences.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Having
found that electromagnetic interferences may be expected, or where
               electromagnetic interferences have been caused by operation of the
installation,                will act immediately, and no later than 24 hours from such
detection, as                required to coordinate a solution to avoid and prevent any
such interferences.                Where such a solution has not been found, the Licensee
will apply to the                Director in writing, or to any other as appointed by the
Director, as required                to find a reasonable solution to the problem.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
Licensee will cooperate with other operators in the event of interference to
               a system operating as required by law. Where no solution to the problem
has been                found, as aforesaid, the Licensee will proceed, after having been
granted                adequate opportunity to state his case, and as instructed by the
Director, to                make changes to the networks operational procedures, to
network elements                or to the use of frequencies, or will discontinue
transmission on specified                frequencies through the entire geographical area
or in given areas.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 20 -

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (d) | Will
immediately respond, and no later than 24 hours of receiving a demand from
               the Director, to any Director demands relevant to the handling of
interferences                and coordination with other Licensees or other factors
operating according                to law, in Israel, in areas of the Palestinian
Authority and in neighboring                countries, and will submit to the Director
any information required to deal with                the situation. The Licensee will for
this purpose conduct electromagnetic                measurements as required by the
Director, will avoid the use of frequencies as                determined by the Director,
and will act within constraints as instructed by the                Director, including
in respect to transmission power levels on specific                frequencies at
specific sites, including constraints specifying the height of                antennas,
antenna gain, and antenna types, polarization and orientation. Such
               coordination will be effected by the Licensee, at his expense and under
his                responsibility, both in respect to special instructions issued by the
Director                and to the instructions of international treaties and bilateral
agreements with                countries and/or with the Palestinian Authority to which
the State of Israel is                a party.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31.4 | The
granting of this License shall not be construed as providing protection against other
transmitters operating on the same frequencies as those that have been allowed for use by
the Licensee, or any protection against harmonies caused by other legally operating
transmitters, or protection against other transmitters operating on frequencies that are
identical to those allowed for use by the Licensee and other factors operating in
conjunction with the Licensee, or external the geographical area of the State of Israel,
or from areas over which the State has no control, or from space. But the Director will
do all in his power to find an adequate solution, for provision of the required
protection, and to solve mutual interference, if such occurs.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Part D -
Numbering

|32. | Definitions
|--- | -----------

|32.1 | In
this part -
|---- | --------------

| | The Numbering Plan |  | A plan, formulated by the Director, for the allocation
and assignment of telephone numbers, for mandating dialing rules and Number Portability,
or any part of the foregoing2, as amended from time to time.
| | ------------------ | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Telephone Numbers Plan |  | A plan prepared by the Licensee in accordance with the Numbering
Plan and the instructions of the Director for the assignment of telephone numbers to
Subscribers and service providers, which includes Access Codes to the its Services and the
services of other Licensees.
| | ---------------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|33. | Operation
in Accordance with the Numbering Plan
|--- | -----------------------------------------------

|33.1 | The
Licensee shall operate in accordance with the Numbering Plan, and in accordance with the
Directors instructions concerning the operation and application of the Numbering
Plan. The Directors orders will be issued after the Licensee has been afforded an
opportunity for a hearing.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

2
          The plan, which has been formulated, is contained in the document entitled
          Numbering Plan for Telephony Services and Value Added Services in
          Israel, which can be found on the Ministry of Communications Internet site
          at http://www.moc.gov.il and in administrative directives issued by the Director
          from time to time

- 21 -

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|33.2 | Should
the Numbering Plan make no provision for a certain matter, and if no directive has been
issued by the Director in the said matter, the Licensee shall act in that matter in
accordance with accepted standards and recommendations, which are relevant to the
Numbering Plan, as set by standards organizations around the world or other international
organizations.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|33.3 | The
Director may restrict the Licensee in respect of using specific groups of numbers, by
Number Range, Dialing Prefixes, Access Codes or Telephone Numbers, so as to ensure, inter
alia, the efficient utilization of the ranges of numbers and Dialing Prefixes, or in
order ensure that numbers are used in a manner compatible with the needs of Service
Recipients or global standards.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|34. | Prohibition
on the Transfer of Telephone Numbers and Ranges of Numbers
|--- | ----------------------------------------------------------------------

|34.1 | The
Licensee may assign Telephone Numbers for the use of its Service Recipients out of the
range of numbers assigned for its own use, in accordance with the Numbering Plan and the
provisions of the License.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|34.2 | The
Licensee may not transfer numbers or groups of numbers, which are included in the range
of numbers assigned for its use, to any other Licensee, except at such time as Number
Portability implemented or in accordance with the instructions of the Director.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|34.3 | The
Licensee may not assign a telephone number to a Service Recipient, which has been
assigned to another Service Recipient, with the exception of a number which was allocated
to a Service Recipient who no longer receives the Licensees Services, and after a
reasonable period of time has passed, [all] in accordance with the rules set by the
Director.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|35. | Preparation
of a Telephone Numbers Plan
|--- | ---------------------------------------

|35.1 | The
Licensee shall prepare a Telephone Numbers Plan in accordance with the Numbering Plan and
the instructions of the Director, and will update it from time to time as needed.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|35.2 | The
Licensee shall provide the Director, upon demand, with the Telephone Numbers Plan in the
format and at such time as the Director orders.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------

|35.3 | The
Director may order the Licensee to amend the Telephone Numbers Plan, in whole or in part,
or to make changes to it; The Licensee shall amend the Telephone Numbers Plan in
accordance with the Directors instructions.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|35.4 | The
Licensee shall act in accordance with the Telephone Numbers Plan and the instructions of
the Director.
|---- | ----------------------------------------------------------------------------------------------------------

|36. | Number
Portability
|--- | ------------------

|36.1 | The
Licensee will act in accordance with directives issued by the Minister, as regards the
provision of Number Portability, and will integrate mechanisms within his network that
will allow for application of the directive, at such time and according to the method as
set out in the directive3
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

3
          On the date of August 22, 2005, a document titled Numbering Plan as
          Regards Number Portability was published; the document was published on
          the Communications Ministry web site: http://www.moc.gov.il.

- 22 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|37. | Telephone
Numbers Plan and Interconnection
|--- | ------------------------------------------

|37.1 | The
Licensee shall apprise every other Licensee in respect of changes to the Telephone
Numbers Plan, which may affect the Interconnection with the Public Telecommunication
Network of the other Licensee or the provision of services to the other Licensee.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|37.2 | The
Licensee shall not discriminate in any manner between other Licensees in all matters
concerning the implementation of the Telephone Numbers Plan and in carrying out the
foregoing duty of notification, including with respect to the scope of the information,
its contents, the manner of its provision and the time of notification, and will provide
the foregoing information in a manner which will enable other Licensees to prepare
themselves in a reasonable manner for the implementation of the foregoing changes.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|37.3 | The
Licensee shall publish the dialing rules relevant to Subscribers Telephone Numbers
as well as the Access Codes to all the services provided to Subscribers by means of an
Access Code in the telephone directory. The Director may issue instructions to the
Licensee in respect to the format of this publication.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Part E 
Implementation of the License

|38. | Operation
of the Licensees Network and Provision of Services
|--- | -------------------------------------------------------------

|38.1 | The
Licensee shall establish, sustain, maintain and operate the Network, all year round, 24
hours a day, during both times of calm and emergency, in accordance with the Technical
and Service Quality Requirements and in a manner that enables the proper and regular
provision of the Licensees Services to its Service Recipients, in accordance with
this License.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|38.2 | The
Director may from time to time set Technical and Quality of Service requirements for the
upgrading and updating of the Licensees Network, including for the incorporation of
modern technological means for the provision of its services.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|38.3 | Where
the Director has seen that the Licensee is acting in a way that could impair the adequate
and regular provision of communication services, he may issue instructions to the
Licensee, while allowing due time for the Licensee to present his case, as regards the
steps and procedures to be undertaken as required to prevent such impairment.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|38.4 | The
Licensee shall provide his services as required by technical and QoS requirements, and as
required by Law and the License.
|---- | ------------------------------------------------------------------------------------------------------------------------------

|39. | Backup
in Cooperation with Another
|--- | ----------------------------------

|39.1 | The
Licensee will have the right reach an agreement with another Licensee, as required for
backup services that will ensure the continuity of services, in all regarding operation
or service that are identical to the operation or service as provided by the Licensee.
The Licensee will notify the Director in regards to any such backup agreement, as
described.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|40. | Non-Infringement
of Competition
|--- | -------------------------------

|40.1 | The
Licensee shall carry out no activity, either by act or omission, and will be a party to
no agreement, arrangement or understanding, which are meant or are liable to restrict or
prejudice competition in the area of Telecommunications.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|40.2 | Should
the Minister be apprised that the Licensees actions may prejudice competition in
the field of Telecommunications or in the field of broadcasting, he may issue orders to
the Licensee, regarding the steps it is required to take in order to prevent the said
injury, after affording it a proper opportunity for a hearing.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 23 -

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|41. | Service
File
|--- | ------------

|41.1 | In
the event that the Licensee requests to inaugurate a service included in the list of
services in Appendix A, provision of which has not yet commenced, it shall notify the
Director in writing of same no later than thirty (30) days before the date on which it
intends to start providing the service.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41.2 | In
the event that the Licensee requests to inaugurate a new service, which is not included
in the list of services in Appendix A, which it intends to provide to some of its Service
Recipients (for the purpose of this section  theNew Service),
it shall notify the Director in writing of same no later than sixty (60) days prior to
the date which is designated for commencing provision of the New Service.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41.3 | The
Director will inform the Licensee within thirty (30) days from the date of receipt of the
Licensees notice as set forth in section 21.1, or within sixty (60) days from the
date of receipt of the Licensees notice as set forth in section 21.2, whether it
may begin providing the service or whether it must submit a service file for the approval
of the Director as a condition for commencing the said service.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41.4 | The
Licensee shall submit a service file for the Directors approval, upon demand. In
the event that the Licensee fails to submit a service file in accordance with the Directors
order, or in the event that that Director does not approve the service file, the Licensee
shall not inaugurate the service.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41.5 | The
Directors decision with respect to the service file submitted to him shall be made
within sixty (60) days of the date on which the Licensee provides the Director with all
the documents and information he has requested in order to approve the service file for
the New Service. In special cases, the Director may extend the terms mandated in this
section, by written and reasoned notice to be delivered to the Licensee.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41.6 | The
Director may require the Licensee to submit a service file for his approval in respect of
an existing service, for which a service file was not required, and he may also require
the Licensee to submit a new service file for his approval in respect of a service for
which a service file has been approved.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41.7 | The
service file will be submitted to the Director in the format and at the time ordered by
the Director and shall include, inter alia, documents which explain the service
and the manner in which it is provided, the way it is operated by the Service Recipient,
its price and the germane Technical and Service Quality Requirements.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41.8 | Once
a service file has been approved, the Licensee shall provide the service in accordance
with terms of the approved file.
|---- | ----------------------------------------------------------------------------------------------------------------------------

|41.9 | The
Licensee shall notify the public of any service file which has been approved, in such
detail and in the manner ordered by the Director; and the Director may publicize it
himself, provided he does not do so until the Licensee has begun providing the service.
The notice to the public shall not include trade secrets, which the Licensee has asked
not to reveal and the Ministry has approved.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41.10 | Any
New Service, which the Licensee inaugurates in accordance with this section, shall be
regarded as part of Appendix A. The Director shall update Appendix A from time to time.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41.11 | The
provisions of this section shall apply, mutatis mutandis, in respect of an
experiment on the network.
|----- | ---------------------------------------------------------------------------------------------------------

|42. | Issuing
of Instructions to the Licensee
|--- | ---------------------------------------

|42.1 | Where
the Minister has found that the Licensee has violated any instruction as set forth by Law
or as an edict from the Minister, or any condition of the License conditions, the
Minister will have the right to instruct the Licensee to correct such violation,
including the manner for said correction of the violation.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

Part F 
Interconnection and Use

|43. | Mandatory
Interconnection
|--- | -------------------------

|43.1 | The
Licensee shall act to carry out Interconnection between the Licensees Network and
every other Public Telecommunication Network. The Interconnection will be carried out in
a manner that enables a proper and regular transfer of Telecommunication Messages between
the Licensees Subscribers and the Subscribers of another Licensee, as well as in a
manner which enables the proper and regular provision of services by the Licensee to
Subscribers of another Licensee, and the provision of services by another Licensee to the
Licensees Subscribers.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|43.2 | Interconnection
may be carried out in a direct manner, or in an indirect manner by means of a Public
Telecommunication Network of another General Licensee, provided that the terms of section
43.1 are met.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|43.3 | In
interconnecting between the Licensees Network and another Public Telecommunication
Network, the Licensee shall act to establish points of Interconnection between the two
Networks for the purpose of providing Telephony Services at two main transit switches at
least. Regardless of the aforesaid, the Licensee will have the right to provide said
Services with only one main transit switch on condition that when the number of connected
telephone lines reaches 50,000, two main transit switches will be connected.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|43.4 | The
Licensee shall act in accordance with the provisions set forth in Appendix E to the
License in respect of Interconnection between the Licensees Network and an
International Telecommunication System.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|44. | Rules
with Respect to Carrying Out Interconnection
|--- | --------------------------------------------------

|44.1 | Without
derogating from the generality of the foregoing section 43, the Licensee shall act to
carry out Interconnection, subject to the following:
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
Licensee shall verify that the technical and operational standards of the
               Licensees Network will enable connection of M.R.T. Operators, I.O.
               Operators and D.O. Operators (the aforementioned Operators will be
referred to                hereinafter as Other Operator or Another
               Operator) to the Licensees Network by reasonable and
accepted                means, in compliance with the recommendations of ITU-T; that the
operation of                the Licensees Network will integrate properly with the
operation of the                Public Telecommunication Network of the Other Operator;
and that the                Interconnection will not impair the proper functioning of
those systems and the                normal service to their Subscribers.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Licensee shall interconnect with any Other Operator on equal terms, and will
               refrain from any discrimination in carrying out the Interconnection,
including                with respect to the following matters:
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1) | Provision
of infrastructure Facilities and connection services to the                Licensees
Network;
| | --- | --------------------------------------------------------------------------------------------------------

| | (2) | Availability
of connection Facilities, services and handling of faults;
| | --- | -----------------------------------------------------------------------

| | (3) | Method
of the connection, and the quality and survivability of the connection;
| | --- | ------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (4) | Changes
and adjustments to switching, Facilities, protocols and the points of
               Interconnection to the Licensees Network;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------

| | (5) | Payments
for Interconnection;
| | --- | -----------------------------

| | (6) | Billing
and collection arrangements and the transfer of information regarding
               Subscribers;
| | --- | ---------------------------------------------------------------------------------------------------------

| | (7) | Commercial
terms for carrying out Interconnection;
| | --- | --------------------------------------------------

| | (8) | The
provision of information with respect to the Licensees Network and the
               changes thereto concerning Interconnection.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | Notwithstanding
the foregoing, the                Minister may, upon the Licensees written request,
in special cases, and                when convinced that it is justified to do so, permit
the Licensee to deviate                from the provisions of this subsection.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
Licensee shall place at the disposal of the Other Operator any essential
               information required by the Other Operator in order to provide its
services by                means of the Licensees Facilities. The foregoing
information will be                provided subject to the provisions of any law
concerning the protection of                privacy or commercial confidentiality. Where
the parties are unable to reach an                understanding with respect to the
substance and scope of the essential                information, the Minister will settle
the matter.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The
Licensee shall furnish the Other Operator with information concerning
               intended changes to the Licensees Network, which may have an effect
on                Interconnection with the Public Telecommunication Network of the Other
Operator,                or on Interconnection between Public Telecommunication Networks
of the Other                Operators. The Licensee shall provide the aforesaid
information in a manner,                which will enable the Other Operator to prepare
itself reasonably for the                implementation of the aforementioned changes.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | With
respect to sub-sections (c) and (d), the Licensee may make the provision of
               the information to the Other Operator conditional upon the execution of a
               reasonable confidentiality agreement, which is meant to protect the
               Licensees interests according to any law, including trade secrets,
               intellectual property rights etc., concerning the foregoing information,
as                relevant to information regarding changes in the Network that could be
provided                to another operator.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | The
Licensee shall enable its Subscribers to receive all the services, which are
               offered to them by Another Operator, and it may also enable the Other
               Operators Subscribers to receive services from itself, all of the
above                being subject to the proviso that the receipt of such services is
technically or                legally possible. The Director may instruct the Licensee to
enable the                Subscribers of Another Operator to receive services, which it
provides, provided                that the receipt of such services is technically or
legally possible.                Notwithstanding the foregoing the Director may, upon the
Licensees written                request, exempt it from the obligation to enable
reception of service, by its                own Subscribers or by the Subscribers of
Another Operator, including on                technical or economical grounds.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | The
Licensee shall provide the Director a copy of every agreement between itself
               and Another Operator concerning Interconnection.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | The
Licensee shall provide the Director, upon demand, with any information which
               is provided to Another Operator according to subsections (c) and (d), as
well as                a signed copy of every confidentiality agreement according to
sub-section (e).
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | The
Licensee will operate according to any other instructions as determined by
               the Minister in this respect.
| | --- | ---------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|45. | Payment
for Interconnection
|--- | ---------------------------

