Document:

Exhibit
4.7

    

    
      General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular) Combined
Version, as at August 20, 2007

    

    

    

    

    

     

    
      	 TRANSLATION
      FROM HEBREW 

              THE
      BINDING VERSION IS THE HEBREW
VERSION

            

    

     

     

    
       

      
        [State
Emblem]

         

      

       

    

    

    State
of Israel

    Ministry
of Communications

     

     

    

    

    General
License to Cellcom Israel Ltd.

    for
the Provision of mobile radio

    telephone
services by the cellular

    method
(cellular)

     

    

    Combined
Version, as at August 20, 2007

    

    
      
        
        

      

      
        I

        
          

        

      

      
        
        

      

       

      General license for Cellcom Israel Ltd. for the provision of
mobile radio telephone services by the cellular method (cellular) Combined
Version, as at August 20, 2007

       

    

    Table of
Contents

                                                                

    
      	
              General   License   for

            	1
	CHAPTER
      A: GENERAL	
              2

            
	
               
      PART A: DEFINITIONS AND INTERPRETATION:

            	
              2

            
	
              1.

            	
              Definitions

            	
              2

            
	
              2.

            	
              Clause
      headings

            	
              12

            
	
              3.

            	
              Blue
      pencil principle

            	
              12

            
	 
      PART
      B – LEGAL PROVISIONS AND ADMINISTRATIVE PROVISIONS	
              13

            
	
              4.

            	
              Upholding
      laws and provisions

            	
              13

            
	
              5.

            	
              Permit
      obligation pursuant to any other law

            	
              13

            
	
              6.

            	
              Contradiction
      in the License provisions

            	
              13

            
	CHAPTER
      B:  THE LICENSE – SCOPE, VALIDITY AND
    CANCELLATION	14
	
               
      PART A – SCOPE AND PERIOD OF THE LICENSE

            	
              14

            
	
              7.

            	
              Scope
      of the License

            	
              14

            
	
              8.

            	
              Absence
      of exclusivity A16

            	
              14

            
	
              9.

            	
              The
      License period

            	
              15

            
	
              10.

            	
              Extension
      of the License Period

            	
              15

            
	
              11.

            	
              Renewal
      of the License

            	
              17

            
	
              12.

            	
              Termination
      of the License Period

            	
              18

            
	 
      PART
      B – CHANGE IN CONDITIONS AND CANCELLATION OF THE LICENSE	
              19

            
	
              13.

            	
              Change
      in the License conditions

            	
              19

            
	
              14.

            	
              Cancellation
      of the License

            	
              19

            
	
              15.

            	
              Other
      remedies

            	
              22

            
	
              CHAPTER
      C: OWNERSHIP, ASSETS AND MEANS OF CONTROL

            	
              24

            
	 
      PART
      A – RESTRICTIONS ON TRANSFER OF THE LICENSE AND ITS
ASSETS	
              24

            
	
              16.

            	
              Prohibition
      on transfer of the license

            	
              24

            
	
              17.

            	
              Ownership
      of the Cellular System

            	
              24

            
	
              18.

            	
              Restrictions
      on transfer of the License assets

            	
              24

            
	
              19.

            	
              Engagement
      with another

            	
              25

            
	 
      Part
      B: Means of Control – Changes and Limitations	
              26

            
	
              20.

            	
              Particulars
      of Licensee

            	
              26

            
	
              21.

            	
              Transfer
      of Means of Control

            	
              26

            
	
              22.

            	
              Encumbrance
      of Means of Control

            	
              28

            
	
              22A.

            	
              Israeli
      Nationality and Holdings of Founding Shareholders or Their
      Substitutes

            	
              29

            
	 
      Part
      C: Cross-Ownership and Conflict of Interest	
              31

            
	
              23.

            	
              Prohibition
      on Cross-Ownership

            	
              31

            
	
              24.

            	
              Prohibition
      on a Conflict of Interest

            	
              31

            
	Chapter
      D: SETUP
      AND OPERATION OF CELLULAR SYSTEM	
              33

            
	 
      Part
      A: Setting Up the System	
              33

            
	
              25.

            	
              Definition

            	
              33

            
	
              26.

            	
              Setup
      according to Plans and Specifications

            	
              33

            
	
              27.

            	
              Execution
      Stages and Timetable

            	
              33

            
	   
      28.	
              Modification
      of Plans during Setup

            	34
	
              29.

            	
              Utilization
      and Construction of Infrastructures

            	
              34

            
	
              30.

            	
              Obligation
      of Interconnection

            	
              35

            
	
              30A.

            	
              Rules
      Concerning the Implementation of Interconnection

            	
              35

            
	
              30B.

            	
              Payment
      for Traffic Completion and Interconnection

            	
              37

            
	
              30C.

            	
              Prohibition
      on Delaying Interconnection

            	
              37

            
	
              30D.

            	
              Providing
      the Possibility of Utilization

            	
              37

            
	
              30E.

            	
              Infrastructure
      Services for an Interested Company

            	
              37

            
	
              30F.

            	
              Numbering
      Program

            	
              38

            
	
              31.

            	
              Reports
      on the Setup Works

            	
              39

            
	
              32.

            	
              Handover
      of Information and Documents

            	
              39

            

    

    

    
      
        
        

      

      
        II

        
          

        

      

      
        
        

         

        General license for Cellcom Israel Ltd. for the provision of
mobile radio telephone services by the cellular method (cellular) Combined
Version, as at August 20, 2007

      

    

    

    
      	
              33.

            	
              Supervision
      of Setup Works

            	
              39

            
	
              34.

            	
              Correction
      of Deficiencies and Defects

            	
              39

            
	
              35.

            	
              Safety
      Precautions and Prevention of Hazards

            	
              40

            
	
              36.

            	
              Void
      A2A2)

            	
              40

            
	
              37.

            	
              Intersections
      with Electricity and Telecommunications Lines

            	
              40

            
	
              38.

            	
              Discovery
      of Antiquities and Site Preservation

            	
              40

            
	
              39.

            	
              Land-Related
      Powers

            	
              40

            
	 
      Part
      B: Equipment Checks and Installation Certifications	
              42

            
	
              40.

            	
              Compliance
      Check

            	
              42

            
	
              41.

            	
              Responsibility
      for Compliance

            	
              42

            
	
              42.

            	
              Performance
      Testing Program and Its Approval

            	
              42

            
	
              43.

            	
              Notice
      of Setup Completion

            	
              42

            
	
              44.

            	
              Terms
      of Fitness and Operation

            	
              42

            
	 
      Part
      C: Use of Frequencies	
              44

            
	
              45.

            	
              Allocation
      of Frequencies

            	
              44

            
	
              46.

            	
              Restriction
      on Use of Frequencies

            	
              44

            
	
              47.

            	
              Prevention
      of Interferences

            	
              44

            
	
              48.

            	
              Cellphone
      Activity in Emergencies

            	
              45

            
	 
      Part
      D: Inspections and MaintenanceA43)	
              47

            
	
              49.

            	
              Definitions

            	
              47

            
	
              50.

            	
              Performance
      of Inspections

            	
              47

            
	
              51.

            	
              Inspections,
      Malfunctions and Maintenance Log

            	
              47

            
	
              52.

            	
              Repair
      of Deficiencies and Defects

            	
              48

            
	
              53.

            	
              Void

            	48
	
              54.

            	Void	48
	Chapter
      E: PROVIDING
      CELLULAR SERVICES TO SUBSCRIBERS	
              49

            
	 
      Part
      A: Entering into an Agreement with Subscribers	
              49

            
	
              55.A43)

            	
              The
      Contract

            	
              49

            
	
              56.
      A43)

            	
              Modification
      of Contract

            	
              50

            
	
              57.
      A43)

            	Void	50
	
              58.
      A43)

            	Void	50
	
              59.

            	
              Obligation
      of Connecting Applicants and Prohibition on Stipulation

            	
              50

            
	 
      Part
      B: Service Level for Subscribers	
               51

            
	
              60.

            	
              Obligation
      of Maintaining the Service

            	
              51

            
	
              61.A43)

            	Public
      Ombudsman 	51
	
              61A.A43)

            	Umpiring
      of Disputes	52
	
              62.

            	
              Obligation
      of Maintenance

            	
              52

            
	
              63.

            	
              Repair
      of Malfunctions

            	
              53

            
	
              64.

            	
              End-user
      equipment – Selling and Renting

            	
              53

            
	
              65.

            	
              Public
      Emergency Services

            	
              54

            
	
              
                65A.A16)

              

            	
              Blocking
      Service to a Nuisance Subscriber

            	
              54

            
	
              66.A16)

            	
              Protecting
      Subscriber Privacy

            	
              55

            
	
              66A.T3)

            	
              Special
      Services for the Security Forces

            	
              56

            
	
              66B.A12)

            	
              Security
      Provisions

            	
              56

            
	
              67.

            	
              Bills
      to Subscribers

            	
              57

            
	
              67A.A16)

            	
              Information
      Service for Clarifying Telephone NumbersT39)

            	
              58

            
	
              67B.A43)

            	
              Void

            	
              60

            
	
              67C.A16)

            	
              Service
      Dossier

            	
              60

            
	
              67D.A24)

            	
              Erotic
      Service

            	
              62

            
	 
      Part
      C: Termination, Delay or Restriction of Service	
              63

            
	
              68.

            	
              Definitions

            	
              63

            
	
              69.

            	
              Prohibition
      on the Termination or Disconnection of Service

            	
              63

            
	
              70.

            	
              Disconnection
      of Service at Subscriber's Request

            	
              63

            
	
              71.

            	
              Termination
      of Service at the Subscriber's Request

            	
              63

            
	
              72.

            	
              Termination
      or Disconnection of Service Due to Breach of Agreement

            	
              64

            
	
              73.

            	
              Disconnection
      of Service Due to Maintenance Operations

            	
              64

            
	CHAPTER
      F – PAYMENT FOR SERVICES	
              66

            
	  Part A – General	
              66

            

    

    

    
      
        
        

      

      
        III

        
          

        

      

      
        
        

         

        General license for Cellcom Israel Ltd. for the provision of
mobile radio telephone services by the cellular method (cellular) Combined
Version, as at August 20, 2007

      

    

    

    
      	
              73A.

            	
              Definitions

            	
              66

            
	
              74.

            	
              Payment
      Categories

            	
              66

            
	 
      Part
      B – Setting and Publication of Rates	
              68

            
	
              75.

            	
              Setting
      the Rates and Their Amount

            	
              68

            
	
              75A.A25)

            	
              Completion
      of a Call in Another Public Telecommunications Network

            	
              70

            
	
              75B.A2A25)

            	
              Completion
      of an SMS on Another Public Telecommunications Network

            	
              70

            
	
              75C.A27)

            	
              Temporary
      Order

            	
              70

            
	
              76.

            	
              Publication
      of Rates

            	
              71

            
	
              77.

            	
              VoidA43)

            	
              71

            
	
              77A.

            	
              Fraud
      Prevention

            	
              71

            
	 
      Part
      C – Changes in the Rates	
              73

            
	
              78.A43)

            	
              Change
      in the Rates

            	
              73

            
	
              79.

            	
              Start
      of an Increase or Reduction in a Rate

            	
              73

            
	
              80.

            	
              Arrears
      in Payment

            	
              73

            
	
               
      Part D – Miscellaneous 

            	
               
      74

            
	
              81.

            	
              Onetime
      Debit for Connection Fee

            	
              74

            
	
              82.

            	
              Collection
      of Subscription Fee in Installments

            	
              74

            
	
              83.

            	
              Harm
      to Competition or to Consumers

            	
              74

            
	CHAPTER
      G: PAYMENTS FROM THE LICENSEE, LIABILITY, INSURANCE AND
GUARANTEE	
              75

            
	 
      Part
      A – Royalties and PaymentsA16)	
              75

            
	
              84.

            	
              Royalties

            	
              75

            
	
              85.

            	
              Arrears
      in the Payment of Royalties

            	
              75

            
	
              86.

            	
              Payment
      Method

            	
              75

            
	
              87.

            	
              Other
      Mandatory Payments

            	
              75

            
	 
      Part
      B – Liability and Insurance	
              76

            
	
              88.

            	
              Definition
      of Scope of Insurance

            	
              76

            
	
              89.

            	
              Licensee’s
      Liability

            	
              76

            
	
              90.

            	
              Immunity
      from Liability

            	
              76

            
	
              91.

            	
              Making
      an Insurance Contract

            	
              76

            
	
              92.

            	
              Conditions
      in the Insurance Contract

            	
              78

            
	
              93.

            	
              Remedy
      for Breach of Conditions with Respect to Insurance

            	
              78

            
	 
      Part
      C – Guarantee to Secure Fulfillment of the Terms of the
      License	
              79

            
	
              94.

            	
              The
      Guarantee and Its Purpose

            	
              79

            
	
              95.

            	
              Exercise
      of the Guarantee

            	
              79

            
	
              96.

            	
              Manner
      of Exercise of the Guarantee

            	
              80

            
	
              97.

            	
              Term
      of Validity of the Guarantee

            	
              80

            
	
              98.

            	
              Preservation
      of Remedies

            	
              82

            
	CHAPTER
      H – SUPERVISION AND REPORTING	
              83

            
	 
      Part
      A: Supervision of Licensee’s Activities	
              83

            
	
              99.

            	
              Supervisory
      Power

            	
              83

            
	
              100.

            	
              Preservation
      of Confidentiality

            	
              83

            
	
              101.

            	
              Entry
      to Premises and Inspection of Documents

            	
              83

            
	
              102.

            	
              Cooperation

            	
              83

            
	 
      Part
      B: Reporting and Correction of Defects	
              84

            
	
              103.A43)

            	
              Duty
      of Submission of Reports

            	
              84

            
	
              104.A43)

            	
              Types
      of Reports

            	
              84

            
	
              105.A43)

            	
              Notice
      Concerning a Defect

            	
              86

            
	
              106.A43)

            	
              Void

            	
              86

            
	CHAPTER
      I – MISCELLANEOUS	
              87

            
	
              107.

            	
              The
      License as an Exhaustive Document

            	
              87

            
	
              108.

            	
              Keeping
      the License Document and Returning the License

            	
              87

            
	
              109.

            	
              Postponement
      of Deadline

            	
              87

            

    

    

    
      
        
        

      

      
        IV

        
          

        

      

      
        
        

         

        General license for Cellcom Israel Ltd. for the provision of
mobile radio telephone services by the cellular method (cellular) Combined
Version, as at August 20, 2007

      

    

    

    
      	
              110.

            	
              Reserving
      of Liability

            	
              88

            
	
              111.

            	
              Notices

            	
              88

            
	 
      First
      Schedule	
              1

            
	 
      Second
      Schedule – List of Appendices	
              2

            
	   
      Appendix
      D – Uniform Engagement Agreement – Not Attached	
              1

            
	   
      Appendix E
      – Minimum Requirements and Level of Subscriber ServicesA16)	1
	   
      Appendix
      J – Accessibility to International Telecommunications ServicesA6)	
              1

            
	   
      Appendix
      K – Discontinuation of Service to Cellular End-User Equipment of the IS-54
      typet7	
              1

            
	   
      Appendix
      O – Erotic ServicesA36effect)	
              1

            

    

    

    

    
      
        
        

      

      
        V

        
          

        

      

      
        
        

      

    

    

       

       

      
        General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

        Combined
Version, as at August 20, 2007

      

       

      
        

        

        

        

        
 

        

        

        

        General   License   for

        

        

        Cellcom Israel
Ltd.

        

        

        Award
of license

        

        

        

        By the
authority vested in me under the Telecommunications Law, 5742 – 1982
(hereinafter – the Law), the Wireless Telegraph Ordinance [New Version], 5732 –
1972 (hereinafter – the Ordinance), and my other powers pursuant to any law, I,
the Minister of Communications, hereby grant a license to Cellcom Israel Ltd.
(hereinafter – the Licensee) to establish, maintain and operate a mobile radio
telephone system by the cellular method, and to provide thereby mobile radio
telephone services to the Israeli public, as set forth in this
License.

        

        This
License is granted for the period set forth in the license and is subject to its
conditions as follows:

        

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

        
          General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

          Combined
Version, as at August 20, 2007

           

        

         

        CHAPTER A:
GENERAL

        

        PART
A: DEFINITIONS AND INTERPRETATION:

        

         

        
          	
                	
                  1. 

                	
                   Definitions

                

        

         

        
          
            	
                  	
                    1.1

                  	
                    In
      this License, the words and expressions below will have the meaning listed
      next to them, unless another meaning is evident from the written language
      or its context.

                  

          

        

        

        
          	
                  "
      Type Approval"

                	
                  -

                	
                  Approval
      given by the Minister pursuant to the Law and the Ordinance to a cellular
      end-equipment model.

                
	
                  "Means
      of Control"

                	
                  -

                	
                  In a
      corporation – any one of the following:

                  (1)
      the right to vote at a general meeting of a company or in an entity
      corresponding thereto in another corporation;

                  (2)
      the right to appoint a director or CEO;

                  (3)
      the right to participate in the profits of the corporation;

                  (4)
      the right to a share in the balance of the assets of the corporation after
      payment of its debts on liquidation.

                
	
                  "Telecommunications"

                	
                  -

                	
                  Broadcast,
      transfer or reception of marks, signals, written material, visual forms,
      sound or information, via wire, wireless, optical system or other
      electromagnetic systems;

                
	
                  "Franchisee"A16

                	
                  -

                	
                  As
      defined in Section 6(12)(1) of the Law;

                
	
                  "Interested
      Party"

                	
                  -

                	
                  Anyone
      holding, directly or indirectly, 5% of a certain type of the Means of
      Control;

                
	
                  "Licensee"

                	
                  -

                	
                  Anyone
      to whom the Minster granted, pursuant to the Law, a general or special
      license;
      A16

                
	
                  "General Licensee" A16

                	
                  -

                	
                  Anyone
      who has received a general license for implementing the Telecommunications
      operations and providing Telecommunications services;

                
	
                  "Broadcasting Licensee"
      A16

                	
                  -

                	
                  As
      defined in the Law;

                
	
                  "Accessibility
      Fees"

                	
                  -

                	
                  Payment
      for the use of another Telecommunications system, including for
      connection, transmission and collection;

                
	
                  "Technical
      Requirements and Service Quality"

                	
                  -

                	
                  Standards
      of availability and service quality, standards for Telecommunications
      facilities and instructions for installation, operation and maintenance,
      all according to the engineering plan as the Director will order from time
      to time relating to the services of the Licensee

                
	
                  “Contract”A43

                	
                  -

                	
                  Contract
      between the Licensee and a Subscriber, for the provision of all or any of
      the services of the Licensee;

                
	
                  the
      "Proposal"

                	
                  -

                	
                  The
      Licensee’s Proposal in the Tender;

                
	
                  the
      "Bezeq Corp."

                	
                  -

                	
                  Bezeq
      Israel Telecommunication Corp. Ltd.;

                
	
                  the
      “Law"

                	
                  -

                	
                  The
      Communications Law (Telecommunications and Broadcasts), 5742 – 1982; A16

                

        

        

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

                                                            

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A43
Amendment No. 43 [Inception: This amendment shall come into force not later than
March 15, 2007]

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  "Holding" A16

                	
                  -

                	
                  For
      the purpose of Means of Control – directly or indirectly, whether alone or
      in concert with others, including through another, including a trustee or
      agent, or through a right granted under an agreement, including an option
      for a Holding that does not derive from convertible securities, or in any
      other way;

                
	
                  "Transfer" A16

                	
                  -

                	
                  For
      the purpose of the Means of Control, whether directly or indirectly,
      whether for consideration or without consideration, whether in perpetuity
      or for a period, all at once or in parts;

                
	
                  "In Concert With
      Others" A16

                	
                  -

                	
                  Permanent
      collaboration and, with regard to an individual, permanent collaborators
      will be deemed – the individual, his Relative, and a corporation that one
      of them controls and, with regard to a corporation – the corporation,
      anyone controlling it and anyone who is controlled by one of
      them;

                
	
                  "Security
      Forces"

                	
                  -

                	
                  The
      Israel Defence Forces, the Israel Police, the General Security Service and
      the Mossad Institute for Intelligence and Special
    Operations;

                
	
                  "Index"

                	
                  -

                	
                  The
      Consumer Price Index published by the Central Bureau of Statistics from
      time to time, or any other index that may replace it;

                
	
                  “Cellular
      Radio Center"

                	
                  -

                	
                  A
      wireless facility functioning on the operating frequencies and used for
      creating a radio connection between cellular end-equipment units in the
      possession of the subscribers in its coverage area and the cellular
      switchboard;

                
	
                  "Interface"

                	
                  -

                	
                  The
      physical meeting between various functional Telecommunications units,
      including by optical or wireless means;A16

                
	
                  "Telecommunications
      Facility"

                	
                  -

                	
                  A
      facility or device intended mainly for telecommunication purposes,
      including end-equipment;A16

                
	
                  "Tender No. 1/01" A16

                	
                  -

                	
                  A
      tender published by the Ministry on 4 Nissan 5761 (March 28, 2001),
      including the clarifications given by the Ministry in the course of the
      Tender, as a result of which this License was amended;

                
	
                  the
      "Tender"

                	
                  -

                	
                  Tender
      No. 10/93 published by the Ministry on November 11, 1993, including
      clarifications given by the Ministry in the course of the Tender, as a
      result of which this License is granted;

                
	
                  the
      "Director"

                	
                  -

                	
                  The
      Director General of the Ministry of Communications or anyone authorized by
      him for the purposes of this License, in whole or in
  part;

                
	
                  "Subscriber" A43

                	
                  -

                	
                  Anyone
      who enters into an agreement with the Licensee for the purpose of
      receiving cellular services as an end user;

                
	
                  "International
      Telecommunications System"

                	
                  -

                	
                  A
      system of Telecommunications facilities, connected or designated for
      connection to the Public Telecommunications Network through an
      International NEP, which is used or designated for use in the transfer of
      Telecommunications messages between an international switch situated in
      Israel and a Telecommunications Facility located abroad, including a
      satellite ground station and other Telecommunications facilities
      (hereinafter – the System
      Components) and including transmission facilities among the System
      Components;
      A16

                

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

                                                            

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  "Mobile
      Radio Telephone System" (Cellular System)

                	
                  -

                	
                  A
      system of wireless facilities built by the cellular method and other
      installations, through which mobile radio telephone services are provided
      to the public, including a cellular coordinator, cellular radio centers
      and wireless or cable transmission arteries between cellular radio
      centers, a cellular radio center and a cellular coordinator, between
      Cellular coordinators, or between a cellular switchboard and a Public
      Telecommunications Network.

                
	
                  "NDO (National Domestic
      Operator)" A16

                	
                  -

                	
                  A
      General Licensee for the provision of landline domestic Telecommunications
      services

                
	
                  "Cellular
      Operator"

                	
                  -

                	
                  A
      General Licensee for the provision of mobile radio telephone services
      A16

                
	
                  "Another
      Cellular Operator"

                	
                  -

                	
                  A
      Cellular Operator that is not the Licensee.

                
	
                  "Switchboard"

                	
                  -

                	
                  A
      Telecommunications Facility in which are situated and operated switching
      and transmission means, enabling contact between various end-equipment
      units that are connected or linked thereto, and the transfer of
      Telecommunications messages between them, including control and monitoring
      facilities and other facilities that enable the provision of various
      services to Subscribers of the Licensee or to subscribers of another
      Licensee;

                
	
                  the
      "Ministry"

                	
                  -

                	
                  The
      Ministry of Communications

                
	
                  "Transit Switch"A16

                	
                  -

                	
                  A
      Telecommunications Facility in which are situated and operated the means
      of switching, routing and transmission enabling contact between various
      switchboards that are connected or linked thereto and the transfer of
      Telecommunications messages between them, including control and monitoring
      facilities;

                
	
                  "Officer"A16

                	
                  -

                	
                  Anyone
      acting as a director, CEO, chief business officer, deputy CEO, someone who
      fills such a position in a company even if the title is different, as well
      as any other manager who is directly subordinate to the CEO of the
      company;

                
	
                  "Appendices" A16

                	
                  -

                	
                  The
      first addendum and the Appendices set forth in the second addendum to the
      License
      A16

                
	
                  "NEP
      (Network End-Point)"

                	
                  -

                	
                  An
      Interface to which is connected on one side a Public Telecommunications
      Network and on the other side, end-user equipment, a private network, a
      mobile telephone network or other public network, as
      applicable;

                
	
                  "International
      NEP"

                	
                  -

                	
                  A
      connections device to which are linked a Public Telecommunications Network
      on one side and an International Telecommunications System on the
      other;

                
	
                  "Telecommunications
      operation"

                	
                  -

                	
                  The
      operation, installation, construction or maintenance of a
      Telecommunications Facility, all for the purpose of
      Telecommunications;

                
	
                  the
      "Ordinance"

                	
                  -

                	
                  The
      Wireless Telegraph Ordinance [New Version]. 5732 –
1972;

                
	
                  "End-User
      Equipment"

                	
                  -

                	
                  Telecommunications
      equipment, which is connected or is designated for connection to a public
      Telecommunications network through an NEP or through a private network,
      including a telephone, modem, facsimile or private
      switchboard;

                

        

                                                            

        A16
Amendment No. 16

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  "Cellular
      End-User Equipment"

                	
                  -

                	
                  Portable
      or movable Telecommunications equipment, connected or designated for
      connection to a Cellular System by means of a cellular radio
      center.

                
	
                  "Interconnection" A16

                	
                  -

                	
                  Connection
      between a Public Telecommunications Network of one Licensee to a Public
      Telecommunications Network of another Licensee, physically or logically,
      that facilitates the transfer of Telecommunications messages between
      Subscribers of the Licensees or the provision of services by one Licensee
      to the subscribers of the other Licensee;

                
	
                  "Relative"

                	
                  -

                	
                  Spouse,
      parent, son, daughter, brother, sister or their
spouses;

                
	
                  the
      "License"

                	
                  -

                	
                  This
      License, with all its Appendices and any other document or condition
      stipulated in the License that will constitute an integral part of the
      License or its conditions;

                
	
                  the “Network" A16

                	
                  -

                	
                  The
      Cellular System of the Licensee;

                
	
                  the
      “Minister"

                	
                  -

                	
                  The
      Minister of Communications, including anyone to whom he has delegated his
      authority with regard to this License, in whole or in
  part;

                
	
                  "Public
      Telecommunications Network"

                	
                  -

                	
                  A
      system of Telecommunications facilities, used or designated for the
      provision of Telecommunications services to the general public throughout
      Israel or at least in the area of service, including Coordinators or
      Transit Switches, transmission equipment and an access Network, including
      a Cellular System and an international Telecommunications system, except
      for a private network, End-Equipment and Cellular
      End-Equipment;

                
	
                  "Public
      Telecommunications 

                  Landline
      Network"

                	
                  -

                	
                  A
      domestic Public Telecommunications Network, except for a Cellular System
      and an international Telecommunications network;

                
	
                  "Access Network" A16

                	
                  -

                	
                  Components
      of a Public Telecommunications Network, which are used for connection
      between Coordinators and an NEP by means of a landline infrastructure,
      wireless infrastructure or a combination of the two;

                
	
                  "Bezeq
      Network"

                	
                  -

                	
                  The
      Public Telecommunications Network used by Bezeq for provision of its
      services under the general license granted to it and the other
      Telecommunications services provided under the Law, whether by Bezeq or by
      any other person;

                
	
                  "Use" A16

                	
                  -

                	
                  Access
      to a Telecommunications Facility of the Licensee, including to the public
      Telecommunications network or its Access Network, in whole or in part, and
      the possibility of using them for the purpose of conducting
      Telecommunications operations and providing Telecommunications services by
      means thereof, including the installation of a Telecommunications Facility
      of another Licensee in a Telecommunications Facility or courtyards of the
      Licensee

                
	
                  "Telecommunications
      Service"

                	
                  -

                	
                  The
      performance of Telecommunications operations for
others;

                
	
                  "Basic
      Telephone Service"

                	
                  -

                	
                  Two-way
      switched or routed transfer, including via modem, of speech or of
      speech-like Telecommunications messages, for example, facsimile
      signals;

                
	
                  "Telephony Service" A16

                	
                  -

                	
                  Basic
      telephone service and services related to this
  service;

                

        

                                                            

        A16
Amendment No. 16

        A16
Amendment No. 16

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  "International
      Telephone Service (ITMS)"

                	
                  -

                	
                  A
      telephone service by means of the international system of a Licensee for
      the provision of international services;

                
	
                  "Roaming Service" A16

                	
                  -

                	
                  A
      cellular service provided abroad and in the areas of civilian control of
      the Palestinian Council via the Cellular System of a foreign Cellular
      operator (hereinafter – Foreign Operator), whereby the Subscriber pays the
      Licensee for the service; and, similarly, a cellular service provided in
      Israel via the Cellular System of the Licensee, whereby the Licensee
      provides service to a Foreign Operator for the subscribers of that
      operator; in this regard, the "Palestinian
      Council" – as defined in the Law for Implementation of the Interim
      Agreement Regarding the West Bank and Gaza Strip (Jurisdictional Powers
      and Other Provisions) (Legislative Amendments), 5756 – 1998
      [sic];

                
	
                  "Related
      Service"

                	
                  -

                	
                  A
      service set forth in the first addendum to the License, provided on the
      basis of the Basic Telephone Service and which, by its nature, can only be
      provided by the supplier of the basic service;

                
	
                  "Value Added
      Service" A16

                	
                  -

                	
                  A
      service provided on the basis of the Basic Telephone Service, which, by
      its nature, can be provided by another, including another Licensee that is
      not the supplier of the basic service; with regard to the services of the
      Licensee, a service as stated, which is set forth in the first addendum to
      the License;

                
	
                  "infrastructure
      Service"

                	
                  -

                	
                  An
      Interconnection, or possibility of Use given to another Licensee, to a
      Franchisee or to a broadcast Licensee;A16

                
	
                  "Domestic Telecommunications
      Landline Service" A16

                	
                  -

                	
                  Infrastructure,
      transmissions, communication of data and landline
    telephony;

                
	
                  "Licensee
      Services"

                	
                  -

                	
                  Cellular
      services, Telecommunications Services and other services which the
      Licensee is entitled to provide pursuant to this License, to its
      Subscribers, to other Licensees, to broadcast licensees, to Franchisees
      and to the Security Forces;A16

                
	
                  "Cellular
      Services"

                	
                  -

                	
                  Telecommunications
      services provided by means of the Cellular System;

                
	
                  "Control"

                	
                  -

                	
                  The
      ability to direct a corporation's activity, directly or indirectly,
      including ability deriving from the articles of incorporation, by virtue
      of an agreement, either written or oral, by virtue of a Holding in the
      Means of Control in another corporation - or from any other source, except
      for ability deriving solely from fulfilling the position of director or
      other position in the corporation;

                
	
                  "the
      Minister"

                	
                  -

                	
                  The
      Minister of Communications, including anyone to whom he has delegated his
      authority with regard to this License, in whole or in
  part;

                
	
                  "Engineering
      Plan"

                	
                  -

                	
                  An
      engineering plan submitted by the Licensee in the Tender, including any
      change introduced therein with the approval of the Director and attached
      to the license as Appendix B;

                
	
                  "Numbering Plan" A16

                	
                  -

                	
                  As
      defined in Section 5A(B) of the
Law;

                

        

        

                                                            

        A16
Amendment No. 16

        A16
Amendment No. 16

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        
          	
                  1.2

                	
                  Other
      words and expressions in the License, insofar as they are not defined in
      Clause 1.1, will have the meaning they have in the Law, in the Ordinance,
      in the regulations enacted thereunder, in the Interpretation Law, 5741 –
      1981, or as set forth in the relevant places in the License, unless
      another meaning is implied by the written language or its
      context.