|45.1 | In
the event that no regulations have been enacted concerning payment for Interconnection or
payments in respect of effecting Interconnection, the Licensee may demand payment of a
reasonable and non-discriminatory charge for such services. In the event that there is no
agreement between the Licensee and Another Operator with respect to this matter, the
Minister will order payment as aforesaid, pursuant to his power according to section 5 of
the Law. Any amount, which is not in dispute, will be paid in a timely manner even before
the Ministers decision in the matter.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|46. | Prohibition
on Delaying Interconnection
|--- | ---------------------------------------

|46.1 | If,
after affording the Licensee the opportunity for a hearing concerning [these matters],
the Minister issue a directive to the Licensee with respect to the manner of carrying out
Interconnection and the scope thereof, with respect to actions, services and arrangements
which are incidental to effecting Interconnection, or with respect to the payments for
Interconnection, the Licensee shall not delay Interconnection to the Licensees
Network, and will fulfill its obligations in accordance with the Ministers
directives, in good faith and in a proper manner, within the set time and while
cooperating fully.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Part G -Operation of the
Licensees Network During a State of Emergency

|47. | Network
Activities in a State of Emergency
|--- | ------------------------------------------

|47.1 | During
a State of Emergency, the Director, including in his capacity as Head of the Supreme
National Authority for Communications in Time of Emergency, and any person so authorized
pursuant to any law, may take measures required in the interest of national security or
for the maintenance of essential public services, while giving notice [thereof] to the
Licensee, including directives with respect to operation of the Licensees Network
and the provision of services or the limitation thereof. Without derogating from the
generality of the foregoing, the Licensee shall act according to the directives and
notices of those authorized for this purpose by any law, including the Government, the
Minister and the Director. For this purpose
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | State of
Emergency |  | Including during any Activation Period of State of
National Emergency Economic Measures, Communications
                                                  Crisis, or Special Situation on
Homeland Security.
| | ------------------ | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Activation Period
of National Emergency Economic Measures |  | The period during which the national emergency
economy system is in force, pursuant to Government Decision
                                                   No. 1716 dated July 6, 1986, and
Government Decision No. 1080 dated February 13, 2000, and any other
                                                  Government Decision.
| | --------------------------------------------------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Communication Crisis |  | Shall mean the collapse of Telecommunication Systems, including
because of a natural disaster, a mass
                                                  casualty disaster or armed attack, or
the well-founded apprehension of such a collapse.
| | -------------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Special Situation
on the Home Front |  | Shall have the meaning set forth in section 9(c) of the Civil
Defense Act, 1951.
| | ----------------------------------- | - | --------------------------------------------------------------------------------

|47.2 | The
Licensee shall inform the Director of the name of its representative who is authorized to
receive directives and notices at any time, 24 hours a day, with respect to any matter
concerning a State of Emergency; the said representative will have a first deputy and a
second deputy, who will act as alternates for the representative during his absence.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|47.3 | The
Licensee shall establish the Licensees Network and operate it in a manner which
will prevent its collapse in a State of Emergency, and in a manner which will enable its
activity to be restricted in the following ways:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | By
[part of a] frequency range;
| | --- | -------------------------------

| | (b) | By
[part of a] geographical area;
| | --- | ---------------------------------

| | (c) | By
disconnecting some of its Service Recipients, according to pre-prepared lists
               or in accordance with the Directors instructions;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | By
intersection of the criteria outlined in (a), (b) and (c) above.
| | --- | -------------------------------------------------------------------

|47.4 | The
Licensee shall organize itself in a manner, which will enable it to impose the
restrictions set forth in section 47.3 in a quick and efficient manner, by having a
qualified operator on-site or by remote control of the on-site equipment from a manned
control facility.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|47.5 | The
Director may set up a detailed procedure to regulate the Networks operations during
a State of Emergency, which he will provide to the Licensee, and the latter will strictly
fulfill the provisions of said procedure.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|48. | Services
to the Security Forces
|--- | -------------------------------

|48.1 | The
Licensee shall provide special services to the Security Forces as specified in the top
secret Security Appendix attached to the License as Appendix F.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|48.2 | The
Licensee shall enable the Security Forces, in respect of which the Director has given
notice in writing, to exercise their powers, subject to any law, with respect to any
Telecommunications Activity under the License, and will be responsible for maintaining,
the proper functioning and the technological compatibility of those Telecommunications
Facilities required for the operation of the above, [all] in coordination with the
Security Forces, and as specified in Appendix F.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|48.3 | The
Security Forces will bear the cost, pursuant to the provisions of section 13 of the Law.
|---- | --------------------------------------------------------------------------------------------

|48.4 | The
Licensee will be exempt from any obligation to reimburse the State in view of Clause 84.2
of the law, or per any other law, due to the provision of special services to the
Security Forces.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|49. | Security
Provisions
|--- | -------------------

|49.1 | The
Licensee shall appoint a Security Officer pursuant to the provisions of the Public Bodies
Security Arrangements Law, 1998, and will strictly fulfill the security provisions
specified in Appendix F to the License.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|49.2 | The
Licensee will establish suitable provisions within its corporation documents and
procedures, and will undertake to ensure that no person will be appointed to a duty or
position of those listed in Appendix F, other than if said person has complied with the
following conditions:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Is
a citizen and resident of the State of Israel.
| | --- | -------------------------------------------------

| | (b) | Has
been granted security clearance by the General Security Services, according
               to which he may fulfill his appointed duties as aforesaid.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|49.3 | The
Licensee shall act to maintain the confidentiality of the operation of the Security
Forces, and will act in accordance with the security guidelines of those Security Forces,
including with regard to the of appropriate security classification for officers and
functionaries in the Company, and the compartmentalization of information concerning
activity involving the Security Forces.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|49.4 | The
Licensee shall take the steps necessary for the protection of the system, the system
components and the data base, which are used for the provision of services and the
operation and the control of the system against the activity of non-authorized entities,
pursuant to the provisions detailed in Appendix F to the License.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 29 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Chapter E -Provision of
Services to Service Recipients

# Part A 
Contractual Agreement with Subscribers

|50. | The
Contractual Agreement
|--- | -------------------------

|50.1 | The
Licensee shall prepare the text of the Contractual Agreement, which it intends to offer
to a Subscriber, and will submit it for the Directors perusal upon demand.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|50.2 | The
terms of the Contractual Agreement will not be in explicit or implicit contradiction to
the provision of any law or to the provisions of the License; however, the foregoing
shall not prevent the incorporation of [different] provisions in the Contractual
Agreement, which favor the Subscriber in contrast to the provisions of the law or the
License.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|50.3 | The
Contractual Agreement will be prepared in a format which is easy and convenient to read
and understand, and it will point out in a conspicuous manner any condition or
restriction with respect to the Subscribers right to revoke the Contractual
Agreement or with respect to the Licensees obligation towards the Subscriber; any
conditional provision in the Contractual Agreement shall be made explicitly and not by
way of reference.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|50.4 | The
Contractual Agreement will include clear and explicit provisions, including among others
the following:
|---- | -----------------------------------------------------------------------------------------------------------

| | (a) | Subscriber
service conditions, including indicators for quality of service.
| | --- | ---------------------------------------------------------------------------

| | (b) | Conditions
for disconnecting from Licensee services, or for discontinuing a                service.
| | --- | ---------------------------------------------------------------------------------------------------

| | (c) | Tariffs
for services provided by the Licensee, correct for the date of the
               Contractual Agreement, including conditions for moving between tariff
programs.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Interest
rates for delayed payments, linkage differentials, and collection rates                as
stated in section 77.
| | --- | ------------------------------------------------------------------------------------------------------------------------

| | (e) | A
provision stating that any change to tariffs will be applied only following
               the provision of prior notice to the subscriber, in advance and in
writing. In                this respect Change signifies any change to a
tariff that may cause                an increase or decrease of payments by the
subscriber for services provided by                the Licensee.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | The
provisions of sections 55 and 56, in respect to an ombudsman and the
               settling of complaints.
| | --- | ---------------------------------------------------------------------------------------------------------------

| | (g) | A
provision stating that in the event of conflict between instructions related
               to tariffs, and overall services as detailed in the Agreement, and the
               provisions of this License, the provisions of the License shall take
precedence.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | A
statement indicating the Directors authority to instruct the Licensee to
               change the wording of the Contractual Agreement, and a clarification
stating                that the Contractual Agreement between Subscriber and Licensee
comprises an                agreement to accept such change as aforesaid.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|50.5 | The
Licensee shall provide the Subscriber with a copy of the Contractual Agreement and its
appendices.
|---- | ------------------------------------------------------------------------------------------------------

|51. | Amendment
of the Contractual Agreement
|--- | --------------------------------------

|51.1 | The
Director may instruct the Licensee to amend the Contractual Agreement after affording the
Licensee a proper opportunity for a hearing.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|51.2 | In
the event that the Contractual Agreement is amended pursuant to the Directors order
or pursuant to a decision of the Standard Contracts Tribunal, if submitted for its
approval, the contract between the Licensee and a Subscriber shall be concluded based on
the amended Contractual Agreement, commencing from the date of the amendment.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|51.3 | The
provisions of section 50 shall apply,  mutatis mutandis,  to any amendment to the wording
of the Contractual  Agreement          by the Company.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|52. | Prohibition
of Discrimination
|--- | -----------------------------

|52.1 | The
Licensee will offer, with no discrimination, each and every service, and all the
services, under equal conditions and at uniform tariffs, per types of subscribers, at the
locations to which the Licensee provides the service. In respect to this section, Subscriber
Type signifies a group of subscribers possessing characteristics that could
reasonably justify the distinguishing of these subscribers from other subscribers.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|53. | Provision
of Service
|--- | --------------------

|53.1 | The
Licensee will not provide, for payment or for no payment and service of those offered by
the Licensee, and will not enable the provision of a service by a service provider, where
the subscriber has not requested the receipt of such service, and the provision of one
service will not be conditional on the provision of another service.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Part B  Service
Level

|54. | Service
Call Center
|--- | -------------------

|54.1 | The
Licensee will establish and maintain a service call center, and will publish to all the
address and means available to access said service center. The licensee will notify the
Director and licensee subscribers of the address of the service center or any change to
this address. A telephone call to the service center could be through an access code as
allocated by the Director, or by a fixed-line phone number.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|54.2 | The
service center will provide for calls from the public, in all matters relating to
services provided by the Licensee, including quality of service and handling of accounts.
The service center will be available to the public through days of the week, other than
weekends and holidays, according to provisions of the Government and Legal Affairs Law
 1948.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|54.3 | The
Licensee shall comply with all the requirements in respect to the level of services
provided to subscribers, as detailed in Appendix D to the License, in all matters related
to the maintenance and operation of a service call center.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|55. | Ombudsman
|--- | ---------

|55.1 | The
Licensee shall appoint an Ombudsman, whose functions will be as follows:
|---- | ----------------------------------------------------------------------------

| | (a) | To
investigate Subscribers complaints concerning the Licensees
               Services;
| | --- | -----------------------------------------------------------------------------------------

| | (b) | To
investigate Subscribers complaints concerning bills which the Licensee
               has issued to a Subscriber and to resolve such complaints.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|55.2 | The
Ombudsman shall act in accordance with the policy set by the Licensee's management.
|---- | ---------------------------------------------------------------------------------------

|55.3 | The
Licensee shall furnish the Ombudsman with all the assistance which he requires in order
to perform his job.
|---- | ---------------------------------------------------------------------------------------------------------------

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|55.4 | The
Licensee shall inform every Subscriber of the possibility of filing a complaint with the
Ombudsman, of his powers and address. The content of this sub-section will be included in
the Contractual Agreement.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|56. | Dispute
Resolution
|--- | ------------------

|56.1 | The
Contractual Agreement will state that any difference of opinion, which may come to light
between the Licensee and a Subscriber, in any matter concerning the construction or
performance of the Contractual Agreement, will be referred to the Licensees
Ombudsman for investigation.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|56.2 | The
Contractual Agreement will stipulate that having reference to the Ombudsman pursuant to
section 59.1 will not -
|---- | -------------------------------------------------------------------------------------------------------------------

| | (a) | Prevent
the Subscriber from bringing his complaint before a competent court.
| | --- | ----------------------------------------------------------------------------

| | (b) | Derogate
from the authority of the Licensee, to act according to the provisions                of
section 71, in respect to the discontinuing or disconnection of a service due
               to violation of the contractual agreement.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|57. | Fault
Repair Center
|--- | -------------------

|57.1 | The
Licensee will establish a permanent service center for the handling of subscriber
requests in respect to failures in the receipt of services, and for this purpose Licensee
shall operate a manned center for the receipt of messages and complaints as aforesaid
(hereinafter  Call Center). The call center will be equipped with
various communication means, such as telephones and facsimile equipment, and as detailed
in Appendix D. The Licensee will bear the costs of telephone communications to the call
center.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|57.2 | The
Licensee will undertake to repair any fault reported to the call center, with a response
time as detailed in Appendix D. If the troubleshooting or repair of the fault
necessitates a visit to the subscribers premises, the Licensee will coordinate a
time for such visit to customers premises, on condition that the time period during
which the customer will have to wait for the required visit will not exceed the times as
specified in Appendix D.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|57.3 | Where
a complaint has been received at the call center in respect to a discontinued service, or
an actual impairment of the quality of service, the Licensee will act to identify the
failure and will take the necessary steps to repair said failure, all in accordance with
the provisions as stated in Appendix D.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|57.4 | Where
the Licensee is of the opinion, following tests conducted by the Licensee, that the
source of the failure is associated with the service provider, he shall immediately
notify the service provider while providing details of the customer and the fault, and
will so inform the customer that his complaint has been referred to the service provider,
while indicating the message number. In the event of disagreement between the Licensee
and the service provider in respect to the responsibility for repair of the fault, they
will both cooperate until the fault is resolved.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|58. | Terminal
Equipment
|--- | ------------------

|58.1 | The
Licensee will ensure that Licensees network will support terminal equipment, on
condition that a type approval has been granted to the terminal equipment, and Licensee
will provide proper services through such terminal equipment, as aforesaid.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|58.2 | The
Licensee will act in accordance with technical and quality of service requirements,
including the following:
|---- | ----------------------------------------------------------------------------------------------------------------

| | (a) | Integration
of the Hebrew language in terminal equipment and services.
| | --- | ----------------------------------------------------------------------

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Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (b) | Prevention
of interference to other systems operating in compliance with law.
| | --- | -----------------------------------------------------------------------------

| | (c) | Prevention
of interference from other systems operating in compliance with law.
| | --- | -------------------------------------------------------------------------------

| | (d) | Compliance
with requirements of the numbering program.
| | --- | ------------------------------------------------------

| | (e) | Safety.
| | --- | -------

|58.3 | The
Licensee, upon demand of the Director, will conduct the necessary tests, free of charge,
as required to verify compliance of the terminal equipment with Network specifications.
The testing of terminal equipment as aforesaid shall be concluded within fourteen (14)
days of receipt of the Directors request. The aforesaid shall not detract from the
authority delegated to the Minister to authorize the Licensee to conduct tests for the
provision of type approval, for a fee.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Licensee will provide the Director, upon request, with the standards and specifications
necessary for the granting of a type-approval by the Ministry or any agent on behalf of
the Ministry.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|58.4 | The
Licensee may, upon request of the subscriber, sell, lend, or lease type-approved terminal
equipment to a subscriber (hereinafter: Sale of Terminal Equipment), on
condition that the following provisions are supported:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
Licensee shall not stipulate any conditions in regards to the sale of
               terminal equipment or the provision of maintenance services for terminal
               equipment, by the Licensee or by any other on his behalf.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Licensee will bring to the knowledge of the subscriber the fact that he may
               obtain terminal equipment or maintenance services, from others.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|58.5 | Where
a subscriber has acquired the terminal equipment from the Licensee or a representative of
his behalf, the Licensee will be responsible for the maintenance of said equipment, at no
cost to the subscriber, for a warranty period of at least one year, to be followed, for
payment, by a maintenance period as defined by the manufacturer of the equipment, and
that will be detailed in the purchasing agreement of the terminal equipment.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|58.6 | Where
a subscriber has acquired terminal equipment from the, the operation of which depends on
the supply of electricity at the subscribers premises, the Licensee will inform the
subscriber that in the event of a power failure, the operation of said terminal equipment
will be discontinued as well, other than if a power backup system has been installed
(hereinafter  backup system). Such information will be provided to the
subscriber when buying the equipment and when installing the equipment at the subscribers
premises, to the extent that the sale and/or installation of the terminal equipment is
effected by the Licensee. Such information will also be provided by a printed notice in
clear and easily read lettering that will be posted in a conspicuous location or on the
terminal equipment or on its packaging.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Where
the Licensee has supplied a backup system for the terminal equipment, he will bring to
the knowledge of the subscriber details in respect to the backup time provided by said
system, within which the terminal equipment will continue to operate.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As
regards this sub-section: terminal equipment  equipment that is used to
receive telephony services by a subscriber, including modems and adapters.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------

|59. | Access
to Public Emergency Services
|--- | -----------------------------------

|59.1 | The
Licensee shall allow its Subscribers and Occasional Customers at any time and at no
charge, free and quick access to public emergency services as instructed by the Director,
using uniform access codes as determined by the Director, in accordance with the
Numbering Plan. The Licensee will coordinate with the providers of public emergency
services the manner by which access to their services will be provided.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|59.2 | The
Licensee will enable the identification of subscribers calling to the public emergency
services4, at any time and free of charge, including subscribers with secure
phone numbers, those who have blocked the ID of their calls and subscribers calling from
a private exchange, all as effective from the date of April 5, 2007 (hereinafter the
start date).
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Licensee will be entitled to effect the above through a Licensee who will route the call
to a public emergency call center5.
| | --------------------------------------------------------------------------------------------------------------------------------

| | Within
no more than 30 days of the start date, the Licensee will provide due notification, in
writing, to all subscribers associated with the Licensee, that in effect from the start
date all subscribers will be identifiable by the public emergency services call center,
and will provide written notification to all subscribers requesting a secured number  that
their number will not be concealed from the public emergency services call center.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|59.3 | The
Licensee shall give adequate publicity to the Access Codes to the public emergency
services, including in the Licensees Telephone Directory, if such is published by
the Licensee, by Internet publicity and by signs in public phone booths.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60. | Blocking
of Service to a Nuisance Subscriber
|--- | --------------------------------------------

|60.1 | Regardless
of the provisions of section 59.1, the Licensee shall block access by a nuisance
subscriber to the public emergency services. If such blocking to a public emergency
service only is technically impossible, the Licensee will block the access of the
nuisance subscriber to all the services provided by the Licensee. As concerns this
sub-section: a nuisance subscriber is a subscriber who contacts a specific
emergency call center, for no justifiable reason, more than 10 times with a 24-hour
period, through the subscribers terminal equipment.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60.2 | Notification
as regards a nuisance subscriber will be applied in writing to the Licensee, by a senior
employee of the public emergency services (hereinafter  the employee), that will be
verified by a deposition signed by the employee (hereinafter  the complaint). The
complaint will include, among others, the name of the nuisance subscriber and his phone
number, to the extent as these are now to the plaintiff, and details in respect to times
of the calls by the nuisance subscriber and call contents, showing that the calls were
made for no justifiable reason. Where the complaint has not included the nuisance
subscriber phone number, the Licensee will take all reasonable steps possible to identify
the nuisance subscriber, from the details and information provided in the complaint.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60.3 | Licensee
will block access to the emergency services as aforesaid, per the provisions of 60.1
above, after having given due notice to the nuisance subscriber. Such notification will
be issued 3 days prior to the date of service blocking, in one of the following manners:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | By
phone call from the Licensees call center to the subscriber.
| | --- | ----------------------------------------------------------------

| | (b) | By
SMS message to the subscribers terminal equipment.
| | --- | ------------------------------------------------------

| | (c) | By
registered mail to the subscriber, other then if the subscriber is pre-paid
          with unknown address.
| | --- | --------------------------------------------------------------------------------------------------------------

|60.4 | The
blocking of service to a pre-paid subscriber, to whom notification can not be issued as
aforesaid in 60.3, will be effected no later than 24 hours from receipt complaint or
following identification as described in 60.2.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60.5 | In
spite of the aforesaid in 60.1, the Licensee shall refrain from blocking access to public
emergency services, if the circumstances of the calls, following explanations provided by
the subscriber to the Licensee, show that the calls made were in fact justified, and that
he should not be seen as a nuisance subscriber. The Licensee will in such case submit to
the Director, within 10 business days from receipt of the complaint or from
identification of the subscriber as described in section 60.2, the reasons for said
non-blocking of the nuisance subscriber.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

4
          Israel Police  100, Medical Services  101, Fire Brigades  102.

5
          At this time, only call centers that are linked by PRI

- 34 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|60.6 | Where
subscriber access has been blocked to emergency services, as aforesaid, the Licensee will
be entitled to collect all debts owed by the subscriber, and will be entitled to charge
said subscriber for the removal of the block.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60.7 | The
Licensee will have the right to remove said block only after the nuisance subscriber has
provided a specific commitment in writing, according to which no such nuisance activities
will be repeated in the future.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60.8 | The
Licensee will prepare records in respect to the method used to identify the nuisance
subscriber, the method used to notify the nuisance subscriber, or alternatively, the
non-notification of the nuisance subscriber, including the reason for such
non-notification. Furthermore, Licensee will prepare records in respect to removal of the
block.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60.9 | The
Licensee will detail, within scope of the Requesting Parties and Subscribers report, as
aforesaid in section 96(b).1, the number of nuisance subscribers that have been blocked
from access to public emergency services or to all Licensee services, per the provisions
of this section, and the number of un-blocked subscribers, as well as the number of
subscribers that have not been blocked per the provisions of this section, and the
reasons for not blocking these subscribers.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|61. | Protection
of Privacy
|--- | ---------------------

|61.1 | Without
derogating from the provisions of the Secret Monitoring [i.e. wire-tapping] Law  1979,
the Protection of Privacy Law  1981, or the provisions of any other law, concerning
the protection of a persons privacy, the Licensee may not tap Telecommunication
Messages of a Service Recipient without his prior written consent, except as necessary to
audit the nature and quality of the service or for the prevention of acts of fraud.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|61.2 | Subject
to the foregoing section 48, the Licensee, its employees, its agents and any person
acting on its behalf may not disclose information about a Licensee subscriber, including
records or documents which contain mention of his name, address, details of his account,
his telecommunication messages, the times they were made and their destinations or any
other information relating to him (hereinafter Subscriber Particulars)
except for information delivered to a person empowered for this purpose by the
Subscriber.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|61.3 | Notwithstanding
the foregoing section 61.2, the Licensee may do the following:
|---- | ------------------------------------------------------------------------------

| | (a) | Provide
the Subscribers details to a third party for the purpose of
               collecting monies owed by the Subscriber in respect of services that were
               provided according to this License, provided that the information provided
is                necessary for the collection of the monies and the preparation of
bills, and                that the third party undertakes to preserve the confidentiality
of Subscribers                pursuant to any law and to use the information solely for
the purpose for which                it was provided.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Provide
the Subscribers particulars to another entity, insofar as                the
data is in its possession, where authorized by law so to do.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

|62. | Prevention
of Fraudulent Acts
|--- | -----------------------------

|62.1 | The
Licensee will take appropriate and reasonable steps to prevent fraudulent acts, and will
maintain a control and tracking systems as required to verify, to the extent possible,
that the services for which the subscriber is being billed are indeed effected from
terminal equipment that is connected to the network via interface devices located at the
subscribers premises, and will refund the subscriber in respect to any charges
collected from the subscriber due to services not effected by the subscriber, including
any linkage differentials and interest rates, per the provisions of section 77.3.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 35 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|62.2 | The
Licensee will disconnect a service, upon request of a subscriber, following the receipt
of said request from the service recipient at the Licensees service call center,
where a suspicion has occurred that another is using the service through an unauthorized
internal wiring connection at the subscribers premises. The subscriber will in such
case have the right to submit such message by phone call or in writing, including by
facsimile or email. Having received said message or notification, or immediately after
having received the written notification, as aforesaid, the Licensee will verify the
credibility of such message and will disconnect the service. Disconnection and subsequent
reconnection of the service in view of the aforesaid, will be free of charge.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|62.3 | The
Licensee will cooperate with other Licensees, including with a transmissions Licensee,
for the identification and prevention of fraudulent activities.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|62.4 | The
Directive may issue directives relevant to the prevention of fraudulent acts, for the
identification and handling of fraudulent acts, and the Licensee will comply with such
instructions issued by the Director in this respect.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|63. | Bills
to Subscribers
|--- | --------------------

|63.1 | The
Licensee will bill subscribers for services per the provisions of Chapter V Tariffs
and Appendix D  Level of Services to Subscribers.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------

|63.2 | The
Licensee will not be allowed to request payment for the submission of current bills.
|---- | ----------------------------------------------------------------------------------------

|63.3 | A
credit owed to a subscriber by the Licensee, will be affected in a subsequent bill,
immediately after such credit to the subscriber has been established.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|63.4 | Where
the Licensee has collected payment from a subscriber for services provided by another
Licensee, the bill will include details of the payment being transferred to the other
Licensee, with details of the services for which the subscriber is being billed,
according to overall rates.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|63.5 | The
Licensee will indicate within each bill sent to a subscriber, the services group for
which the subscriber is being billed.
|---- | ------------------------------------------------------------------------------------------------------------------------------

|63.6 | (a) | Without detracting from other provisions of the License related to the preparation of
subscriber bills and to charges within the bill, the Licensee will comply with the
instructions of Israel Standard 5262, that deals with the reliability of billing and
proper disclosure within phone bills (hereinafter within this section  the
Standard).
|---- | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Sub-section
(a) comprises a Service Condition in respect to section           37b(a)(1)
of the law.
| | --- | -----------------------------------------------------------------------------------------------------

| | (c) | Regardless
of the aforesaid in sub-section (a) 
| | --- | ------------------------------------------------

| | (1) | In
respect to section 2.2.2 of the Standard, sums will be rounded of, per the
          following:
| | --- | --------------------------------------------------------------------------------------------------

| | ((a)) | The
bill total will be rounded off to the nearest sum in shekel ended by two           digits
after the decimal point, where a sum ending at five tenths of an agora           (three
digits after the decimal point) will be rounded off upwards.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ((b)) | The
payment sum for a single call will be rounded off to the nearest sum ending           at
three digits after the decimal point, in shekels, where a sum ended by five
          hundredths of an agora (four digits after the decimal point) will be rounded
off           upwards.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | The
Licensee will have the right to show any sum appearing in the bill at a           detail
level higher than as required by section 2.2.2 of the standard, on           condition
that the method used for the rounding off of sums will comply with the
          provisions of sub-section (c)(1) above.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 36 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (3) | The
price of a phone call (voice) that includes a varying tariff, will be shown           in
the bill submitted to the subscriber as an average price per minute, as
          calculated according to the sum that was charged for the call, divided by
          minutes of the call duration.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Within
this section varying tariff  a tariff that changes as the call
progresses in accordance with various scales of measure, such as a reduced tariff for
extended duration, or a tariff that varies due to transition from peak time to
slack time during the call, or vice versa.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Further
to the statements of section 2.2.4 annex to the standard as relevant to           the
group of services, the details of the services included in the bill will           also
be shown within the bill, and the total tariff being paid for the total           group
of services.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|64. | Telephone
Number Information Services (Directory Assistance)
|--- | ------------------------------------------------------------

|64.1 | Without
detracting from the instructions of section 61, the Licensee will provide, whether
himself or by means of another on his behalf, an information service for finding the
telephone number of any subscriber to domestic phone services or to a mobile
radio-telephone operator, other than subscribers with unlisted (concealed) phone numbers
(hereinafter  Directory Assistance):
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | To
the public at large, with no charge for this service, via an Internet site
               through which this service will be provided.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------

| | (b) | To
Licensee subscribers, at a reasonable price, by a call center that will be
               accesses by a network access code, to be determined by the Director.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Said
Directory Assistance will be provided by all the aforesaid means, as based
               on identical information characteristics provided by the calling
subscriber when                requesting such directory assistance.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|64.2 | Deleted
|---- | -------

|64.3 | Further
to the provisions of section 64.1, the Licensee may offer, at a reasonable price, whether
himself or by another on his behalf, a directory assistance service by any other means,
including via a national access code or via SMS messaging.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|64.4 | As
required for the implementation of sub-sections 64.1 and 64.3:
|---- | -----------------------------------------------------------------

| | (a) | The
Licensee will have the right to query the database of any domestic operator
               or mobile telecoms operator (hereinafter for this section  other
               licensee), or to receive data from the database of any other
licensee, by                any means and with the agreement of the other licensee, all
as subject to the                obligation to maintain subscriber privacy.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | As
required for the provision of Directory Assistance by another licensee, as
               specified by the general license of the other licensee, the Licensee will
access                by any other licensee to the database of the Licensee.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
Licensee will maintain his database in updated condition, such any name or
               phone number of a subscriber that has been added, changed or deleted, will
be                updated in the database within one business day after implementation of
the                update in the Licensee system that is used for the provision of
telephony                services.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
respect to this sub-section Data
Store:  a collation of data including the name, address and telephone number of
all subscribers that are not unlisted (concealed), including business subscribers.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|64.5 | (a) | The
Licensee will request the agreement of every new subscriber for the inclusion of said
subscriber details in the data store. Having received the subscribers agreement as
aforesaid, the details of the subscriber will be included in the data store.
|---- | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 37 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (b) | The
Licensee will respond to the first request of any subscriber asking to
               remain unlisted, for no charge. Within this sub-section, New
               Subscriber a subscriber that has established a
contractual                relationship with the Licensee after the start date as
described in section                64.7.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|64.6 | (a) | The conditions for the provision of Directory Information as described by section 64 will
determined by the Licensee, but only on condition that these will be fair and
non-discriminatory, including in respect to the order by which data will be shown to
those requesting the service. The service will be provided 24 hours a day, through all
days of the year, except Yom Kippur. Within this sub-section, sequence of data
display where the response to a query applied by a caller to the service
consists of several different data, the requested data will be displayed in random order.
|---- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Deleted.
| | --- | --------

| | (c) | The
Directory service for the provision of telephone numbers as described by
               sub-section 64.1 (b) and the Directory Assistance service provided by a
call                center, the access to which will by national access code as described
in section                64.3, will comply with the following service scales:
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1) | At
all times, in the event of a high caller level6, the number of
               callers for whom service is provided will be no less than 90%.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | The
average waiting period for a caller, up to start of the           service7,
shall not exceed 30 seconds.
| | --- | ------------------------------------------------------------------------------------------------------------

| | (3) | The
max waiting period for a caller, until start of the service, will not exceed           60
seconds.
| | --- | ------------------------------------------------------------------------------------------------------

|64.7 | The
effectivity of section 64 will commence from February 8, 2007 (starting date),
other than sub-section 64.1 (b) and sub-section 64.6 (c), that will come into effect
three (3) years following the granting of the License.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|64.8 | The
Licensee, whether himself or through another, including in conjunction with another
licensee, will publish all those Directory Assistance services that will be provided free
of charge, and the national access codes that have been allocated to those with mobile
telecom licenses for the provision of said Directory Services (hereinafter free
of charge directory services). Such publication will include at least the
following:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Licensees
Internet site.
| | --- | -------------------------

| | (b) | At
least once every half-year, Licensee will attach, within the bill mailed to
               the subscriber, a separate informative sheet and a magnetized label
dealing with                free of charge directory services, that will not include any
other information,                said material starting from the first bill issued to
the subscriber after the                starting date.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Without
detracting from the aforesaid, the Director may issue instructions to the Licensee in
respect to the format and publication of the information services.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|65. | Erotic
Service
|--- | --------------

|65.1 | Erotic
Services provided by means of the Licensees Network shall be provided according to
the provisions of Appendix C.
|---- | ------------------------------------------------------------------------------------------------------------------------

| | As
defined for this section  Erotic Service  as defined by section 1
of Appendix C.
| | ---------------------------------------------------------------------------------------

---

6  Busy
Hour Call Attempts.

7  Start
 provision  of service - a response by an operator or of the IVR system,  with a request
to the caller of the information needed to find the requested phone number, etc.