                

        

         

        
          
            	
                    
                      2.

                    

                  	
                    
                      Clause
      headings

                    

                  

          

           

        

        
          
            
              
              

            

          

        

        The
headings of the clauses in this License are provided solely for the convenience
of the reader, and should not be used for interpretation or explanation of the
content of any of the conditions of the License.

         

        3.            
Blue pencil
principle

        

        A
cancellation or determination regarding the non-validity of a condition of this
License or part of a condition will apply only with regard to that condition or
part, as applicable, and will not serve, per se, to derogate from the binding
validity of the License or any other condition therein.

        

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        PART
B – LEGAL PROVISIONS AND ADMINISTRATIVE PROVISIONS

         

         

        4.        
    Upholding laws and
provisions

        

        
          	
                  4.1

                	
                  In
      everything pertaining to the setup, existence, operation, and maintenance
      of the Cellular System and the provision of Cellular Services thereby, the
      Licensee will act in accordance with the provisions of any law and,
      without derogating from the aforesaid generality, will ensure compliance
      with the following:

                

        

        

        
          	
                   
      

                	
                  (1)

                	
                  the
      provisions of the Telecommunication Law and the regulations promulgated
      thereunder;

                

        

        

        
          	
                   
      

                	
                  (2)

                	
                  the
      provisions of the Wireless Telegraph Ordinance and the regulations
      promulgated thereunder;

                

        

        

        
          	
                   
      

                	
                  (3)

                	
                  administrative
      provisions;

                

        

        

        
          	
                   
      

                	
                  (4)

                	
                  international
      Telecommunications and radio treaties to which Israel is a
      party;

                

        

        

        
          	
                   
      

                	
                  (5)

                	
                  any
      other law or treaty that will apply to Telecommunications and radio, even
      if they go into effect after the License is
  granted.

                

        

        

        
          	
                  4.2

                	
                  The
      Licensee will act pursuant to laws and provisions as stated in Clause 4.1
      as these will be in force from time to time during the license period,
      including the remedies for the breach thereof, and they will be deemed an
      integral part of the License
conditions.

                

        

        

        
 

        5.     
       Permit obligation pursuant
to any other law

        

        
          	
                  5.1

                	
                  The
      granting of this License will not exempt the Licensee from the obligation
      to obtain, with regard to execution of the License, any license, permit,
      approval, or consent pursuant to any other
law.

                

        

        

        

        6.   
         Contradiction in the License
provisions

        

        In the
event of an apparent contradiction in the License provisions, the Minister will
determine the interpretation of the provisions or how to settle the
contradiction between them and after the Licensee has been given a fair
opportunity to voice its claims A2.

        

        

         

        

        

                                                            

        A2
Amendment No. 2

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        CHAPTER B: THE LICENSE –
SCOPE, VALIDITY AND CANCELLATION

        

        PART
A – SCOPE AND PERIOD OF THE LICENSE

        

         

        7.  
          Scope of the
License

        

        
          	
                  7.1

                	
                  Pursuant
      to this License and subject to all the provisions and conditions hereof,
      the Licensee is entitled to set up, implement, maintain and operate a
      Cellular System and, through it, to provide cellular Services to the
      Israeli public; without derogating from the aforementioned generality, the
      Licensee is entitled to do the
following:

                

        

        

        
          	
                   
      

                	
                  (1)

                	
                  to
      set up, implement, maintain and operate cellular radio centers and to
      connect them to cellular switchboards, and to connect between cellular
      switchboards, by means of cable and wireless transmission
      channels;

                

        

        
          	
                   
      

                	
                  (2)

                	
                  To
      connect the cellular System to the Public Telecommunications Network of
      Bezeq;

                

        

        
          	
                   
      

                	
                  (3)

                	
                  To
      connect the cellular System to the international Telecommunications
      system;

                

        

        
          	
                   
      

                	
                  (4)

                	
                  To
      connect its cellular System to another cellular
  System;

                

        

        
          	
                   
      

                	
                  (5)

                	
                  To
      contract with Subscribers for the purpose of providing cellular
      Services;

                

        

        
          	
                   
      

                	
                  (6)

                	
                  To
      provide Subscribers with cellular End-User
  Equipment;

                

        

        
          	
                   
      

                	
                  (7)

                	
                  To
      connect Subscribers to the cellular System and provide cellular Services
      and other services pursuant to this
License;

                

        

        
          	
                   
      

                	
                  (8)

                	
                  To
      provide Subscribers with the following
services:

                

        

        
          	
                   
      

                	
                  (A)

                	
                  Basic
      mobile wireless telephone service;

                

        

        
          	
                   
      

                	
                  (B)

                	
                  Related
      services as set forth in the first
addendum;

                

        

        
          	
                   
      

                	
                  (C)

                	
                  Roaming
      service;
      A16

                

        

        
          	
                   
      

                	
                  (D)

                	
                  Any
      other cellular service permitted pursuant to this License.A16

                

        

        

        
          	
                  7.2

                	
                  The
      Licensee will not be entitled to provide any cellular service or other
      Telecommunications Service that is not explicitly permitted within the
      context of this License.

                

        

        

         

        8.           Absence of
exclusivity
A16

        

        
          	
                  8.1

                	
                  The
      Licensee will not have any exclusivity in the provision of its
      services.

                

        

        

        
          	
                  8.2

                	
                  The
      Minister is entitled, at any time, to grant a license to additional
      operators for the provision of cellular
  Services.

                

        

        

        
          	
                  8.3

                	
                  Should
      the Minister publish a tender for the provision of cellular services, the
      Licensee will be entitled to submit its bid in the tender, however, the
      Minister will be entitled to determine as part of the conditions of such a
      tender that if the Licensee wins the tender, the receipt of a license will
      be contingent on the fact that the Licensee transfer its cellular System
      to another as instructed by the Minister and under conditions determined
      thereby, and it will cease to provide cellular Services by means
      thereof.

                

        

                                                            

        A16
Amendment No. 16

        A16
Amendment No. 16

        A16
Amendment No. 16

        

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        

        9.           The License
period

        

        
          	
                  9.1

                	
                  This
      License is valid for a period of 10 years, commencing on the date of the
      granting of the License (hereinafter – the License
  Period).

                

        

        

        
          	
                  9.2

                	
                  The
      License Period may be extended by additional six years in accordance with
      that stated in Clause 10 (hereinafter – the Additional
      Period).

                

        

        

        
          	
                  9.3

                	
                  This
      License may be renewed for one or more Additional Periods of six years, in
      accordance with that stated in Clause
11.

                

        

        

        
          	
                  9.4

                	
                  During
      the License Period and the Additional Period or on renewal of the License,
      the License will be subject to the authority of the Minister pursuant to
      Clauses 13 to 15 with regard to change, restriction, suspension or
      cancellation of the License.

                

        

        

        
          	
                	
                  9.5A15

                	
                  Notwithstanding
      the aforesaid A16,
      in the context of expansion of the License, as a result of the Licensee
      winning Tender No. 1/01, this License will be valid for a period of twenty
      (20) years, commencing on 19 Shevat 5762 (February 1,
    2002).

                

        

        

         

        10.           Extension of the License
Period

        

        
          	
                  10.1

                	
                  The
      Minister is entitled, at the request of the Licensee, to extend the
      License Period for additional six years, if, after he has examined the
      following:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  The
      Licensee has complied with the provisions of the Law, the Ordinance, the
      regulations thereunder and the provisions of the
  License;

                

        

        
          	
                   
      

                	
                  (B)

                	
                  The
      Licensee has continually acted to improve the scope, availability and
      quality of the cellular Services and to update the technology of the
      cellular System and its activities did not include an act or omission that
      would impair or restrict competition in the cellular
    sector;

                

        

        
          	
                   
      

                	
                  (C)

                	
                  The
      Licensee is capable of continuing to provide cellular Services at a high
      level and that it is able to make the investments required for the
      technological updating of the cellular System and for improving the scope,
      availability and quality of the cellular
  Services.

                

        

        

        
          	
                  10.2

                	
                  The
      Licensee must submit its request for an extension of the License Period
      during the forty-five days prior to the period of eighteen months
      preceding the end of the License
Period.

                

        

        

        
          	
                  10.3

                	
                  The
      Licensee must attach the following to its
  request:

                

        

        
          	
                   
      

                	
                  (A)

                	
                  A
      report summarizing the annual statements that the Licensee has submitted
      pursuant to this License between the date of commencement of the License
      and the date of submission of its
request;

                

        

        
          	
                   
      

                	
                  (B)

                	
                  Comparison
      of the data in the report for each year with the data for the preceding
      year and explanations of unusual changes in the
  data;

                

        

        
          	
                   
      

                	
                  (C)

                	
                  Review
      of the means, actions and investments taken or made by the Licensee to
      improve the quality, scope and availability of the Cellular Services and
      to develop and update the Cellular System
  technology.

                

        

        

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  10.4

                	
                  The
      summary report pursuant to Clause 10.3 must contain up-to-date and precise
      details and be prepared in the form of an
  affidavit.

                

        

        

        

        

        

                                                            

        A15
Amendment No. 15

        A16
Amendment No. 16

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  10.5

                	
                  For
      the purpose of examining the Licensee’s request to extend the License
      Period, the Minister is entitled to require the Licensee to furnish,
      during the period and in the manner that he will determine, any
      information or document and, without derogating from the generality of
      that stated, the Minister is entitled
-

                

        

        
          	
                   
      

                	
                  (A)

                	
                  To
      require the Licensee to attach any document to the summary report for the
      purpose of verifying the details therein, to complete the report or to
      furnish any additional detail that is not included
  therein;

                

        

        
          	
                   
      

                	
                  (B)

                	
                  To
      summon the Licensee to appear before him to respond to questions or to
      present documents that are in its possession or under its control,
      relating to the data in the report;

                

        

        
          	
                   
      

                	
                  (C)

                	
                  To
      require the Licensee to submit to him an Engineering Plan outlining its
      plans for the technological update of the Cellular System during the
      Additional Period;

                

        

        

        
          	
                  10.6

                	
                  The
      Licensee must fulfil every requirement or summons as stated in Clause
      10.5; if the Licensee is required to appear before the Minister, the
      chairman of the board of directors of the company holding the License or
      the CEO of the company or anyone authorized to do so in writing, will
      appear;

                

        

        

        
          	
                  10.7

                	
                  If
      the Licensee fails at least twice to respond to the request or summons as
      stated in Clause 10.5, the Minister is entitled to reject its request to
      extend the validity of the License.

                

        

        

        
          	
                  10.8

                	
                  The
      Minister will inform the Licensee of his decision regarding the request
      for extending the validity of the License no later than a year before the
      end of the License Period.

                

        

        

        
          	
                  10.9

                	
                  The
      Additional Period will be subject to the terms of this License, including
      any change therein.

                

        

        

        
          	
                	
                  10.10

                	
                  The
      provisions of Clause 100 regarding confidentiality will apply, mutatis mutandis, to
      data furnished by the Licensee to the Minister or anyone acting on his
      behalf, pursuant to the provisions of Clause
10.

                

        

        

         

        11.           Renewal of the
License

        

        
          	
                  11.1

                	
                  At
      the end of the License Period or the Additional Period, the Minister is
      entitled, at the request of the Licensee, to renew the License for one or
      more Additional Periods of six years, as will be
    determined.

                

        

        

        
          	
                  11.2

                	
                  The
      Licensee will submit its request for the renewal of the License during the
      forty-five days prior to the eighteen months preceding of the end of the
      License Period or the Additional
Period.

                

        

        

        
          	
                  11.3

                	
                  The
      Minister will inform the Licensee in writing, within 30 days of the date
      of receiving its request for renewal of the License, whether he intends to
      take the measures and institute the proceedings required to renew the
      License, or a tender will be conducted for the services under this
      License.

                

        

        

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        

        12.           Termination of the License
Period

        

        
          	
                  12.1

                	
                  If
      the License Period pursuant to Clause 9.5A16
      or the Additional Period pursuant to Clause 10.1 or the License Period
      after its renewal pursuant to Clause 11.1 ends and the License is not
      extended or not renewed, the Minister is entitled to instruct the Licensee
      to continue to operate the  Cellular System for a period to be
      determined (hereinafter - the Period for Terminating the Service) until a
      license is duly granted to another for the provision of services pursuant
      to this License (hereinafter – Alternate Licensee), and the procedures for
      transferring the system thereunder are completed, or until a license is
      duly granted to another for alternate services. In any case, the Period
      for Terminating the Service will not exceed two years from the date on
      which the License expires.

                

        

        

        
          	
                  12.2

                	
                  During
      the Period for Terminating the Service and no later than ten months from
      the date on which a license is granted to an Alternate Licensee, the
      Licensee and the Alternate Licensee will negotiate for the purpose of
      purchasing the Cellular system at its economic value and assigning the
      rights and obligations of Subscribers to the Alternate Licensee; if said
      Licensees do not reach an agreement within said ten months, the price will
      be determined by an arbitrator, whose decision will be final, to be
      appointed by the Chairman of the Institute of Certified Public
      Accountants.

                

        

        
 

        

                                                            

        A2
Amendment No. 16

        

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        PART
B – CHANGE IN CONDITIONS AND CANCELLATION OF THE LICENSE

        

         

        13.           Change in the License
conditions

        

        
          	
                  13.1

                	
                  The
      Minister is entitled to change, add to or subtract from the License
      conditions if he is convinced that one of the following
      exists:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  A
      change has occurred in the extent of the License applicant’s suitability
      to perform the actions and services that are the subject of the
      License;

                

        

        
          	
                   
      

                	
                  (B)

                	
                  Subject
      to that stated in Clause 8, a change is required in the License to ensure
      competition in the telecommunications
area;

                

        

        
          	
                   
      

                	
                  (C)

                	
                  A
      change is required in the License to ensure the level of services provided
      thereunder;

                

        

        
          	
                   
      

                	
                  (D)

                	
                  Changes
      that have occurred in telecommunications technology require a change in
      the license;

                

        

        

        
          	
                  13.2

                	
                  The
      Minister is entitled to change, increase or reduce the rates for services,
      if he is convinced that a change has occurred in one or more of the
      components of the costs, which represent a basis for calculating the
      rates.

                

        

        

        
          	
                  13.3

                	
                  The
      Minister will act pursuant to his authority as stated in Clauses 13.1 and
      13.2 after the Licensee has been given a reasonable opportunity to voice
      its claims.

                

        

        

        

         

        14.           Cancellation of the
License

        

        
          	
                  14.1

                	
                  The
      Minister is entitled to cancel the License before the end of its period,
      if one or more of the causes set forth in Section 6 to the Law exist, or
      in one of the following cases:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  The
      Licensee did not disclose to the tenders committee information that must
      be disclosed or it furnished inaccurate information;

                
	 	
                  (B)A2 

                	
                  If
      the Licensee refuses to furnish the Minister or anyone acting on his
      behalf with information in its possession that must be disclosed and which
      it was obligated to disclose by virtue of the provisions of this license
      or pursuant to law, or the Licensee furnished the Minister or someone
      acting on his behalf with false
  information; 

                

        

        
        

        
          	
                   
      

                	
                  (C)

                	
                  The
      Licensee did not comply with the provision of the Law, the Ordinance or
      the regulations thereunder;

                

        

        
          	
                   
      

                	
                  (D)

                	
                  The
      Licensee committed a material breach of the License conditions and,
      without derogating from the generality of that stated, including the
      following:

                

        

        
          	
                   
      

                	
                  (1)

                	
                  The
      Licensee is demanding for its services payments that are higher than the
      maximum rates prescribed in this License or pursuant thereto, or pursuant
      to any law;

                

        

        
          	
                   
      

                	
                  (2)

                	
                  The
      Licensee is not complying with the coverage or quality requirements
      prescribed in this license;

                

        

        
          	
                   
      

                	
                  (3)

                	
                  The
      Licensee did not comply with the provisions of this license with regard to
      the operation of digital technology in the  cellular
      System;

                

        

        
          	
                   
      

                	
                  (E)

                	
                  The
      Licensee did not commence provision of the services pursuant to that set
      forth in the License or unlawfully discontinued, restricted or delayed one
      of the services;

                

        

        

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        

                                                            

        A2
Amendment No. 2

         

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        
        

        
          
            	
                     
      

                  	
                    
                      (F)

                    

                  	
                    One
      or more of the qualities that rendered the Licensee suitable to
      participate in the tender for cellular services, or to be a Licensee, has
      ceased to exist, including:

                  

          

        

        
          	
                   
      

                	
                  (1)

                	
                  The
      Licensee has ceased to be a company registered in
  Israel;

                

        

        
          	
                   
      

                	
                  (2)

                	
                  Residents
      and citizens of Israel no longer hold, directly or indirectly, at least
      20% of all of the Means of Control in the Franchisee; in this clause –
      "Citizen of Israel" – as defined in the Citizenship Law, 5712 – 1952;
      "Resident" – as defined in the Population Registry Law, 5735 –
      1965;

                

        

        
          	
                   
      

                	
                  (3)

                	
                  A
      majority of the directors in the Licensee company are not citizens and
      residents of Israel;

                

        

        
          	
                   
      

                	
                  (4)

                	
                  The
      manager or a director of the Licensee company was convicted of an infamous
      crime and continues to serve in his
position;

                

        

        
          	
                   
      

                	
                  (5)

                	
                  The
      joint equity, including surpluses, of all of the shareholders in the
      Licensee company, together with the equity of the Licensee, has declined
      to under US $200 million; in this matter, a shareholder holding less than
      10% of the right to the company's earnings will not be taken into
      account.

                

        

        
          	
                   
      

                	
                  (6)

                	
                  Before
      5 years have elapsed from the date of granting the License, the share of
      the cellular operator has fallen to less than 25% of the voting rights in
      the general meeting or of the right to appoint a director or CEO in the
      Licensee company;

                

        

        
          	
                   
      

                	
                  (7)

                	
                  Subject
      to that stated in paragraph (8), the Licensee, or an officer in the
      Licensee company or anyone who holds more than 5% of the Means of Control
      in the Licensee company, holds, directly or indirectly, more than one per
      cent (5%) of the Means of Control in BezeqA2,
      Another cellular Operator, or one of them acts as an Officer in a
      competing corporation.

                

        

        
          	
                   
      

                	
                  (8)

                	
                  If
      one of the following occurs in an Interested Party in the Licensee
      company, which is a mutual fund, insurance company, investment company or
      pension fund;

                

        

        
          	
                   
      

                	
                  -

                	
                  it
      holds, directly or indirectly, more than 5% of any Means of Control in a
      competing corporation, without receiving a permit therefor from the
      Minister;

                

        

        

        
          	
                   
      

                	
                  -

                	
                  it
      holds, directly or indirectly, more than 5% of any Means of Control in a
      competing company pursuant to a permit from the Minister and,
      additionally, it is a controlling shareholder and exercises actual Control
      in a competing corporation or it has a representative or appointee on its
      behalf among the Officers in the competing corporation, unless it is
      required to do so under law;

                

        

        

        
          	
                   
      

                	
                  -

                	
                  it
      holds, directly or indirectly, more than 10% of any Means of Control in a
      competing corporation, even though it has received permission to hold up
      to 10% of said Means of Control;

                

        

         

        
          	
                   
      

                	
                  (G)

                	
                  Void
      A2

                

        

        

        
          	
                   
      

                	
                  (H)

                	
                  If
      an act or omission in the Licensee’s operations impaired or restricted
      competition in the cellular sector;

                

        

        

                                                           

        A16
Amendment No. 16

        A2
Amendment No. 2

         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                   
      

                	
                  (I)

                	
                  A
      receiver or temporary liquidator was appointed to the Licensee company and
      an order was given for its liquidation or it decided on voluntary
      liquidation;

                

        

        
          	
                   
      

                	
                  (J)

                	
                  Void
      A2)

                

        

        
          
            	
                     
      

                  	
                    (K)

                  	The
      Licensee requested cancellation of the
License;

          

          
          

        

         

        
          	
                	
                  14.1.1A2

                	
                  For
      the purposes of sub-clause 14.1(E
      A2), the restriction of service for technological reasons, effected
      after the Director was provided with prior written notification of the
      reasons and approved by the Director,  will not be considered
      deemed an improper unlawful cessation, restriction or delay of
      service.

                

        

         

        
          	
                  14.2

                	
                  If
      the Minister is convinced that, in the circumstances, the cause of
      invalidity does not necessitate cancellation of the License, the Minister
      will grant the Licensee a fair opportunity to rectify the act or omission
      constituting a cause for
cancellation.

                

        

         

        
          	
                  14.3

                	
                  The
      Minister will notify the Licensee in advance of his intention to cancel
      the license, will state in the notice the cause in question, and will
      allow the Licensee to voice its claims relating to the cause for
      cancellation, either in writing or orally, according to the circumstances,
      within the period set forth in the
notice.

                

        

         

        
          	
                  14.4

                	
                  The
      Minister is entitled to summon the Licensee to appear before him and may
      demand that it respond to questions, present documents or furnish him with
      whatever information and documents are required for the purposes of
      clarifying the cause for
cancellation.

                

        

         

        
          	
                  14.5

                	
                  If
      the Licensee is required or summoned as stated, it must respond to the
      requirement or summons on the date set forth
  therein.

                

        

         

        
          	
                  14.6

                	
                  If
      the Licensee fails to respond, at least twice, to the Minister's demand or
      summons within the period stipulated by the Minister in his demand or
      summons, the Minister is entitled to cancel the License in a notice that
      will be sent to the Licensee (hereinafter - Cancellation
      Notice).

                

        

         

        
          	
                  14.7

                	
                  In
      the Cancellation Notice, the Minister will determine the date on which the
      cancellation of the License will take effect and he is entitled to
      instruct the Licensee to continue the provision of services pursuant to
      this License until a license is granted to another or until the
      appointment of a trustee or until a receiver is duly appointed for the
      purpose of managing and operating the cellular System – as
      applicable.

                

        

         

        
          	
                  14.8

                	
                  The
      Licensee will continue to provide services until the end of the period
      stipulated by the Minister in his notice and will comply with the
      provisions of this License and any instruction given by the Minister in
      this matter.

                

        

         

         

        15.           Other
remedies

        

        In
addition to his authority to cancel the License as stated in Clause 14, the
Minister is entitled, if the causes outlined in Clause 14.1 occur, to restrict
or suspend the License or to change its conditions or to foreclose on the
guarantee given by the Licensee to secure fulfilment of the conditions of the
License, in whole or in part; the procedures set forth for cancellation of the
License will

         

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        

        apply,
mutatis mutandis, to
the restriction or suspension of the License or forfeiture of the
guarantee.

         

                                                            

        A2
Amendment No. 2

        A2
Amendment No. 2

        A2 Section
3 in the original version of Amendment No. 2 contained a typographical error, in
which 14.1(D) was written instead of 14.1(E).

         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        CHAPTER C: OWNERSHIP, ASSETS
AND MEANS OF CONTROL

        

        PART
A – RESTRICTIONS ON TRANSFER OF THE LICENSE AND ITS ASSETS

        

         

        16.           Prohibition on transfer of
the license

        

        The
license, in whole or in part, may not be transferred, encumbered or attached
without the prior consent of the Minister.

         

        17.           Ownership of the Cellular
System

        

        17.1         The
Licensee will be the owner of the Cellular System.

        

        
          	
                  17.2

                	
                  Notwithstanding
      that stated in Clause 17.1, the Director is entitled to permit the
      Licensee to utilize the cable or wireless transmission arteries of another
      for the purpose of connecting cellular radio centers, connecting a
      cellular radio center to a Cellular Coordinator of the Licensee or of
      another Licensee, connecting Cellular Coordinators of the Licensee,
      connecting a Cellular Coordinator of the licensee to a Cellular
      Coordinator of Another Cellular Operator
      A16, or connecting a Cellular Coordinator to a Public
      Telecommunications Network or to an International Telecommunications
      Network.

                

        

         

        18.           Restrictions on transfer of
the License assets

        

        
          	
                  18.1

                	
                  The
      Licensee may not sell, lease or pledge any of the assets used in
      performance of the License (hereinafter – the License Assets) with the
      Minister's prior consent and in accordance with the conditions determined
      by him.

                

        

        

        
          	
                  18.2

                	
                  Without
      derogating from the generality of that stated in Clauses 16 and 18.1, the
      Minister will give his consent for the granting of rights in the License
      Assets to a third party, if he is convinced to his satisfaction that the
      Licensee has promised that, in any event, the exercise of the rights by a
      third party will not cause any impairment in the provision of the services
      pursuant to this License, as long as the Licensee is obligated to provide
      these services pursuant to the provisions of this
  License.

                

        

        

        
          	
                	
                  18.3
      A2

                	
                  Notwithstanding
      that stated in Clause 18.1, the Licensee is entitled to encumber one of
      the License Assets in favour of a bank duly operating in Israel, for the
      purpose of receiving bank credit, provided that it has furnished notice of
      the encumbrance that it intends to create, whereby the encumbrance
      agreement includes a clause ensuring that that, in any event, the exercise
      of the rights by the banking corporation will not cause any impairment in
      the provision of the services pursuant to this license. For the purposes
      of this clause – "Banking Corporation" is as defined in the Banking Law
      (Licensing), 5741 – 1981, except for a "Foreign Corporation," as defined
      in the same law.

                

        

        

        
          	
                	
                  18.4
      A2

                	
                  The
      provisions of Clause 18.1 will not apply to the sale of equipment items
      during an upgrade, including the sale of equipment, as stated, on a
      "trade-in" basis.

                

        

        

                                                            

        A16
Amendment No. 16

        A2
Amendment No. 2

        A2
Amendment No. 2

        

        
          
            
            

          

          
            24

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        

        19.           Engagement with
another

        

        
          	
                  19.1

                	
                  If
      the Licensee wishes to provide one of the services pursuant to this
      license, in whole or in part, through another on its behalf, it must apply
      to the Director for his approval therefor; the Licensee must attach the
      ContractA43)
      to its application. The provisions of this clause will not apply
      for the purposes of the engagement between the Licensee and a marketer of
      Cellular End-Equipment or anyone acting on behalf of the Licensee for the
      purpose of marketing its services. A2

                

        

        

        
          	
                  19.2

                	
                  The
      Director is entitled to approve or reject the application, or to condition
      his approval on terms that must be fulfilled, including amendment of the
      agreement; the Director will consider, inter alia, to what
      extent the terms of the engagement with the other guarantee compliance
      with the conditions of this License and the obligations of the Licensee
      hereunder. The Director will not approve an engagement with another that
      contradicts the obligations of the Licensee pursuant to this
      License.

                

        

        

        
          	
                  19.3

                	
                  Nothing
      in the engagement with another will derogate from the obligations and of
      the Licensee and its responsibility for performing any of the services
      pursuant to this License, in whole or in part, pursuant to the provisions
      of this License, nor will it serve to derogate from the powers of the
      Minister, the Director or anyone acting on their
  behalf.

                

        

        

        
 

                                                            

        A2
Amendment No. 2

        

        
          
            
            

          

          
            25

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        Part
B: Means of Control – Changes and Limitations

        

         

        20.           Particulars of
Licensee

        

        
          	
                	
                  20.1A43)

                	
                  Details
      regarding the Licensee's legal entity, incorporation, holders of the
      controlling interest, holders of a material influence, interested parties
      and officers, are attached as Addendum A to the license. The Licensee must
      submit to the Director, every year at the beginning of January, an updated
      Addendum A.