- 38 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Part C  Interruption,
Disconnection or Cancellation of Service

|66. | Definitions
|--- | -----------

|66.1 | Definitions
within this part:
|---- | -----------------------------

| | Cancel Service |  | A full interruption of the telecom service to all receivers of
the service.
| | -------------- | - | ---------------------------------------------------------------------------

| | Disconnect Service |  | A temporary interruption of telecom services.
| | ------------------ | - | ---------------------------------------------

| | Discontinue Service |  | A full interruption of the telecom service.
| | ------------------- | - | -------------------------------------------

|67. | Prohibited
Interruption, Disconnection or Cancellation of Service
|--- | -----------------------------------------------------------------

|67.1 | The
Licensee will not have the right to discontinue, disconnect or cancel any service of
those provided by the Licensee, as defined by the License, other than if the provisions
of this section are supported, or the provisions of section 47 in respect to limited
services during states of emergency.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|68. | Cancellation
of Service
|--- | -----------------------

|68.1 | The
Licensee will be entitled, subject to the Directors approval, to cancel the
provision of a telecom service, including as resulting from the following:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
service has been rendered obsolete due to technological advances.
| | --- | ---------------------------------------------------------------------

| | (b) | Economic
constraints.
| | --- | ---------------------

| | (c) | Misuse
of the service, such that actual economic damage has been caused to the
               public, or to parts of the public, or to the Licensee.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | Within
a request for cancellation of a service, the Licensee will detail the number of
subscribers receiving the service, the steps Licensee intends to take in order to prevent
any damage or loss to said recipients, including the provision of an alternate service
replacing the canceled service, and any other information as the case may be.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|68.2 | When
granting an approval for cancellation of the service as aforesaid, the Minister will
consider, among others, an instruction to the Licensee for the provision of an alternate
service to replace the canceled service, or a continuation of the service for an
additional time period as determined by the Minister.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|69. | Disconnection
of Service following a Service Recipient Request
|--- | --------------------------------------------------------------

|69.1 | A
subscriber may request the Licensee to disconnect a service for a time period not
exceeding six (6) months (hereinafter  disconnection period). Such
request will be submitted by the subscriber in writing, and the request will duly be
authenticated of the by the Licensee.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|69.2 | The
Licensee will subsequently disconnect the service as stated in section 69.1, within no
more than two business days following the date as requested by the subscriber. Where the
subscriber has not stated a date, the service will be disconnected no later than two
business days following submission of the request.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|69.3 | The
Licensee will renew the telecom service that has been previously disconnected as stated
in section 69.1, at the end of the disconnection period. Where the subscriber has
submitted a request to the Licensee, in writing, to renew the disconnected service before
end of the disconnection period, the Licensee will renew the service, within two business
days following submission of the subscribers request.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 39 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|69.4 | A
disconnection of service following a request from a recipient of the service who is not a
subscriber, will be implemented according to the provisions of the contractual agreement
with said recipient of the service.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|70. | Discontinuation
of Service following a Service Recipient Request
|--- | ----------------------------------------------------------------

|70.1 | A
subscriber may request a discontinuation of service. The subscribers request will
be submitted in writing, and will require authentication of the request by the Licensee.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|70.2 | The
Licensee will subsequently discontinue the service as stated in section 70.1, within no
more than two business days following the date as requested by the subscriber. Where the
subscriber has not stated a date, the service will be disconnected no later than two
business days following submission of the request.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|70.3 | A
discontinuation of service following a request from a recipient of the service who is not
a subscriber, will be implemented according to the provisions of the contractual
agreement with said recipient of the service.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|71. | Discontinuation
or Disconnection of Service Due to a Violation of the Agreement
|--- | -------------------------------------------------------------------------------

|71.1 | The
 Licensee  will have the right to  disconnect  a service  or to  discontinue  a  service
 if one of the  following  are          supported:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
recipient of the service has not paid a debt owed for a service received
               from the Licensee, at the time for payment as specified in the agreement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
service recipient has violated a condition of the agreement, as determined
               for the recipient within the agreement, and that is considered a
fundamental                condition.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|71.2 | A
service will not be disconnected and will not be discontinued in cases as detailed in
section 71.1(a) and (b) other than after the Licensee has issued due notice in writing to
the recipient of the service, at least twenty (20) days in advance of the scheduled
disconnection or discontinuation of service. Such notification shall state that the
recipient of the service is given sufficient and reasonable time, as set forth in the
notification, to correct the action or inaction due to which the service will be
disconnected or discontinued.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|71.3 | Regardless
of the aforesaid in section 71.2, the Licensee will have the right to disconnect the
service with no prior notification to the subscriber, on condition that access to
emergency services will not be disconnected without prior notice, if one of the following
are supported:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Where
the subscriber has not defrayed his debt, for the third time, within a
               time period of twelve (12) months, in respect to the debt owed by the
subscriber                for services provided by the Licensee, at the time specified
for such                remittance.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Where
a reasonable suspicion exists that fraudulent acts may be committed via
               the subscribers terminal equipment or by features of the terminal
               equipment.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|72. | Disconnection
of Service due to Interference or Maintenance Activities
|--- | ----------------------------------------------------------------------

|72.1 | The
Licensee may disconnect or temporarily constrain services that Licensee is required to
provide, if the performance of essential maintenance or setup activities on the network
so requires (hereinafter  maintenance disconnect, on condition that the
following are supported:
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
time period of said maintenance disconnect does not exceed six (6)
               consecutive hours.
| | --- | --------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (b) | The
number of maintenance disconnects does not exceed two (2) disconnects within
               one year. In spite of the aforesaid, within the first two years following
               granting of the License, the number of disconnects shall not exceed 4
               disconnects within a single year.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Prior
notice has been delivered to the Director, at least four (4) days prior to
               the scheduled disconnect.
| | --- | -------------------------------------------------------------------------------------------------------------------------

| | (d) | Prior
notice has been issued to service recipients, at least four (4) days prior
               to the scheduled disconnect.
| | --- | ----------------------------------------------------------------------------------------------------------------------------

| | (e) | The
Licensee has done all in his power, within reason, such that maintenance
               disconnects shall take place at low-load hours of the day.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|72.2 | The
Director may demand a detailed explanation from the Licensee, in respect to the
circumstances requiring a maintenance disconnect, and the Director may request a
postponement of said disconnect if he has seen, after considering the reasons presented
by the Licensee, that essential public interests mandate such postponement.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|72.3 | Where
a service disconnect is required for a time period exceeding six (6) hours, and in view
of the need to perform vital and essential maintenance or network setup works, the
Licensee will apply in advance for approval by the Director and will notify the relevant
service recipients in respect to such expected disconnection, including through the
public media. The request will detail the number of service recipients who will be
effected by the temporary disconnect, the locations where the disconnect will occur, the
maintenance activities that will be required and the actions taken by the Licensee to
accelerate these activities and to limit to the extent possible the time period of the
service disconnect.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|72.4 | Where
an urgent disconnection or a limiting of service is required, for the effecting of
essential and immediate activities, the Licensee will immediately so notify the Director,
including by phone, facsimile or email, in respect to the urgent disconnect or limiting
of service. The Licensee will notify recipients of the service in respect to the
disconnection or limiting as aforesaid, as early as possible, including via public media,
other than if the circumstances of the disconnection do not allow the issuing of such
prior notification as aforesaid.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|72.5 | In
spite of the statements of sections 72.1 and 72.4, the Licensee will not be obliged to
notify the Director or the service recipients of a maintenance disconnect, and such a
disconnect will not be taken into account in the count of allowed disconnects, per
section 72.1, if one of the following are supported:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
time duration of the disconnect does not exceed one half hour.
| | --- | ------------------------------------------------------------------

| | (b) | The
maintenance disconnect, as aforesaid, has occurred between 24:00 of Saturday
               night or Holiday night and 05:00 of the following morning.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|73. | Service
Disconnect due to Safety Hazard
|--- | ---------------------------------------

|73.1 | Where
a hazard to humans or to property has been discovered, resulting from a telecom facility
that is connected to the network (hereinafter  Safety Hazard), the
Licensee will be allowed to immediately disconnect the service recipients, with no prior
notice.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|73.2 | Where
Licensee has disconnected a service according to section 73.1, he will immediately issue
due notification to service recipients, including verbally, and by mail. telephone,
facsimile or email. The notification will clarify the reason for the disconnection.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|73.3 | Having
received notice from the service recipient that the safety hazard has been removed, the
Licensee will verify that no safety hazard remains and will subsequently reconnect the
service, no later than the first business day after the day upon which the notice was
submitted by the service recipient.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Chapter F  Tariffs

# Part A 
Determination and Publication of Tariffs

|74. | Definitions
|--- | -----------

|74.1 | Within
this Chapter 
|---- | ---------------------

| | Overall Tariff |  | A
single tariff, embodying within it all the various types of costs and payments included
in the varying payments applied by the Licensee to the subscriber for a given service.
| | -------------- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Varying Payment |  | A
payment for use of a telecom service, that varies according to the time of use or the
volume of traffic.
| | --------------- | - | ----------------------------------------------------------------------------------------------------------

|75. | Determination
of Tariffs and Rates
|--- | ----------------------------------

|75.1 | Where
the Licensee collects payments from a subscriber for the services provided by another
licensee, said payments will be according to the tariffs as offered by the other licensee
for his services to the public, with no additions.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|75.2 | The
billing for varying rates and for associated services or for added value services will
comply with the following guidelines:
|---- | --------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
Licensee will not be allowed to charge the subscriber for calls where the
               subscriber has not initiated the call (hereinafter  uninitiated
call).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | In
spite of the statement of sub-section (a), the Licensee may bill the
               subscriber for uninitiated calls, in the following instances:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (1) | A
collect call that has been accepted by the subscriber.
| | --- | --------------------------------------------------------

| | (2) | A
call generated by a special prefix number (caller free of charge dialing), as
               allocated to the subscriber according to an agreement with the subscriber.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | A
call generated by a number with special prefix (split charges), as allocated
               to the subscriber according to an agreement with the subscriber.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | A
call generated from a subscriber line to another line subsequent to the
               follow me service (or a similar service) on the subscribers
               line.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|75.3 | The
Licensee will not have the right to bill a subscriber who has initiated a call, for the
following services: emergency services, collect call service, toll free service for the
caller or the Licensees repair service.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|75.4 | Regarding
tariffs set according to the length of the call, the charge will be determined as follows:
|---- | ----------------------------------------------------------------------------------------------------

| | (a) | The
tariffs will be stated in NIS per minute and will be measured in one (1)
               second time units. For this purpose, any part of a second will be regarded
as a                whole second.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (b) | For
the purpose of payment, the duration of a call is from the time that the
               connection is effected between the Subscriber who initiated the connection
               (hereinafter  the Calling Subscriber) and the
               Subscriber receiving the call and until the time that the said call is
               terminated, which is the time at which the instruction for terminating the
               connection is received by the Calling Subscriber; the time during which
the                connection is being effected until the moment the connection is
actually made                and the time during which the disconnection is being
effected, from the moment                the order for termination of the connection is
received until its actually                realized, is not included in calculating
the duration of the call; for the                purpose of this sub-section, a voice
mail box shall be included in the                definition of a Subscriber who receives
a call.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Notwithstanding
the foregoing in sub-section (a), the Licensee may offer its                Subscribers a
tariff that will be based on other time units, provided that a                Subscriber
will be permitted at any time to transfer to a charge according to
               one-second time units.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | In
respect to calls that are transferred to voice mail, a preliminary message of
               at least 2 seconds will be issued to the calling subscriber (within this
               sub-section  the message), stating that the caller may
choose                to disconnect the call, free of charge, during the message or
within a                reasonable time period of no less than one second following
termination of the                message (reasonable time). In such case the
timing for establishment                of the call to the receiving subscriber, per its
significance within sub-section                (b) above, will commence following said
reasonable time.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
phrasing of the message will include this call is being transferred to voice mail,
and it will be pronounced in a clear and legible voice, at a reasonable rate.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|75.5 | In
setting the Licensee's tariffs, the following rules will be observed:
|---- | ------------------------------------------------------------------------

| | (a) | Any
payment which a Subscriber makes for a Domestic Fixed-Line call, whether to
               another Subscriber of the Licensee or to the Subscriber of any other D.O.,
will                be according to a standard and all-inclusive tariff, with respect to
all of the                Licensees Subscribers and the Subscribers of the other
Domestic Operators.                Regardless of the aforesaid, the Licensee will have
the right to set a different                tariff for calls between his subscribers, but
only on condition that the                Licensee will provide means, with approval of
the Director, that will enable his                subscribers to differentiate between
in-network calls and such that are not                in-network.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Any
payment, which a Subscriber makes for a call made to an M.R.T. Subscriber,
               will be according to a standard and all-inclusive tariff, with respect to
the                entirety of the M.R.T. Operators.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Any
payment which a Subscriber makes for a call to a Special Telephone Service
               or for a call to a Country-Wide Special Telephone Service, excluding
services                according to section 39.12, will be according to a tariff
identical to the one                for a call as aforementioned in sub-section (a),
unless the Director has given                his approval to the Licensee to charge other
tariffs with respect to a                particular type of such services, which are
provided through a special Dialing                Prefix pursuant to the Numbering Plan.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The
principles set forth in this section with respect to the determination of
               tariffs will apply whether the Licensee sets a tariff based on the length
of the                call or whether a tariff has been set in any other way (e.g. flat
rate).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | In
this section:
| | --- | ----------------

| | Numbering Plan |  | shall have the meaning set forth in its definition in Chapter D
 Numbering;
| | ---------------- | - | ----------------------------------------------------------------------------

| |  Special Telephone Service and Country-Wide Special Telephone Service shall
have the meaning set forth in their definition in the Numbering Plan.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------

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---



|76. | Publication
of Tariffs
|--- | ----------------------

|76.1 | The
Licensee shall make available to any person who so requests, both at its service centers
and on the Internet, full and detailed information, for no charge, concerning the current
tariffs for all its services; the Director may issue instructions to the Licensee with
respect to the manner and format of the foregoing publication of tariffs.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Part B  Miscellaneous

|77. | Delayed
Payments8
|--- | -----------------

|77.1 | The
Licensee will have the right to bill a subscriber for arrears interest, linkage
differentials and collection costs, as related to Licensee services for which the
subscriber has not paid at the time determined for such payment within the bill that was
sent to the subscriber, as defined by the contractual agreement between the parties
(hereinafter  the time of payment).
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|77.2 | The
Licensee will state, within the contractual agreement with the subscriber, said arrears
interest rates, linkage differentials and collection costs.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------

|77.3 | The
arrears interest will not exceed the interest rates as determined within linkage
differentials and interest as defined in Section 1 of the Interest and Linkage
Ruling Law  1961, plus linkage differentials for the period between the time
determined for defrayment and the actual time of payment of the specified sum.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|77.4 | The
Licensee may bill the subscriber for collection costs as applicable to payments in lieu
of services provided to the subscriber, that have not been paid as of the date set forth
for such payment (hereinafter  the debt sum), on condition that at
least fourteen (14) days have elapsed from the date set for payment, other than in cases
where non-payment has occurred due to refusal of the bank or a credit card company to pay
the bill, where the Licensee has received to collect such sums. The collection expenses
that will be billed by the Licensee will be reasonable and commensurate to the debt sum,
and to the steps and actions taken by the Licensee for the collection of the
aforementioned debt. In this respect collection fees  including any
legal actions that will be taken by the Licensee or any person on his behalf for
collection of the debt, prior to the institution of legal actions.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|78. | Billing
for Installation Fees
|--- | -----------------------------

|78.1 | Where
the Licensee has decided to bill for installation fees, the Licensee will have the right
to bill the subscriber for installation fees, only for initial connection of the
subscriber premises to the network.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|78.2 | In
spite of the aforesaid in Section 78.1, the Licensee will have the right to collect
installation fees from the subscriber following a disconnection of service or an
interruption of service, per Section 71.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|79. | Infringement
of Competition or Consumers
|--- | ----------------------------------------

|79.1 | Where
the Minister has found, following due opportunity for the Licensee to state his claims,
that the tariff or fee as set by the Licensee contradicts with instructions of the Law or
the License, to the extent that could infringe on competition or on the rights of
consumers, the Minister will so notify the Licensee, while indicating the necessary
corrections, and the Licensee will comply with the Ministers instruction, and will
issue a message in writing within which the corrected tariff or fee will be detailed.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|79.2 | Where
the Licensee has billed a service recipient according to a tariff or fee that contradicts
the provisions of the License and the rate or fee has been corrected as aforesaid, the
Licensee will take steps to return the excess funds paid by the service recipient, plus
linkage differentials and interest, per the provisions of Section 77.3.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

8
          The Ministry is currently considering the possibility to regulate this issue in
          Directives. If such regulation is adapted, the phrasing of this section will be
          revised as required to reflect the new arrangement.