                

        

        

        
          	
                  20.2

                	
                  The
      Licensee will report to the Director in writing regarding any change in
      the information contained in Addendum A, including any transfer and
      acquisition of control or of 5% of the means of control in the Licensee
      company or change in the appointment of a director or general manager,
      within 14 days of the date of
change.

                

        

        

         

        21.           Transfer of Means of
Control

        

        
          	
                  21.1

                	
                  There
      will be no transfer, directly or indirectly, of ten percent or more of any
      means of control in the Licensee, whether all at once or in parts, unless
      this received the Minister's prior
consent.

                

        

        

        
          	
                  21.2

                	
                  There
      will be no kind of transfer of any means of control in the Licensee, or a
      part of said means of control, so that as a result of the transfer,
      control in the Licensee is transferred from one person to another, unless
      this was given the Minister's prior
consent.

                

        

        

        
          	
                  21.3

                	
                  There
      will be no acquisition of control, directly or indirectly, in the
      Licensee, and there will be no acquisition, directly or indirectly, by a
      person himself or together with his relative or with another person, who
      operate with him regularly of 10% or more of any means of control in the
      Licensee, whether all at once or in parts, without the prior consent of
      the Minister.

                

        

        

        
          	
                  21.4

                	
                  Subject
      to the foregoing in this section, there will be no transfer, directly or
      indirectly, of means of control, so that the share of a cellular system
      operator in the Licensee drops below 25% of the voting rights in the
      general meeting and of the right to appoint a director or general manager,
      except after 5 years have elapsed since the date of the granting of the
      license. If 5 years have elapsed since the date of the granting of the
      license, the cellular system operator's share can go below 25% to the
      point of selling all the means of control in its possession to another,
      all subject to the Minister's approval for the very reduction of the
      cellular system operator's share in the means of control in the Licensee
      and also regarding the purchaser.

                

        

         

        
          	
                  21.5

                	
                  Notwithstanding
      that stated in sections 21.1 and 21.3, if traded means of control in the
      Licensee, not entailing the transfer of control in the Licensee, have been
      transferred or acquired at a rate requiring approval under sections 21.1
      or 21.3, without the Minister’s approval having been requested, the
      Licensee shall report this to the Minister, in writing, and shall submit
      to the Minister an application for approval of the transfer or the
      acquisition, all within 21 days from when the Licensee learned of this
      fact, provided the Minister gave his prior written approval to the holding
      per se of the issue or the sale of the securities to the public. In this
      regard, “traded means of
      control” – means of control, including deposit certificates, Global
      or American Depository Shares (GDRs or ADRs), or similar certificates, in
      respect of securities listed on the stock exchange in Israel
      and/or

                

        

        

        
          
            
            

          

          
            26

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

          
            abroad, in
a non-hostile country, or means of control offered to the public pursuant to a
prospectus and held by the public, in Israel and/or abroad, in a non-hostile
country.

             

          

        

        
          	
                  21.6

                	
                  Entry
      into an underwriting agreement in connection with an issue or sale of
      securities to the public, and listing on a stock exchange in Israel or
      abroad, in a non-hostile country, or the deposit of securities, including
      deposit certificates, Global or American Depository Shares (GDRs or ADRs),
      or similar certificates, in respect of securities, or the registration
      thereof with a nominee company and/or agent, shall not in themselves be
      deemed as the transfer of means of control in the
  Licensee.

                

        

        

        
          	
                  21.7

                	
                  (A)

                	
                  Irregular
      holdings shall be registered in the members register (shareholders
      register) at the Licensee, noting the fact of their irregularity,
      immediately when the Licensee learns of this fact, and a notice concerning
      the registration shall be delivered by the Licensee to the owner of the
      irregular holdings and to the Minister. In this regard, “irregular holdings” –
      the holding of traded means of control without the Minister’s agreement as
      required under section 21 or in contravention of the provisions of section
      23, and the entire holdings of a holder of traded means of control who
      acted contrary to the provisions of section 24; the aforesaid for as long
      as the Minister’s agreement is required and was not given under section 21
      of the license or circumstances exist involving the contravention of the
      provisions of sections 23 or 24 of the
license.

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  Irregular
      holdings registered as stated in section 21.7(A), shall not confer any
      rights on the holder, and shall be “dormant shares” as defined in section
      308 of the Companies Law, 1999, except for purposes of receiving a
      dividend or other distribution to the shareholders (including the right to
      participate in an issue of rights which are calculated on the basis of
      holdings in means of control in the Licensee, except that holdings added
      as stated shall also be deemed as irregular holdings), therefore no act or
      contention of exercise of a right by virtue of irregular holdings shall be
      valid, except for purposes of receiving a dividend or other distribution
      as stated.

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  Irregular
      holdings shall not confer voting rights in the general meeting. A
      shareholder participating in a vote in the shareholders meeting shall
      notify the Licensee prior to the vote, or where the vote is by means of a
      voting instrument – on the voting instrument, whether or not its holdings
      in the Licensee or its vote require approval under sections 21 or 23 of
      the License. If the shareholders did not give a notice as stated, it shall
      not vote and its vote shall not be
counted.

                

        

        

        
          	
                   
      

                	
                  (D)

                	
                  A
      director may not be appointed to the Licensee, elected or dismissed by
      virtue of irregular holdings. If a director was appointed, elected or
      dismissed as stated, such appointment, election or dismissal, as the case
      may be, shall not be valid.

                

        

        

        
          	
                   
      

                	
                  (E)

                	
                  The
      provisions of sections 21.7 and 21.9 shall be included in the articles of
      the Licensee, mutatis mutandis.

                

        

        

        
          	
                  21.8

                	
                  For
      as long as the Licensee’s articles prescribe as stated in section 21.7 and
      the Licensee acts in accordance with that stated in sections 21.5 and
      21.7, for as long as the holdings of founding shareholders or their
      substitutes are not reduced to less than 50% of each of the means of
      control in the Licensee, and for as long as the Licensee’s articles
      prescribe that a majority of the voting power in the shareholders general
      meeting may appoint all the 

                

        

        

        
          
            
            

          

          
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license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

          
            directors
in the Licensee, excluding outside directors in accordance with any relevant
statutory requirement or stock exchange directive, irregular holdings shall not
in themselves be cause for the cancellation of the license.

          

           

        

        
          	
                   
      

                	
                  For
      purposes of this section, “founding shareholders or their
      substitutes” – Discount Investment Corporation Ltd., DEC
      Communications and Technology Ltd. and PEC Israel Economic Corporation, or
      any other body to which any of those enumerated above transferred, with
      the Minister’s approval, means of control, provided the Minister confirmed
      in writing that the transferee body shall be deemed in this regard as the
      substitute of the founding shareholder beginning from the date to be
      determined by the Minister, and including anyone who is an “Israeli
      entity” as defined in clause 22.2A, who acquired a means of control from
      the Licensee and received the Minister’s approval for being deemed a
      founding shareholder of its substitute starting from the date that was
      determined by the Minister. The grant of approval under this section shall
      not exempt the Licensee from the duty of receiving the Minister’s approval
      for every transfer of means of control in the Licensee that requires
      approval under any other section of the
license.

                

        

        

        
          	
                  21.9

                	
                  The
      provisions of sections 21.5 and 21.8 shall not apply to founding
      shareholders or their substitutes.

                

        

        

         

        22.           Encumbrance of Means of
Control

         

        
          	
                   
      

                	
                  A
      shareholder of the Licensee company or a shareholder of an interested
      party therein may not encumber his shares in such manner so that exercise
      of the encumbrance results in a change in ownership of 10% or more of any
      means of control in the Licensee, unless the encumbrance agreement
      contains a limitation by which the encumbrance may not be exercised
      without the prior consent of the
Minister.

                

        

        

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        

        22A.         Israeli Nationality and
Holdings of Founding Shareholders or Their Substitutes

        

        
          	
                	
                  22A.1

                	
                  The
      total holdings of “founding shareholders or their substitutes” as defined
      in section 21.8 (including anyone being an “Israeli entity” as defined in
      section 22.2A below, who acquired means of control from the Licensee and
      received the Minister’s approval for being deemed a founding shareholder
      or a substitute thereof as from the date determined by the Minister), who
      are mutually bound by an agreement for the fulfillment of the provisions
      of section 22A of the license (in this section, all of the above will be
      deemed: “founding shareholders or their substitutes”), cumulatively, may
      not be less than 26% of each of the means of control in the
      Licensee.

                

        

        

        
          	
                	
                  22A.2

                	
                  The
      cumulative holdings of “Israeli entities,” one or more, included among
      founding shareholders or their substitutes, out of the total holdings of
      founding shareholders or their substitutes as stated in section 22A.1
      above, may not be at any time less than 20% of the total issued capital
      and of the means of control in the Licensee. For this purpose, the
      Licensee’s issued share capital will be calculated less the number of
      “dormant shares” held by the
Licensee.

                

        

        

        
          In this
section –

        

        

        
          	
                	
                   
      

                	
                  “Israeli entity” – With
      respect to an individual – anyone who is a citizen and resident of Israel;
      with respect to a corporation – the corporation was incorporated in
      Israel, and an individual who is a citizen and resident of Israel controls
      it, directly or indirectly, provided indirect control is solely through a
      corporation incorporated in Israel, one or more. However, for purposes of
      indirect holding, the Prime Minister and the Minister of Communications
      may approve holding through a corporation that was not incorporated in
      Israel, provided such corporation does not hold shares in the Licensee
      directly, where they are satisfied that this will not be detrimental to
      the purposes of this section. In this regard, “Israeli citizen” – as
      defined in the Citizenship Law 1952; “resident” – as defined
      in the Population Registry Law 1965; “dormant share” – as
      defined in section 308 of the Companies Law
  1999.

                

        

        

        
          	
                	
                  22A.3

                	
                  At
      least twenty percent (20%) of the Licensee’s directors will be appointed
      by Israeli entities as stated in clause 22A.2. Notwithstanding the above,
      in this regard, if the Licensee’s board of directors numbers up to 14
      members – at least two directors will be appointed by Israeli entities as
      stated in clause 22A.2 above, if the Licensee’s board of directors numbers
      from 15 to 24 directors – at least three directors will be appointed by
      Israeli entities as stated in clause 22A.2 above, and so
      forth.

                

        

        

        
          	
                	
                  22A.4

                	
                  The
      Licensee’s board of directors will appoint from among its members having a
      security classification and security clearance as will be determined by
      the General Security Service (hereinafter – “classified directors”),
      a committee called the “Committee for Security
  Matters.”

                

        

        

        
          	
                	
                   
      

                	
                  At
      least four directors will serve on the Committee for Security Matters,
      among them at least one outside director. Matters pertaining to security
      will be considered, subject to that stated in clause 22A.5 below, solely
      in the framework of the Committee for Security
  Matters.

                

        

        

        
          
            
            

          

          
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              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                	
                   
      

                	
                  A
      resolution that was adopted or an action that was performed by the
      Committee for Security Matters, will be deemed the same as a resolution
      adopted or action performed by the Company’s board of directors, and it
      will be considered by the board of directly only if this is required under
      section 22A.5 below and subject to that stated in section 22A.5 below. In
      this clause, “security matters” – as defined in the Telecommunications
      Order (Designation of an Essential Service Provided by Bezeq Israeli
      Telecommunications Company Ltd.)
1997.

                

        

        

        
          	
                	
                  22A.5

                	
                  Security
      matters which the Licensee’s board of directors or Audit Committee are
      required to consider according to the cogent provisions in the Companies
      Law 1999 or according to cogent provisions of any other law applying to
      the Licensee, will be considered, insofar as necessary, by the board of
      directors or by the Audit Committee, with the participation of classified
      directors only. Non-classified directors may not participate in such
      meetings of the board of directors or the Audit Committee and may not
      receive information or inspect documents pertaining to the security
      matters considered in the meeting. The quorum in every such meeting will
      consist of classified directors
only.

                

        

        

        
          	
                	
                   
      

                	
                  The
      Licensee will specify in its articles that an officer who by virtue of his
      position and by virtue of the provisions of the law or the articles should
      have received information or participated in meetings on security matters,
      and is prevented from doing so by reason of the provision of clause 22A.5,
      will be exempt from liability for breach of the duty of care towards the
      Licensee, if the duty of care was breached due to non-participation in a
      meeting or non-receipt of
information.

                

        

        

        
          	
                	
                  22A.6

                	
                  The
      general meeting may not assume, delegate, transfer or exercise powers that
      are vested in another organ of the Company, in security
      matters.

                

        

        

        
          	
                  22A.7

                	
                  (A)

                	
                  The
      Minister will appoint an observer at meetings of the Company’s board of
      directors and committees, having a security classification and security
      clearance as will be determined by the General Security
      Service.

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  The
      observer will be a government employee qualifying as a director under
      Chapter C of the Government Companies Law
1975.

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  In
      addition, and without derogating from any duty imposed on him by law, the
      observer will owe the Licensee a duty of confidentiality, except as
      required for the fulfillment of his function as an observer. The observer
      may not serve as an observer or in any other position on behalf of any
      other entity engaging in the provision of communication services and
      competing directly with the Licensee, and he will avoid any conflict of
      interest between his function as an observer and the Licensee, except a
      conflict of interest stemming from his being a government employee filling
      the function of an observer at the Licensee. The observer will commit
      towards the Licensee not to serve as an observer or officer and not to
      hold any position or be employed, directly or indirectly, at any entity
      competing directly with the Licensee or being in a conflict of interest
      with it, except for a conflict of interest stemming, as stated, from his
      being a government employee filling the function of an observer at the
      Licensee, throughout his tenure as observer at the Licensee and during
      eighteen (18) after the end of such
tenure.

                

        

        
          	
                	
                   
      

                	
                  In
      any case of differences of opinion as to the observer being in a conflict
      of interest, the Attorney General or someone on his behalf will decide in
      the matter.

                

        

        

        
          
            
            

          

          
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              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                   
      

                	
                  (D)

                	
                  An
      invitation to meetings of the board of directors and its committees,
      including the Committee for Security Matters, will be delivered to the
      observer as well, who may participate as an observer at any meeting as
      stated.

                

        

        

        
          	
                   
      

                	
                  (E)

                	
                  The
      observer’s right to receive information from the Licensee will be the same
      as a director’s right. If the Licensee is of the opinion that certain
      information in the nature of sensitive business information is not
      required by the observer for the fulfillment of his function, the Licensee
      may withhold delivery of such information to the observer, notifying him
      in this regard. If the observer is of the opinion that he should receive
      that information, the matter will be referred to the decision of the head
      of the General Security Services.

                

        

        

        
          	
                   
      

                	
                  (F)

                	
                  If
      the observer saw that the Licensee adopted or is about to adopt a
      resolution on security matters contrary to any provision of the license,
      contract to section 13 of the Law or contrary to section 11 of the General
      Security Services Law 2002, it will notify the Licensee without any delay,
      in writing, such notice to be delivered to the chairman of the board of
      directors and to the chairman of the Committee for Security Matters, and
      to set a proper time in the circumstances of the case for remedying the
      breach or modifying the resolution, should this be
    possible.

                

        

        

        Part
C: Cross-Ownership and Conflict of Interest

         

         

        23.           Prohibition on
Cross-Ownership

        

        
          	
                  23.1

                	
                  The
      Licensee, an officer therein or whoever holds more than 5% of any means of
      control in the Licensee, will not hold, directly or indirectly, more than
      one percent (5%) of the means of control in Bezeq, A16)
      another cellular system operator. Regarding this matter, "holding" –
      includes the holding as an agent.

                

        

        

        
          	
                  23.2

                	
                  Notwithstanding
      that stated in Section 23.1, an interested party in the Licensee that is a
      mutual fund, insurance company, investment company or a pension fund, may
      hold up to 5% of the means of control in Bezeq, another cellular system
      operator A16),
      provided all the following are
fulfilled:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  It
      is not a controlling shareholder and does not exert, directly or
      indirectly, any control in Bezeq or A16)
      another cellular system operator;

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  It
      has no representative or person in charge on its behalf among Bezeq's or
      the other cellular system operator's officers, unless required to do so by
      law.

                

        

        

        
          	
                  23.3

                	
                  Pursuant
      to a written request, the Minister may allow an interested party in the
      Licensee, as stated in Section 23.2, to hold up to 10% of the means of
      control in Bezeq, A16)
      another cellular system operator, when the terms stated in Section 23.2(A)
      and (B) are fulfilled, if he saw, to his satisfaction, that such a holding
      will not harm competition.

                

        

        

        

         

        24.           Prohibition on a Conflict of
Interest

         

        
          	
                   
      

                	
                  The
      Licensee, an officer therein or an interested party in the Licensee
      company will not be a party to any agreement, arrangement or understanding
      with Bezeq, A16)
      another 

                

        

         

        
          
            
            

          

          
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license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          cellular
system operator, meant or liable to reduce competition or harm it in all
pertaining to cellular system services, cellphone network end-equipment and
other services provided via the cellular system.

        

        
          
            
            

          

          
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              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        Chapter D: Setup and
Operation of Cellular system

        

        Part
A: Setting Up the System

        

        

        25.           Definition

         

        
          	
                   
      

                	
                  In
      this part –

                

        

        
          	
                   
      

                	
                  "Milestones"
      – Stages in the setup of the cellular system, according to the timetable
      detailed in the engineering plan – Addendum B to the
    license.

                

        

        

         

        26.           Setup according to Plans and
Specifications

         

        
          	
                  26.1

                	
                  In
      all pertaining to the setup and operation of the cellular system (in this
      section – network), including the technical quality of its various
      components, as well as the network's structure and manner of setup, the
      Licensee will comply with the terms and provisions in the engineering
      plan.

                

        

        

        
          	
                  26.2

                	
                  The
      Licensee will follow all the specifications of the Ministry of
      Communications and the network-related standards prescribed by
      standardization organizations in Israel and around the world, as well as
      other international organizations, in the telecommunications and wireless
      field as well as in any other field pertaining to the setup and operation
      of the network.

                

        

        

         

        27.           Execution Stages and
Timetable

        

        
          	
                  27.1

                	
                  The
      setup rate of the cellular system, the setup milestones, the commencement
      date for providing the service in the various regions in Israel, will be
      in accordance with the timetable set in the engineering plan – Addendum B
      to the license.

                

        

        

        
          	
                	
                  27.2

                	
                  The
      Licensee may not deviate from the timetable unless authorized to do so by
      the Director, provided the Licensee applies in writing to the Director to
      receive his permission immediately after realizing that difficulties have
      arisen that prevent it from meeting the original
  timetable.

                

        

         

        
          
            	
                     

                  	
                    
                      27.2.1

                    

                  	
                    A
      delay in signing agreements with a third party or obtaining approval from
      the planning and construction authorities will be deemed a reasonable
      reason for obtaining the Director's permission for deviating from the
      timetable, only if the Director realizes to his satisfaction that the
      Licensee has done its reasonable utmost in the circumstances of the
      matter, to come to an agreement with a third party or to receive approval
      from the planning and construction
authorities.

                  

          

           

        

        
          	
                  27.3

                	
                  The
      Director may approve the Licensee's request to deviate from the timetable,
      in whole or in part, and to stipulate conditions for its approval. The
      Director may also approve deviation regarding a specific milestone,
      provided the Licensee undertakes to catch up with the planned setup rate
      in the succeeding milestones.

                

        

        

        
          
            
            

          

          
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              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  28.

                	
                  Modification of Plans
      during Setup

                

        

         

        
          	
                  28.1

                	
                  The
      Licensee may not deviate from the engineering plan unless it has been
      authorized to do so by the Director under the provisions of this section.
      However, the placement of a Cellular Radio  Center in a
      different site from that set in the engineering plan will not be deemed a
      deviation, if done within the search region. As regards this section, a
      "search region" denotes a territory defined in the engineering plan in
      which a Cellular Radio center is planned to be set up, at a specific site
      within the territory, and regarding which it has been stated in the
      engineering plan that it might be necessary to place the center in another
      site found in the territory.

                

        

        

        
          	
                  28.2

                	
                  If
      in the course of setting up the cellular system, the Licensee realizes
      that it has become necessary to deviate or depart from the engineering
      plan, the Licensee must apply in writing to the Director to obtain his
      approval for the plan. In its application, the Licensee must describe the
      essence and nature of the requested modification and the reasons therefor.
      The Licensee must attach the amended plan it proposes, to the
      application.

                

        

        

        
          	
                  28.3

                	
                  The
      Director may reject or approve the request, in whole or in part, and may
      also stipulate conditions for its approval, insofar as these are needed
      for the rigorous assurance of the network's quality and performance level.
      The Director will make a decision in the matter of the request and notify
      the Licensee of his decision, all within a reasonable amount of
      time.

                

        

        

        

         

        29.           Utilization and Construction
of Infrastructures

        

        
          	
                  29.1

                	
                  For
      the purpose of setting up and operating the cellular network, the Licensee
      may, subject to any law, set up, maintain and operate cable or wireless
      transmission arteries, provided such transmission arteries will be used
      solely for the following:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  Connection
      between the Cellular Radio Centers forming part of the Licensee's cellular
      system;

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  Connection
      between the Licensee's Cellular Radio Centers and its cellular
      exchanges;

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  Connection
      between all the cellular exchanges;

                

        

        

        
          	
                   
      

                	
                  (D)

                	
                  Connection
      between the Licensee's cellular exchanges and a public telecommunications
      system, or another cellular operator's cellular networkA16),
      or other systems operating
lawfully.

                

        

        

        
          	
                  29.2

                	
                  For
      the purpose of the connection described in Section 29.1, the Licensee may
      use also the cable or wireless transmission arteries of Bezeq or of
      another licensee or concessionaire lawfully authorized to provide
      aforesaid infrastructure services.

                

        

        

        
          	
                  29.3

                	
                  To
      remove any doubt, it is hereby clarified that use of the transmission
      arteries to be set up by the Licensee is solely for operating the cellular
      system as stated in Section 29.1, unless the Minister permitted the
      Licensee in the license to make other use thereof, in accordance with the
      terms he laid down.

                

        

        

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

            
 

          

        

         

        30.A16)     Obligation
of Interconnection

        

        
          	
                  30.1

                	
                  The
      Licensee will act to effect interconnection of the network with every
      other public telecommunications network, operating in the territory
      subject to the law, jurisdiction and governance of the State of Israel
      (including settlements, military sites and military installations in
      Judah, Samaria and Gaza Strip), including with every public landline
      telecommunications network, international telecommunications network and
      cellular network of another cellular
operator.

                

        

        

        
          	
                  30.2

                	
                  The
      interconnection between the network and another licensee's public
      telecommunications network will be effected in such manner as to enable
      the following:

                

        

         

        
          	
                   
      

                	
                  (A)

                	
                  Relay
      of telecommunication messages between end-equipment connected to the
      network and end-equipment connected to the other public telecommunications
      network;

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  Proper,
      regular provision of services by the Licensee to the other licensee's
      subscribers, and the provision of services by the other licensee to the
      Licensee's subscribers.

                

        

        

        
          	
                  30.3

                	
                  Interconnection
      may be effected either directly or indirectly, via a public
      telecommunications network of another general license holder, provided it
      enables that stated in Section
30.2.

                

        

        

        
          	
                  30.4

                	
                  As
      regards the interconnection between the network and public landline
      telecommunications network, the Licensee will act to set up interface
      points between the two networks, for each type of service (infrastructure,
      data transmission and communication, telephony), with at least three
      transition switches, unless the Director has decided otherwise at the
      written request of the Licensee. Setup of the interface points will be
      done under an agreement between the Licensee and the domestic operator
      licensee. Such an agreement will include, inter alia, the technical,
      operational and business details of the connection, the number of
      connections and their location.

                

        

        

        
          	
                  30.5

                	
                  As
      regards the interconnection between the network and an international
      telecommunications network, the Licensee will act in compliance with the
      provisions of Addendum J to the
license.

                

        

        

         

        30A.A16)  Rules
Concerning the Implementation of Interconnection

        

        
          	
                   
      

                	
                  The
      Licensee will act to implement interconnection in accordance with all the
      following:

                

        

        

        
          	
                  (A)

                	
                  The
      Licensee will verify that the network's technical and operational
      standards comply wit the requirements for linkup with the public
      telecommunications network of the domestic operators, the other cellphone
      operators, and the international operators (hereinafter – other operator), that
      the network's activities will mesh properly with the activities of the
      other operator's public telecommunications network, and that the
      interconnection will not adversely affect the proper functioning of these
      networks and the normal service to their
  subscribers;

                

        

        

        
          
            
            

          

          
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              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  (B)

                	
                  The
      Licensee will provide the interconnection service under equal conditions
      for every other operator and avoid any discrimination in actuating the
      interconnection, including with regard to the
  following:

                

        

        

        
          	
                   
      

                	
                  (1)

                	
                  Supply
      of infrastructure facilities and network linkup
  services;

                

        

        
          	
                   
      

                	
                  (2)

                	
                  Availability
      of linkup facilities;

                

        

        
          	
                   
      

                	
                  (3)

                	
                  Linkup
      method, quality and survival;

                

        

        
          	
                   
      

                	
                  (4)

                	
                  Alterations
      and adaptations in the switching in the facilities, in the protocols and
      at the network interface points;

                

        

        
          	
                   
      

                	
                  (5)

                	
                  Payments
      for interconnection;

                

        

        
          	
                   
      

                	
                  (6)

                	
                  Debiting
      and collection arrangements, and the transfer of information regarding
      subscribers;

                

        

        
          	
                   
      

                	
                  (7)

                	
                  Commercial
      terms for effecting
interconnection;

                

        

        
          	
                   
      

                	
                  (8)

                	
                  Submission
      of information regarding the network and alteration therein relating to
      interconnection;

                

        

        

        
          	
                  (C)

                	
                  The
      Licensee will place at the disposal of the other operator any essential
      information the other operator needs for providing its services via the
      Licensee's facilities. Said information will be given subject to any law
      concerning the protection of privacy or commercial confidentiality. In the
      event the parties fail to reach an agreement regarding the nature and
      scope of the essential information, the Minister will decide in the
      matter;

                

        

        

        
          	
                  (D)

                	
                  The
      Licensee will give the other operator information regarding alterations
      planned in its network, which may affect the interconnection with the
      other operator's public telecommunications' network, or the
      interconnection between the public telecommunications networks of the
      other operators. The Licensee will provide the aforesaid information in
      such manner as to enable the other operator to prepare reasonably for the
      implementation of said alterations;

                

        

        

        
          	
                  (E)

                	
                  As
      regards Subsections (C) and (D), the Licensee may stipulate the provision
      of information to the other operator on signing a reasonable privacy
      protection agreement, intended to safeguard the Licensee's rights under
      any law, including trade secrets, intellectual property rights and the
      like, pertaining to information regarding modification of the network
      meant to be given to the other
operator;

                

        

        

        
          	
                  (F)

                	
                  The
      terms in respect of interconnection between the network and the other
      operator's public telecommunications network will be formalized in an
      agreement between the Licensee and the other operator. If the parties fail
      to reach an agreement, the Minister will decide in the
    matter.

                

        

        

        
          	
                  (G)

                	
                  (1)

                	
                  The
      Licensee will allow its subscribers to receive all the services offered to
      them by another operator, The Licensee may also allow another operator's
      subscribers to receive services from the Licensee, provided that said
      receipt of services is possible under any
law.

                

        

        
          	
                   
      

                	
                  (2)

                	
                  The
      Director may order the Licensee to allow the other operator's subscribers
      to receive services provided by the Licensee, provided that such receipt
      of services is possible technically and under any
  law.

                

        

        
          	
                   
      

                	
                  (3)

                	
                  Notwithstanding
      that stated in Subsection (1), the Director may, at the written request of
      the Licensee, exempt the Licensee from the obligation of allowing its
      subscribers the possibility of receiving services from another operator,
      for technical, economic reasons or for other justified
      reasons.

                

        

        

        
          
            
            

          

          
            36

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  (H)

                	
                  The
      Licensee will forward to the Director a signed copy of every agreement
      between it and the other operator concerning
    interconnection;

                

        

        

        
          	
                  (I)

                	
                  The
      Licensee will forward to the Director on demand, any information given to
      the other operator under Subsections (C) and (D), as well as a copy of
      every confidentiality agreement under Subsection
  (E);

                

        

        

        
          	
                  (J)

                	
                  The
      Licensee will act in compliance with additional provisions the Minister
      will prescribe.

                

        

         

        30B.A16)  Payment
for Traffic Completion and Interconnection

        

        
          	
                   
      

                	
                  In
      the event the Minister did not determine payment for interconnection or
      payment deriving from interconnection, the Licensee may demand in respect
      thereof reasonable and non-discriminatory
  payment.

                

        

        

        30C.A16)  Prohibition
on Delaying Interconnection

        

        
          	
                   
      

                	
                  The
      Minister will give the Licensee a reasonable opportunity to voice his
      position in all pertaining to the Minister's intention to order it
      regarding the manner of effecting interconnection and its scope, regarding
      the actions, services and arrangements incidental to effecting
      interconnection, and regarding payments in respect of interconnection.
      Once the Minister has instructed the Licensee on said matters, the
      Licensee will not delay in any way interconnection with the network, and
      will fulfill its obligations in accordance with the Minister's provisions,
      properly and in good faith, on the date set therefore and with full
      cooperation.

                

        

         

        30D.A16)  Providing
the Possibility of Utilization

        

        
          	
                	
                  30.1D

                	
                  The
      Minister may order the Licensee to provide the possibility of utilizing
      its telecommunications facility, by virtue of his authority under Section
      5 of the Law.

                

        

        

        
          	
                	
                  30.2D

                	
                  The
      Licensee will enable another licensee, by the Minister's order, to provide
      value added services via the Licensee's network. The Licensee will ensure
      reasonable and equal terms for any other licensee, in all pertaining to
      the provision of value added services by the latter to the Licensee's
      subscribers.

                

        

        

        
          	
                	
                  30.3D

                	
                  As
      regards providing the possibility of utilization, the provisions of
      Sections 30A to 30C will apply, mutatis
  mutandis.

                

        

         

        30E.A16)   Infrastructure
Services for an Interested Company

        

        
          	
                	
                  30.1E

                	
                  The
      Licensee will not give preference, in providing infrastructure services,
      to a licensee that is an interested company over another licensee, whether
      in payment for the service, in service conditions, in service availability
      or in any other way.

                

        

        

        
          
            
            

          

          
            37

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  30.2E

                	
                  (A)

                	
                  Pursuant
      to a written request from the Licensee, the Director may permit the
      Licensee limitations on the provisions of Section 30.1E, in all pertaining
      to another licensee or a broadcasting licensee that is an interested
      company, provided the following conditions are
  fulfilled:

                

        

        
          	
                   
      

                	
                  (1)

                	
                  The
      other licensee or the concessionaire is not a material
      operator:

                

        

        
          	
                   
      

                	
                  (2)

                	
                  The
      Director is of the opinion that giving such permission does not materially
      harm competition in the field of
  telecommunications.

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  As
      regards the limitations stated in Subsection (A), these may allow the
      Licensee to offer an interested company the use of its telecommunications
      facilities under preferred conditions, and these may be limited in time or
      by another condition.

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  When
      considering a permit under this section, the Director will take into
      account the existence of a valid agreement, which was signed prior to
      Amendment No. 16 to this license, between the Licensee and the interested
      company, concerning, inter alia, the restriction of the permit in time or
      by other conditions.

                

        

        

        
          	
                	
                  30.3E

                	
                  In
      this section – "interested company,"
      "subsidiary," and
      "material
      operator" – as these terms are defined in the Telecommunications
      Regulations (Procedures and Conditions for Obtaining a General License for
      Providing Domestic Landline Telecommunications Services),
      2000.

                

        

        

        30F.A16)   Numbering
Program

        

        
          	
                	
                  30.1F

                	
                  The
      Licensee will act in accordance with the numbering program, and in
      compliance with the Director's provisions regarding the activation and
      implementation of the numbering
program.

                

        

        

        
          	
                	
                  30.2F

                	
                  The
      Director ordered the activation of number portability, so that every
      subscriber of another cellular system licensee will be able to switch over
      to and be a subscriber of the Licensee or receive services from the
      Licensee without any change in his telephone number, and vice versa – the
      Licensee will incorporate into its public telecommunications network
      devices enabling the application of this property, on the date and using
      the method laid down in the Director's
  provision.

                

        

        

        
          
            
            

          

          
            38

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        

        31.           Reports on the Setup
Works

        

        
          	
                  31.1

                	
                  The
      Licensee will submit to the Director, throughout the cellular system setup
      period, quarterly reports describing the setup works carried out during
      the period of each report, according to the milestones and timetables in
      the engineering plan. As regards this section, "the setup period" denotes
      15 months from the date the license was granted or until the date of the
      completion of the network's setup in full deployment, according to the
      engineering plan, whichever the
earlier.

                

        

        

        
          	
                  31.2

                	
                  The
      reports will include a comparison of the plans' execution versus the plan
      for each report's period, as well as explanations for any deviation or
      alteration that occurred in the execution compared with the
      plan.

                

        

        

        
          	
                  31.3

                	
                  Each
      report will be submitted in triplicate in a format to be instructed by the
      Director, and will bear a date and be signed by the Licensee or whoever it
      empowered especially for this
purpose.

                

        

        

        
          	
                  31.4

                	
                  The
      Director may demand that the Licensee prepare special reports, and also
      that it draw up anew or supplement a report submitted to
    him.

                

        

        

         

        32.           Handover of Information and
Documents

         

        
          	
                   
      

                	
                  The
      Licensee will furnish to the Director, on demand, any information or
      document regarding the execution of cellular system setup works, at the
      time, in the format, and in the manner instructed by the
      Director.

                

        

        

         

        33.           Supervision of Setup
Works

        

        
          	
                  33.1

                	
                  The
      Director may supervise, by himself or through a designee, the Licensee's
      actions connected with the execution of the setup works. To this end, the
      Director may enter at any reasonable time, the Licensee's work sites,
      cellular system facilities and offices, for the purpose of making
      measurements, performing inspections and perusing any plan or document
      pertaining to the execution of the setup
works.

                

        

        

        
          	
                  33.2

                	
                  The
      Licensee will cooperate with the Director in all pertaining to the
      supervision of the setup works, and without derogating from the generality
      of the foregoing, will enable him to enter the work site and its
      facilities, enable the perusal of any document, plan and specification,
      and provide him with any information he
  requests.

                

        

        

         

        34.           Correction of Deficiencies
and Defects

        

        
          	
                  34.1

                	
                  The
      Director may notify the Licensee in writing about deficiencies, defects
      and deviations he found in the cellular system setup operations, based on
      reports submitted by the Licensee, documents and information it furnished
      him, or based on measurements and inspections he
  made.

                

        

        

        
          
            
            

          

          
            39

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  34.2

                	
                  In
      the event the Licensee receives a notice as stated in Section 34.1, it
      will notify the Director, within fourteen days of the date of receiving
      the notice, regarding its response to that stated therein and the measures
      it took or plans to take, in order to correct the deficiencies, defects or
      deviations.

                

        

        

         

        35.           Safety Precautions and
Prevention of Hazards

        

        
          	
                  35.1

                	
                  The
      Licensee will execute the setup works, taking adequate safety precautions
      to prevent personal accidents and property damage, will prevent the
      causation of nuisances and hazards to the public in the work areas, and if
      required to do excavations at the spot, will do everything to prevent
      damages to underground systems, including telecommunications networks, and
      to this end will make sure to obtain every permit required by any law,
      including an excavation works permit under Section 53B of the
      Law.

                

        

        

        
          	
                  35.2

                	
                  Upon
      completion of the setup works, the Licensee will make sure to clean up the
      work sites and restore them to their previous
  condition.

                

        

        

         

        36.           Void.A2A2)

        

         

        37.           Intersections with
Electricity and Telecommunications Lines

        

        
          	
                   
      

                	
                  In a
      place where there are electricity lines or electricity facilities prior to
      the installation of the cellular system, the Licensee is subject to the
      obligations imposed under the Telecommunications and Electricity
      Regulations (Convergence and Intersection between Telecommunications Lines
      and Electricity Lines), 1986.

                

        

         

         

        38.           Discovery of Antiquities and
Site Preservation

        

        
          	
                  38.1

                	
                  Antiquities,
      as defined in the Antiquities Law, 1978, which are discovered at a setup
      work site, are state assets, and the Licensee will take the appropriate
      precautions to prevent damage
thereto.

                

        

        

        
          	
                  38.2

                	
                  The
      Licensee will notify the director of the antiquities authority regarding
      the discovery of an antiquity within 15 days of the date of the
      antiquity's discovery and will follow the instructions of the authority's
      director in all pertaining to the manner of handling the
      antiquity.

                

        

        

        
          	
                  38.3

                	
                  In
      the course of the setup works, the Licensee will avoid, inasmuch as
      possible, damaging sites of historical or national value, tourist sites
      and landscape.

                

        

        

        
          	
                  38.4

                	
                  The
      Licensee will avoid, insofar as possible, damaging buildings and trees
      found in the places where setup works are being carried
    out.

                

        

        

         

        39.           Land-Related
Powers

        

        
          
            
            

          

          
            40

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  39.1

                	
                  The
      Minister may, at the Licensee's request, grant it all or some of the
      powers prescribed in Chapter F of the Law, subject to that stated in
      Section 39.2.

                

        

        

        
          	
                  39.2

                	
                  The
      Licensee will specify in its request the sites at which it requires the
      aforesaid powers, the scope of the required powers and the reasons
      therefor, including the steps it took to find alternative sites, without
      having to use the power under Chapter F of the
  Law.

                

        

        

        
          	
                  39.3

                	
                  In
      the event the Minister is convinced of the need to grant the Licensee
      powers under Chapter F of the Law, the Minister will publish his decision
      in the Reshumot
      (Official Announcements and Advertisements
  Gazette).

                

        

        

        
          
            
            

          

          
            41

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

            
 

          

        

        Part
B: Equipment Checks and Installation Certifications

        
 

        40.           Compliance
Check

         

        
          	
                   
      

                	
                  The
      Director may determine which items of equipment should not be installed in
      the Cellular System before undergoing a compliance check. "Compliance" as
      regards this section – as emerges from that stated in Section 41. If the
      Director has decided as aforesaid, the items will not be installed before
      undergoing a compliance check.

                

        

        

         

        41.           Responsibility for
Compliance

         

        
          	
                   
      

                	
                  It
      is the responsibility of the Licensee to see to it that the equipment
      installed in the Cellular System is, at least, technically compliant with
      the properties detailed in the manufacturer's specifications relating to
      the specific item of equipment, and attached to the engineering
      plan.

                

        

        

         

        42.           Performance Testing Program
and Its Approval

        

        
          	
                  42.1

                	
                  The
      Licensee will furnish the Director, no later than 30 days before giving
      notice of the completion of installation under Section 43, with an
      up-to-date, detailed testing program for carrying out the performance
      check, relating to that part of the Cellular System it wishes to operate
      (hereinafter – detailed testing
program).

                

        

        

        
          	
                  42.2

                	
                  The
      Licensee will present the detailed testing program to the Director. The
      Director may demand within 15 days of the aforesaid presentation that the
      Licensee make changes in the detailed testing program or complete it, if
      he deems it necessary for the full and accurate execution of the
      performance check, and the Licensee will carry out the checks according to
      the Director's request.

                

        

        

         

        43.           Notice of Setup
Completion

         

        
          	
                   
      

                	
                  Once
      the Licensee has completed setting up a Switchboard or Cellular Radio
      Center in some region, so that it is possible to start providing cellular
      services through it, the Licensee will notify the Director in writing
      thereof, in the format it was instructed by the Director, along with the
      results of the detailed check indicating successful installation and
      operation.

                

        

        

         

        44.           Terms of Fitness and
Operation

        

        
          	
                  44.1

                	
                  Prior
      to operating the network, the Licensee must meet the requirements and
      conditions detailed below:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  Entering into an Agreement with
      an Equipment Manufacturer

                

        

        The
Licensee must have agreements in force for the entire operation period planned,
with a Cellular System manufacturer, comprising the following:

        
          	
                   
      

                	
                  (1)

                	
                  Know-how
      agreement;

                

        

        
          	
                   
      

                	
                  (2)

                	
                  An
      agreement guaranteeing the supply of parts for the network's equipment for
      a period of at least 7 years;

                

        

        
          	
                   
      

                	
                  (3)

                	
                  An
      agreement guaranteeing the supply of technical literature and full
      documentation of the network's equipment, including
    updates.

                

        

        

        
          
            
            

          

          
            42

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                   
      

                	
                  (B)

                	
                  Lab and Testing
      Equipment

                

        

         

        The
Licensee must operate a lab, or have a valid agreement with a competent
lab.  The lab should include professional testing equipment for
performing the checks and making the repairs on the Cellular System equipment,
including mobile testing equipment.

        
 

        
          
            	
                     
      

                  	
                    (C)

                  	
                    Parts

                  

          

           

        

        The
Licensee must maintain and run a spare parts warehouse for Cellular System
equipment according to the recommendations of the equipment
manufacturers.

        

        
          	
                   
      

                	
                  (D)

                	
                  Maintenance
      System

                

        

        
           

          The
Licensee must maintain, on its own or through another, an efficient maintenance
system, consisting of maintenance personnel, service vans and communication
means, ensuring the proper, ongoing operation of the network and enabling the
handling of any malfunction within the response time required under this
license, and also enabling, in any case of a serious problem with the Cellular
System causing radio interferences, large-scale disconnection of subscribers or
posing a safety risk, repair of the malfunction within 4
hours.

        

        

        
          	
                   
      

                	
                  (E)

                	
                  Communication
      Means

                

        

         

        Means of
communication, such as a walkie-talkie, telephone or cellphone, should be
installed in the operation exchanges and centers, as well as in the service and
maintenance centers.

        

        
          	
                  44.2

                	
                  The
      Licensee must present to the Director, seven days before setting the
      network in operation for the first time, certifications and documents
      regarding compliance with the requirements and conditions specified in
      Section 44.1.  In the event the Director fails to respond within
      five days of the date of delivery of said documents, the Licensee may
      operate the Cellular System and connect subscribers thereto. If the
      Director orders the Licensee, based on the documents' findings, to alter
      or fix the network, the Licensee must make the required alteration or
      correction and present a certification of execution to the Director, and
      if the Director fails to respond within 3 days, the Licensee may operate
      the system.

                

        

        

        
          
            
            

          

          
            43

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

            
 

          

        

        Part
C: Use of Frequencies

        

         

        45.           Allocation
of FrequenciesA16)

        

        
          	
                  45.1

                	
                  The
      Licensee may operate the Cellular Radio centers of the Cellular System,
      using the frequency bands allocated for its exclusive use, as detailed
      below:

                

        

        

        
          	
                   
      

                	
                  (A)
      A35) 

                	
                  835
      to 845 MHz and corresponding range 880 to 890
  MHz;

                

        

         

        
          
            	
                     
      

                  	
                    (A1)
      A35) 

                  	1710 to 1712
      MHz and corresponding range 1805 to 1807
MHz;

          

        

        
          That
stated in this subsection in no way derogates from the Director's authority to
allocate an alternative frequency band with identical bandwidth for the
Licensee's use, instead of the frequency band specified in this
subsection.

        

        

        
          	
                   
      

                	
                  (B)

                	
                  Starting
      from February 1, 2002 to January 1, 2004 the following bands will be
      allocated:

                

        

        1710 to
1715.4 MHz and corresponding range 1805 to 1810.4 MHz;

        1716.6 to
1721.2 MHz and corresponding range 1811.6 to 1816 MHz;

        1962 to
1967 MHz and corresponding range 2152 to 2157 MHz;

        

        
          	
                   
      

                	
                  (C)

                	
                  Starting
      from January 1, 2004 the following bands will be
  allocated:

                

        

        
          1720 to
1730 MHz and corresponding range 1815 to 1825 MHz;

        

        
          1960 to
1970 MHz and corresponding range 2150 to 2160 MHz;

        

        
          as well as
the frequency range 1905 to 1910 MHz.

          
            

            
              	
                       
      

                    	
                      (C1)
      A2A26)
      

                    	
                      Starting
      from April 4, 2004 the following frequency bands will be
      allocated:

                    

            

          

        

        1715 to
1720 MHz and corresponding range 1810 to 1815 MHz.

        

        
          	
                   
      

                	
                  (D)

                	
                  Notwithstanding
      the foregoing, in the event the Licensee asks to postpone the usage
      commencement date for the frequencies specified in subsections (B) and
      (C), or a part thereof, to a later date, the Director may suspend the
      allocation of frequencies to a date he decides
  on.

                

        

        

        
          	
                  45.2

                	
                  The
      Licensee may select a narrower frequency band than that stated above in
      the framework of the frequency bands specified in Section
      45.1.

                

        

        

        
          	
                  45.3

                	
                  In
      the event of detection of electromagnetic interferences from other
      radiants that can harm the proper functioning of the Cellular System, the
      Director must, at the Licensee's request, take any reasonable action to
      find an appropriate solution or stop the aforesaid
      interferences.

                

        

        

         

        46.           Restriction on Use of
Frequencies

         

        
          	
                   
      

                	
                  The
      Licensee will make use of the frequencies allocated to it as stated in
      Section 45 only for providing the services under this
    license.

                

        

        

         

        47.           Prevention of
Interferences

        

        
          	
                  47.1

                	
                  The
      Licensee will set up the Cellular System and operate it in such manner so
      that no part of its parts will emit radiation prohibited under the
      provisions of the Pharmacists'

                

        

        

        
          
            
            

          

          
            44

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

          
            Regulations
(Radioactive Elements and Their Products), 1980, and do everything required, if
required, to obtain a permit in accordance with the aforesaid
regulations.

          

           

        

        
          	
                  47.2

                	
                  The
      Licensee will coordinate the use of the frequencies with the Director, who
      will base his directives, inter alia, on the program derived from the
      preparation for a national emergency
crisis.

                

        

        

        
          	
                  47.3

                	
                  The
      Licensee will submit to the Director, or anyone appointed for this purpose
      on its behalf, a detailed, up-to-date plan for the operation of Cellular
      Radio Centersand for the expected use of the frequencies at least 60 days
      before the operation, and will report to the Director regarding the actual
      execution, within 7 days of the operation
date.

                

        

        

        
          	
                  47.4

                	
                  The
      Licensee will set up and operate the Cellular System in such a manner as
      to prevent interferences with other Bezeq and wireless systems operating
      lawfully. Prior to the activation of any Cellular System, the Licensee
      will perform tests and measurements for the purpose of preventing
      electromagnetic interferences. If found that electromagnetic interferences
      can be expected or interferences have been detected during operation, the
      Licensee will act to find a solution that will prevent these interferences
      and also prevent their recurrence, and in the absence of a solution it
      will turn in writing to the Director or to anyone appointed for this
      purpose on its behalf, in order to find a reasonable solution in this
      regard. The Director may demand that each of the parties make changes in
      the operation of the equipment or in the use of the frequencies or that
      they stop broadcasting over certain frequencies, throughout the country or
      in a certain region.

                

        

        

        
          	
                  47.5

                	
                  The
      granting of this license, including the approval of the engineering plan,
      in no way provides protection against harmonies from other radiants
      operating lawfully, or other radiants operating outside state territory;
      however, the Director must make every reasonable effort to find an
      appropriate solution providing the necessary
  protection.

                

        

        

        

         

        48.           Cellphone Activity in
Emergencies

        

        
          	
                  48.1

                	
                  In
      times of national emergency or for national security reasons, the one
      empowered to do so by any law may take the steps needed for state
      security, with a notice to the Licensee A2A2),
      including control of the network. In such circumstances, the Licensee will
      operate according to the instructions and notices of those authorized to
      do so by any law, including the government, the Minister, the Director and
      head of the unit for the management of a broadcasting spectrum and
      satellites in an emergency (hereinafter – head of the emergency
      unit).

                

        

        

        
          	
                  48.2

                	
                  The
      Licensee will give the head of the emergency unit the names of its
      representatives authorized to receive instructions and notices anytime, 24
      hours a day, in all pertaining to national emergency and security matters.
      The representative will have a first and second deputy, who will
      substitute for him during his
absence.

                

        

        

        
          	
                  48.3

                	
                  The
      Licensee will set up and operate the network in a manner that will allow
      reducing the network's activity, when necessary, during times of
      emergency:

                

        

        
          	
                	
                  (A)

                	
                  In
      terms of the frequency profile;

                

        

        
          
          

          
            	
                  	
                    (B)

                  	
                    In
      terms of the geographical profile;

                  

          

          
             

            
              
                
                

              

              
                45

                
                  

                

              

              
                
                

              

              
                
                  General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

                  Combined
Version, as at August 20, 2007

                   

                

                 

              

              
                
                  	
                        	
                          (C)

                        	
                          Through
      the disconnection of part of its subscribers, according to predetermined
      lists, or according to directives deriving from the
    situation;

                        

                

                
                  
                    
                      	
                            	
                              (D)

                            	
                              In
      terms of a profile combining profiles A, B and
  C.

                            

                    

                    
                       

                    

                  

                

              

            

          

        

        
          	
                  48.4

                	
                  The
      Licensee will organize itself in such manner, so that it will be able to
      carry out the reductions detailed in Section 48.3 rapidly and efficiently,
      by remote control or by presence at the sites
  themselves.

                

        

        

        
          	
                  48.5

                	
                  The
      head of the emergency unit may establish a detailed procedure formalizing
      and regulating the Cellular System activity during an emergency, which he
      will present to the Licensee, and the latter will strictly fulfill the
      provisions of this procedure.

                

        

        

        
          
            
            

          

          
            46

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        

        Part
D: Inspections and MaintenanceA43)

        

         

        49.           Definitions

        

        
          	
                   
      

                	
                  "Periodical inspection" –
      An inspection of the network or any part thereof performed according to
      the license's provisions, at fixed time intervals and at least once every
      half year;

                

        

        

        
          	
                   
      

                	
                  "Special inspection" – An
      inspection of the network or any part thereof performed due to a
      maintenance action or repair, following electromagnetic interferences, a
      malfunction, clarification of a complaint, a technological modification,
      an alteration in the engineering plan or the
  like;

                

        

        

        
          	
                   
      

                	
                  "Regular inspection" – An
      inspection of the network or any part thereof, done on a regular, ongoing
      basis.

                

        

        

        

         

        50.           Performance of
Inspections

        

        
          	
                  50.1

                	
                  The
      Licensee will carry out periodical inspections on the Cellular System and
      will submit the results of the inspection, at the Director’s request,
      within 30 days of the day of the
request.

                

        

        

        
          	
                  50.2

                	
                  The
      Licensee will set up and operate a control system for continual monitoring
      of the performance and functionality of the network, and will perform, on
      an ongoing basis,    regular inspections of the
      network or any part thereof, as
necessary.

                

        

        

        
          	
                  50.3

                	
                  The
      Licensee will perform a regular inspection for quality of the service as
      detailed in Addendum E, including compliance with relevant ITU-T
      standards, and will submit the results of the inspection, at the
      Director’s request, within 30 days of the day of the
    request.

                

        

        

        
          	
                  50.4

                	
                  The
      Director may instruct the Licensee to perform a special inspection; The
      Licensee will perform such inspection in the format and at the time
      specified by the Director and will submit its results to
    him.

                

        

        

        
          	
                  50.5

                	
                  The
      Director or anyone so authorized by him will be allowed to carry out
      inspections himself, where he deems this to be necessary; The Licensee
      will permit the Director or anyone so authorized by him access to the
      installations and the equipment, subject to prior coordination, and will
      place at his disposal testing equipment used by it or professional
      manpower employed by it.

                

        

        

        

         

        51.           Inspections, Malfunctions
and Maintenance Log

        

        
          	
                  51.1

                	
                  The
      Licensee will manage an inspections, malfunctions and maintenance log
      (hereinafter – maintenance log), in which details of the malfunctions in
      and inspections of the network are
recorded.

                

        

        

        
          
            
            

          

          
            47

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        
          	
                  51.2

                	
                  The
      Licensee will keep the maintenance log and enable the Director or a
      representative authorized by him to peruse it at any time, to examine it
      or copy it in any manner, and will submit it for inspection by the
      Director at his request.

                

        

         

        52.           Repair of Deficiencies and
Defects

        

        
          	
                  52.1

                	
                  The
      Director may, after giving the Licensee sufficient opportunity in the
      circumstances of the case to present its case to him, notify the Licensee
      in writing of deficiencies and defects he found that are affecting the
      level of the service to Subscribers, the level of survivability and backup
      of the network or the safety level or interfering with other lawfully
      operating systems, based on a follow-up of the network’s performance,
      including by means of Subscribers’ complaints or inspections carried out
      by him or on the basis of inspection reports, documents and information
      provided to him by the Licensee.

                

        

        

        
          	
                  52.2

                	
                  The
      Director may instruct the Licensee regarding the times by which it must
      correct the deficiencies and
defects.

                

        

        

        
          	
                  52.3

                	
                  In
      the event the Licensee received such a notice, it will notify the
      Director, within the time set for this purpose in the Director's notice,
      of the correction of the deficiencies and defects, at the level of detail
      requested by the Director.

                

        

        

        
          	
                  53.

                	
                  Void.

                

        

        

        
          	
                  54.

                	
                  Void.

                

        

        

        
          
            
            

          

          
            48

            
              

            

          

          
            
            

          

          
            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

             

          

        

        Chapter E: Providing
Cellular Services to Subscribers

        

        Part
A: Entering into an Agreement with Subscribers

         

        55.A43)     The
Contract

        

        
          	
                  55.1

                	
                  The
      Licensee will prepare a wording for the contract that it intends to offer
      its subscribers, and will submit it for the Director’s perusal at his
      request.

                

        

        

        
          	
                  55.2

                	
                  The
      terms of the contract shall not contradict, explicitly or implicitly, the
      provisions of any law or the provisions of the license: The aforesaid
      shall not prevent the stipulation of various provisions in the contract
      that benefit the subscriber compared to the provisions of the law or the
      license.

                

        

        

        
          	
                  55.3

                	
                  The
      contract will be in writing and laid out in a clear manner conducive to
      reading and comprehension and specifying prominently any term or
      limitation on the subscriber’s right to cancel the contract or on the
      Licensee's liability toward the subscriber; Any stipulation in the
      contract shall be stated explicitly and not by way of
      reference.

                

        

        
          	
                   
      

                	
                  For
      purposes of this section, “writing” – including an electronic document
      that can be saved and retrieved by the
  subscriber.

                

        

        

        
          	
                  55.4

                	
                  The
      contract will include, inter alia, in a clear
      manner, the following:

                

        

        

        
          	
                   
      

                	
                  (a)

                	
                  Terms
      of the service to the subscriber, including quality measures for customer
      and subscriber service as detailed in section 2 in Addendum
    E;

                

        

        

        
          	
                   
      

                	
                  (b)

                	
                  Terms
      for disconnecting from the Licensee’s services or service discontinuation
      terms;

                

        

        

        
          	
                   
      

                	
                  (c)

                	
                  Licensee’s
      rates for the services for which the subscriber registered, as of the day
      of the agreement, including the date and terms for termination of the
      rates program;

                

        

        

        
          	
                   
      

                	
                  (d)

                	
                  Limitation
      on the rate of arrears interest, linkage differences and collection
      expenses, as stated in section
80.3;

                

        

        

        
          	
                   
      

                	
                  (e)

                	
                  Condition
      for changing the rate for the service for which the subscriber registered,
      as stated in section 78.1;

                

        

        

        
          	
                   
      

                	
                  (f)

                	
                  The
      details set out in sections 61 and 61A regarding the public ombudsman and
      umpire.

                

        

        

        
          	
                   
      

                	
                  (g)

                	
                  Condition
      specifying that in case of a contradiction between the provisions relating
      to the rates and to the basket of services detailed in the contract, and
      the provisions of the license in this regard, the provisions of the
      license shall prevail;

                

        

        

        
          	
                   
      

                	
                  (h)

                	
                  Notice
      concerning the Director’s authority to instruct the Licensee to modify the
      contract, and a clarification that the subscriber’s engagement with the
      Licensee under the contract constitutes agreement to such
      modification.

                

        

        

        
          	
                  55.5

                	
                  The
      Licensee will deliver to the subscriber a copy of the contract and its
      appendices.

                

        

        

        
          
            
            

          

          
            49

            
              

            

          

          
            
            

          

        

        
          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

           

        

        56. A43)   Modification
of Contract

        

        
          	
                  56.1

                	
                  The
      Director may instruct the Licensee to modify the contract, after giving
      the Licensee sufficient opportunity to present its
  case.

                

        

        

        
          	
                  56.2

                	
                  If
      the contract was amended pursuant to the Director’s instructions or
      pursuant to a decision of the Standard Contracts Court, in the event that
      the contract was submitted for its approval, the engagement between the
      Licensee and the subscriber will be in accordance with the amended
      contract, as from the date of the
amendment.

                

        

        

        
          	
                  56.3

                	
                  The
      provisions of section 55 shall apply, mutatis mutandis, to an
      amendment of the wording of the contract by the
  Licensee.

                

        

         

        
 

        
          	
                  
                    57.
      A43)

                  

                	
                  
                    Void.

                  

                

        

      

      
         

        
 

        
          
            	
                    
                      58.
      A43)

                    

                  	
                    
                      Void.

                    

                  

          

        59.           Obligation of Connecting
Applicants and Prohibition on Stipulation

        

        
          	
                  59.1

                	
                  If
      the Licensee has met the terms for operating a Cellular System as stated
      in Section 44.2, the Licensee will connect any applicant to the cellular
      network no later than the date set in the contract with the subscriber,
      unless the Director has authorized the Licensee not to connect the
      applicant, under circumstances he deems justified. A2)

                

        

        

        
          	
                  59.2

                	
                  The
      Licensee may not stipulate the connection of an applicant on unreasonable,
      discriminatory or unfair terms, and without derogating from the generality
      of the foregoing:

                

        

        

        
          The
Licensee may not require a subscriber to purchase end-user equipment from it or
from its designee;

        

        

        
          The
Licensee may not require the subscriber to receive maintenance services from it
for the end-user equipment in the subscriber's possession;

        

        

        
          The
Licensee may not stipulate or condition cellular services, service conditions or
a rate on the purchase of cellular end-user equipment from it or from any
other.