- 45 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Chapter G  Licensee
Payments, Warranty, Insurance and Surety

# Part A  Royalties

|80. | Definitions
|--- | -----------

|80.1 | Within
the scope of this chapter: linkage differentials, interestand
delayed payments interest  as set forth in the Telecommunication
Regulations (Royalties) 2001 or any other regulations which may replace them (hereinafter
the Royalties Regulations).
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|81. | Payment
of Royalties
|--- | --------------------

|81.1 | The
Licensee shall pay royalties as pursuant to the provisions of the Royalties Regulations.
|---- | --------------------------------------------------------------------------------------------

|81.2 | To
each payment of royalties which is made pursuant to this section the Licensee shall
attach two copies of a non-audited Quarterly earnings report, signed by the Licensee and
certified by an accountant; this report will include itemization of the Licensee income,
itemization of the income exempt from the payment of royalties, calculation of the
chargeable income pursuant to the Royalties Regulations, and anything else upon which the
Licensee based the amount of the royalties.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|81.3 | Upon
filing an audited annual earnings report, and signed by the Licensees accountant
(hereinafter the Audited  Report), the Licensee shall submit a report,
organized by Quarters, detailing the reconciliation between the income in respect of
which it has paid royalties and the income appearing in the Audited Report (hereinafter
theReconciliation Report).
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|81.4 | In
the event that the amount of royalties payable by the Licensee according to the
Reconciliation Report or according to audits conducted by the Ministry is higher than the
sum, which it has paid for a particular Quarter, the Licensee shall pay royalty
differentials, with the addition of interest arrears.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|81.5 | If
[it becomes clear that] the Licensee has paid a higher amount of royalties than it should
have paid for a particular Quarter, the Licensee shall be credited for the amount of the
surcharge; the surcharges to which the Licensee is entitled will be set off against the
payment of royalties according to the Directors confirmation in writing, with the
addition of the interest and linkage differentials, which will be calculated according to
the last published index prior to the date of the said set off.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|82. | Prohibited
Offset of Royalty Fees
|--- | ---------------------------------

|82.1 | As
subject to the provisions of this chapter, the Licensee will not be allowed to offset any
debt owed by the State of Israel to the Licensee from said Royalties.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Part B  Insurance

|83. | Definition
|--- | ----------

|83.1 | Within
this Part:
|---- | -----------------

| | Use of the License |  | Development of the Licensees Network, the installation,
preservation, maintenance, updating or operation thereof, whether by the Licensee or by
another entity acting on its behalf, including its employees, contractors, agents or
representatives.
| | ------------------ | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|84. | Execution
of an Insurance Contract
|--- | ----------------------------------

|84.1 | At
its own expense, the Licensee shall enter into an insurance contract with a licensed
Israeli insurer pursuant to the terms set forth in section 85, and will present a copy of
the said contract to the Director within ninety (90) days of granting of the License,
with an attached statement from a solicitor representing the Insurer, stating that the
insurance contract indeed unconditionally covers all the required provisions as stated in
Sections 84 and 85.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|84.2 | The
Licensee shall indemnify the State for any financial liability which is imposed on it by
law with respect to any third party, as a result of the Use of the License or in
consequence of the Use thereof; indemnification pursuant to this section will be insured
by the Licensee by liability insurance as defined in the Insurance Contract Law, 1981.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|84.3 | The
Licensee shall insure itself and its employees, as well as obligate any contractor who
works for it or on its behalf to take out insurance coverage, against any financial
liability, which is likely to be levied against the Licensee pursuant to any law, on
account of damage caused to person or property as a result of the Use of the License or
in consequence of the Use thereof. Furthermore, the Licensee will obligate all persons
working for the Licensee or on his behalf, to be covered by insurance cover as aforesaid.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|85. | Conditions
with Respect to Insurance
|--- | ------------------------------------

|85.1 | The
insurance contract will stipulate the term of the insurance and will be extendable,
insofar as possible, and it shall stipulate that at the end of the term set therein it
will be automatically extended, unless it has been revoked in accordance with the section
85.6.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|85.2 | The
Licensee shall present the Director, upon demand, with confirmation from the insurer that
the insurance contract is in effect, that no arrears exist with respect to the Licensees
payments of insurance premiums, and that no notices are pending concerning the
revocation, suspension, limitation, amendment or termination of the validity of the
insurance contract.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|85.3 | The
insurance contract will contain a stipulation that in every instance that the insurer
wishes to revoke the insurance contract due to non payment of the insurance premiums, it
is obligated to notify the Director and the Licensee of same, in advance, no less than
ninety (90) days prior to the date on which it actually intends to revoke the contract
(hereinafter in this section  Notice of Revocation).
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|85.4 | In
the event that the Licensee receives a Notice of Revocation, it will act immediately to
remedy the cause of revocation, or will act immediately to enter into an alternative
insurance contract pursuant to section 89.6, and shall also notify the Director of the
actions, which it has taken for that purpose. In the event that the cause of revocation
is the non-payment of insurance premiums by the Licensee, the Director may pay the
insurance premiums in lieu of the Licensee, and he may order forfeiture of the Bank
Guarantee or any part thereof in order to cover the amounts which he has expended for
this purpose, without derogating from his entitlement to collect these sums by any other
means.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|85.5 | In
the event that Licensee wishes to revoke the insurance contract it will notify the
Director of such fact at last forty-five (45) days prior to the date on which it actually
intends to revoke the contract.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|85.6 | In
the event that the Licensee consents to the revocation of the insurance contract by the
insurer, or itself wishes to revoke the insurance contract, the Licensee shall execute an
alternative insurance contract with a licensed Israeli insurer in such a manner that the
entry into force of the alternative insurance contract will be simultaneous with the
expiration of the previous contract; the new insurance contract will be presented to the
Director, together with an opinion as set forth in section 84.1, a minimum of thirty (30)
days prior to its coming into effect, and the provisions of this chapter will apply to
it.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Part C  Guarantee
for Fulfilment of the License Conditions

|86. | The
Guarantee and its Purpose
|--- | -----------------------------

|86.1 | The
Guarantee as presented by the Licensee, per Section 20 of the Unique D.O. Regulations
(hereinafter  the Guarantee), will be used to secure fulfillment of the
provisions of the License by the Company, to ensure payment of pecuniary sanctions
pursuant to the Law, as well as for the compensation and indemnification of the State in
respect of any damage, payment, loss or expense incurred by it, directly or indirectly,
due to the non-fulfillment of the provisions of the License, in whole or in part, at
their relevant times and in full, or due to the revocation, limitation or suspension of
the License.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|86.2 | For
the purpose of this part: "forfeiture of the Guarantee" - in whole or in part.
|---- | ----------------------------------------------------------------------------------

|87. | Forfeiture
of the Guarantee
|--- | ---------------------------

|87.1 | Without
derogating from the generality of the foregoing in section 86.1, the Director may order
the forfeiture the Guarantee, including in any one of the occurrences hereinafter
detailed:
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
Licensee has breached a material condition of the License.
| | --- | --------------------------------------------------------------

| | (b) | The
Licensee has not fulfilled its obligations with respect to the insurance
               contract, as specified in the provisions of the License.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | A
lawsuit or a demand, has been filed against the State, for the payment of
               compensation for damage which was caused pursuant to a breach of
provisions of                the License, pursuant to flawed performance of the License
or pursuant to the                revocation of the License, as well as where the State
has incurred expenses as a                result of such a lawsuit or demand. The
forfeiture of the Guarantee to cover the                sum of the said lawsuit will be
carried out only after the judgment in the                lawsuit has become final.
Notice of such a lawsuit will be given to the Licensee                immediately upon
receiving it.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The
State has incurred expenses or damages as a result of the revocation of the
               License.
| | --- | -------------------------------------------------------------------------------------------------------

| | (e) | The
Licensee has failed to pay the entire amount of royalties pursuant to the
               provisions of the Royalty Regulations and the License.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | A
monetary sanction has been leveled against the Licensee, which the Licensee
               failed to pay in a timely manner.
| | --- | ------------------------------------------------------------------------------------------------------------------------------

- 48 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (g) | The
Licensee has not complied with the provisions of the License with respect to
               the Guarantee.
| | --- | --------------------------------------------------------------------------------------------------------------

| | (h) | The
Licensee has not paid a fee as imposed on the Licensee, per law or per
               order.
| | --- | ------------------------------------------------------------------------------------------------

|88. | The
Manner of Forfeiting the Guarantee
|--- | --------------------------------------

|88.1 | The
Director may order forfeiture of the Guarantee, after he has cautioned the Licensee that
if within the period of time he sets the Licensee fails to amend the act or omission,
which constitute the object of the warning, the Guarantee will be forfeited.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|88.2 | In
the event that the Guarantee is forfeited, the Licensee shall present a new Guarantee, or
bring its balance up to the amount of the original Guarantee, immediately on receiving
the Directors demand.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|88.3 | The
Licensee may appeal the Directors decision ordering forfeiture of the Guarantee, to
the Minister, within fifteen (15) days from the date on which the Directors
decision was brought to its attention. In the event that an appeal has been filed, the
forfeiture of the Guarantee will be delayed until the Ministers decision on the
matter.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|89. | The
Validity of the Guarantee
|--- | -----------------------------

|89.1 | The
 Guarantee  will be renewed from time to time,  and will remain in effect for as long as
the License is in force,  and,          in the event that the  License is  revoked,  for
two years  after the date on which the  revocation  of the License          takes effect,
all per the provisions of the Exclusive D.O. Regulations
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|89.2 | Should
the Director be apprised that the Licensee has discharged all debts pursuant to the
License, including as relevant to the end of service period per section 10, the Director
may give his consent to cancel the guarantee before the date indicated in section 89.1.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|90. | Preservation
of Remedies
|--- | ------------------------

|90.1 | The
forfeiture of the Guarantee does not derogate from the power to revoke, limit or suspend
the License.
|---- | ---------------------------------------------------------------------------------------------------------

|90.2 | The
amount of the Guarantee does not limit the scope of the Companys liability towards
the State for payment of all the damages incurred by it, where the liability for their
payment devolves upon the Company pursuant to the License or to any law.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|90.3 | The
forfeiture of the Guarantee does not derogate from the possibility of suing the Company
for the payment of damages for which it is liable pursuant to the License, or to claim
any other relief according to any law.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 49 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Chapter H  Oversight and
Accountability

# Part D 
Supervision of Licensee Activities

|91. | Power
to Oversee
|--- | ----------------

|91.1 | For
the purpose of this part and Part B  the Director shall have the
meaning set out in the Supervisory Regulations.
|---- | -----------------------------------------------------------------------------------------------------------------------

|91.2 | Pursuant
to the provisions of the Supervisory Regulations and the provisions of the License, the
Director may inspect the Licensees operations in all matters concerning the
performance of the License and the fulfillment of the provisions of the Law, the
Ordinance, or any Regulations, Orders or Directives enacted pursuant thereto.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|92. | Preservation
of Confidentiality
|--- | -------------------------------

|92.1 | The
Director and anyone who is engaged on his behalf in overseeing the Licensee shall not
reveal any information or document (for the purpose of this section Information)
which came into their possession by virtue of their position, to any person who has not
been authorized to receive them, unless the Information has became public knowledge. The
duty of confidentiality will apply to any person to whom Information has been provided
pursuant to the provisions of this section.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|92.2 | The
Director may provide Information to the Anti-Trust Commissioner, the Consumer Protection
Commissioner, the Central Bureau of Statistics, and any other agency, which is authorized
to receive the Information in order to carry out their duties and the exercise of their
lawful authority.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|93. | Entry
into Premises and the Examination of Documents
|--- | ----------------------------------------------------

|93.1 | In
order to carry out the aforesaid [in this part] inspection , the Director, or any person
who is engaged on his behalf in overseeing the Company, may:
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Enter
any Facility or office used by the Licensee in the provision of its
               services according to this License at any reasonable time and in
coordination                with the Company;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Carry
out measurements and inspections;
| | --- | ---------------------------------------

| | (c) | Direct
the Licensee to perform measurements and inspections for him and report
               their results to him;
| | --- | -------------------------------------------------------------------------------------------------------------------

| | (d) | Examine
any record, document, plan, accounting ledger, notebook, database or
               computer file of the Licensee or of anyone who engages on its behalf in
matters                which the Director has the authority to oversee; the Director may
examine and                copy these in any way he deems fit;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | Direct
the Licensee to deliver to him, upon demand, reports for the purpose of
               setting policy, at such time, in the format and in the manner determined
by him.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|94. | Cooperation
|--- | -----------

|94.1 | The
Licensee shall cooperate with the Director, or anyone who conducts inspections on his
behalf in all matters which relate to carrying out inspections of the Licensee, and, inter
alia, will provide them, upon demand, any information in its possession or control,
which they require in order to carry out said oversight.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 50 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Part E  Reports and
Correction of Faults

|95. | Filing
of Reports
|--- | -----------------

|95.1 | The
Licensee shall file the reports, which are specified in section 68, with the Director, in
the format and at the times set out hereinafter.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------

|95.2 | Each
report will reflect the correct and relevant facts in regard to the subject of the
report, updated with respect to the period to which the report relates.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|95.3 | Each
report will be filed in three (3) copies, printed and arranged in a manner which is
comfortable to read, will bear a date and will be signed by the Licensee or by a person
specifically empowered by the Licensee for this purpose; the report will be filed in the
format dictated by the Director, including with respect to the content of the report, its
structure and the way it is to be filed.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|95.4 | The
Director may require the Licensee to re-draft or to complete a report, which it has
filed, within the time and in the manner that he determines, including in instances in
which he finds that necessary details are missing, or the report is missing details
which, in the opinion of the Director, the Company should have included.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|96. | Types
of Reports and Due-Dates for Filing
|--- | -----------------------------------------

|96.1 | At
least once a year, the Licensee shall present the Director with the Annual Reports, which
describe the activity, which took place in the period from January through December of
the preceding year; [the reports shall be filed] within the time limit specified for each
report from the end of the [previous] calendar year:
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | An
audited financial statement, signed by an accountant, will be filed within
               ninety (90) days.
| | --- | --------------------------------------------------------------------------------------------------------------

| | (b) | An
Applicants and Subscribers Report, within sixty (60) days  which will
               include the following data:
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (1) | The
number of Subscribers for each service, divided according to the types of
               services and the types of Subscribers;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------

| | (2) | The
income for each service, divided according to the types of services;
| | --- | ------------------------------------------------------------------------

| | (3) | The
number of applicants requesting to connect or disconnect as well as the
               number of those who are waiting to be connected to the Network;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | The
Pre-selection of Subscribers to an International Operator.
| | --- | --------------------------------------------------------------

| | (c) | A
report regarding the use of frequencies in wireless segments, per the
               provisions of section 31.
| | --- | ----------------------------------------------------------------------------------------------------------------

| | (d) | An
updated Appendix A  Licensee Details, at the beginning of
               January, as detailed in section 17.
| | --- | ------------------------------------------------------------------------------------------------------------------

|96.2 | The
Licensee shall file the following reports with the Director upon demand:
|---- | ----------------------------------------------------------------------------

| | (a) | A
Network Developments Report, within ninety (90) days, per section 22.
| | --- | -----------------------------------------------------------------------

| | (b) | A
Malfunctions Report  which includes a summary and analysis of the
               malfunctions that have occurred in the Companys Network, according
to the                Maintenance Log per the provisions of section 26, and which details
the number                of malfunctions, the cumulative time duration for malfunctions
of each type, an                analysis of the malfunctions, and description of the
steps to reduce their                recurrence.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 51 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (c) | An
Inspections Report  which includes details of the results of the
               inspections carried out on the Companys Network, and analysis of the
               information received from the control and monitoring system, per section
25.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | A
Quality of Service Report  an analysis of the Companys compliance
               with the requirements contained in Appendix D to the License, for the
period of                the Report
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | A
Complaints Report  which itemizes the complaints filed by Subscribers
               with respect to service, including the subject of the complaints, the way
these                were handled, and details of the Ombudsmans activities;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | A
Traffic Report  in a format to be dictated by the Director;
| | --- | --------------------------------------------------------------

| | (g) | A
Special Incident Report  as specified in regulation 8 of the Supervisory
               Regulations;
| | --- | -------------------------------------------------------------------------------------------------------

| | (h) | An
updated Telephone Numbers Plan, pursuant to section 13.
| | --- | ----------------------------------------------------------