        

        

        59.3           Void.
A1)

        

        
          
            
            

          

          
            50

            
              

            

          

          
            
            

          

           

        

      

    

    
       

       

      
        General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

        Combined
Version, as at August 20, 2007 

         

        Part
B: Service Level for Subscribers 

         

      

      
        60.A16)   
Obligation
of Maintaining the Service

        

        
          	
                  60.1

                	
                  The
      Licensee will put at the disposal of its subscribers all the services
      detailed in the First Schedule, in accordance with the terms detailed in
      the schedule, and will maintain all its services all year round, around
      the clock, both in times of calm and in times of an emergency, subject to
      Section 48, in accordance with the technical requirements and service
      quality requirements, in a proper and regular fashion, and of a quality no
      lower than that indicated by the service quality indexes specified in the
      first schedule to the license and in Addendum E to the Second Schedule to
      the license. In the event of a contradiction between the First Schedule
      and Addendum E to the license's Second Schedule, the provisions of
      Addendum E to the Second Schedule will
prevail.

                

        

        

        
          	
                  60.2

                	
                  Without
      derogating from that stated in Section 75.3, the Licensee will provide
      cellular services and a service package, as this term is defined in
      Section 73A, to every applicant, under equal and non-discriminatory terms
      and at a non-discriminatory rate.

                

        

        

        
          	
                  60.3

                	
                  If
      the Director has found that the service package is liable to harm
      competition or the consumers, he will notify the Licensee thereof,
      indicating the date by which the Licensee must stop offering its
      subscribers the service package.

                

        

        

        
          	
                  60.4

                	
                  If
      the Licensee provides any cellular service to any person or organization,
      for payment, the service must be available to any subscriber throughout
      the network coverage area, complying with the minimal requirements as
      regards service quality, without discrimination, within 24 months of the
      date of commencing provision of the service for
  payment.

                

        

        

        
          	
                  60.5

                	
                  The
      Director may, at the written request of the Licensee, allow the Licensee
      limitations on the provision of Section 60.4, after being convinced that
      there is a real difficulty in providing the service to anyone that
      requests it, and that the specific features of the service possess a
      unique and exceptional flavor justifying
this.

                

        

        

        
          	
                	
                  60.6A43)

                	
                  The
      Licensee may not provide, with or without consideration, any of its
      services not explicitly requested by the subscriber, except for a service
      given free of charge to all the subscribers, and it may not allow the
      provision of a service of a service provider not explicitly requested by
      the subscriber.

                

        

        
          	
                   
      

                	
                  For
      purposes of this section, “service provider” – anyone providing a service
      through the network, for which payment is made by means of the telephone
      bill.

                

        

        

        61.A43)   
Public
Ombudsman

        

        
          	
                  61.1

                	
                  The
      Licensee will appoint a person to handle complaints of the public (“the Ombudsman”), having
      the following responsibilities:

                

        

        

        
          	
                   
      

                	
                  (a)

                	
                  Clarifying
      subscribers’ complaints in connection with the Licensee’s services,
      including the complaint of someone applying to receive a
      service.

                

        

        

        
          
            
            

          

          
            51

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        
          	
                   
      

                	
                  (b)

                	
                  Clarifying
      subscribers’ complaints in connection with bills that were submitted by
      the Licensee, and deciding in regard
thereto.

                

        

        

        
          	
                   
      

                	
                  The
      Public Ombudsman will respond in writing to complaints as stated that were
      submitted in writing.

                

        

        

        
          	
                  61.2

                	
                  The
      Public Ombudsman will act according to a policy to be set by the
      Licensee’s management.

                

        

        

        
          	
                  61.3

                	
                  The
      Licensee will render the Public Ombudsman all the assistance required by
      him for filling his function.

                

        

        

        
          	
                  61.4

                	
                  The
      Licensee will notify every subscriber regarding the possibility of
      submitting a complaint to the Public Ombudsman, the powers of the Public
      Ombudsman and the ways of applying to him. The contents of this
      sub-section shall be included in the contract, in the bill sent to the
      subscriber and on the Licensee’s
website.

                

        

        

        
          61A.
A43)    Umpiring of
Disputes

        

        
        

        

        
          	
                	
                  61A.1

                	
                  The
      contract will stipulate that any disagreements arising between the
      Licensee and a subscriber in connection with the interpretation or
      performance of the contract, shall be submitted for clarification to the
      Licensee’s Public Ombudsman.

                

        

        

        
          	
                	
                  61A.2

                	
                  The
      contract will specify that an application to the Public Ombudsman under
      section 61A.1 shall not:

                

        

        

        
          	
                   
      

                	
                  (a)

                	
                  Prevent
      the subscriber a
      priori from bringing his case before a competent
    court;

                

        

        

        
          	
                   
      

                	
                  (b)

                	
                  Derogate
      from the Licensee’s authority to act in accordance with the provisions of
      section 72 regarding the discontinuation or disconnection of a service
      owing to a breach of the contract.

                

        

         

        62.          Obligation of
Maintenance

        

        
          	
                  62.1

                	
                  The
      Licensee is responsible for the maintenance of the Cellular
      System.

                

        

        

        
          	
                  62.2

                	
                  If a
      subscriber purchased cellular end-user equipment from the Licensee or from
      its designee, and the purchase agreement included maintenance services,
      the LicenseeA43)
      will be responsible for the maintenance of said purchased end-user
      equipment, however the LicenseeA43)
      will not be responsible for the maintenance of said purchased end-user
      equipment beyond the maintenance period undertaken by the manufacturer,
      unless agreed otherwise between it and the subscriber.A2)

                

        

        

        
          If, in
order to receive cellular services, the subscriber used cellular end-user
equipment not purchased from the Licensee or from its designee, the Licensee is
not obligated to look out for the maintenance of this end-user equipment, but
may enter into an agreement with the subscriber for providing maintenance
services also for said equipment.

        

        

        
          
            
            

          

          
            52

            
              

            

          

          
            
            

          

           

        

        
          General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

          Combined
Version, as at August 20, 2007

           

        

        63.          Repair of
Malfunctions

        

        
          	
                  63.1

                	
                  The
      Licensee will maintain a regular service for handling subscribers' calls
      concerning problems with receiving cellular services, and to this end will
      operate centers for receiving messages from subscribers all year round
      (excluding Yom Kippur), and 24 hours a day (hereinafter – call
      center).

                

        

        

        
          	
                  63.2

                	
                  Without
      derogating from the generality of that stated in Section 63.1, the
      Licensee will operate the call center in a manner enabling the receipt of
      complaints from subscribers via telephone, in all pertaining to the
      Licensee's services.

                

        

        

        
          	
                  63.3

                	
                  The
      call center will be manned by skilled and professional personnel, having
      the appropriate competence for handling problems, and if a complaint has
      been received regarding a malfunction that led to disruption of the
      service or regarding poor reception quality, said personnel will act
      immediately to localize the malfunction and start taking measures to
      correct it, as detailed in Addendum
E.

                

        

        

        
          	
                  63.4

                	
                  The
      Licensee will repair any malfunction for which a notification was received
      at the call center, within the response time detailed in Addendum E. If
      identification or repair of the malfunction necessitates a visit at the
      subscriber's site, the Licensee will coordinate the repair date in advance
      with the subscriber, provided that the length of time the subscriber has
      to wait on said date does not exceed 4
hours.

                

        

        

        
          	
                  63.5

                	
                  The
      Director may, at the Licensee's request, extend the repair time for the
      malfunction if he deems that the time required for its repair exceeds that
      stated in this section, provided that the time is not extended by more
      than 5 days from the date on which the malfunction occurred. If the
      Licensee applied to the Director for extension of the malfunction repair
      time as stated, and no approval was given yet, the Licensee will continue
      to work to repair the malfunction at the soonest
  possible.

                

        

        

        
          	
                  63.6

                	
                  The
      Licensee will specify in the maintenance log the details of the
      malfunction and the steps taken to repair it, all as stated in Section
      52.

                

        

         

        64.          End-user equipment – Selling
and Renting

         

        
          	
                	
                   
      

                	
                  The
      Licensee may sell or rent out to its subscribers cellular end-user
      equipment for the purpose of linkup to the Cellular System, provided it
      complies with the following:

                

        

        

        
          The
Licensee has notified the subscriber that he may purchase cellular end-user
equipment from any licensed marketer and that he does not have to buy the
equipment from the Licensee in order to receive cellular
services;

        

         

        The
Licensee will not stipulate the provision of maintenance services for cellular
end-user equipment on the very receipt of cellular services from the Licensee,
and will notify the subscriber that he may receive maintenance service for
end-user equipment, from any person, including the end-user equipment purchased
or rented from the Licensee.

        

        
          
            
            

          

          
            53

            
              

            

          

          
            
            

          

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        65.           Public Emergency
Services

        

        
          	
                	
                  65.1A21)

                	
                  The
      Licensee will enable, anytime and at no charge, for all its subscribers,
      free and rapid access to public emergency services such as: Magen David
      Adom, the Israel Police and the Fire
Station.

                

        

        

        
          	
                	
                  65.2A42)

                	
                  Starting
      from April 5, 2007 (“the inception day”) the Licensee will enable the call
      centers of the public emergency systemsA)
      to identify the telephone number of a subscriber calling themB),
      anytime and at no charge, including a subscriber with a confidential
      telephone number, a subscriber who blocked his number before the call and
      a subscriber calling from a private
exchange.

                

        

        

        
          	
                   
      

                	
                  The
      Licensee may do the aforesaid through a licensee that routes the call to
      the public emergency system.

                

        

        

        
          	
                   
      

                	
                  Not
      later than two days before the inception dayA44)
      the Licensee will notify all its subscribers, clearly, in writing, that
      starting from the inception day it will be possible for the call centers
      of the public emergency systems to identify the subscriber’s telephone
      number, and it will notify in writing any subscriber requesting a
      “confidential number” – that the number is not confidential with respect
      to calls to the call centers of the public emergency
    systems.

                

        

        
          

          
            	65.AA16)  	Blocking Service to a Nuisance
      Subscriber

          

        

         

        
          	
                	
                  65.1A

                	
                  Notwithstanding
      that stated in Section 65.1, the Licensee will block a nuisance
      subscriber's access to the public emergency service. If blockage of public
      emergency service alone is not technically possible, then the Licensee
      will block the nuisance subscriber's access to all the cellular services.
      As regards this section, a "nuisance subscriber"
      denotes a subscriber who has contacted a certain emergency center, for no
      justifiable reason, more than 10 times during one whole day, using the
      end-user equipment in his
possession.

                

        

        

        
          	
                	
                  65.2A

                	
                  A
      notice regarding a nuisance subscriber will be submitted in writing to the
      Licensee by a senior employee in the public emergency service (hereinafter
      – the employee) and will be corroborated by an affidavit signed by the
      employee (hereinafter – the complaint). The complaint will include, inter
      alia, the name of the nuisance subscriber, his telephone number, insofar
      as these are known to the complainant, as well as a specification of the
      contact times of the nuisance subscriber, and the content of the call
      showing that the contact was made without any justifiable reason. If the
      complaint does not include the telephone number of the nuisance
      subscriber, the Licensee will act in a reasonable fashion, to identify the
      nuisance subscriber based on the data provided in the
      complaint.

                

        

        

        
          	
                	
                  65.3A

                	
                  The
      Licensee will block the nuisance subscriber's access to the emergency
      service as stated in Section 65.1A, after giving the nuisance subscriber
      advance warning. The notice will be given 3 workdays before the date of
      service blockage, in one of the following
ways:

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  A
      phone call from a service center of the Licensee to the cellphone
      end-equipment of the subscriber;

                

        

         

        
          
            
            

          

          
            54

            
              

            

          

          
            
            

          

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        
          	
                   
      

                	
                  B.

                	
                  An
      SMS message sent to the cellphone end-equipment of the
      subscriber;

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Delivery
      of a registered letter to the subscriber, except for one who is a prepaid
      subscriber and his address is
unknown.

                

        

        

        
          	
                	
                  65.4A

                	
                  Blockage
      of service to a nuisance subscriber who is a prepaid subscriber whose
      address is unknown will be done no later than one full day from the time
      of receiving a complaint or identification as stated in Section
      65.2A.

                

        

        

        
          	
                	
                  65.5A

                	
                  Notwithstanding
      that stated in Section 65.1A, the Licensee will not block the public
      emergency service to a subscriber, if the circumstances of contacting, as
      these emerge from the explanation given by the subscriber to the Licensee,
      show that the contacting was justified and that he should not be deemed a
      nuisance subscriber. The Licensee will forward to the Director, within 10
      workdays from the date of receiving the complaint or the identification as
      stated in Section 65.2A, the arguments for not blocking the nuisance
      subscriber.

                

        

        

        
          	
                	
                  65.6A

                	
                  In
      the event it blocked the nuisance subscriber's access to emergency calls,
      the Licensee may collect from the subscriber all his debts, and may also
      collect payment from him for removing the
block.

                

        

        

        
          	
                	
                  65.7A

                	
                  The
      Licensee may remove the block once the nuisance subscriber has given it a
      written undertaking not to repeat his nuisance calls in the
      future.

                

        

        

        
          	
                	
                  65.8A

                	
                  The
      Licensee will keep records of how the nuisance subscriber was identified,
      how the notice was given to the nuisance subscriber, or, alternatively, in
      a case where a notice was not given the nuisance subscriber, the reasoning
      for not giving the notice. Likewise, a record will be kept concerning the
      removal of the block.

                

        

        

        
          	
                	
                  65.9A

                	
                  The
      Licensee will specify, in the framework of the nuisance subscribers report
      as stated in Section 104(B)A43),
      the number of nuisance subscribers whose access to the public emergency
      service or to all the cellular services was blocked under this section,
      and the subscribers for whom said block was removed, as well as the number
      of subscribers that were not blocked under this section and the reasons
      for this.

                

        

        

        
          	66.A16)  	Protecting
      Subscriber Privacy
	 	 
	
                  66.1

                	
                  Without
      derogating from the provisions of the Law, The Wiretapping Law, 1979, The
      Privacy Protection Law, 1981, or any other law concerning the safeguarding
      of an individual's privacy, the Licensee may not wiretap the telephone or
      any other communication of the subscriber without the written permission
      of the subscriber, except for the purpose of controlling the quality and
      standard of the service or for preventing
  frauds.

                

        

        

        
          	
                  66.2

                	
                  Subject
      to that stated in Section 66A, the Licensee, its workers, agents and
      designees may not disclose lists or documents containing the name and
      address of a subscriber or any other information pertaining to him,
      including account details, phone call traffic, call durations and
      destinations, to any person whatsoever except to the subscriber or to
      anyone empowered by the subscriber for this
  purpose.

                

        

         

        
          
            
            

          

          
            55

            
              

            

          

          
            
            

          

           

        

        
          General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

          Combined
Version, as at August 20, 2007
 

        

        
          	
                  66.3

                	
                  Notwithstanding
      that stated in Section 66.2, the Licensee may do the
      following:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  To
      give the subscriber's details to another licensee for the purpose of
      collecting monies owed  him by the subscriber in respect of
      services it provided him through the network, provided that the
      information relayed is necessary fro collecting monies and preparing
      bills, and the other licensee has undertaken to safeguard the subscribers'
      privacy;

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  To
      transfer a subscribers' details to another, insofar as the particulars are
      in its possession, by lawful
authority.

                

        

         

        66A.T3)   Special
Services for the Security Forces

        

        
          	
                   
      

                	
                  (A)

                	
                  The
      Licensee will provide special services to the security forces as detailed
      in the classified security addendum attached to the license as Addendum I
      and in the classified security addendum attached to the license as
      Addendum LA12).

                

        

        

        
          	
                	
                              
       (A1)

                	
                  A12)
      The Licensee will enable the security forces, regarding which the Director
      informed in writing, to realize, subject to any law, their powers with
      respect to any telecommunications activity in the framework of the
      license, and will be responsible for the maintenance, proper functioning,
      and technological adaptation of the equipment and infrastructure required
      for realizing said execution capability, all in coordination with the
      security forces, as detailed in Addenda I and L. The security forces will
      bear the payment under the provisions of Section 13 of the
      Law.

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  The
      Licensee will see to it that Addenda I and L are guarded A12)
      in accordance with the provisions of the procedure for safeguarding
      records to be laid down by the Licensee in conjunction with the security
      officer of the "General Security
Service."

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  The
      Licensee will be exempt from the duty of indemnification toward the State,
      by virtue of the provisions of Section 91.2 of the general license and/or
      by virtue of any law, in respect of the very execution of the special
      services for the security forces.

                

        

         

        66B.A12)  Security
Provisions

        

        
          	
                   
      

                	
                  (A)

                	
                  The
      Licensee will appoint a security supervisor in accordance with the
      provisions of the Security Arrangement in Public Bodies Law, 1998, and
      rigorously follow the security provisions detailed in the Addendum M to
      the license.

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  The
      Licensee will establish appropriate provisions in the incorporation
      documents and in its regulations, and will act in such manner so that only
      a person who meets the conditions set out below will be appointed and
      serve in a position or function enumerated in Addendum M to the
      license:

                

        

        

        
          	
                   
      

                	
                  (1)

                	
                  An
      Israeli citizen, as this term is defined in the Citizenship Law, 1952, and
      a resident of Israel;

                

        

         

        
          
            

          
T3)  Amendment No.
3

        
          
            
            

          

          
            56

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

        

        
          	
                   
      

                	
                  (2)

                	
                  Was
      given security clearance by the General Security Service, by which there
      is no prevention to his serving as
stated.

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  The
      Licensee will act to safeguard the secrecy of the security forces'
      operations, and act according to the security directives of those same
      security forces, including in the matter of the appropriate security
      classification for officers and holders of important functions working for
      the Licensee, and compartmentalization of knowledge pertaining to
      activities involving the security
forces.

                

        

        

        
          	
                   
      

                	
                  (D)

                	
                  The
      Licensee will take the measures necessary to protect the network, its
      components and the databases used for providing services, and for
      operating and controlling the network in the face of activities carried
      out by unauthorized entities, according to the provisions detailed in
      Addendum M to the license.

                

        

         

        67.           Bills to
Subscribers

        

        
          	
                	
                  67.1A16)

                	
                  A
      bill that the Licensee submits to the subscriber should be clear,
      succinct, readable and understandable. The bill should contain an accurate
      breakdown of the components of the payment required according to the types
      of payments and the rules specified in Chapter
  F.

                

        

        

        
          	
                  67.2

                	
                  A
      credit due a subscriber from the Licensee will be included in the
      successive bill immediately after the subscriber's right to the aforesaid
      credit has been established.

                

        

        

        
          	
                  67.3

                	
                  The
      Licensee may collect payments for his services from the subscriber through
      another, including through Bezeq.

                

        

        

        
          	
                   67.4A34)

                	
                  (A)

                	
                  Without
      derogating from the rest of the license provisions pertaining to the
      manner of preparing the bill for the subscriber and to the manner of
      debiting, the Licensee will act in compliance with Israel Standard 5262,
      concerning debiting credibility and due disclosure in telephone bills
      (hereinafter – "the Standard").

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  Subsection
      (A) constitutes a "service condition," as concerns Section 37B(a)(1) of
      the Law.

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  Notwithstanding
      that stated in subsection (A) -

                

        

        

        
          	
                   
      

                	
                  (1)

                	
                  Regarding
      the provision in Section 2.2.2 of the Standard, the rounding off method
      will apply as follows:

                

        

        

        
          	
                   
      

                	
                  (a)

                	
                  An
      amount in the bill will be rounded off to the nearest amount ending in two
      digits after the decimal point of the shekel, with an amount ending in
      five tenths of an agora (three digits after the decimal point) to be
      rounded up.

                

        

        

        
          	
                   
      

                	
                  (b)

                	
                  An
      amount to be paid for a single call will be rounded off to the nearest
      amount ending in three digits after the decimal point of the shekel, with
      an amount ending in five hundredths of an agora (four digits after the
      decimal point) to be rounded up.

                

        

         

        
          
            
            

          

          
            57

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        
          	
                   
      

                	
                  (2)

                	
                  The
      Licensee may present any amount included in the bill with a breakdown
      exceeding that required by the provision in Section 2.2.2 of the Standard,
      provided the rounding off method stated in Subsection (C)(1) above will
      apply thereto.

                
	 	 	 
	 	
                  (3)

                	
                  The
      price of a phone call (voice) that includes a changing rate, will be
      presented in the bill submitted to the subscriber as an average price per
      minute, computed by dividing the payment amount for that same call by the
      its total number of minutes.

                
	 	 	 
	 	 	
                  In
      this paragraph, "changing rate" denotes a rate that varies in the course
      of the call according to various criteria, such as a rate that diminishes
      with increasing consumption, or a rate that varies due to a transition
      from a "peak period" to a "slack period" in the course of the call or vice
      versa.

                
	 	 	 
	 	(4)	
                  In
      addition to that stated in the provision of the last part of Section 2.2.4
      of the Standard regarding service packages, the bill will contain a
      breakdown of the services included in the package, along with the overall
      rate paid for the package as a whole.

                   

                  In
      this paragraph, "service package" denotes several services marketed to the
      subscriber as a single package, in return for an overall rate (and without
      a breakdown of the payment for each component
  separately).

                

        

        
        

         

        
          	
                   
      

                	
                  (D)

                	
                  (1)

                	
                  Chapter
      B in the Standard concerning due disclosure in telephone bills will come
      into effect no later than Friday, October 14,
  2005.

                

        

        

        
          	
                   
      

                	
                  (2)

                	
                  Chapter
      C in the Standard regarding debiting credibility will come into effect no
      later than Sunday, January 14,
2006.

                

        

         

        67A.A16)     Information
Service for Clarifying Telephone NumbersT39)

        

        
          	
                	
                  67.1A

                	
                  Without
      derogating from the provisions of Section 66, the Licensee will provide,
      by itself or through another on its behalf, an information service for
      clarifying the telephone number of anyone who is a subscriber of a NDO or
      of a Cellular System operator, excluding an ID-restricted subscriber
      (hereinafter – "information service"), as
  follows:

                

        

        
           

          
            	
                     
      

                  	
                    (A)

                  	
                    
                      For
      the general public and at no charge, via a website through which the
      service will be provided;

                    

                  

          

          
            
              	
                       
      

                    	
                      (B)

                    	
                      
                        For
      its subscribers, at a reasonable price, via a phone center, the access to
      which will be effected by means of a network access code set by the
      Director;

                      

                    

              
                	
                         
      

                      	
                        (C)

                      	
                        
                          The
      information service will be given through each of the aforesaid means
      based on the same information characteristics to be provided by the
      subscriber applying to receive the
  service.

                        

                      

              

            

          

        

        
          

          
            	
                  	
                    67.2A

                  	
                    Without
      derogating from that stated in Section 67.1A, the Licensee will provide to
      the general public and at no charge, by itself or through another, an
      information service for clarifying the telephone number of any subscriber,
      excluding an ID-restricted subscriber,

                  

          

           

           

            
              

            

          

          A39) Amendment
No. 39

          
            
              
              

            

            
              58

              
                

              

            

            
              
              

            

             

            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          	
                	
                   

                	
                  via
      a phone center, the access to which will be effected by means of a
      national access code set by the
Director.

                

        

        

        
          	
                	
                  67.3A

                	
                  In
      addition to that stated in Sections 67.1A and 67.2A, the Licensee may
      offer, at a reasonable price, by itself or through another on its behalf,
      an information service, by any other means, including by means of a
      national access code or by means of an
SMS.

                

        

        

        
          	
                	
                  67.4A

                	
                  In
      order to execute that stated in Subsections 67.1A and
    67.3A:

                

        

         

        
          	
                   
      

                	
                  (A)

                	
                  The
      Licensee may send a query on its behalf to any database of a NDO or
      cellular system operator (hereinafter – "another licensee"), or to receive
      information from the database of another licensee by any other method and
      with the consent of the other licensee, all subject to the duty of
      safeguarding the subscriber's
privacy;

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  In
      order for an information service to be provided by another licensee under
      its general license, the Licensee will enable any other licensee access to
      the Licensee's database;

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  The
      Licensee will update the database on a regular basis, so that each name,
      address or telephone number of a subscriber that was added, altered or
      removed, will be updated in the database within one workday following
      execution of the update in the Licensee's system being used to provide
      telephony services.

                

        

        

        As regards this section –

        
          	
                	
                   
      

                	
                  "Database"
      denotes a collection of data including the name, address and telephone
      number of any subscriber that is not ID-restricted, including a subscriber
      that is a business.

                

        

        

        
          	
                  67.5A

                	
                  (A)

                	
                  The
      Licensee will request the consent of each new subscriber for including his
      details in the database. If the subscriber gives his consent, the Licensee
      will include his details in the
database.

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  The
      Licensee will grant the first request of any subscriber who wishes to
      remain ID-restricted, free of
charge.

                

        

        
          	
                	
                   
      

                	
                  In
      this subsection, a "new subscriber" denotes a subscriber who has signed a
      contract with the Licensee after the commencement date as stated in
      Section 67.7A.

                

        

        

        
          	
                  67.6A

                	
                  (A)

                	
                  The
      terms for providing an information service for clarifying telephone
      numbers, given under Section 67A, will be established by the Licensee,
      provided they are fair and non-discriminatory, including as regards the
      order of the data presented to the user of the service. The service will
      be given twenty four (24) hours a day, all year round, except for Yom
      Kippur. In this subsection, "order of the data presented" – Insofar as the
      answer to the service user's query comprises several different data, the
      requested data will be presented to the service user in random
      order.

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  The
      response in respect of the information service for clarifying telephone
      numbers as stated in Section 67.2A will be given within a reasonable time.
      If the Director sees that the waiting times for the service are not
      reasonable, he may establish response time
  indexes.

                

        

        
          

          
            	
                     
      

                  	
                    (C)

                  	
                    An
      information service for clarifying telephone numbers as stated in Section
      67.1A(B) and an information service using a phone center, the access to
      which is 

                  

          
            
              
              

            

            
              59

              
                

              

            

            
              
              

            

             

            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

            

             

          

        

        
          	
                   
      

                	
                   

                	
                  effected
      by means of a national access code as stated in Section 67.3A, will comply
      with the service indexes specified
below:

                

        

         

        
          	
                   
      

                	
                  (1)

                	
                  At
      any time, in the event of a heavy service call load6, the number of inquirers receiving
      service should not be less than
90%;

                

        

        
          	
                   
      

                	
                  (2)

                	
                  The
      average waiting period of a caller until the start of receiving
      service7 should not exceed  30
      seconds;

                

        

        
          	
                   
      

                	
                  (3)

                	
                  The
      maximum waiting period for a caller until the start of receiving the
      service should not exceed 60
seconds.

                

        

        

        
          	
                	
                  67.7A

                	
                  Section
      67A will go into effect on February 8, 2007, except for Subsection
      67.1A(a), which will go into effect on March 15, 2007 (“the commencement
      date”), and except for Section 67.2AA45),
      which will go into effect at the time of signing this
      amendment.

                

        

        

        
          	
                	
                  67.8A

                	
                  The
      Licensee, by itself or through another, including together with another
      licensee, will advertise all the information services for clarifying
      telephone numbers given free of charge by the Licensee, as well as the
      national access codes allocated to the cellular service licensees for
      providing the service ("free information services"). The advertising
      should include at least the
following:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  The
      Licensee's website;

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  At
      least once every half year, the Licensee will attach, in the framework of
      the bill submitted to the subscriber, a separate information sheetA43)
      regarding the free information services, which will not include any other
      information, starting from the first bill submitted to the subscriber
      following the commencement date.

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  At
      least four (4) times during the first year following the commencement
      date, the Licensee will run large, prominent ads in at least the 3 largest
      Hebrew language newspapers, and in the largest newspaper in Arabic, in
      English and in Russian, as well as in the largest economic newspaper.
      These ads will include no other information. The first ad in all the
      aforesaid newspapers, except for the economic newspaper, will be on the
      first Friday after the commencement date or on the following one, and in
      the economic newspaper it will run on the first Tuesday after the
      commencement date or on the following one, regarding the free information
      services.

                

        

        

        Without
derogating from the foregoing, the Director may instruct the Licensee regarding
the manner and format for advertising the information services.

         

        67B.A43)     Void

         

        67C.A16)     Service
Dossier

        

        
          	
                	
                  67C.1

                	
                  If
      the Licensee wishes to operate a service included in the list of services
      in the First Schedule and marked “future”, it must notify the Director of
      this in writing not later than thirty (30) days before the date on which
      it plans to begin providing the
service.

                

        

         

        
          
            
              

            
6.    Busy
Hour Call Attempts

          7     Start
of receiving service – the beginning of the response by a center operator or of
an IVR system, which ask the inquirer for the information needed to find the
requested phone number and the like.

        

        
          
            
            

          

          
            60

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

        

        
          	
                	
                  67C.2

                	
                  If
      the Licensee wishes to operate a service not included in the list of
      services in the First Schedule which it intends to provide to any
      recipient of its services, it must notify the Director of this in writing
      not later than thirty (30) days before the intended date for commencement
      of provision of the new service.

                

        

        

        
          	
                	
                  67C.3

                	
                  The
      Director will notify the Licensee within thirty (30) days of the date of
      receipt of the Licensee’s notice as stated in sections 67C.1 and 67C.2,
      whether it is allowed to commence provision of the service or whether it
      must submit a service dossier for the Director’s approval, as a condition
      for commencement of the service.

                

        

        

        
          	
                	
                  67C.4

                	
                  The
      Licensee will submit a service dossier for the Director’s approval, at his
      request; If the Licensee fails to submit a service dossier as instructed
      by the Director, or if the Director does not approve the service dossier,
      the Licensee shall not commence provision of the
  service.

                

        

        

        
          	
                	
                  67C.5

                	
                  The
      Director will give a decision regarding the service dossier that was
      submitted to him within sixty (60) days from when the Licensee has
      submitted to the Director all the documents and information requested by
      him for the purpose of approving the service dossier. In special cases,
      the Director may extend the times set in this section, by a written,
      explanatory notice to be given to the
Licensee.

                

        

        

        
          	
                	
                  67C.6

                	
                  The
      Director may require the Licensee to submit for his approval a service
      dossier for an existing service regarding which no service dossier was
      previously required, and he may require the Licensee to submit for his
      approval a new service dossier for a service regarding which a service
      dossier was approved in the past.

                

        

        

        
          	
                	
                  67C.7

                	
                  The
      service dossier will be submitted to the Director in the format and at the
      time specified by the Director and will include, inter alia, the
      following: the name of the service; a detailed description of the service
      and the manner in which it is provided; the service rate, and an
      engineering description, all as set out in the First Schedule; The
      Director may give instructions on additional matters which are to be
      included in the service dossier.

                

        

        

        
          	
                	
                  67C.8

                	
                  If
      the service dossier is approved, the Licensee will provide the service
      according to the terms of the approved dossier, and the approved service
      dossier will be deemed an integral part of the
  license.

                

        

        

        
          	
                	
                  67C.9

                	
                  The
      Licensee will advertise an approved service dossier, with details and in
      the manner specified by the Director, and the Director may advertise it
      himself, provided he does not do so until after the Licensee has begun
      providing the service. The advertising will not include information
      comprising a trade secret, which was identified as such by the Licensee
      and attached to the service dossier as a separate addendum marked as a
      trade secret.

                

        

        

        
          	
                	
                  67C.10

                	
                  Any
      new service which the Licensee begins to provide pursuant to this section
      will be deemed a part of the First Schedule; The Director will update the
      First Schedule from time to time.

                

        

        

        
          	
                	
                  67C.11

                	
                  The
      provisions of this section will apply, mutatis mutandis, to a
      trial using the Licensee’s network.

                

        

        

        
          
            
            

          

          
            61

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        67D.A24)  Erotic
Service

         

        
        

        
          	
                   
      

                	
                  
                    An
      erotic service provided through the network, will be provided in
      accordance with the provisions of Addendum O in the Second
      Schedule.
As regards this section
–

                

        

        
          	
                   
      

                	
                  "Erotic
      service" – as defined in Section 1 of Addendum O in the Second
      Schedule.

                

        

        

        

        
          
            
            

          

          
            62

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

        

        Part
C: Termination, Delay or Restriction of Service

         

        68.           Definitions

        

        
          	
                   
      

                	
                  In
      this part –

                

        

        
          	
                   
      

                	
                  "Disconnection
      of service" – Temporary discontinuation of cellular system service to a
      subscriber;

                

        

        
          	
                   
      

                	
                  "Termination
      of service" – Absolute discontinuation of cellular system services to a
      subscriber.

                

        

         

        69.          Prohibition on the
Termination or Disconnection of Service

         

        
          	
                   
      

                	
                  The
      Licensee may not terminate or disconnect cellular system services and
      other services, which the Licensee must provide under this license, unless
      that stated in this part is fulfilled, or that stated in Section
      48.

                

        

         

        70.          Disconnection of Service at
Subscriber's Request

        

        
          	
                  70.1

                	
                  A
      subscriber may ask the Licensee for a temporary disconnection of service
      for a period no less than thirty days and no longer than ninety days
      (hereinafter – disconnection period). The subscriber's request will be
      made in writing, and may be done through the cellular system end-user
      equipment in his possession, provided that the Licensee has verified the
      request's credibility by a return call to the subscriber's cellular system
      end-user equipment or by any other reliable
way.

                

        

        

        
          	
                  70.2

                	
                  The
      Licensee will effect the disconnection of service no later than the
      workday following the day of the request's
  submittal.

                

        

        

        
          	
                  70.3

                	
                  The
      Licensee will resume the cellular system services to the cellular system
      end-user equipment in the subscriber's possession at the end of the
      disconnection period. If the subscriber requests, in a written notice, to
      resume the cellular system services to the cellular system end-user
      equipment in his possession before the end of the disconnection period,
      the Licensee will resume the services no later than the workday following
      the day on which the subscriber's notice was
  submitted.

                

        

         

        71.          Termination of Service at
the Subscriber's Request

        

        
          	
                  71.1

                	
                  A
      subscriber may request in writing from the Licensee the termination of
      service to the cellular system end-user equipment in his
      possession.

                

        

        

        
          	
                  71.2

                	
                  The
      Licensee will terminate the provision of cellular system services to the
      cellular system end-user equipment in the subscriber's possession no later
      than the workday following the date specified by the subscriber in his
      notice. If the subscriber did not specify a date, the termination of
      service will be done no later than the workday following the day on which
      the notice was received by the
Licensee.

                

        

        

        
          	
                	
                  71.3A2)

                	
                  Notwithstanding
      that stated in Section 71.2, the Licensee may disconnect service to the
      subscriber without prior notice with the fulfillment of one of the
      following:

                

        

         

        
          
            
            

          

          
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license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

        
 

        
          	
                   
      

                	
                  (A)

                	
                  The
      subscriber did not pay for the third time during the same year the bill in
      respect of the payments he was charged for cellular system services on the
      date set therefor in the payment notice. In this section, "year" denotes
      the period from January 1 to December
31;

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  There
      is reasonable suspicion of a fraudulent act being committed through the
      subscriber's end-user equipment or using the features of the end-user
      equipment;

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  the
      Licensee found that the subscriber used the cellular system services in an
      unusual amount for that type of subscriber, and after the Licensee's
      service center contacted the subscriber in a phone call placed to the
      end-user equipment in his possession, and the subscriber did not give a
      reasonable explanation for said anomaly. As regards this paragraph,
      consumption will not be deemed unusual when less than threefold the
      average consumption for the same type of
  subscribers.

                

        

        

        
          	
                	
                  71.A2)

                	
                  The
      Licensee may disconnect service to a subscriber if it has found that the
      end-user equipment in the subscriber's possession, through which the
      subscriber receives cellular system services, causes interference with the
      provision of cellular system services to other subscribers or interference
      with the cellular system activity, provided that the Licensee gave the
      subscriber anotice in writing of at least 21 days prior to the expected
      disconnection date. The notice will specify the reason for the expected
      disconnection and state that the subscriber is being given an opportunity,
      within an amount of time to be set in the notice, to repair the end-user
      equipment in such manner as to prevent said
  interference.

                

        

         

        72.          Termination or Disconnection
of Service Due to Breach of Agreement

        

        
          	
                  72.1

                	
                  The
      LicenseeA16)
      may terminate or disconnect the service to a subscriber if one of the
      following is fulfilled:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  The
      subscriber did not pay a payment he owes in respect of service he
      received, on the date set for its defrayal in his contract with the
      Licensee;

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  The
      subscriber breached a condition in the contract between him and the
      Licensee, which was established as a material
  condition;

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  The
      subscriber used unlawfully or allowed another to use as aforesaid the
      end-user equipment in his
possession.

                

        

        

        
          	
                  72.2

                	
                  Service
      to a subscriber will not be terminated or disconnected in the cases
      detailed in Section 72.1(A) and (B), except after the Licensee gives the
      subscriber a notice in writing at least 10 days prior to the expected
      termination or disconnection date. The notice will state that the
      subscriber is being given an opportunity, within the time set in the
      notice, to rectify the act or default, in respect of which the service
      will be terminated or disconnected.

                

        

         

        73.          Disconnection of Service Due
to Maintenance Operations

         

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

        

        
          	
                  73.1

                	
                  The
      Licensee may temporarily disconnect or restrict services that it is
      obligated to provide (hereinafter – disconnection due to maintenance), if
      the need to carry out vital cellular system maintenance or setup
      operations necessitates this, provided the following are
      fulfilled:

                

        

         

        
          	
                   
      

                	
                  (A)

                	
                  The
      duration of the disconnection due to maintenance does not exceed twelve
      (12) consecutive hours;

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  The
      number of disconnections due to maintenance does not exceed two (2) during
      a single year;

                

        

         

        
          	
                   
      

                	
                  (C)

                	
                  Void.A2)

                

        

        

        
          	
                  73.2

                	
                  The
      Director may ask the Licensee for a detailed explanation regarding the
      circumstances necessitating disconnection due to maintenance, and may ask
      the Licensee to postpone said disconnection if he came to the realization,
      after considering the Licensee's contentions, that a vital public interest
      necessitates such a postponement.

                

        

        

        
          	
                  73.3

                	
                  If
      due to the need to carry out vital maintenance or setup operations in the
      cellular system requires disconnection of service exceeding 12 hours, the
      Licensee will ask in advance for the Director's approval. The request will
      specify the maintenance operations required and the actions taken by the
      Licensee to speed up these operations and reduce, inasmuch as possible,
      the duration of the service
disconnection.

                

        

        

        
          	
                  73.4

                	
                  Void.
      A2)

                

        

        

        
          	
                  73.5

                	
                  If
      disconnection or restriction of service is required urgently for the
      purpose of carrying out immediate, vital operations, the Licensee will
      notify the Director forthwith, including by phone, cable or fax, regarding
      the urgent disconnection or restriction. The Licensee will notify its
      subscribers about the aforesaid urgent disconnection or restriction, as
      early as possible, including via the public address system operating
      through the cellular system, insofar as this is possible, as well as
      through the public media.

                

        

        

        
          	
                  73.6

                	
                  Notwithstanding
      that stated in Sections 73.1 and 73.4, the Licensee does not have to
      notify the Director or the subscribers about disconnection due to
      maintenance, when the following are
fulfilled:

                

        

         

        
          	
                   
      

                	
                  (A)

                	
                  The
      duration of the disconnection due to maintenance does not exceed half an
      hour;

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  Disconnection
      due to maintenance is being done between 24:00 Saturday night and 05:00
      Sunday morning the following day.

                

        

        

        Such a
disconnection will not be counted in the number of disconnections as required
under Section 73.1(B).

         

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

             

          

        

        CHAPTER F
– PAYMENT FOR SERVICESA8)

        

        Part
A – General

         

        73A.           Definitions

         

        In this
chapter –

         

        
          	
                  “Licensee” -

                	
                  Anyone
      to whom the Minister has granted, in accordance with the Law, a general or
      special license;

                
	 	 
	
                  “Airtime” -

                	
                  Duration
      of the time in which a subscriber receives cellular services, whether the
      connection is initiated by the subscriber or by someone
    else;

                
	 	 
	
                  “Airtime unit”A31A31)-

                	
                  Time
      unit of 12 seconds at the most, but starting from Thursday, 1 January
      2009, a time unit of 1 second.

                
	 	 
	
                  “Package of
      services” -

                	
                  Several
      services sold to a subscriber as a package, for which a rate has been set
      as specified in section 75.2.

                
	 	 
	
                  “Public
      telecommunications - network”
      -

                	
                  Including
      an international telecommunications system.

                
	 	 
	
                  “Payment for
      completion of
      a call” -

                	
                  Payment
      made by the initiator of a call which began on end-user equipment
      connected to one public telecommunications network and ended on another
      public telecommunications network, or on end-user equipment connected to
      such a public telecommunications network, for completing the call on the
      other public telecommunications
network.

                

        

         

        74.           Payment
Categories

         

        The
Licensee may collect from its subscribers payments for Cellular services, as
follows:

         

        
          	
                   
      

                	
                  (a)

                	
                  A
      onetime installation fee for connecting mobile or portable end-user
      equipment held by the subscriber to the Cellular system, including
      issuance of a smart (SIM) card to the subscriber, or a onetime
      registration fee (hereinafter – connection
fee);

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  A
      fixed payment;

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  Payment
      for airtime as specified in section
75A;

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  Payment
      for completion of a call as specified in section
  75A;

                

        

         

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        
          	
                   
      

                	
                  (e)

                	
                  Payment
      for basic telephone services, related services and value added services,
      detailed in the First Schedule to the
License;

                

        

         

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        Part
B – Setting and Publication of Rates

         

        75.          Setting the Rates and Their
Amount

         

        
          
            	
                  	
                    75.1

                  	
                    The
      Licensee shall fix a rate for every service and package of services
      provided by it to its subscribers, and it may determine the manner of
      linkage of the rate to the index. The Licensee shall notify the Director
      of the amount of each rate, before the rate comes into
    effect.

                  

          

        

         

        
          
            	
                  	
                    75.2

                  	
                    The
      Licensee may designate packages of services according to types of services
      included in the package or time periods or by any other method. The
      Licensee may set a separate rate for each of the services included in the
      package or set a general rate for the
package.

                  

          

        

         

        
          
            
              	
                    	
                      75.3

                    	
                      The
      Licensee shall offer each package of services at equal terms and at a
      uniform rate according to categories of subscribers; For purposes of this
      section, “category of subscribers” – A16)a
      group of subscribers whose attributes provide reasonable justification for
      distinguishing it from another
group.

                    

            

          

        

         

        
          
            	
                  	
                    75.4

                  	
                    The
      Licensee shall allow any subscriber, without discrimination, to switch
      from one package of services to another that is being offered by it at the
      time. The Licensee shall include such a provision in the contract with its
      subscribers. In the framework of this provision it may set times when it
      is permissible to make such a switch and it may set conditions, including
      payment terms, for implementing the
switch.

                  

          

        

         

        
          
            	
                  	
                    75.5

                  	
                    If
      the Licensee contracts with the subscriber in regard to a certain package
      of services, and the contract includes a condition whereby the subscriber
      commits to a certain contract period (hereinafter – the commitment
      period), the package of services, its rates and conditions shall be known
      and fixed in advance for the entire commitment period. The Licensee shall
      include such a provision in the contract with its subscribers. The
      Licensee may set, for a package of services, different rates that will
      apply during the commitment
period.

                  

          

        

         

        
          
            	
                  	
                    75.6

                  	
                    The
      Licensee may not condition a contract with a subscriber or a subscriber’s
      switch from one package of service to another on the purchase of value
      added services or end-user equipment from the
  Licensee.

                  

          

        

         

        
          
            	
                  	
                    75.7

                  	
                    A
      package of services in which a payment in installments is set for end-user
      equipment or for one of the services, shall include also a payment
      arrangement in the event that the subscriber wishes to be released from
      that package or to switch from that package to another package of
      services, according to the outstanding balance of the payments due from
      the subscriber or according to the remainder of the commitment
      period.

                  

          

        

        
           

          
            
              	
                    	
                      75.7

                    	
                      A
      package of services in which a payment in installments is set for end-user
      equipment or for one of the services, shall include also a payment
      arrangement in the event that the subscriber wishes to be released from
      that package or to switch from that package to another package of
      services, according to the outstanding balance of the payments due from
      the subscriber or according to the remainder of the commitment
      period.

                    

            

          

           

          
            
              	
                      
                        75.8

                      

                    	
                      (a)

                    	
                      
                        The
      Licensee may not collect from a subscriber payment for a call when the
      call was not initiated by the subscriber (hereinafter – uninitiated
      call).

                      

                    

            

          

        

         

        
          	
                   
      

                	
                  (b)

                	
                  Notwithstanding
      that stated in subsection (a), the Licensee may collect from a subscriber
      payment for an uninitiated call in the following
  cases:

                

        

         

        
          	
                   
      

                	
                  (1)

                	
                  Call
      transferred to the subscriber by means of a roaming
    service;

                

        

         

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          	
                   
      

                	
                  (2)

                	
                  Collect
      call to which the subscriber has given his
  agreement;

                

        

         

        
          	
                   
      

                	
                  (3)

                	
                  Call
      created by dialing a service number containing the access code 1-800, that
      was allocated to the subscriber under an agreement with
    him;

                

        

         

        
          	
                   
      

                	
                  (4)

                	
                  The
      subscriber’s share in a call created by dialing a service number
      containing the access code 1-700 (split debit), that was allocated to the
      subscriber under an agreement with
him.

                

        

         

        
          75.9A18) 
Inception

        

         

        
          	
                   
      

                	
                  (a)

                	
                  The
      Licensee may collect from a subscriber who initiates a call by means of
      access code 1-800, whose destination is on another licensee’s network, a
      lower rate than the one applying to the subscriber for a call not
      initiated through such an access code, provided it does not exceed the
      amount set by agreement between the Licensee and the other licensee, and
      in the absence of such agreement – does not exceed the amount set by the
      Minister2.

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  That
      stated in subsection (a) shall not apply to calls destined for 1-800
      numbers with a special numbering format that were allocated to the
      international operators for the purpose of providing international
      telecommunication message services, as this term is defined in the
      international operator’s licenseA).

                

        

         

        
          
            	
                  	
                    75.10

                  	
                    The
      payment for airtime will be determined in the manner set out
      below:

                  

          

        

         

        
          	
                   
      

                	
                  (a)

                	
                  The
      payment for airtime will be determined according to an airtime unitA31);
      For the purpose of calculating the payment, a part of an airtime unit
      shall be deemed the same as a whole airtime
  unit.

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  VoidA46).

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  The
      duration of the call for payment purposes is from the moment the
      connection is established between the subscriber who initiated the
      connection (hereinafter – the calling subscriber) and the subscriber
      receiving the call, until the moment when the call is terminated, which is
      the moment when an instruction to terminate the connection is received
      from the calling subscriber or from the subscriber receiving the call; The
      duration of the connection setup time, until the moment the connection is
      established, and the duration of the disconnection time, from the moment
      the instruction to terminate the connection is received until it is
      actually implemented, is not included in the count of the duration of the
      call.

                

        

        
           

          
            	
                     
      

                  	
                    In
      this regard, subscriber receiving the call – including a voice
      mailbox.

                  

          

           

        

        
          
            

          

            
            Inception
The inception of section 75.9 is on December 15, 2002.

          

            
            2 On
November 26, 2002, the Minister issued a directive prescribing as follows: For a
call originating in a cellular network and destined for a Bezeq subscriber for a
1-800 service Bezeq will transfer to the cellular licensee a sum of 22 agorot
per minute (excluding VAT); Bezeq may collect this amount from the 1-800
subscriber; In addition, the cellular licensee will collect from its subscriber,
who initiated the call, a sum not exceeding 22 agorot per minute (excluding
VAT).

          

            
            A)
Simultaneous two-directional voice transfer and simultaneous transfer of fax
messages, in an international telecommunications
system.

          

        

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        
          	
                   
      

                	
                  “Voice mailbox” – an
      installation or device forming part of the cellular system, designed
      to enable the calling subscriber to leave a voice message for the called
      subscriberA40).

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  A40)
      Regarding a call that is transferred to a voice mailbox, the Licensee
      shall play to the calling subscriber an introductory voice message,
      lasting at least 2 seconds (in this subsection – “message”), and will
      enable the calling subscriber, at his option, to disconnect the call
      without any debit, in the course of the message, or within a reasonable
      time being not less than one second after the end of the message (“reasonable time”). In
      such case, the moment of establishing the connection with the subscriber
      receiving the call, within the meaning of subsection (c) above, will be
      deemed to occur at the end of the reasonable time.

                   

                  
                    The
      wording of the message will be: “The call is being transferred to a voice
      mailbox,” and it will be articulated clearly and at a reasonable speed. In
      this subsection, “call
      transferred to a voice mailbox” – excluding a call originating in
      an international telecommunications
  system.

                  

                

        

         

        75A.         A25)Completion
of a Call in Another Public Telecommunications Network

         

        
          	
                   
      

                	
                  The
      payment for completion of a call to be collected by the Licensee shall not
      exceed the interconnection rate specified in the Telecommunications
      Regulations (Payments for Interconnection),
  2000.

                

        

         

        75B.        A2A25)Completion
of an SMS on Another Public Telecommunications Network

         

        
          	 	The
      Licensee may collect from a subscriber for the transfer of an SMS which is
      being transferred from end-user equipment that is connected to the network
      to end-user equipment that is connected to a cellular system of another
      cellular licensee, a
      payment not exceeding the payment which the Licensee collects from the
      subscriber for the transfer of an SMS which is transferred from end-user
      equipment that is connected to the network to end-user equipment that is
      connected to the network, plus a payment not exceeding the rate for the
      transfer of an SMS specified in the Communications Regulations
      (Telecommunications and Transmissions) (Payments for Interconnection),
      2000. 
	 	 
	
                   
      

                	
                  For
      purposes of this section –

                
	 	 
	 	“SMS”
      – telecommunications messages comprised of writing, including signs or
      symbols, transferred from end-user equipment that is connected to the
      network, to end-user equipment that is connected to the network or to a
      cellular system of
      another cellular
      licensee. 

        

         

        75C.       A27)Temporary
Order

         

        
          	
                   
      

                	
                  Notwithstanding
      that stated in section 75B, for the period beginning May 9, 2004 and
      ending February 9, 2005A29),
      the following provisions shall
apply:

                

        

         

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        
          	
                   
      

                	
                  (a)

                	
                  The
      Licensee may collect from a subscriber for the transfer of an SMS which is
      destined for end-user equipment that is connected to a cellular system of another
      cellular licensee
      (hereinafter – “inter-network SMS”) a payment not exceeding the payment
      which the Licensee collects from the subscriber for the transfer of an SMS
      which is transferred from end-user equipment that is connected to the
      network to end-user equipment that is connected to the network, plus a
      payment not exceeding the rate for the transfer of an SMS specified in the
      Communications Regulations (Telecommunications and Transmissions)
      (Payments for Interconnection), 2000, less a rate of 0.7%8;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  The
      Licensee may collect from a subscriber payment for an inter-network SMS as
      stated in subsection (a), even if its transfer to the called subscriber
      was not completed.

                

        

         

        76.          Publication of
Rates

        
        

        
           

          
            	
                  	
                    76.1

                  	
                    
                      The
      Licensee shall provide to anyone so requesting, at the service offices and
      at the call centers, free of charge, full and detailed information
      concerning the up-to-date rates for all its services, including the
      payment for completion of a call; The Director may instruct the Licensee
      concerning the manner and format of publication of the
      rates.

                    

                  

          

           

        

        
          	
                	
                  76.2

                	
                  The
      Licensee shall indicate in every account sent to a subscriber the package
      of services according to which the subscriber is being
      debited.

                

        

         

        
          	
                	
                  76.3

                	
                  The
      Director may request to receive from the Licensee at any time details of
      the rates charged by it.

                

        

         

        77.           VoidA43)

         

        77A.        Fraud
Prevention

         

        
          	
                	
                  77A.1

                	
                  The
      Licensee shall take suitable and reasonable steps to prevent fraud and
      shall maintain a control and follow-up system for verifying, to the extent
      possible, that the calls for which the subscriber is being debited were
      actually made from end-user equipment connected to the Licensee’s cellular system in the
      subscriber’s name.

                

        

         

        
          	
                	
                  77A.2

                	
                  The
      Licensee shall disconnect the service to the subscriber’s end-user
      equipment after receiving at the service offices the subscriber’s
      notification that the end-user
equipment

                

        

         

        
        

        

          
            

          

        

            

        
          8 The 0.7%
reduction is based on a report received from some  cellular operators
concerning the rate of inter-network SMS messages that did not reach their
destination. Section 75C was enacted as an temporary order, with
the  cellular operators to make the necessary adjustments in
the  cellular systems and in the interconnection arrangements between
them to enable full implementation of section 75B of their license. To remove
doubt, it is clarified that this temporary order was enacted only for a limited
time,  owing to difficulties that were pointed out by
the  cellular operators concerning the possibility of receiving
information about non-completion of an SMS on another  cellular
network; However, beyond this, nothing may be inferred from this temporary
arrangement concerning permission to collect payment for an SMS that was not
transferred to its destination, and said arrangement does not detract from the
Ministry’s basic position according to which, in general, no payment may be
collected for a telecommunications service that was not realized.

           

          
            
              
              

            

            
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              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

               

            

            
              
                	
                      	
                         

                      	
                        was
      lost or stolen, or that there is a possibility that someone else is making
      calls through the end-user equipment without having received permission to
      do so; The subscriber may give such a notification by telephone or in
      writing, including by fax or email; Upon receipt of a telephone
      notification or immediately after receipt of a written notification, the
      Licensee shall verify its reliability and disconnect the
      service.

                      

              

               

              
                	
                      	
                        77A.3

                      	
                        The
      Licensee shall cooperate with other licensees in locating and preventing
      fraud.

                      

              

               

            

            
              
                
                

              

              
                72

                
                  

                

              

              
                
                

              

               

              
                General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

                Combined
Version, as at August 20, 2007

              

               

            

          

        

        Part
C – Changes in the Rates

         

        78.A43)     Change in the
Rates

         

        
          	
                   
      

                	
                  Subject
      to that stated in section 75, the Licensee may change the rate that was
      set by it for any service or basket of services (in this section –
      “service”), provided:

                

        

         

        
          	
                   
      

                	
                  (a)

                	
                  It
      submits to the Director a written notice giving details of the new rate,
      before such rate goes into effect;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  It
      gave prior written notice to every subscriber who joined the service;
      Notwithstanding that stated, notice regarding a reduction may be given to
      the subscriber up to one month after the
  reduction.

                

        

         

        
          	
                	 	
                  For
      purposes of this section, “change” – any change in a rate resulting in an
      increase or reduction in the payment before VAT which a subscriber is
      required to pay for the
      Licensee’s services.

                

        

         

        79.           Start of an Increase or
Reduction in a Rate

         

        
          	
                   
      

                	
                  In
      case of an increase or reduction in any rate for cellular services according
      to the provisions of the license, such increase or reduction shall not
      apply to payments made for such a service prior to the starting date of
      the increase or the reduction; An increase or reduction shall apply only
      to cellular services
      provided to a subscriber after the date of the increase or reduction; This
      section shall not apply to a rate adjustment ordered by the Minister under
      section 83(A).

                

        

         

        80.           Arrears in
Payment

         

        
          	
                	
                  80.1

                	
                  The
      Licensee may debit a subscriber arrears interest, linkage differences and
      collection costs on payments for cellular services which
      were not paid by a subscriber on their stipulated payment date, in a
      payment notice sent to the subscriber, according to the contract between
      themA33)
      (hereinafter – the payment date).

                

        

         

        
          
            
              	
                      80.2

                    	
                      
                        VoidA43)

                      

                    

            

          

        

         

        
          	
                	
                  80.3

                	
                  The
      amount of the arrears interest shall not exceed the rate specified in the
      definition of “linkage differences and interest” in section 1 of the
      Adjudication of Interest and Linkage Law, 1961, plus linkage differences
      for the period between the stipulated payment date and the actual payment
      date of the specified amount.

                

        

         

        
          	
                	
                  80.4

                	
                  A33)The
      Licensee may debit a subscriber collection costs on a payment for a
      service which it provided to the subscriber, which was not paid on the
      payment date (hereinafter – the amount of the debt), provided at least
      fourteen (14) days have elapsed from the payment date, excluding a case of
      nonpayment due to the bank’s or the credit-card company’s refusal to pay a
      debit for the collection of which the Licensee received an authorization;
      The amount of the collection costs to be collected by the Licensee shall
      be reasonable and in proportion to the amount of the debt and the actions
      which the Licensee must take in order to collect it.: In this regard,
      “collection costs” – including legal handling by the Licensee or someone
      acting on its behalf, of the collection of the amount of the debt before
      application is made to the courts.

                

        

         

        
          
            
            

          

          
            73

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        Part
D – Miscellaneous

         

        81.          Onetime Debit for Connection
Fee

         

        
          	
                   
      

                	
                  If
      the Licensee decides to collect a connection fee as defined in section
      74(A), it may debit a subscriber a connection fee only for the connection
      of the subscriber for the first time to the cellular network and the
      provision of the cellular services, or for a
      connection after the termination of a service under section 71 or the
      termination or disconnection of a service under section
  72.

                

        

         

        82.          Collection of Subscription
Fee in Installments

         

        
          	
                   
      

                	
                  The
      Licensee may collect the connection fee as stated in section 81 for
      connection to the cellular system in a number
      of installments, at the times agreed upon with the subscriber and in the
      amount specified in the contract.

                

        

         

        83.          Harm to Competition or to
Consumers

         

        
          	
                   
      

                	
                  (a)

                	
                  If
      the Minister finds that any of the Licensee’s rates or any payment
      required to be made to or through the Licensee is contrary to the
      provisions of the License, the Minister shall notify the Licensee in that
      regard, indicating the correction that needs to be made and that if the
      Licensee fails to do so, the Minister will act pursuant to his power under
      sections 5 and 15 of the Law; The Licensee shall send the Minister a
      written notification setting out the corrected rate and shall act to
      refund the excess amount, if any, which a subscriber was debited according
      to the rate prior to its
correction.

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  If
      the Minister finds that any of the Licensee’s rates or any payment
      required to be made to or through the Licensee is unreasonable or is
      liable to harm competition or the consumers, the Minister shall notify the
      Licensee in that regard, indicating the correction that needs to be made
      and that if the Licensee fails to do so, the Minister will act pursuant to
      his power under sections 5 and 15 of the Law; The Licensee shall send the
      Minister a written notification setting out the corrected
    rate

                

        

         

        

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        CHAPTER G: PAYMENTS FROM THE
LICENSEE, LIABILITY, INSURANCE AND GUARANTEE

        

        Part A – Royalties and
PaymentsA16)

         

        84.           Royalties

         

        
          	
                	
                  84.1

                	
                  The
      Licensee shall pay royalties as prescribed in the Telecommunications
      Regulations (Royalties), 2001, or in any other regulations replacing them
      (hereinafter – “the
      Royalties Regulations”).

                

        

         

        
          	
                	
                  84.2

                	
                  To
      every payment of royalties under this section the Licensee shall attach
      two copies of an unaudited quarterly income report, signed by the Licensee
      and certified by an accountant; The report shall contain a detailed
      calculation of the liable income according to the Royalties Regulations,
      and any other particular on which the Licensee based the amount of the
      royalties.