| | (i) | Details
of the Licensees tariffs.
| | --- | ----------------------------------

| | (j) | An
updated engineering program.
| | --- | -------------------------------

|96.3 | The
Licensee shall present the Director, quarterly and no later than a month after the
quarter has ended, with the following reports:
|---- | -------------------------------------------------------------------------------------------------------------------------------------

| | (a) | A
non-audited quarterly financial statement, signed by an accountant;
| | --- | ---------------------------------------------------------------------

| | (b) | A
non-audited quarterly earnings report signed by an accountant, which details
               the income subject to the payment of royalties.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------

|96.4 | The
Director may increase or reduce the number of periodic, annual or quarterly reports and
may also require the Company to file special reports according to his directives.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|96.5 | The
Licensee shall submit to the Director, upon demand, any additional data, which may be
required for overseeing the Licensees operations as well as any information, which
is required by the Ministry in order to carry out telecommunications regulation and
oversight.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|97. | Notification
Regarding Defects
|--- | ------------------------------

|97.1 | In
the event that the Director finds defects or flaws in the Licensees operations, it
shall inform the Licensee of this fact in writing.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------

|97.2 | In
the event that the Licensee receives such notice, it will present its written response to
the Director, within thirty (30) days of the date of receipt, specifying the measures,
which it has taken in order to remedy the flaws.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Part F  Fiscal
Sanctions

|98. | Fiscal
Sanctions
|--- | ----------------

|98.1 | The
Director may impose fiscal sanctions on the Licensee, at a rate, time and manner as
determined in Chapter G1 of the Law.
|---- | ----------------------------------------------------------------------------------------------------------------------------

|98.2 | In
all relating to the imposition of sanctions as aforesaid, the provisions and sections
detailed following, shall be considered as comprising service conditions of the License,
per its significance in section 37b(a)(1) of the Law.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
obligation to fulfill the Directors instruction per section 27, as
               applicable to the correction of defects and faults that have an impact on
the                quality of service to service recipients.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 52 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (b) | The
obligation to sustain, maintain, upgrade and operate the Licensees
               Network, in a manner providing for the proper and regular provision of
services                to service recipients, and the obligation to provide services per
the provisions                of sections 6.1 and 37.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
obligation to offer Licensee services without discrimination, per the
               provisions of section 52.
| | --- | ------------------------------------------------------------------------------------------------------------------

| | (d) | The
obligations of the Licensee in respect to tariffs and delayed payments, per
               the provisions of sections 75-77.
| | --- | --------------------------------------------------------------------------------------------------------------------------------

- 53 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Chapter I  Miscellaneous

|99. | The
License as an Exhaustive Document
|--- | -------------------------------------

|99.1 | The
Licensees rights, obligations and powers with respect to the conduct of
Telecommunication Activities and the provision of Telecommunication Services as specified
in this License, and for the conduct of Telecommunication Activities which are required
for the purpose of the provisions of the License, derive solely from the law and this
License.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|99.2 | The
Licensee shall be stopped from claiming the existence of any right, permission or power
in regard to carrying out Telecommunication Activities or to the provision of
Telecommunication Services based on any information, promise, commitment, representation,
offer, understanding, publication, protocol, discussion or declaration, made outside the
scope of the License, whether written or oral, whether prior to the grant of the License
or subsequent thereto, unless explicitly contained in this License or pursuant thereto.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|100. | Access
to License Documents
|---- | ---------------------------

|100.1 | The
Licensee shall allow access to the updated License documents, to the public, at the
Licensees service offices and on his Internet site. The Licensee may also provide
such access through a link at his web site to the Communications Ministry web site,
subject to publication of these documents at the aforesaid site.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|100.2 | Where
the License and appendices thereof have been provided for reference by the public, the
public will not be allowed access to the following appendices:
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Appendix
A  Licensee Details;
| | --- | ------------------------------

| | (b) | Appendix
F  Security Provisions;
| | --- | ---------------------------------

| | (c) | Appendix
G  Security Annex (Classified);
| | --- | -----------------------------------------

| | (d) | Appendix
H  Bank Guarantee and Guarantee Writs.
| | --- | ------------------------------------------------

|100.3 | The
Ministry will have the right to publish the License, other than the appendices listed in
section 100.2, at the date and manner as seen fit.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------

|101. | Postponement
for Carrying Out the Provisions of the License
|---- | -----------------------------------------------------------

|101.1 | In
the event that a deadline exists for the performance of a duty, which has been imposed on
the Company under this License, the Company will fulfill such duty by the said date.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|101.2 | The
Minister may, upon request of the Licensee, postpone the timetable for the execution of
an obligation of any kind (hereinafter in this section postponement),
for a time period as determined by the Minister, if he has been convinced that one of the
following is supported:
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
postponement has been caused by a reason over which the Licensee has no
               control, and the Licensee has made all reasonable efforts to comply with
his                obligation.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
postponement will allow the Licensee to improve the technology used to
               provide Licensee services.
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (c) | The
postponement will promote competition within the telecommunications field.
| | --- | ------------------------------------------------------------------------------

| | (d) | The
postponement is caused by state of emergency circumstances, as defined in
               section 47, or due to deployment in anticipation of such circumstances.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 54 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|102. | Maintenance
of Responsibility
|---- | -----------------------------

|102.1 | None
of the approval or supervisory authorizations granted to the Minister or to the Director
per the provisions of this License, including the execution of such authorizations as
aforesaid, to apply a responsibility of any kind to the Minister or to the Director, that
are applicable according to Law or License to the Licensee, and shall not be construed as
affecting, detracting, removing or decreasing from the responsibilities of the Licensee
as aforesaid.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|102.2 | Any
approval, permission or license as granted to the Licensee, for the purpose of this
License or within its framework, whether granted prior to granting of the License or
subsequent to it, will not be construed as imposing on the State and responsibility
towards the Licensee.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|103. | The
Manner of Delivering Notices
|---- | --------------------------------

|103.1 | Any
notice with respect to this License or the performance thereof will be given in writing
and will be sent by mail, by messenger or by facsimile; a notice sent by mail will be
deemed to have reached its destination within 48 hours from the time it is delivered for
dispatch. Where a notice is sent in any other manner, the sender will confirm its
delivery to the addressee.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|103.2 | Any
notice from the Licensee to the Minister will be delivered via the Director.
|----- | --------------------------------------------------------------------------------

|103.3 | The
Licensee's  address for the purpose of receiving notices pursuant to this section is: 10
Hagavish Street,  P.O.B. 4060,          Natanya 42140. The Company shall inform the
Minister of any change to the foregoing address.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|104. | Responsibility
of General Partner
|---- | ---------------------------------

|104.1 | Further
to the provisions of any law, all general partners and all limited partners will
participate in the commercial management of the Licensee9, both together and
each individually, as required to support the provisions of the License by the Licensee,
and will attach a Writ of Commitment to the License, that will be marked as Appendix H
 Annex H310.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|105. | Conviction
of a Functionary
|---- | ---------------------------

|105.1 | Where
the CEO of the partnership has been convicted, or another who is directly subordinated to
the CEO, or a Director, have committed an offense which by the nature, level of severity
or circumstances of the offense indicates that by opinion of the Director, said official
cannot serve in a position of responsibility with the Licensee (hereinafter  the
convicted functionary), said convicted person will immediately be discontinued from
serving in a position of responsibility with the Licensee, the general partner or the
limited partner within the Licensee partnership.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

9
          Section 63(c) to the Partnerships Order (New Version)  1975, that states
          a limited partner participating in the business management of the
          partnership will be responsible for all obligations of the partnership, as if he
          were a general partner, for as long as said participation is continued.

10
          At the date of granting of License, and per the presentation included in the
          request, the single general partner of the Licensee is Partner Future
          Communications 2000 Ltd.

- 55 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# List of Appendices

| |                                                                      
| | ---------------------------------------------------------------------
|
|
|
|
| | Appendix A  Not published to the public.                            
| | Appendix B  A list of services provided by the Licensee             
| | Appendix C  Erotic Service                                          
| | Appendix D  Level of Services to a Subscriber                       
| | Appendix E  Rules of Accessibility to International Telecom Services
| | Appendix F  Not published to the public.                            
| | Appendix G  Not published to the public.                            
| | Appendix H  Not published to the public.                            

- 56 -

---

---



Appendix B

Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

# Appendix B 
Services Provided by the Licensee

|1. | General
|-- | -------

|1.1 | This
appendix lists the services provided by the licensee, with a concise description of each
service.
|--- | ------------------------------------------------------------------------------------------------------

|1.2 | The
provision of the Services includes: installation, initial operation, maintenance, the
location and repair of defects, the operation of a hotline for reporting malfunctions,
relocating a line, transfer of a line to another person or change of name, temporary
suspension of the service, and subsequent renewals or cancellation of the service, as the
case may be.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.3 | The
Licensees Services will be provided according to the Technical and Service Quality
Requirements determined by the Ministry from time to time. Indicators of availability and
quality of service for the Licensees Services will be specified in Appendix D of
the License, in the following Tables of Services in this Appendix or in the service files
authorized by the Director, as the case may be.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | List
of Services
|-- | ----------------

|No. | Name of Service                | Description of Service                                                                                                                                                                                                                                     | Start Time                                         | Comments                                                                                                                                                                                                                                                                                                                        
|--- | ------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1   | Basic Telephone                | Basic Telephone calls to and from Subscribers of the Licensee
to any telephone or other Terminal Equipment, such as voice
mail, on the Licensee's Network, or other Public Telecom
Network, in Israel or overseas (by means of an International
Operator). | Immediate                                          | Other than access via wideband
network of another licensee, such
as with DSL equipment or via cable
modem                                                                                                                                                                                                                       
|2   | BRI Service                    | Telephone service via BRI interface                                                                                                                                                                                                                        | Future                                             | The service provides for the
transfer of 2 audio calls
simultaneously or the transfer of
switched data links at 128Kbps.                                                                                                                                                                                                        
|3   | Access to emergency
services   | Free of charge access for Licensee subscribers to emergency
services per the provisions of section 59 in the License                                                                                                                                       | Immediate
(simultaneous with
basic phone services) | The call will be routed to the
emergency services call center,
per the subscriber address, as
provided by the subscriber for
this service, and per the call
center of the emergency service
as determined by the service
provider.
The caller phone number will be
identifiable by the call center
for public emergency services
|4   | Transmission via PRI
interface | A telephone service provided on transmission access media - IP
or TDM via a PRI interface.                                                                                                                                                                 | Immediate                                          | The service enables the
transmission of 30 audio calls
simultaneously to an exchange.                                                                                                                                                                                                                                           

Appendix B - 1 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|5  | Access to Internet providers          | A  service  providing  subscribers  with access to Internet service providers (ISP) at various rates                                                                                                                 | Immediate | Selection  of the ISP by the subscriber,  the data
transmission rate will be indicated in the contractual agreement, as ordered by the subscriber.
|-- | ------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------------------------------------------------------------------------------------------------------------------------------------------------
|6  | Data Comms                            | Transmission of data, via interfaces suitable for
communication between computers.                                                                                                                                   | Immediate |                                                                                                                                                   
|7  | Virtual private datacom
network - VPN | A virtual private communication network (VPN) for the
transmission of data via interfaces suitable for communication
between computers as based on IP infrastructures.                                               | Future    |                                                                                                                                                   
|8  | Call Waiting                          | Indication of an additional call received while a call in
progress, with an option to switch to the awaiting call, An
option exists for one-time cancellation or permanent
cancellation of the call waiting feature. | Immediate | Conditional on support by
subscriber's terminal equipment.                                                                                        
|9  | ID of incoming call                   | Displays number or name of the caller when receiving a call
and for call waiting.                                                                                                                                    | Immediate | Conditional on support by
subscriber's terminal equipment.                                                                                        
|10 | Blocking of outgoing
call ID          | Blocks the displays of the subscribers phone number or name
when placing a call. Two options are available: fixed
blocking, one-time blocking.                                                                       | Immediate |                                                                                                                                                   
|11 | Blocking of incoming
calls            | Incoming calls blocked upon request of the subscriber.                                                                                                                                                               | Future    | The block is applied to specific
phone numbers; no overall block
from another D.O. or from an MRT
will be allowed.                                
|12 | Blocking of outgoing
call             | The blocking of outgoing calls by a subscriber, according to
predefined possibilities.                                                                                                                               | Future    | No overall block to another D.O.
or from an MRT will be available.                                                                                
|13 | Follow Me                             | Redirection of all incoming calls to another number per the
following:
a. When the line is busy.
b. When no answer, after number of rings as selected by
subscriber.
c. For all incoming calls.                      | Immediate |                                                                                                                                                   
|14 | Selective Follow Me                   | Redirection of calls incoming from selected callers only, to
another phone number.                                                                                                                                   | Future    |                                                                                                                                                   

Appendix B - 2 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|15 | Simulated Private Exchange (Centrex)                                       | A  virtual private  exchange on the public telecom network.                                                                                                                                           | Future    | Including IP-Centrex. A service file is required.                                                                                                                                        
|-- | -------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|16 | Free Number Service
(free dialing)                                         | No charge billed to the subscriber when dialing a free of
charge number. The subscriber receiving the call is billed for
the call.                                                                    | Future    | Depends on a service file.                                                                                                                                                               
|17 | Split Charge Service                                                       | The initiator of a call to a split charge number is billed at
a reduced rate. The recipient of the call is billed for the
remaining cost of the call.                                                 | Future    | The service will be available to
all fixed line subscribers and to
MRT subscribers. The service
includes options to block calls
from specified areas and to
receive reports of the calls.
|18 | Conference Call                                                            | A possibility to set up conference calls with two additional
 numbers or more, as a call is in progress.                                                                                              | Immediate | On condition that the subscriber's
terminal equipment supports the
service.                                                                                                              
|19 | Voice Mail                                                                 | The allocation of a personal mail box to the subscriber, that
is used to store and extract received voice messages.                                                                                   | Future    |                                                                                                                                                                                          
|20 | Fax Mail                                                                   | The receipt, storage and retrieval of fax messages in a
subscriber's fax box.                                                                                                                         | Future    |                                                                                                                                                                                          
|21 | Common voice mail for
fixed line and mobile
extension                      | Provides a common mail box for a fixed line extension and for
the MRT unit.                                                                                                                           | Future    | The tariff for a call, when the
voice mail responds, is per the
number that was dialed.                                                                                                  
|22 | Returned Call                                                              | Dialing of the last phone number from whom an incoming call
was received.                                                                                                                             | Immediate | On condition that subscriber's
 terminal equipment supports the
 service.                                                                                                                
|23 | Reversed Charges Call                                                      | A call, the cost of which will be paid by the subscriber who
received the call, after agreeing to receive the call.                                                                                   | Future    |                                                                                                                                                                                          
|24 | Access to Premium  Info
and Entertain-ment
Services - at low price
(1-900) | Provides the subscriber with access to information or
entertainment services that are interactive or are not interactive,
as provided by service providers.                                           | Future    | Dialing prefix according to the
numbering program (1900).                                                                                                                                
|25 | Hot Line                                                                   | A call to a pre-assigned destination by pick up of the phone
only.                                                                                                                                    | Future    |                                                                                                                                                                                          
|26 | Delayed Hot Line                                                           | A call to a pre-assigned destination by pickup of the phone.
The call is set up if the subscriber has picked up the handset
but has not dialed even a single number within a pre-defined
time period. | Future    |                                                                                                                                                                                          
|27 | Leading Number                                                             | Determines a leading number for a group of phone numbers on
the subscriber's unit. Dialing of the lead number will divert
the call to the next available free number in the group.                    | Future    |                                                                                                                                                                                          