                

        

         

        
          	
                	
                  84.3

                	
                  Upon
      the submission of an annual income report audited and signed by the
      Licensee’s accountant (hereinafter: “the audited report”),
      the Licensee shall submit a report, prepared by quarters, setting out the
      adjustment between the income on which it paid royalties, and the income
      appearing in the audited report (hereinafter – “the adjustment
      report”).

                

        

         

        
          	
                	
                  84.4

                	
                  If
      it becomes apparent that the amount of the royalties to be paid by the
      Licensee, according to the adjustment report, is greater than the amount
      paid by it for the quarter to which the audited report relates, the
      Licensee shall pay royalties differences, in addition to interest and
      linkage differences, as prescribed in the Royalties
      Regulations.

                

        

         

        
          	
                	
                  84.5

                	
                  If
      it becomes apparent that the amount of the royalties paid by the Licensee
      is greater than the amount it was required to pay for the quarter to which
      the audited report relates, the Licensee shall be credited with the amount
      of the excess payment; The excess payments to which the Licensee is
      entitled shall be offset, pursuant to a written approval of the Director,
      from the next payment of royalties, and linkage differences and interest
      shall be calculated according to the last index published before the date
      of the offset; In this regard – interest and linkage differences, as
      prescribed in the Royalties
Regulations.

                

        

         

        85.           Arrears in the Payment of
Royalties

         

        
          	
                   
      

                	
                  The
      Licensee shall pay linkage differences, arrears interest and collection
      costs, as set forth in the Royalties Regulations, on royalties that were
      not paid at the time stipulated therefor in the
    regulations.

                

        

         

        86.           Payment
Method

         

        
          	
                   
      

                	
                  Royalties
      as well as linkage differences, arrears interest and collection costs in
      respect thereof shall be paid to the Ministry of Communication’s
      accountant by a bank transfer to the ministry’s
  account.

                

        

         

        87.           Other Mandatory
Payments

         

        
          	
                   
      

                	
                  The
      royalties under this Part shall be in addition to any other fee, tax or
      mandatory payment which the Licensee is required to pay under any
      law.

                

        

         

        
          
            
            

          

          
            75

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        Part
B – Liability and Insurance

         

        88.           Definition of Scope of
Insurance

         

        
          	
                   
      

                	
                  In
      this Part, “use of the license” – setup, installation, maintenance, upkeep
      or operation of the cellular system, whether by the Licensee itself or
      through anyone acting on its behalf, including its employees, contractors,
      agents or representatives.

                

        

         

        89.           Licensee’s
Liability

         

        
          	
                	
                  89.1

                	
                  The
      Licensee shall be liable at law for death, damage or loss to the body or
      property of any person, directly or indirectly resulting from or
      consequent on the use of the
license.

                

        

         

        
          	
                	
                  89.2

                	
                  When
      using the license, the Licensee shall take all reasonable precautions to
      prevent damage or loss to the body or property of any person, and where
      such damage or loss was caused due to the use of the license, the Licensee
      shall repair the damage at its expense and compensate the aggrieved party,
      all subject to any law, excluding a case in respect of which the Minister
      granted the Licensee immunity as specified in section
  90.

                

        

         

        
          	
                   
      

                	
                  To
      avoid doubt, this section shall not impose on the Licensee liability
      beyond the liability in torts established in the regular law of
      torts.

                

        

         

        90.           Immunity from
Liability

         

        
          	
                	
                  90.1

                	
                  The
      Minister may, at the Licensee’s request, grant it all or any of the
      immunities enumerated in Chapter I of the Law, subject to that stated in
      section 90.3.

                

        

         

        
          	
                	
                  90.2

                	
                  The
      Licensee shall set out in its request the immunities which it is
      requesting and the reasons
therefor.

                

        

         

        
          	
                	
                  90.3

                	
                  If
      the Minister is persuaded of the necessity of granting the Licensee the
      immunities under Chapter I of the Law, he shall publish his decision in a
      notice in Reshumot.

                

        

         

        91.           Making an Insurance
Contract

         

        
          	
                	
                  91.1

                	
                  The
      Licensee shall make, at its expense, an insurance contract with a licensed
      insurer according to the terms contained in section 92; The insurance
      contract shall be presented to the Director at the time of the grant of
      the license.

                

        

         

        
          	
                	
                  91.2

                	
                  The
      Licensee shall indemnify the State in respect of any financial liability
      as stated in section 89.1, for which it may be held liable towards a third
      party due to the use of the license; Any indemnity under this section
      shall be insured by the Licensee for liability
  insurance.

                

        

         

        
          	
                	
                  91.3

                	
                  The
      Licensee shall insure itself, including its employees and contractors,
      against any financial liability as stated in section 89.1, for which it
      may be held liable at law owing to damage caused to the body or property
      of a person from the use of the license, and against any loss or damage
      caused to all or a part of the cellular system from the use of the
      license, including against third party
risks.

                

        

         

        
          	
                	
                  91.4

                	
                  The
      Licensee shall submit to the Director an opinion of a lawyer specializing
      in insurance, confirming that the insurance policy covers everything
      required in sections

                

        

        
           

          
            
              
              

            

            
              76

              
                

              

            

            
              
              

            

             

            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

            

          

           

          
            	
                  	
                     

                  	
                    91.2
      and 91.3; The Licensee shall attach to the opinion a copy of the insurance
      contract and its attachments; Said documents shall be submitted to the
      Director within 7 days of the signing of the insurance contract and shall
      be attached to this license as Addendum
G.

                  

          

           

          
            
              
              

            

            
              77

              
                

              

            

            
              
              

            

          

        

        92.           Conditions in the Insurance
Contract

         

        
          	
                	
                  92.1

                	
                  The
      insurance contract shall specify the period of insurance and shall
      stipulate that at the end of the period of insurance the insurance shall
      be extended automatically.

                

        

         

        
          	
                	
                  92.2

                	
                  The
      Licensee shall present to the Director, once a year, the insurer’s
      confirmation that the insurance contract is valid, there are no arrears in
      the Licensee’s payments of the premiums and there are no pending notices
      concerning the cancellation, suspension, limitation, amendment or
      termination of the insurance
contract.

                

        

         

        
          	
                	
                  92.3

                	
                  The
      insurance contract shall stipulate that in the event the insurer wishes to
      cancel the insurance contract, owing to nonpayment of the premium, it must
      give the Director prior notice in that regard not less than 90 days before
      the contract is actually due to be cancelled (hereinafter in this section
      – cancellation notice).

                

        

         

        
          	
                	
                  92.4

                	
                  If a
      cancellation notice has been sent as stated in section 92.3, the Licensee
      shall act immediately to eliminate the cause of the cancellation, or shall
      act immediately to obtain an alternative insurance contract as stated in
      section 92.6, and it shall notify the Director of the actions it took for
      this purpose; Where the cause of cancellation was nonpayment of the
      premium by the Licensee, the Director may pay the premium in the
      Licensee’s stead, and he may exercise the bank guarantee or any part
      thereof to cover amounts which he expended on payment of the premium or
      collect them in any other manner.

                

        

         

        
          	
                	
                  92.5

                	
                  If
      the Licensee wishes to cancel the insurance contract, it must notify the
      Director in that regard at least 45 days before the contract is actually
      due to be cancelled.

                

        

         

        
          	
                	
                  92.6

                	
                  If
      the Licensee has agreed to the cancellation of the insurance contract by
      the insurer or itself wishes to cancel the insurance contract, it shall
      make an insurance contract with another licensed insurer, in such manner
      that the new insurance contract will come into effect simultaneously with
      the lapse of the previous contract; The new insurance contract shall be
      submitted for approval to the Director, together with an opinion as stated
      in section 91.4, 45 days before its effective date, and it shall be
      subject to the provisions of the sections in this
  Part.

                

        

         

        93.           Remedy for Breach of
Conditions with Respect to Insurance

         

        
          	
                   
      

                	
                  If
      the Licensee did not make an insurance contract, or if it becomes apparent
      that the insurance contract which it made was cancelled or expired, the
      Director may effect insurance and pay the premium in the Licensee’s stead,
      and it may exercise the bank guarantee to cover amounts expended by it on
      the insurance or collect them in any other manner; All the foregoing
      without derogating from the authority to cancel, restrict or suspend the
      license owing to the Licensee’s failure to effect insurance according to
      the terms of this license.

                

        

        

        
          
            
            

          

          
            78

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        Part
C – Guarantee to Secure Fulfillment of the Terms of the License

        

         

        94.           The Guarantee and Its
Purpose

         

        
          	
                	
                  94.1

                	
                  A30)The
      Licensee shall present to the Director an unconditional bank guarantee in
      favor of the State of Israel, in shekels, equivalent to ten (10) million
      US dollars, as security for fulfillment of the terms of the License; The
      guarantee is attached to this license as Addendum H to the Second
      Schedule.

                

        

         

        
          	
                	
                  94.2

                	
                  The
      guarantee shall serve as security for fulfillment of the terms of the
      license and for compensation and indemnification of the State for any
      damage, payment, loss, detriment or expense caused or liable to be caused
      to the State – whether directly or indirectly – due to nonfulfillment of
      all or any of the terms of the license, fully and on time, or due to the
      cancellation, restriction or suspension of the
  license.

                

        

         

        95.           Exercise of the
Guarantee

         

        
          	
                	
                  95.1

                	
                  Without
      derogating from the general purport of section 94.2, the Director may
      exercise the guarantee, in whole or in part, if damage is caused due to
      nonfulfillment of the terms of the license, including in each of the cases
      set out below:

                

        

         

        
          	
                   
      

                	
                  (a)

                	
                  The
      State incurred a loss of income from royalties owing to a lack of revenues
      from subscribers’ payments, including by reason
  of:

                

        

         

        
          	
                   
      

                	
                  (1)

                	
                  Failure
      to operate the cellular services at a time stipulated therefore in the
      timetable determined by the Director, or as approved by the
      Director;

                

        

         

        
          	
                   
      

                	
                  (2)

                	
                  Discontinuation,
      suspension or restriction of
services;

                

        

         

        
          	
                   
      

                	
                  (3)

                	
                  Restriction
      or suspension of the license;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  No
      insurance contract was made according to sections 91-92, the premium was
      not paid, or the insurance contract was cancelled or
    expired;

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  The
      Licensee is debiting its subscribers for payments contrary to that stated
      in section 75;

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  The
      Licensee is not complying with the coverage and service quality
      requirements as stated in Appendix B, or the Licensee consistently stops,
      suspends or limits the service contrary to the provisions of the
      license;

                

        

         

        
          	
                   
      

                	
                  (e)

                	
                  The
      Licensee does not convert the cellular system to a digital technology by
      the date specified in Appendix B.

                

        

         

        
          	
                   
      

                	
                  (f)

                	
                  The
      Licensee consistently or willfully violates any of the provisions, terms
      or requirements of the license;

                

        

        
           

          
            	
                     
      

                  	
                    (g)

                  	
                    A
      claim or demand was submitted against the State for payment of
      compensation and damages due to a violation of a condition in the license
      or faulty implementation of the license or due to the cancellation of the
      license, and where the State incurred expenses due to such claim or
      demand; The exercise of the 

                  

          

           

          
            
              
              

            

            
              79

              
                

              

            

            
              
              

            

             

            
              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

            

          

        

         

        
          	
                   
      

                	
                   

                	
                  guarantee
      for the purpose of covering the amount of a claim as stated, shall be done
      only after the judgment in that claim has become
  absolute;

                

        

         

        
          	
                   
      

                	
                  (h)

                	
                  Royalties
      according to section 74 were not paid fully and on
  time;

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  The
      State incurred costs or damage due to the cancellation of the
      license;

                

        

         

        
          	
                   
      

                	
                  (j)

                	
                  The
      Licensee did not complete the guarantee fees as specified in sections 96.2
      and 79.2.

                

        

         

        
          	
                   
      

                	
                  (k)

                	
                  A16)The
      Licensee did not present the license fee on the required date, as
      stipulated in section 40.1 of the conditions of Tender No.
      1/01.

                

        

         

        
          	
                   
      

                	
                  (l)

                	
                  A16)A
      monetary sanction was imposed on the Licensee in accordance with the law,
      and the required amount was not paid on time, provided no amount above the
      amount of the sanction is
collected.

                

        

         

        
          	
                	
                  95.2

                	
                  The
      Director may exercise the guarantee as stated in this Part also by reason
      of an expected violation of the terms of the license or frustration of the
      terms of the license that justify, at his discretion, early exercise of
      the guarantee.

                

        

         

        96.           Manner of Exercise of the
Guarantee

         

        
          	
                	
                  96.1

                	
                  The
      Director may exercise the guarantee, in whole or in part, up to the amount
      specified therein, provided it warned the Licensee that if it does not
      correct the act or omission the subject of the warning within the period
      specified in the warning – the guarantee will be exercised, in whole or in
      part.

                

        

         

        
          	
                	
                  96.2

                	
                  If
      the entire amount of the guarantee or a part thereof was exercised, the
      Licensee shall provide a new guarantee or complete the balance up to the
      original amount of the guarantee immediately upon the Director’s demand;
      Failure to complete the amount of the guarantee as stated shall constitute
      a material breach of the terms of the license, and the Director may –
      without derogating from his authority to cancel, restrict or suspend the
      license – exercise any remaining balance of the
  guarantee.

                

        

         

        
          	
                	
                  96.3

                	
                  The
      Licensee may appeal a decision of the Director to exercise the guarantee,
      in whole or in part, before the Minister within 15 days of being notified
      of the Director’s decision.

                

        

         

        97.           Term of Validity of the
Guarantee

         

        
          	
                	
                  97.1

                	
                  The
      guarantee shall be valid throughout the term of validity of the license
      and for A16)two
      years after the end of the term of the license, or until the Licensee
      satisfies all its obligations under the license to the Director’s
      satisfaction – according to the later of these two
  dates.

                

        

         

        
          	
                	
                  97.2

                	
                  If
      the Director determines that the Licensee did not satisfy all its
      obligations under the license, within 60 days before the expiry of the
      term of the guarantee, he may require the Licensee to extend the term of
      the guarantee or to present a new guarantee, within the period specified
      by the Director; The new guarantee shall be valid up to the date specified
      by the Director or until the Licensee satisfies, to the Director’s
      satisfaction, all its obligations under the licenses – according to the
      later of these two dates; If the 

                

        

        
          
            
            

          

          
            80

            
              

            

          

          
            
            

          

           

          
            
              
                
                   

                  
                    General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

                    Combined
Version, as at August 20, 2007

                  

                  
                     

                  

                

                
                  	
                        	
                           

                        	
                          Licensee
      fails to present a new guarantee as stated, the Director may exercise the
      guarantee.

                        

                

                 

              

            

            
              	
                    	
                      97.3

                    	
                      Where
      the Director confirmed receipt of a guarantee the validity of which may be
      extended from time to time upon his demand, the Licensee shall extend the
      validity of the guarantee before the expected end of its term, for a year,
      unless the Director exempted it from this obligation; If the Director
      did not grant an exemption from the obligation to extend the validity of
      the guarantee, and the validity of the guarantee was not extended at the
      specified time, the Director may exercise the guarantee in its entirety
      without advance warning.

                    

            

          

        

        
           

          
            
              
              

            

            
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              General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

              Combined
Version, as at August 20, 2007

            

          

           

        

        98.           Preservation of
Remedies

         

        
          	
                	
                  98.1

                	
                  Exercise
      of the guarantee, in whole or in part, does not derogate from the
      authority to cancel, restrict or suspend the
  license.

                

        

         

        
          	
                	
                  98.2

                	
                  The
      amount of the guarantee shall not serve to limit the scope of the
      Licensee’s liability towards the State for payment of the full damages
      caused to it, where the Licensee is obligated to make such payment under
      the license or by law.

                

        

         

        
          	
                	
                  98.3

                	
                  The
      exercise of the guarantee, in whole or in part, shall not derogate from
      the Director’s right to demand from the Licensee in any other manner
      payment for damages which it is obligated to cover under this license or
      to exercise other reliefs that are available to him by
  law.

                

        

         

        
          
            
            

          

          
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            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        CHAPTER EIGHT – SUPERVISION
AND REPORTING

        

        Part
A: Supervision of Licensee’s Activities

        

         

        99.           Supervisory
Power

         

        
          	
                   
      

                	
                  The
      Director or anyone authorized by him for this purpose may supervise the
      Licensee’s activities with respect to the implementation of the license
      and compliance with the provisions of the Law, the Ordinance and the
      Regulations pursuant thereto.

                

        

         

        100.           Preservation of
Confidentiality

         

        
          	
                   
      

                	
                  The
      Director and anyone engaging on his behalf in supervising the Licensee
      shall not disclose any information or document coming into their
      possession by virtue of their function, to a person who is not authorized
      to receive such information or document, unless it was already published
      in public or disclosure is necessary for the performance of their function
      under this license or by law.

                

        

         

        101.        Entry to Premises and
Inspection of Documents

         

        
          	
                   
      

                	
                  For
      the purpose of exercising the supervision as stated in this Part, the
      Director may:

                

        

         

        
          	
                   
      

                	
                  (a)

                	
                  Enter
      at any reasonable time any facility or office used by the Licensee to
      provide its services under this
license.

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  Carry
      out measurements and tests on the cellular system, and he may inspect any
      record, document, plan, account book, ledger or data base, whether regular
      or computerized, of the Licensee or of anyone employed by the Licensee in
      subjects over which the Director has supervisory power as stated; The
      Director may inspect them and copy them in any manner he deems
      fit.

                

        

         

        102.        Cooperation

         

        
          	
                   
      

                	
                  The
      Licensee shall cooperate with the Director or with anyone authorized by
      him with respect to the exercise of supervision over its activities as
      stated, and without derogating from the general purport of the aforesaid,
      it shall allow them to carry out that stated in sections 100 and 101 and
      shall furnish to them, upon their demand, any information in its
      possession or control that is required by them for the exercise of the
      supervision.

                

        

         

        
          
            
            

          

          
            83

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        Part
B: Reporting and Correction of Defects

         

        103.A43)  Duty of Submission of
Reports

         

        
          	
                	
                  103.1

                	
                  The
      Licensee shall submit to the Director the reports specified in this
      license, in the format and at the times stipulated in this
      part.

                

        

         

        
          	
                	
                  103.2

                	
                  Every
      report shall reflect the correct facts relating to the subject thereof,
      updated for the period of the
report.

                

        

         

        
          	
                	
                  103.3

                	
                  A
      report shall be submitted in two (2) copies, printed and prepared in an
      easily readable form, bearing the date of its preparation and signed by
      the Licensee or whoever it authorized for this purpose; The report shall
      be submitted in a format as directed by the Director, including with
      respect to its contents, structure and manner of
    submission.

                

        

         

        
          	
                	
                  103.4

                	
                  The
      Director may require the Licensee to prepare anew or to complete a report
      which it submitted, if he found it lacking in necessary details or details
      which, in the Director’s opinion, should have been included by the
      Licensee in the report.

                

        

         

        104.A43)  Types of
Reports

         

        
          	
                   
      

                	
                  The
      Licensee shall submit to the Director, at his request and at least once a
      year, at the end of the calendar year and not later than ninety (90) days
      thereafter, annual reports describing its activity in the period from
      January to December of the past
year:

                

        

         

        
          	
                   
      

                	
                  (a)

                	
                  Financial
      statement audited and signed by an
accountant;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  Subscribers
      report, including the following
data:

                

        

         

        
          	
                   
      

                	
                  (1)

                	
                  Number
      of subscribers broken down according to business and private subscribers
      and according to post-paid and
pre-paid;

                

        

         

        
          	
                   
      

                	
                  (2)

                	
                  Amount
      of income broken down according to subsection (1), with each type of
      income from interconnection appearing separately, and broken down as well
      according to airtime and added-value
services.

                

        

        
           

          
            	
                     
      

                  	
                    (c)

                  	
                    
                      Report
      on the use of frequencies according to Chapter D Part
    C;

                    

                  

          

           

        

        
          	
                   
      

                	
                  (d)

                	
                  Addendum
      A – “Particulars of Licensee” updated as of the beginning of January, as
      detailed in section 20.1.

                

        

         

        
          	
                	
                  104.2

                	
                  The
      Licensee shall submit to the Director once a quarter, not later than a
      month after the end of the quarter, the following
  reports:

                

        

         

        
          	
                   
      

                	
                  (a)

                	
                  Unaudited
      quarterly financial statement signed by an
  accountant;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  Unaudited
      quarterly income report signed by an accountant, giving details of income
      on which royalties are payable;

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  Traffic
      report – in a format as directed by the
  Director.

                

        

         

        
          
            
            

          

          
            84

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          	
                	
                  104.3

                	
                  The
      Licensee shall submit a report on any special occurrence, as set out in
      regulation 8 of the Control
Regulations.

                

        

         

        
          	
                	
                  104.4

                	
                  The
      Licensee shall submit to the Director the following report, at his
      request:

                

        

         

        
          	
                   
      

                	
                  (a)

                	
                  Report
      concerning development works of the
network;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  Malfunctions
      report – containing a brief description and discussion of the malfunctions
      that occurred in the network, the number of malfunctions and the
      cumulative duration of malfunctions of each type, an analysis of the
      malfunctions and the steps taken to repair
them;

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  Service
      quality report – Analysis of the Licensee’s compliance with the
      requirements of sections 49 to 51 and Addendum E – Level of Services for
      Subscribers, during the period of the
report;

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  Complaints
      report – detailing the written service complaints that were submitted by
      subscribers, including the subject of the complaints, the dates on which
      they were received, the written response given, the manner in which they
      were dealt with and details of the activity of the Public
      Ombudsman;

                

        

         

        
          	
                   
      

                	
                  (e)

                	
                  List
      of the Licensee’s rates;

                

        

         

        
          	
                   
      

                	
                  (f)

                	
                  Updated
      engineering program;

                

        

         

        
          	
                   
      

                	
                  (g)

                	
                  Encumbrances
      report – The Licensee must report to the Director immediately any case of
      imposition of an attachment or encumbrance on any of the Licensee’s assets
      or any case of an encumbrance on means of control in the Licensee, any
      realization of such encumbrances or voidance of any right of the Licensee
      in an asset; The Licensee must also submit to the Director, at his
      request, a report detailing all such
  encumbrances.

                

        

         

        
          	
                   
      

                	
                  (h)

                	
                  Report
      on number of subscribers, income and minutes broken down according to
      private and business subscribers, and within each category – broken down
      according to subscribers for programs priced according to an “inclusive
      standard rate” and subscribers for programs priced separately for payment
      in respect of “airtime” and interconnection, in a format as directed by
      the Director;

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  Nuisance
      subscribers report as detailed in section
65A.9;

                

        

         

        
          	
                   
      

                	
                  (j)

                	
                  Any
      other data required for performance of control on the Licensee’s
      activities, and any information required by the Ministry for regulating
      the telecommunications sector.

                

        

         

        
          	
                	
                  104.5

                	
                  The
      Director may add or remove periodical, annual or quarterly reports, and he
      may request the Licensee to submit special reports as directed by
      him.

                

        

         

        
          
            
            

          

          
            85

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

           

        

        105.A43)  Notice Concerning a
Defect

         

        
          	
                	
                  105.1

                	
                  Where
      the Director finds defects or deficiencies in the Licensee’s activities,
      he shall notify the Licensee thereof in
writing.

                

        

         

        
          	
                	
                  105.2

                	
                  If
      the Licensee received a notification as stated, it shall submit to the
      Director, within thirty (30) days from receipt of the notification, its
      written response detailing the measures taken by it to correct the defects
      indicated therein.

                

        

         

        106.A43)  Void.

         

        
          
            
            

          

          
            86

            
              

            

          

          
            
            

          

        

        

        CHAPTER I –
MISCELLANEOUS

         

        107.           
The License as an
Exhaustive Document

         

        
          	
                	
                  107.1

                	
                  The
      Licensee’s rights, obligations and powers with respect to the setup,
      maintenance and operation of the cellular system and the provision of
      services by means thereof, originate in and derive exclusively from and
      according to this license.

                

        

         

        
          	
                  107.2

                	
                  Void.A2)

                

        

         

        108.           
Keeping the License
Document and Returning the License

         

        
          	
                	
                  108.1

                	
                  The
      Licensee shall keep the license documents in its office and shall allow
      the public to inspect their true and up-to-date copies; In case the terms
      of the license are modified, the Licensee shall attach the modification
      wording to said license documents.

                

        

         

        
          	
                	
                  108.2

                	
                  A16)If
      the license and its documents are made available for public inspection,
      the public shall not be allowed to inspect the following documents, which
      are included in the Second Schedule to the
  License:

                

        

         

        
          	
                   
      

                	
                  (a)

                	
                  Appendix
      A – Details of the Licensee;

                

        

        
          	
                   
      

                	
                  (b)

                	
                  Appendix
      B – Engineering program;

                

        

        
          	
                   
      

                	
                  (c)

                	
                  VoidA43);

                

        

        
          	
                   
      

                	
                  (d)

                	
                  Appendix
      G – Insurance contract;

                

        

        
          	
                   
      

                	
                  (e)

                	
                  Appendix
      H – Bank guarantee;

                

        

        
          	
                   
      

                	
                  (f)

                	
                  Appendix
      I – Special services for the security forces;

                
	 	(g)	Appendix
      L – Special services for the security forces – security addendum
      (confidential);
	 	(h)	Appendix
      M – Security directives;
	 	(i)	Appendix
      N – Letters of undertaking.

        

         

        
          	
                	
                  108.3

                	
                  The
      license documents are the property of the State and are entrusted to the
      Licensee for the term of validity of the license; Upon the cancellation or
      expiry of the license, the Licensee shall return the license with all its
      documents to the Director.

                

        

         

        
          	
                	
                  108.4

                	
                  A16)The
      Licensee shall allow the public to inspect the license documents via the
      Internet; The Licensee may do this also by way of referral to the website
      of the Ministry of Communications, as long as the Ministry publishes the
      license on its website.

                

        

         

        
          	
                	
                  108.5

                	
                  A16)The
      Ministry may publish the license, excluding the appendices indicated in
      section 108.2, at the time and in the manner deemed fit by
    it.

                

        

         

        109.        
   Postponement of
Deadline

         

        
          	
                	
                  109.1

                	
                  A
      duty imposed on the Licensee in this license, for which a performance
      deadline has been set, must be performed by the Licensee within the
      deadline.

                

        

         

        
          	
                	
                  109.2

                	
                  A2)The
      Director, at the Licensee’s request, may postpone a deadline set as
      stated, if it deems it impossible to perform the duty within such deadline
      for reasons of force majeure.

                

        

         

        
          
            
            

          

          
            87

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        110.         Reserving of
Liability

         

        
          	
                   
      

                	
                  Any
      approval or supervisory authority granted under this license to the
      Minister or to the Director, including the exercise of such authority,
      shall not impose on them any liability which is imposed by this license on
      the Licensee, and shall not derogate or detract from or void or diminish
      the Licensee’s liability as stated.

                

        

         

        111.         Notices

         

        
          	
                	
                  111.1

                	
                  A
      notice concerning this license or its implementation shall be in writing
      and shall be delivered by hand or dispatched by registered post with
      confirmation of delivery; A notice sent by registered post as stated shall
      be presumed to have reached its destination by the end of 48 hours from
      the time of its delivery for
dispatch.

                

        

         

        
          	
                	
                  111.2

                	
                  Any
      notice of the Licensee to the Minister shall be delivered or sent through
      the Director.

                

        

         

        
          	
                	
                  111.3

                	
                  The
      Licensee’s address for receipt of notices under this section is: 10
      Hagavish St., Poleg Industrial Area, Netanya 42140; The Licensee shall
      notify the Director immediately of any changes in this
      address.

                

        

         

        
          
            
            

          

          
            88

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

        First Schedule

        List of Services and
Measures for Quality of ServiceA16)

        

        

        
          
            
              	
                      1.

                    	
                      General

                    

            

          

           

        

        
          	
                	
                  1.1.

                	
                  This
      Schedule includes the list of services the Licensee will provide, under
      the conditions set out in Section B of Chapter E – “Level of Services for
      Subscribers”.

                

        

        

        
          	
                	
                  1.2.

                	
                  The
      services will be provided in each of the technologies operated by the
      Licensee, unless otherwise noted in the License or in the Schedule to the
      License.

                

        

        

        
          	
                	
                  1.3.

                	
                  Wherever
      the term: “Support in
      Various Languages” is used, this denotes support in at least these
      four languages: Hebrew, Arabic, English and
  Russian.

                

        

        

        
          	
                	
                  1.4.

                	
                  A43)
      The Licensee must include in the service dossier at least the
      following details:

                

        

        

        
          	
                   
      

                	
                  a.

                	
                  Name of the service:
      Name of the service, including its trade name and a general description of
      the service.

                

        

         

        
          	
                   
      

                	
                  b.

                	
                  Detailed description of the
      service: Among other
things  –

                

        

        Is it a
new service / expansion of an existing service / combination of services /
is there any need for a pretrial;

        Manner of
operating the service;

        Date on
which provision of the service is to commence;

        Availability
and measures for quality of service;

        Support
centers;

        Price of
the service;

        Target
audience of the service;

        How to
order the service;

        Process of
connecting to the service;

        Implications
or effects of this service on other services.

         

        
          	
                   
      

                	
                  c.

                	
                  Engineering
      description:

                

        

        Description
and block diagram of the system;

        End-user
equipment – dedicated equipment for receiving the service.