Appendix B - 3 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|28 | Parked Call                     | When a busy signal received or a call waiting signal, dial the
access code and hang up. When the called line becomes
available, an audible signal will be provided, and when the
phone is picked up the call will be established. | Future    |                                                                                                                                                                                                                                        
|-- | ------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|29 | Secure Line                     | Enables the encryption of all incoming or outgoing voice and
fax messages, from the subscriber's phone line. The line is
secure between the terminal equipment at the subscriber's
premises and the line end point at the switch. | Future    | Subject to legal approvals.                                                                                                                                                                                                            
|30 | Call accompanied by
advertising | A phone call within which a subscriber who has so agreed will
be exposed to commercial advertising.                                                                                                                               | Future    |                                                                                                                                                                                                                                        
|31 | Roaming Features                | The incoming phone call is automatically transferred to
another line in the roaming group, if the dialed line was busy.                                                                                                           | Future    | Various options, including:
Linear roaming - call transferred
to last line of the roaming group.
Circular roaming - call skips
beyond the last line and returns
to the first line.
Roaming per load distribution
(several alternatives)
|32 | SMS                             | Options available to the subscriber to send and receive
instant messages in form of written message or multi-media
message.                                                                                                       | Future    | SMS, MMS messages, depending on
 terminal equipment.                                                                                                                                                                                   
|33 | Video Call                      | A telephone call that provides video capabilities as well.                                                                                                                                                                        | Future    | Depends on terminal equipment.                                                                                                                                                                                                         
|34 | Pushed information
services     | The service will allow a subscriber to passively receive
information on selected topics, from a variety of various
topics.                                                                                                        | Future    |                                                                                                                                                                                                                                        
|35 | Wakeup Service                  | An automated wakeup/memo service, provided by the telephone.                                                                                                                                                                      | Future    | Access by fast dialing                                                                                                                                                                                                                 
|36 | Remote follow me control        | Remote activation of all "follow me" services (through the
audio management system or an Internet portal).                                                                                                                        | Future    |                                                                                                                                                                                                                                        
|37 | Call Hold                       | Allows holding a call, including the playback of music to a
caller who has been placed in "hold".                                                                                                                                 | Immediate | On condition that the subscriber's
terminal equipment supports the
service.                                                                                                                                                            
|38 | Call Transfer                   | Transfer the call to another phone number, during the call.                                                                                                                                                                       | Immediate | A clarification is required as
regards billing of the call.                                                                                                                                                                            

Appendix B - 4 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|39 | Call Snatching                       | An  incoming  call  can  be  answered  at  another extension belonging to the subscriber by dialing a pre-specified code.                                                                               | Future    | 
|-- | ------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | 
|40 | Speed Dialing for
Businesses (*XXXX) | A short and easily remembered number comprised of asterisk (*)
and 4 digits instead of the regular phone number.                                                                                        | Future    | 
|41 | Unified Messages service             | A service that combines incoming voice, fax, video and email
messages in a single unified mail box, allowing the retrieval
of these to a fixed-line telephone, a mobile telephone, a fax
or a computer. | Future    | 
|42 | Additional Number                    | The allocation of an additional phone number to the user, for
the same phone line.                                                                                                                      | Future    | 
|43 | Web-based services
manager           | A web-based, password-protected interface providing the
recipient of the service with full control over the services
provided to him by the Licensee.                                                   | Future    | 
|44 | Unique Ringtone                      | Provides a unique Ringtone for calls received from different
callers.                                                                                                                                   | Immediate | 

Appendix B - 5 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

Appendix C

# Appendix C 
Erotic Services

|1. | Definitions
|-- | -----------

|1.1 | In
this Appendix:
|--- | -----------------

| |                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ------------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
|
|
|
| | Licensee            |  | A holder of a General License granted by the Minister to provide Domestic Fixed-Line Telecommunication Services or to provide M.R.T. Services.                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | Telephone Bill      |  | A bill issued by the Licensee to a Subscriber for Services that it provided to him.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | Writing             |  | Including by means of facsimile or electronic mail.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | Service Number      |  | A number of digits, which are allocated to a Service Supplier by a Licensee, subject to the provisions of the Numbering Plan and administrative directives in respect thereof, and which, when dialed after the dialing code, enable a Subscriber to have access to an Erotic Service.                                                                                                                                                                                                                                                                           
|
| | Service Supplier    |  | An entity supplying an Erotic Service by means of the Licensee's Network, the service is accessed by means of a Service Number, and payment for the service being made by means of the telephone bill.                                                                                                                                                                                                                                                                                                                                                           
|
| | Erotic Promo        |  | The playback or display of an audio or visual presentation with erotic content, including a recorded message, as provided by the telecom facility, whether directly or indirectly, where the promo is intended to provide information in respect to the subsequent service or to encourage the use thereof, on condition that said playback or display are for no additional payment, beyond payment for the phone call as billed by the regular phone bill.                                                                                                     
|
| |                     |   | In this respect, "indirectly" includes the means used to establish contact to the subscriber's terminal equipment as conditional on the provision of said erotic promo.                                                                                                                                                                                                                                                                                                                                                                                          
|
| | Dialling Prefix     |  | A nation-wide dialing prefix in the format mandated by the Ministry for an Erotic Service.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | The Network         |  | The Public Telecommunication Network of the Licensee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | Erotic Service      |  | An service that is provided by the Service Supplier by means of an telecom facility, where the service consists of playing a message or showing a video clip containing sexual content, including the use of a recorded message, and including a service to meet others or contact other (chat), that is intended to serve, even partially for the purpose of sex. In this respect, "indirectly" signifies the establishing of contact from a subscriber's terminal equipment as conditional for the provision of the service or for the billing of such service.
|
| | Payment Regulations |  | The Communications Regulations (Telecommunications and Broadcasting)(Payments for Telecommunication Services Specified in the Supplement to the Law), 2004.                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | Special Payment     |  | A price that is stipulated in paragraph 6, which the Subscriber is required to pay for an Erotic Service in addition to the regular payment.                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | Duration Payment    |  | A Special Payment whose sum is fixed according to the amount of time in which the Subscriber utilized the Erotic Service.                                                                                                                                                                                                                                                                                                                                                                                                                                        

Appendix C - 1 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | Normal Payment |  | One of the following:
| | -------------- | - | ---------------------

| | (a) | For
a call from within the Licensees Network  payment that does not
          exceed NIS 0.45 a minute (not including VAT)
| | --- | ----------------------------------------------------------------------------------------------------------------------------

| | (b) | For
a call from the Licensees Network to an M.R.T. Network  payment
          that does not exceed the tariff set out in letter D in Table A of
          the first Appendix of the Payments Regulations, in addition to NIS 0.45 a
minute           (not including VAT).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | For
a call from the Bezeq network to the Licensee network  a payment that
          will not exceed a payment as indicated by the letter C of Table A
of           the first Appendix of the Payments Regulations, in addition to NIS 0.45 a
minute           (not including VAT).
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | For
a call from the M.R.T network or the D.O. network, other than the Bezeq           network
 a payment no higher than the fixed payment as defined by the           tariffs
agreement between D.O subscribers and the D.O. or between M.R.T.           subscribers
and the M.R.T., in respect to call to another subscriber on the same           network,
plus NIS 0.45 a minute (not including VAT).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Access
to an Erotic Service
|-- | ---------------------------

|2.1 | Subject
to the provisions of section 4, the Subscriber will be afforded access to an Erotic
Service through the Dialing Prefix and the Service Number.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Assignment
of a Service Number
|-- | ------------------------------

|3.1 | The
Licensee may allocate a Service Number to a Service Provider; where the Licensee has
allocated such a Service Number, it will enable the Service Provider to provide its
services both to the Licensees Subscribers and to the Subscribers of another
Licensee.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Blocking
Access to an Erotic Service
|-- | ------------------------------------

|4.1 | a. | The
 Licensee  shall block the access to an Erotic  Service  from all  Terminal  Equipment,
 which is  connected to the              Licensee's Network.
|--- | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. | Having
received notice from the Communications Ministry that an Erotic Promo has
               been applied through a phone line on the Licensees network, to which
               access is possible not through the dedicated service number, the Licensee
will                disconnect the said telephone line, or will block the line in respect
to                incoming calls.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.2 | A
Subscriber who is 18 years of age may request the Licensee to remove the block
aforementioned in section 4.1 from the Terminal Equipment in his possession.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.3 | A
Subscribers request for the removal of the block will be made in writing, or
orally, provided the Licensee has set up a procedure, which enables reliable
identification of the requesting Subscriber.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.4 | In
the event that the Subscriber requests the removal of a block in the aforesaid manner,
the Licensee shall inform the Subscriber, even before carrying out the removal of the
block, of the rate of the Normal Payment, as defined in section 1 of this Appendix, which
is charged for an Erotic Service.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix C - 2 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|4.5 | In
the event that the Subscriber requests the removal of a block in the aforesaid manner,
the Licensee shall, within a reasonable period of time, remove the block in a manner
which will enable the Subscriber to have access to Erotic Services through the Terminal
Equipment in his possession.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.6 | In
the event that the block of the Erotic Services is removed in the aforesaid manner, and
the Subscriber changes his mind and requests to the block his Terminal Equipment to the
foregoing Services, the Licensee shall replace the block as quickly as possible, and no
later than 2 work days from the date of receiving the Subscribers request.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.7 | The
first removal of the block to an Erotic Service, which was performed at the request of
the Subscriber as set forth in sections 4.2 and 4.3, will be performed free of charge.
The Licensee may charge the Subscriber for any additional blocking of access to an Erotic
Service, or for any additional removal of a block, which are performed at the request of
the Subscriber.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Advance
Registration
|-- | --------------------

|5.1 | Notwithstanding
the provisions of section 4, the Licensee may require pre-registration of the Subscriber
in order to receive a password, which will serve the Subscriber as a prerequisite for
receiving Erotic Service. Nothing in the provision of this section shall derogate from
the provisions of sections 4.2-4.4.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Determination
of a Special Payment
|-- | ----------------------------------

|6.1 | In
the event that a Special Payment is set for an Erotic Service, the rate of such Payment
will be set by the Licensee or in an agreement between the Licensee and the Service
Supplier.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Charging
the Subscriber for Erotic Services
|-- | -------------------------------------------

|7.1 | In
the event that a Normal Payment is set for an Erotic Service, the Licensee shall include
the payment for the Service as part of the Telephone Bill, unless the Subscriber has
asked that the charge for the Service be shown in the Telephone Bill separately from the
charges for the other Services, which the Licensee provides.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.2 | In
the event that a Special Payment is set for an Erotic Service, the Licensee shall present
the charge for that Service in the Telephone Bill separately from the charges for the
other Services, which the Licensee provides, unless otherwise requested by the
Subscriber.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.3 | The
Licensee shall provide the Subscriber, upon demand, within ten (10) work days, the
particulars of the Special Payment according to the following:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
Service Number, which was assigned to the Service;
| | --- | ------------------------------------------------------

| | (b) | The
date and time of receiving the Service;
| | --- | -------------------------------------------

| | (c) | The
billable time units  charged according to the length of time                and
the number of such units, which were metered or the total amount of the
               Special Payment;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The
amount of the charge for that Service.
| | --- | ------------------------------------------

| | The
Licensee will have the right to charge a reasonable for the provision of said detailing
for special payments.
| | -----------------------------------------------------------------------------------------------------------------

|8. | Mandatory
Announcement
|-- | ----------------------

|8.1 | In
the event that a Special Payment is set for an Erotic Service, which is provided through
the Licensees Network, the Licensee shall play a recorded message, itself or via
the Service Supplier, at the beginning of the call, which will include the following
details:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix C - 3 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (a) | The
nature of the service.
| | --- | --------------------------

| | (b) | The
rate of the Special Payment for the Service, whether as a total sum or as a
          Duration Payment, as applicable.
| | --- | --------------------------------------------------------------------------------------------------------------------------

| | (c) | The
option of disconnecting from the Service for no charge, before the tone is
          sounded, as set forth in section 8.4.
| | --- | ------------------------------------------------------------------------------------------------------------------------------

|8.2 | The
recorded message will be made in the same language as the Erotic Service itself, in
fluent and clear speech, at a reasonable pace and free of recording disruptions.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.3 | At
the beginning of an Erotic Service which is provided in a language other than Hebrew, an
announcement will be made specifying the language in which the Service is provided,
followed by the recorded message, as set forth in sections 8.1 and 8.2, in the language
in which the Service is provided.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.4 | On
completion of the recorded message, as set forth in section 8.1, the caller will be given
5 seconds, at the end of which a tone will be sounded denoting the commencement of
[receiving] the Erotic Service; should the caller disconnect prior to the sounding of the
tone, he will not be charged a Special Payment. Alternatively, the caller will be
requested to press a certain key on the Terminal Equipment in his possession, in order to
confirm that he wishes to receive the Service, and he will be charged a Special Payment
only from such time.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | Licensees
Relations with a Service Supplier
|-- | --------------------------------------------

|9.1 | The
Licensee may allow a Service Supplier to conduct Telecommunications Activities for the
provision of an Erotic Service by means of its Facilities; the Service Supplier will be
exempt from the obligation to receive a license for the conduct of Telecommunications
Activities pursuant to section 3(5) of the Law.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.2 | The
Licensee shall include the provisions of this Appendix, mutatis mutandis, in the
agreement between itself and the Service Supplier, in such a manner that the Service
Supplier shall be obligated to comply with these provisions.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.3 | At
the Directors request, the Licensee shall present him with any agreement between
itself and the Service Supplier.
|--- | ---------------------------------------------------------------------------------------------------------------------

|9.4 | In
the event that the Licensee wishes to disconnect a Service Supplier from the Network, it
will so inform the Director a reasonable time in advance.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Interconnection
between Networks
|--- | --------------------------------

|10.1 | The
terms of Interconnection between the Licensees Network and between the Public
Telecommunication Network of another Licensee, with respect to the provision of Billing
and Collection Services by the one Licensee on behalf of another, for the purpose of
providing an Erotic Service, which is supplied through the Licensees Network to the
Subscribers of another Licensee, will be settled by agreement between the Licensee and
the other Licensee. In the event that the parties cannot reach agreement, the Minister
shall determine the matter.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2 | The
Licensee shall present to the Director, upon demand, a signed copy of each agreement
between itself and another Licensee with respect to the said Interconnection.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix C - 4 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|11. | General
|--- | -------

|11.1 | The
Licensee shall be in charge of handling the complaints of Erotic Service customers, with
respect to access problems of the Subscriber to the Service and problems of billing and
collection with respect to the Service, and for that purpose will maintain an
organization for handling customer complaints. The Service Supplier will be responsible
for handling customer complaints where the complaints concern the content of the Service.
In the event that the Licensee itself provides the Erotic Service, it will also be
responsible for handling complaints of Erotic Service customers, which concern the
content of the Service.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.2 | The
Licensee may not disconnect, terminate or act to the detriment of the Basic Telephone
Service of a Subscriber who has challenged a charge for Erotic Service and who refuses to
pay it, but it may disconnect such a Subscriber from [continuing to receive] Erotic
Service.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.3 | The
Licensee shall not provide the Subscribers details to a Service Supplier or to
another entity, without the Subscribers written approval, and after having verified
the authenticity of the approval.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.4 | The
Licensee shall deliver to any Subscriber who so requests, free of charge, within three
(3) working days, the following details concerning a Service Supplier:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | The
name and address of the Supplier;
| | --- | -------------------------------------

| | (b) | A
telephone number through which contact can be made with the Supplier.
| | --- | -----------------------------------------------------------------------

|11.5 | The
foregoing in this Appendix will also apply, mutatis mutandis, with respect to the
provision of an Erotic Service, which is supplied solely to the Licensees
Subscribers by means of a Network Access Code.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.6 | The
Licensee may itself provide an Erotic Service, and the provisions of this Appendix will
apply to it, mutatis  mutandis.
|---- | ---------------------------------------------------------------------------------------------------------------------------

|11.7 | This
Appendix shall enter into force on July 15, 2004.
|---- | ------------------------------------------------------

Appendix C - 5 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

Appendix D

# Appendix D  The
Standard of Subscriber Services

|1. | Bills
to Subscribers
|-- | --------------------

| | a. | General
| | -- | -------

| | The
Licensee will issue and send periodic bills, with the details of charges applied within
the time period of the bill. The bill will provide details in respect to all the types of
services included within the Service Package that was selected by the subscriber. The
bill as issued to the subscriber will be clear, concise, legible and understandable. Said
bill to subscribers will detail the relevant items for the specific bills from among the
following:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1) | Permanent
or one-time payments.
| | --- | -------------------------------

| | (2) | Payments
caused by scope of use.
| | --- | --------------------------------

| |  | Call
duration  minutes, seconds.
| | - | ---------------------------------

| |  | Volume
of data transfers (KB, MB)  where the service is calculated by volume of data.
| | - | --------------------------------------------------------------------------------------

| | (3) | Other
charges (such as for the receipt of information, electronic commerce).
| | --- | ----------------------------------------------------------------------------

| | b. | Structure
of the Bill
| | -- | ---------------------

| | A
fixed format will be defined for the bill, that will provide the following details:
| | -------------------------------------------------------------------------------------

| | (1) | Licensee
identifying data, and subscriber identifying data (the bill will serve,
               after payment, as a receipt).
| | --- | -----------------------------------------------------------------------------------------------------------------------------

| | (2) | The
services for which the bill was issued and the tariffs according to which
               calculated.
| | --- | --------------------------------------------------------------------------------------------------------

| | (3) | The
details of services provided by other licenses that were billed to the
               subscriber, with details of the sums applied to the subscriber as
aforesaid.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | The
total sum of the bill, excluding VAT, the percentage of VAT, and the total
               sum to be paid, including VAT.
| | --- | ----------------------------------------------------------------------------------------------------------------------------

| | c. | Issuing
and Mailing of Bills
| | -- | ----------------------------

| | (1) | The
Licensee will issue bills to his Subscribers, monthly or at other times
               periods, as agreed with the Subscriber.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------

| | (2) | Where
a Subscriber has requested a disconnect from the Licensee, a final bill
               will be issued at the nearest possible date, and no later than one month
               following disconnection of the subscriber.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | It
will be possible to obtain bills by mail, or by any other means as agreed
               with the subscriber, to an address as selected by the subscriber.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Upon
request of the subscriber, the Licensee will issue a bill with details of
               the calls, and Licensee will have the right to request a reasonable sum
for such                detailed bill.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | d. | Control
of Bill Reliability
| | -- | ---------------------------

| | The
Licensee will apply continuous controls, through use of the customer billing system, as
required to verify the reliability of the bills being issued. Where an issue has been
detected, said issue will be dealt with and corrected immediately. In the event of a
failure in the issuing of bills, the data will be restored to the previous, to their
condition prior to the running of accounts on the computer system. Following
identification and repair of the fault, a rerun of the accounts will be executed.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix D - 1 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|2. | Quality
Of Service
|-- | ------------------

| | a. | Times
for Installation, Relocation or Interruption of Service
| | -- | -------------------------------------------------------------

| | (1) | The
connection, disconnection or interruption of service to a service recipient
               will be executed according to the provisions of the License, including
Chapter D                 Part C  Interruption, Disconnection or Cancellation
of Service.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | No
later than 12 months of the service approval date, the installation and
               relocation of service to a subscriber shall be performed within 14 days of
               receiving the request, for 80% of the requests. In any event, the
installation                time shall not exceed 90 days from submission of the request.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | The
service at subscriber premises will be provided not before 7:00 AM and no
               later than 22:00, and on Fridays and Holiday Evenings, no later than
15:00,                other than with Subscriber agreement. The waiting time of a
subscriber for a                visit by a technician, at a time that has been
coordinated in advance, will not                exceed three hours.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | The
remaining credit or debit sums owed by or to a service recipient who has
               requested an interruption or disconnection of service, shall be settled
within                30 days of submission of said request.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. | Repair
Times
| | -- | ------------

| | (1) | In
respect to malfunctions regarding which telephoned notifications have been
               received at the call center or at the service center, these will be
repaired                within no more than 4 work days from receipt of the notification.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | 80%
of malfunctions will be repaired on the same day that said notification was
               received.
| | --- | --------------------------------------------------------------------------------------------------------

| | (3) | The
fault repair center will be activated 24/7 other than on days of rest, per
               their significance as defined in the Government and Legal Affairs Law
               1948.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c. | Provision
of Information and Responsivity to Applications and Requests, both
               Verbally and in Writing
| | -- | -------------------------------------------------------------------------------------------------------------------

| | (1) | The
service center will be open to the public through all hours of the day.
| | --- | ---------------------------------------------------------------------------

| | (2) | The
response to telephone calls will be within a reasonable time period. Where
               the Director has found that said waiting times are not reasonable, he may
set                scales of measure for response times. The aforesaid will apply no
later than                twelve (12) months after receipt of the License.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | The
main services provided by the Licensee will include the following:
| | --- | ----------------------------------------------------------------------

| |  | Information
regarding activities and services provided by the Licensee, and registration to Licensee
services.
| | - | --------------------------------------------------------------------------------------------------------------

| |  | Requests
for updating of subscriber details and for changes in the services package.
| | - | ------------------------------------------------------------------------------------

| |  | Requests
for the clarification of bills and accounts.
| | - | -----------------------------------------------------

Appendix D - 2 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| |  | Technical
support.
| | - | ------------------

| |  | A
center for the provision of information and for the handling of applications and
complaints.
| | - | ----------------------------------------------------------------------------------------------

| |  | Reporting
of faults and malfunctions on the network and on terminal equipment.
| | - | ------------------------------------------------------------------------------

| | (4) | The
Licensee will operate other channels for applications by the public, as
               required for the provision of information and clarifications as required
by the                public.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | A
computerized IVR voice system.
| | - | --------------------------------

| |  | Applications
through regular mail.
| | - | ----------------------------------

| |  | Applications
through fax devices.
| | - | ---------------------------------

| |  | Applications
through email facilities.
| | - | --------------------------------------

| | (5) | The
Licensee will publish the address of the Service Center and the telephone
               number of the Service Center, among others by the following
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | In
the contractual agreement with the subscriber.
| | - | -------------------------------------------------

| |  | In
monthly bills sent to the subscriber.
| | - | ----------------------------------------

| |  | In
a document sent on behalf of the Licensee.
| | - | ---------------------------------------------

| |  | In
telephone directories and at the telephone information center.
| | - | -----------------------------------------------------------------

| | d. | Handling
of Applications and Complaints from the Public
| | -- | -------------------------------------------------------

| | (1) | Procedure
for the receipt of applications and complaints from the public, and           the
recording of these:
| | --- | ---------------------------------------------------------------------------------------------------------------

| | Without
detracting from the provisions of Chapter D of the License  Provision of Services
to Service Recipients, the Licensee will appoint a functionary for the handling of
applications received from the public. The duties of this functionary will include the
handling of applications and complaints that were directed to said functionary by
subscribers, or that have been forwarded to him after not receiving an appropriate
response from the Licensees service center.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
process for handling such applications will include the following stages:
| | -----------------------------------------------------------------------------

| |  | Recording
and documentation of the complaint on the computer systems.
| | - | ---------------------------------------------------------------------

| |  | Sorting
per subject.
| | - | --------------------

| |  | Classification
of priorities.
| | - | -----------------------------

| |  | Investigation
of the circumstances.
| | - | -----------------------------------

| |  | Receipt
of responses from involved and professional elements as relevant to the issue.
| | - | --------------------------------------------------------------------------------------

| |  | Resolution
of the problem.
| | - | --------------------------

| |  | Provision
of a response to the Service Recipient.
| | - | -------------------------------------------------

| | (2) | Scales
of Measure for the Handling of Applications from the Public
| | --- | ------------------------------------------------------------------

| | (a) | Complaint
Handling Level
| | --- | ------------------------

| | Response
times to complaints will be up to 14 work days, and the response to 5% of the complaints
will be provided within one month.
| | ------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Service
Quality Scales
| | --- | ----------------------

| |  | 90%
handled directly by the Service Rep, until resolved.
| | - | --------------------------------------------------------

| |  | No
more than 10%, referred to more senior levels.
| | - | -------------------------------------------------

Appendix D - 3 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (c) | Applications
to be Resolved by Senior Levels
| | --- | --------------------------------------------

| | In
all cases where the answer as provided by the functionary responsible for Public
Applications will not satisfy the applying party, said application will be referred to a
management level, where the application will be re-examined, and said manager will
respond directly to the applicant. In any event the answer to the applicant will be
provided within 30 days of said application.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | End-To-End
Performance Levels
|-- | -----------------------------

| | Grade-of
Service will be as acceptable for fixed-line telephony networks.
| | -------------------------------------------------------------------------

| | Access
Service to an Internet Service Provider (ISP)  such services will be based on
Best Effort, while defining Peak Information Rates for the outgoing and
incoming channels.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Data
Service  data services will be provided at varying levels of end-to-end
performance, including as based on Best Effort.
| | -------------------------------------------------------------------------------------------------------------------------------

| | Transmission
Service  transmission services will be provided at bit error ratios (BER)
better than 106.
| | --------------------------------------------------------------------------------------------------------

|4. | Response
Times
|-- | --------------

| | Telephony
Service  the time needed to establish contact shall not exceed 6 seconds.
Network delays will not exceed 150 milliseconds for a call starting and ending within the
network, 80 milliseconds for a call starting and ending via interconnection to another
public telecom network.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Access
times of the Licensee to an ISP  no defined commitment, as the service is based
on Best Effort.
| | ---------------------------------------------------------------------------------------------------------

| | Data
Service  according to Class of the service and according to the service level
agreement (SLA) with the customer.
| | ----------------------------------------------------------------------------------------------------------------------

|5. | Reliability
and Availability
|-- | ----------------------------

| | Licensee
services will be provided at the following reliability and availability levels:
| | ----------------------------------------------------------------------------------------

| | a. | Elements
with very high availability levels (Carrier Grade) and very low failure
               rates. The equipment used will provide availability levels of 0.99999
(average                accumulated essential fault time of 5 minutes per year), or an
availability                level of 0.99995 (average accumulated essential fault time of
up to 30 minutes                per year).
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. | The
networks topology will provide automatic backup of equipment that has
               been disabled.
| | -- | --------------------------------------------------------------------------------------------------------

| | c. | Technologies
including embedded reconstruction and survivability mechanisms.
| | -- | ----------------------------------------------------------------------------

Appendix D - 4 -

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---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

Appendix E

|1. | Definitions
|-- | -----------

|1.1 | In
this Appendix:
|--- | -----------------

| |                          |   |                                                                                                                                                                                                                                              
| | ------------------------ | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
|
|
|
| | Association Form         |  | A form signed by the subscriber, where the subscriber indicates a selected operator as detailed in section 3, and that is used for association of the subscriber.                                                                            
|
| | Associated Subscriber    |  | A subscriber that has selected an international operator as being his selected operator, pursuant to the provisions of this Appendix.                                                                                                        
|
| | Selected Operator        |  | The international operator (I.O.) selected by the subscriber for the receipt of international telecom services by the subscriber, while using an abbreviated dialing code, pursuant to the provisions of this Appendix                       
|
| | Occasional Caller        |  | A subscriber who has not selected any operator as his selected operator.                                                                                                                                                                     
|
| | Abbreviated Dialing Code |  | Dialing prefix "00" used for outgoing I.O. calls when using direct dialing, and the "188" access code to services provided by a manned exchange, including outgoing I.O. calls.                                                              
|
| | Subscriber Association   |  | A technical definition action effected by the Licensee at the Licensee's switch, such that calls initiated by the subscriber when using an abbreviated dialing code will automatically be routed to the operator selected by said subscriber.
|
| | Outgoing I.O. Call       |  | The transfer of a voice message or a simulated voice message, such as fax or dialing modem, via the International Telecom System of the I.O., where the initiator of said call is the subscriber.                                            

|1.2 | Other
words and phrases in the License, insofar as not defined in section 1.1 above, shall have
the meaning set forth in the Law, in the Regulations enacted pursuant thereto, in the
Telecommunications Order, in the Interpretation Law  1981, or as specified in the
appropriate places in the License, unless the language or context indicate a different
meaning.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Accessibility
to International Telecommunication Services
|-- | ---------------------------------------------------------

|2.1 | A
subscriber will have the right, in respect to outgoing I.O. calls, to act in one of the
following ways:
|--- | ---------------------------------------------------------------------------------------------------------

| | (a) | As
an associated subscriber.
| | --- | ----------------------------

| | (b) | As
an occasional caller.
| | --- | ------------------------

| | (c) | As
a subscriber with blocked outgoing international calls (hereinafter           blocked
subscriber).
| | --- | ------------------------------------------------------------------------------------------------------

| | The
subscriber may, at any time, change his mode of activity in respect to the above listed
options.
| | ----------------------------------------------------------------------------------------------------

|2.2 | The
Licensee will provide access to international telecom services to any subscriber who has
not been blocked, by the following access codes:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | 3-digit
dialing prefix, as assigned to the I.O. for the provision of outgoing
               direct dialing calls.
| | --- | ------------------------------------------------------------------------------------------------------------------

Appendix E - 1 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

| | (b) | 4-digit
access codes as assigned to the I.O. for various services associated                with
international telecom services as provided by the I.O.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3 | An
associated subscriber will be able, via his selected operator, to establish outgoing I.O.
calls, while using an abbreviated dialing code, further to his use of dialing prefixes as
stated in section 2.2(a).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix E - 2 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|3. | Selection
of Selected Operator by a Subscriber
|-- | ----------------------------------------------

|3.1 | The
Licensee will enable a subscriber to select between  enabling access to outgoing I.O.
calls from his own telephone,  or          to block such access as aforesaid.  A
subscriber that has selected to allow access to outgoing I.O. calls,  and who
         whishes to be associated to an I.O., will do so by written notice to the I.O.,
by means of an association form.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.2 | The
subscriber will have the right to change his selected operator at any time, by signing an
association form and submitting said form to his new selected operator.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.3 | The
licensee will have the right to charge a reasonable  sum for the  association  of a
 subscriber,  including for a first          association.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------

|3.4 | The
Licensee will provide free of charge direct access, to all associated subscribers, to a
service allowing a subscriber to identify his selected operator, when dialing phone
number 000-000-00.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The
Association Process
|-- | -----------------------

|4.1 | The
Licensee will execute association of a subscriber subsequent to receiving notification
from an I.O. in respect to the selection by a subscriber of said operator as his selected
operator (hereinafter  association notice).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.2 | The
association notice will include the subscribers details  private name and
family name or corporation name, ID number or incorporation number, address and phone
numbers requested by the subscriber for association with the I.O. as a selected operator,
and including the date and time as indicated on the association form. The association
notices will be delivered via magnetic media files, or in any other manner as agreed
between the Licensee and the I.O.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.3 | Only
one selected operator may be applied to an individual phone number. Where the Licensee
has received two association notices or more, referring to the same phone number, action
will be taken according to the notice bearing the latest date and time.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.4 | The
Licensee will allow every subscriber possessing several subscriber lines, other than
lines within a PRI group, lines referring to a roaming group, and ISDN lines with more
than one number for the line, to determine one selected operator for several subscriber
lines and another selected operator for other subscriber lines.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.5 | Association
of the subscriber will be executed within seven (7) workdays following receipt of the
association notice.
|--- | ---------------------------------------------------------------------------------------------------------------------

|5. | Occasional
Caller
|-- | -----------------

|5.1 | An
occasional caller will be able to receive international telecom services through a
dialing prefix and access codes as specified for each I.O.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------

|5.2 | The
Licensee will not allow an occasional caller to perform outgoing I.O. calls through an
abbreviated dialing code.
|--- | --------------------------------------------------------------------------------------------------------------------

|5.3 | The
Licensee will provide a voice announcement to such occasional caller, who has dialed an
abbreviated dialing code, stating that if the caller wishes to receive international
telecom services he must do so through the dialing prefixes or access codes of the I.O.
through which he wishes to receive said service, as described in section 2.2 above.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix E - 3 -

---

---



Exclusive General License of Partner
Fixed-Line Communication Solutions Ltd., for the provision of Fixed-Line Domestic
Intercommunication Services. Consolidated version, correct for the date of January 15,
2007.

|6. | Blocking
of Outgoing I.O. Calls
|-- | -------------------------------

|6.1 | The
Licensee  will have the right to charge a reasonable  sum from  subscribers  for the
blocking of outgoing  I.O.  calls,          including for the first block.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2 | The
Licensee will provide a voice message to the subscribers whose access to outgoing I.O.
calls has been blocked, but who has dialed an abbreviated dialing code or a dialing
prefix or access codes as described in section 2 above, stating that the requested phone
number has been blocked for the receipt of services as aforesaid.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Prevention
of Forced Association
|-- | --------------------------------

|7.1 | The
Licensee will take all reasonable steps to prevent the forced association of a
subscriber, without his knowledge or despite the subscribers wishes (Slamming).
Such means will include an identification of the subscriber and an authentication of the
customers right to receive the service.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.2 | The
Licensee will cooperate with other licensees, in respect to the identification of
fraudulent activities as aforesaid, and the prevention of these.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | Transfer
of Information to an I.O.
|-- | ----------------------------------

|8.1 | The
Licensee will send a daily file to the I.O., such file containing any changes that
occurred in respect to subscriber associations (hereinafter  changes file).
The changes file will include details of the subscribers that have been associated to the
I.O. or have been removed from such association on that day. The file will include
details of the subscribers, and at least the following: private name, family name or
corporation name, ID number or incorporation number, address and phone numbers that have
been associated to the I.O., other than if agreed otherwise between the parties as
described in section 8.2.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.2 | The
conditions for transfer of the changes file, including the time of transfer, the format
and fees for preparation of the file and its transfer, will be agreed between the
Licensee and the I.O. Where the parties are have not reached an agreement as aforesaid,
the Minister will decide the matter.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix E - 4 -

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