         

        
          	
                   
      

                	
                  d.

                	
                  Miscellaneous:

                

        

        The need
for numbering;

        Required
coordination with other licensees or entities.

        
          
            
              

              
                	
                         
      

                      	
                        2.       List
      of Services 

                      

              

               

            

          

           

          
            First
Schedule - 1

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

        

        
           2.1. 
 Basic
Telephone Services 

        

        

        
          	
                  No.

                	
                  Name
      of Service

                	
                  Description
      of Service

                	 	
                  Date
      provided

                	 	
                  Measures
      for quality of service

                	
                  Remarks

                
	
                  1.

                	
                  Cellular
      Calls

                	
                  Telephone
      calls to and from Licensee’s subscribers to any telephone or other
      appropriate end user equipment in another public telecommunications
      network in Israel or throughout the world

                	 	
                  Existing
      service

                	 	
                  98%
      availability

                	 
      
	
                  2.

                	
                  Emergency
      Calls

                	
                  Free
      dialing to emergency services determined by the Director (for example:
      police, ambulance, fire dept., etc). Caller will be referred to the
      emergency hotline according to the services provider’s definition with
      reference to the subscriber’s location.

                	 	
                  Existing
      service

                	 	
                  98%
      availability

                	
                  According
      to the Director’s  rules

                

        

        

        
          2.2.   
Related
Services

        

        

        
          	
                  No.

                	
                  Name
      of Service

                	
                  Description
      of Service

                	
                  Date
      provided

                	
                  Measures
      for quality of service

                	
                  Remarks

                
	
                  1.

                	
                  Call
      Waiting

                	
                  Subscriber
      may receive incoming calls while on another call. Subscriber may cancel
      service at will.

                	
                  Existing
      service

                	
                  99.9%
      availability

                	 
      
	
                  2.

                	
                  Selective
      Call Waiting

                	
                  Only
      calls from a list of numbers defined by the subscriber will activate call
      waiting alert

                	
                  Future
      service

                	
                  99.9%
      availability

                	 
      
	
                  3.

                	
                  Call
      Forwarding

                	
                  Diversion
      of incoming calls to a phone number at the subscriber’s
      choice:

                  Always

                	
                  Existing
      service

                	
                  99.9%
      availability

                   

                	 
      

        

         

        
          
            
            

          

          
            First
Schedule - 2

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          	 	 	
                  When
      busy

                  
                    
      

                  When
      call is not answered 

                    
      

                  When
      subscriber unavailable

                	 	 	 
	
                  4.

                	
                  Selective
      Call Forwarding

                	
                  Diversion
      of incoming calls according to a list of numbers predefined by the
      subscriber, to another destination at the subscriber’s
choice:

                  ·Always

                  ·When call is
      not answered

                  ·When
      busy

                   

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
      
	
                  5.

                	
                  Call
      Transfer

                	
                  Subscriber
      may transfer call to another telephone number

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
      
	
                  6.

                	
                  Hunting
      Group

                	
                  Determining
      a leading number for a subscriber’s group of numbers: dialing the leading
      number will refer the call to a free number in the group.

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
      
	
                  7.

                	
                  Caller
      ID

                	
                  Caller’s
      number will appear on the screen

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	
                  Depends
      on caller's end device

                
	
                  8.

                	
                  Calling
      ID Restriction

                	
                  Allows
      blocking subscriber’s number from appearing on call receiver’s screen.
      Block may be permanent or one-time.

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
      
	
                  9.

                	
                  Caller
      Name Announcement

                	
                  Option
      of identification of caller by voice signature

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
      
	
                  10.

                	
                  Conference
      Call

                	
                  Establishing
      a call for a number of subscribers simultaneously

                	
                  Existing
      Service

                	
                  98%
      availability

                	 
      
	
                  11.

                	
                  Closed
      User Group

                	
                  A
      group of phone numbers than may establish a call only among
      themselves

                	
                  Existing
      Service

                	
                  98%
      availability

                	
                  GSM
      network only

                
	
                  12.

                	
                  Voice
      Mail

                	
                  Storing
      messages of callers to the subscriber in a personal box and allowing
      extraction of such

                	
                  Existing
      Service

                	
                  99%
      availability

                	 
      

        

         

        
          
            
            

          

          
            First
Schedule - 3

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          	
                  13.

                	
                  Advanced
      Voice Mail

                	
                  Voice
      mail system as described in paragraph 12 above, with added “smart”
      element, including visual or audio indication of messages waiting,
      transfer of messages to other platforms and receiving messages from such
      platforms.

                	
                  Existing
      Service

                	
                  98%
      availability

                	 
      
	
                  14.

                	
                  Voice
      Mail Notification

                	
                  When
      message received in voice mail box, the mail box will dial or send message
      to destinations defined by subscriber

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
      
	
                  15.

                	
                  Voice
      Activated Service

                	
                  Allows
      operation of telephone and basic services, related services and value
      added services by voice

                	
                  Partialy
      existing, Future Service expansion.

                	
                  70%
      chance of correct identification in regions where signal strength is
      better than 85dbm

                	 
      
	
                  16.

                	
                  Call
      Tracking

                	
                  Allows
      subscriber to send the applicant an indication, while talking, for
      purposes of later identification of source of call.

                	
                  Future
      Service

                	
                  99.9%
      availability

                	
                  Subject
      to law

                
	
                  17.

                	
                  Virtual
      Private Network (VPN)

                	
                  Allows
      short dialing according to a private numbering program

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	
                  For
      subscribers according to relevant types. Currently provided to business
      sector.

                
	
                  18.

                	
                  Centrex

                	
                  Allows
      maintaining a private network while using network
resources

                	
                  Future
      Service

                	 
      	 
      
	
                  19.

                	
                  Facsimile
      Services

                	
                  Allows
      receiving, storing and extracting facsimile messages via
    phone

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
      
	
                  20.

                	
                  Roaming

                	
                  Allows
      receiving, extracting and blocking messages abroad

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	
                  Subject
      to availability of foreign operator. In GSM network in 3 months of
      launching of the network.

                

        

         

        
          
            
            

          

          
            First
Schedule - 4

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          	
                  21.

                	
                  GPRS
      Roaming

                	
                  Allows
      using certain communications data services while using roaming
      services

                	
                  Future
      Service

                	
                  99.9%
      availability

                	
                  Subject
      to operator availability

                
	
                  22.

                	
                  Toll
      Free Call

                  (1-800)

                	
                  Free
      call to caller. Subscriber – call receiver – is charged for cost of
      call.

                	
                  Future
      Service

                	 
      	
                  According
      to numbering program and Director’s rules

                
	
                  23.

                	
                  Split
      Charge

                  (1-700)

                	
                  Splits
      cost of call between call maker and subscriber receiver

                	
                  Future
      Service

                	 
      	
                  According
      to numbering program and Director’s rules

                
	
                  24.

                	
                  Call
      Screening

                	
                  Defining
      a list of phone numbers subscriber will receive calls from. Call from
      other numbers will be referred to another destination.

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
      
	
                  25.

                	
                  Talk
      Two

                	
                  One
      number for two end user equipment units.

                	
                  Existing
      Service

                	
                  99%
      availability

                	 
      
	
                  26.

                	
                  One
      number for two SIM cards

                	
                  cellular
      services for two or more telephones in one number

                	
                  Future
      Service

                	
                  99%
      availability

                	 
      
	
                  27.

                	
                  Two
      numbers for one SIM card

                	
                  Defining
      two telephone numbers for the same SIM card

                	
                  Future
      Service

                	
                  99%
      availability

                	 
      
	
                  28.

                	
                  Change
      of number announcement

                	
                  A
      caller to a subscriber will receive an announcement of the subscriber’s
      new number, and will be given the option of directing the call to the new
      number.

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	
                  GSM
      network only

                
	
                  29.

                	
                  Wake-up
      Service

                	
                  Allows
      subscriber to request the system call him at an hour
    defined.

                	
                  Future
      Service

                	
                  Precision
      of service approx. 5 minutes. 99.9% availability

                	 
      

        

         

        
          
            
            

          

          
            First
Schedule - 5

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          	
                  30.

                	
                  Camp
      on busy line

                	
                  Call
      automatically put through to busy number when number frees
    up.

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
      
	
                  31.

                	
                  Personal
      Number Service

                	
                  Allows
      subscriber to define calls to a certain number be forwarded to various
      destinations according to parameters set by subscriber.

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
      
	
                  32.

                	
                  Collect
      Call

                	
                  Cost
      of call to be paid by subscriber receiver, after
    confirmation.

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	
                  Between
      licensed  subscribers only

                
	
                  33.

                	
                  Message
      Distribution

                	
                  Distribution
      of messages to a list of addressees, using various
    platforms

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
      
	
                  34.

                	
                  Hot
      Billing

                	
                  Provides
      updated information to subscriber regarding his bill with the applicant
      via various platforms

                	
                  Future
      Service

                	
                  99%
      availability

                	 
      
	
                  35.

                	
                  Over
      the Air Services (OTA)

                	
                  Update
      of data and applications on SIM card via SMS by the applicant. Running
      applications from SIM card will be performed by subscriber, using end
      device.

                	
                  Future
      Service

                	
                  99%
      availability

                	 
      
	
                  36.

                	
                  Account
      Code Billing

                	
                  Splitting
      charge for one phone number into separate accounts. Subscriber’s
      instructions regarding the account to be billed will be performed by
      punching a code at the beginning or during a call.

                	
                  Future
      Service

                	
                  99%
      availability

                	 
      
	
                  37.

                	
                  Star
      Services

                	
                  Allows
      establishing a connection by dialing a short access code according to
      applicant’s internal numbering program.

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
      
	
                  38.

                	
                  Short
      Messages Service (SMS)

                	
                  Allow
      receiving and sending written messages via phone

                	
                  Existing
      Service

                	
                  99%
      availability

                	
                  Depends  on
      end user equipment

                

        

         

        
          
            
            

          

          
            First
Schedule - 6

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          	
                  39.

                	
                  Circuit
      Switch Data (CSD)/High speed circuit switch data (HSCSD)

                	
                  Access
      to data service using a dial-up modem on phone or independent dial
      modem

                	
                  Existing
      Service

                	
                  98%
      availability

                	
                  Depends  on
      end user equipment

                
	
                  40.

                	
                  Data
      communications in Packet Switch

                	
                  Subscriber
      connection via phone or independent  modem to TCP/UDP/IP
      communications for broadcastung using packet switch

                	
                  Existing
      Service

                	
                  98%
      availability on best effort basis

                	
                  Depends  on
      end user equipment

                
	
                  41.

                	
                  Discontinuation
      of Service

                	
                  Discontinuation
      of service  upon subscriber's request

                	
                  Existing
      Service

                	
                  Will
      be performed  no later than the next business day after
      subscriber's request

                	 
      
	
                  42.

                	
                  POC
      (Push to Talk Over Cellular)

                	
                  Call
      made by pressing a button on cellular end user equipment

                  Call
      may be private (between subscriber and subscriber) or group on data
      communications network

                	
                  Service
      Exists (just started)

                	
                  According
      to service file

                	
                  According
      to temp. provision

                

        

         

        
          	
                  Temporary
      Provision

                	
                  The
      Licensee will allow operation of Push to Talk Over Cellular services
      (hereinafter: the Service) to any subscriber who is a legal entity
      (individual or corporation), provided the number of users (number of
      cellular end user equipment units permitted use of this service,
      hereinafter – end user equipments) in the possession of such subscriber
      does not exceed 20 during the first year starting on the date service
      begins. Notwithstanding the aforesaid, should there be any considerable
      changes in the cellular sector influencing provision of such service, the
      Ministry will consider a shorter period.

                   

                
	
                  Application

                	
                  This
      service will not begin before Sunday, the 29th
      day of Tamuz, 5764 (July 18, 2004)

                

        

         

        
          
            
            

          

          
            First
Schedule - 7

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          * availability of service is the
percentage of time the service is available, not including availability of basic
services.

          
2.3.    
 Value
Added Services

        

        

        
          	
                  No.

                	
                  Name
      of Service

                	
                  Description
      of Service

                	
                  Date
      provided

                	
                  Measures
      for quality of service

                	
                  Remarks

                
	
                  1.

                	
                  Speaking
      Clock

                	
                  Notice
      of time

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
      
	
                  2.

                	
                  Directory
      Assistance

                	
                  Allows
      receiving information on phone numbers and automatic establishment of
      calling number so given.

                	
                  Future
      service

                	
                  99.9%
      availability

                	 
      
	
                  3.

                	
                  Connectivity
      to Information and Entertainment Services

                	
                  Allows
      subscriber to connect to information, entertainment, applications and
      content services, whether interactive or noniteractive, whether by
      download, by upload, or by various means of access.

                	
                  Existing
      service

                	
                  99.9%
      availability

                   

                	
                  Depends
      on end user equipment. Subject to Director’s rules

                
	
                  4.

                	
                  Access
      to Internet Provider Services

                	
                  Allows
      subscriber access to internet provider.

                	
                  Future
      Service

                	 
      	 
      
	
                  5.

                	
                  Location
      Based Information & Tracking

                	
                  Receiving
      and sending information depending on location of phone, subject to
      law.

                	
                  Future
      Service

                	 
      	 
      
	
                  6.

                	
                  M-Commerce

                	
                  Connection
      via end user equipment for performing transactions

                	
                  Existing
      Service

                	 
      	
                  Depends
      on end user equipment. Subject to Director’s rules

                
	
                  7.

                	
                  Unified
      Messaging

                	
                  Allows
      subscriber to receive and send voice messages, speaking messages, faxes,
      SMS, E-mail messages, application messages and multimedia files, to and
      from unified cell, allowing the convertion of the data received from one
      format to another, as well as access to data from various means of
      access.

                	
                  Future
      Service

                	
                   99.9%
      availability

                	
                  Depends
      on end device

                

        

         

        
          
            
            

          

          
            First
Schedule - 8

            
              

            

          

          
            
            

          

           

          
            General
license for Cellcom Israel Ltd. for the provision of mobile radio telephone
services by the cellular method (cellular)

            Combined
Version, as at August 20, 2007

          

        

         

        
          	
                  8.

                	
                  Telemetry
      Command and Control

                	
                  Use
      of phone or cellular modem for receiving indication and sending orders
      concerning various device operation (for example: alarm systems, inventory
      systems, traffic lights, controllers, etc.)

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
      
	
                  9.

                	
                  Sponsored
      Call

                	
                  Connection
      during which subscriber will be exposed to commercial information and
      advertisements

                	
                  Future
      Service

                	 
      	
                  Subject
      to law

                
	
                  10.

                	
                  Video
      Conference

                	
                  Allows
      visual and audio communication between a number of users.

                	
                  Future
      Service

                	 
      	
                  Depends
      on end  device

                
	
                  11.

                	
                  Instant
      Messaging

                	
                  Message
      transfer service between “community” participants, organizations, groups
      of friends, groups of people with same interests. Subscriber notifies he
      is on network and ready to receive messages. Service notifies subscriber
      members of group who are in geographic proximity.

                	
                  Future
      Service

                	 
      	 
      
	
                  12.

                	
                  Surf
      & Talk

                	
                  Allows
      subscriber to receive an indication of call waiting and reply while
      connected to internet

                	
                  Existing
      Service

                	
                  99%
      availability

                	
                  Depends
      on end user equipment. GSM network only

                
	
                  13.

                	
                  Personal
      Information Management

                	
                  Access
      and synchronization via end user equipment to personal data
      base.

                	
                  Existing
      Service

                	 
      	
                  Depends
      on end user equipment.

                

        

        

        
          	
                   
      

                	
                  ·

                	
                  availability of service is the
      percentage of time the service is available, not including availability of
      basic services.

                

        

         

        
          
            
            

          

          
            First
Schedule - 9

            
              

            

          

          
            
            

          

          
             

            
              Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. 

              Consolidated Version as of
August 20, 2007.

            

          

           

           Second Schedule – List of Appendices 

        

        

        Second Schedule – List of
Appendices

        

        
          	
                  Appendix
      A

                	
                  Particulars
      of Licensee – not available to public;

                
	
                  Appendix
      BA16

                	
                  Engineering
      Plan - not available to public;

                
	
                  Appendix
      C

                	
                  Maintenance
      Scheme - not available to public;

                
	
                  Appendix
      D

                	
                  Uniform
      Engagement Agreement – not attached;

                
	
                  Appendix
      EA16

                	
                  Level
      of Subscriber Services;

                
	
                  Appendix
      FA8

                	
                  Void;

                
	
                  Appendix
      G

                	
                  Insurance
      Contract - not available to public;

                
	
                  Appendix
      HA16

                	
                  Bank
      Guarantee - not available to public;

                
	
                  Appendix
      It3t5

                	
                  Special
      Services for security forces - not available to public;

                
	
                  Appendix
      JA6

                	
                  Access
      to International Communications Services;

                
	
                  Appendix
      KA7

                	
                  Discontinuation
      of Services for cellular end user equipments of IS-54
  type;

                
	
                  Appendix
      LA12

                	
                  Special
      Services for security forces - not available to public;

                
	
                  Appendix
      MA12

                	
                  Security
      Instructions - not available to public;

                
	
                  Appendix
      NA16

                	
                  Letters
      of Undertaking - not available to public;

                
	
                  Appendix
      OA24

                	
                  Erotic
      Services

                

        

        

        

          
            

          

        

          
          A3
Amendment no.3

        

          
          A5
Amendment no. 5

        

        

        
          
            
            

          

          
            Second Schedule
- 2

            
              

            

          

          
            
            

          

          
            
              
                
                   

                  
                     

                    
                      
                        Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. 

                        Consolidated Version as of
August 20, 2007.

                      

                    

                  

                

              

            

          

           Appendix
D  

        

        Appendix
D – Uniform Engagement Agreement – Not Attached

        

        Not
Attached

         

         

        
          
            
            

          

          
            Second Schedule
- Appendix D - 1

            
              

            

          

          
            
            

          

          
            
              
                
                   

                  
                    
                      
                        Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. 

                        Consolidated Version as of
August 20, 2007.

                      

                    

                  

                

              

            

          

           Appendix
E 

        

         

        Appendix
E – Minimum Requirements and Level of
Subscriber ServicesA16)

        

        
          	
                  1.

                	
                  System
      Performance

                

        

        
          

          
            	 
      	 
      	 
      	 
      	 
      
	
                    1.1.

                  	The
      system and its services will fulfill performances, qualities and measures
      defined in the Engineering Plan – Appendix B.
	 
      	 
      	 
      	 
      	 
      
	
                    1.2.

                  	The
      system performance and services will not fall, in any event, from the
      following minimum requirements:
	 
      	 
      	 
      	 
      	 
      
	 
      	
                    1.2.1.

                  	Digital Technology: the
      system and the services under the extension of the license will be
      operated using digital technologies, according to relevant international
      standards.
	 
      	 
      	 
      	 
      	 
      
	 
      	
                    1.2.2.

                  	Service Coverage:
    
	 
      	 
      	Subject
      to the provisions of section 60.5 of the license, all services will be
      provided in the entire coverage area of the system, keeping up minimum
      requirements in the matter of quality of service, for twenty four (24)
      months from the date on which the service for pay commences.
	 
      	 
      	 
      	 
      	 
      
	 
      	
                    1.2.3.

                  	Quality of
      Service:
	 	 	 	 
	 
      	 
      	
                    (A)

                  	
                    In
      this section:

                  
	 	 	 	 	 
	 
      	 
      	 
      	
                    (1)

                  	
                    “Blocked Calls”: calls
      that cannot be established or messages that cannot be sent immediately
      upon entering the order to connect because of non-availability of cellular
      system resources or resources for connection between the cellular system
      and other systems;

                  
	 	 	 	 	 
	 
      	 
      	 
      	
                    (2)

                  	
                    “Dropped Calls” – calls
      stopped not by the initiative of the subscriber caller/connector or that
      of the receiving subscriber;

                  
	 	 	 	 	 
	 
      	 
      	
                    (B)

                  	Quality
      of service in cellular system will not be less than the
    following:
	 	 	 	 	 
	 
      	 
      	 
      	
                    (1)

                  	
                    the
      amount of blocked calls during hours of maximum use will not exceed two
      percent (2%);

                  
	 	 	 	 	 
	 
      	 
      	 
      	
                    (2)

                  	
                    The
      amount of dropped calls during hours of maximum use will not exceed two
      percent (2%);

                  
	 	 	 	 
	 
      	 
      	
                    (C)

                  	The
      system will uphold the requirements set out in sub-sections (A) and (B)
      ninety-nine percent (99%) of the time during maximum use
  hours;

          

           

          
            
              
              

            

            
              Second Schedule
- Appendix E - 1

              
                

              

            

            
              
              

            

            
              
                 

                
                  
                    
                      Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. 

                      Consolidated Version as of
August 20, 2007.

                    

                  

                

              

            

            
              
                 Appendix
E 

              

            

          

           

          
            	 
      	 
      	
                    (D)

                  	Subject
      to the provisions of section 60.5 of the license, the system will reach
      the level of requirements set out above by no later than twenty four (24)
      months from the date of start of provision of such services for pay; from
      that time, said quality of service will be upheld in all the system’s
      coverage areas;
	 	 	 	 
	 
      	 
      	
                    (E)

                  	The
      number of blocked and dropped calls will be measured as
  follows:
	 	 	 	 	 
	 
      	 
      	 
      	
                    (1)

                  	
                    measure
      will relate to the time span of one hour;

                  
	 	 	 	
                    (2) 

                  	the
      maximum use hour to which the measure will refer will be the busiest hour
      of the system, on the day the measure is taken;    
	 	 	 	
                    (3)

                  	
                    The
      measure will be taken at the maximum use hours on each of five (5)
      consecutive work days as stated;

                  
	 	 	 	
                    (4)

                  	
                    The
      final number indicating the likelihood of blocked and dropped calls will
      refer to the average of the five (5) measured over the five (5) said
      consecutive work days, and for each type of service provided by the
      system;

                  
	 	 	 	 	 

          

          
            	 	 	
                    (F)

                  	
                    Measurement
      and calculation will be performed for each cell separately, for each
      switch separately, and for the entire system; notwithstanding the
      aforesaid, at the written request of the Licensee, the Director may allow
      exceptions to the provisions of section 1.2.3, after having been satisfied
      that there is a true difficulty in performing the measure and calculations
      as stated, provided an alternative measuring and calculation system is
      proposed.

                  

          

        

         

        
          	
                  2.

                	
                  Customer
      and Subscriber Services Quality
Measures

                

        

        

        
          	
                  2.1.

                	
                  Services for provision of
      information to customers and subscribers: will be given by referral
      to call centers, at service centers, at the internet site, by e- mail, by
      telephone and by facsimile.

                

        

        

        
          	
                  2.2.

                	
                  Standards for
      accessibility and provision of
  information:

                

        

        

        
          	
                   
      

                	
                  (A)

                	
                  A
      call center will be available twenty four (24) hours a day, all days of
      the week except on Yom Kippur.

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  The
      call center will be manned at least thirteen (13) hours a day Sundays
      through Fridays, and five (5) hours a day on Fridays and eves of
      holidays.

                

        

        

        
          	
                   
      

                	
                  (C)

                	
                  The
      reply at the call center will be within a reasonable time. Should the
      Director observe that the waiting time at the call center is not
      reasonable, he may set measures for response
  time.

                

        

         

        
          
            
            

          

          
            Second Schedule
- Appendix E - 2

            
              

            

          

          
            
            

          

          
            
               

              
                
                  
                    Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. 

                    Consolidated Version as of
August 20, 2007.

                  

                

              

            

          

          
            
               Appendix
E 

            

          

           

        

        
          	
                   
      

                	
                  (D)

                	
                  A
      caller to a call center during unmanned hours will be referred to a
      message box to leave a message, and will receive a reply on the following
      day.

                

        

        

        
          	
                   
      

                	
                  (E)

                	
                  The
      Licensee will operate additional channel allowing subscribers to contact
      it for provision of information and for queries, such
  as:

                

        

        
          	
                   
      

                	
                  -

                	
                  Computerized
      voice system IVR;

                

        

        
          	
                   
      

                	
                  -

                	
                  queries
      via post;

                

        

        
          	
                   
      

                	
                  -

                	
                  queries
      via fax;

                

        

        
          	
                   
      

                	
                  -

                	
                  queries
      via e mail.

                

        

        

        
          	
                   
      

                	
                  (F)

                	
                  The
      Licensee will publish its service office address and telephone number of
      the call center in the following ways, among
  others:

                

        

        
          	
                   
      

                	
                  -

                	
                  In
      the engagement agreement with the
subscriber;

                

        

        
          	
                   
      

                	
                  -

                	
                  In
      the bills sent to the subscriber;

                

        

        
          	
                   
      

                	
                  -

                	
                  In
      any document sent on behalf of the Licensee to the subscriber in a matter
      relating to customer services;

                

        

        
          	
                   
      

                	
                  -

                	
                  In
      telephone directories and in telephone information
  centers.

                

        

        

        
          	
                  2.3.

                	
                  Bills to
      Subscribers

                

        

        

        
          	
                   

                	
                  (A)

                	
                  Bills
      to subscribers will set out the relevant details for such bill, out of the
      following:

                

        

        

        
          	
                   

                	
                   (1)

                	
                  monthly
      charge (fixed charge)

                

        

        
          	
                   

                	
                   (2)

                	
                  duration
      of calls or air time (minutes,
seconds)

                

        

        
          	
                   

                	
                   (3)

                	
                  volume
      of data use (MB,kB) – if the service provided is charge by volume of data
      transmitted.

                

        

        
          	
                   

                	
                   (4)

                	
                  Other
      charges (such as for receipt of data, SMS transmission, mobile electronic
      commerce).

                

        

        
          	
                   

                	
                   (5)

                	
                  Combination
      of the above charge methods.

                

        

        

        
          	
                   
      

                	
                  (B)

                	
                  Structure of the
      Bill

                

        

        

        Bills will
be sent in a fixed form, as follows:

        

        (1)  
Following payment; the bill will serve as a receipt, including:

        the amount
for payment not including VAT, rate of VAT and total for payment including VAT.
In this section, the identifying particulars of the Licensee will be specified,
and the identifying particulars of the subscriber.

         

        (2)  
The
Licensee may include information regarding deals and personal notices to the
subscriber.

         

        
          
            
            

          

          
            Second Schedule
- Appendix E - 3

            
              

            

          

          
            
            

          

           

          
            
              
                Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. 

                Consolidated Version as of
August 20, 2007.

              

            

            
               Appendix
E 

            

          

        

        

        
          	
                   

                	
                  (C)

                	
                  Production and
      delivery of bills

                

        

        

        
          	
                   
      

                	
                  (1)

                	
                  The
      Licensee will produce monthly bills for its subscribers or at any other
      time with subscriber’s consent.

                

        

        

        
          	
                   
      

                	
                  (2)

                	
                  A
      subscriber wishing to disengage with the Licensee will receive a final
      bill on the closest date possible, and no later than two months from the
      date of disengagement.

                

        

        

        
          	
                   
      

                	
                  (3)

                	
                  Subscriber
      bills may be obtained via post or via any other means agreed upon with the
      subscriber, and to the address chosen by the
  subscriber.

                

        

        

        
          	
                  2.4.

                	
                  A43)Measures for Handling
      Public’s Applications

                

        

        
           

          
            	
                     
      

                  	
                    (A)

                  	
                    
                      Level
      of handling a written complaint – The response times for complaints will
      be up to 14 workdays; the response for 5% of complaints will be within a
      month.

                    

                  

          

              

        

        
          	
                   
      

                	
                  (B)

                	
                  Measures
      for quality of service of the service centers
–

                

        

        
          	
                   
      

                	
                  -

                	
                  90%
      of applications will be handled directly by the service representatives,
      up to completion.

                

        

        
          	
                   
      

                	
                  -

                	
                  Not
      more than 10% of applications, some due to escalation of complaints, will
      be referred to more senior levels.

                

        

         

        
          	
                   
      

                	
                  (C)

                	
                  Applications
      clarified by the senior level – In any case where the Public Ombudsman’s
      reply to a complaint does not satisfy the applicant, the application will
      be passed on to the managerial level, which will examine the it again and
      reply directly to the applicant. In any event, the applicant will receive
      a response within 30 days from the day of his
  application.

                

        

        

        

        
          
            
            

          

          
            Second Schedule
- Appendix E - 4

            
              

            

          

          
            
            

          

        

      

    

     

    
      Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

      Appendix J

       

      Appendix
J –Accessibility to International Telecommunications Services A6)

      

      
        	
                1.  

              	
                Definitions

              

      

      

      
        
          	
                	
                  1.1

                	
                  In
      this document, the following words and terms will have the definitions
      noted at their sides, unless otherwise deriving from the language or
      context:

                

        

      

      

      

      
        	
                Bezeq
      International  -

              	 	
                The
      Bezeq International Company Ltd. ;

                 

              
	
                Barak
      -

              	 	
                Barak
      I.T.C. (1995) Company for International Telecommunications
      Services;

                 

              
	
                Chance
      caller -

              	 	
                A
      Licensee subscriber, calling abroad using an international operator, using
      a three digit dialing code, as set out in section 2;

                 

              
	
                Subscriber
      number (or telephone number) -

              	 	
                A
      group of numbers in a certain order, including area code, the dialing of
      which should create a telecommunication’s connection between the reading
      subscriber’s end user equipment and the reader subscriber’s end user
      equipment; a reader subscriber number may be a subscriber number of a
      number to a call answering center of a subscriber or a number to a call
      answering center of a licensee2

                 

              
	
                International
      operator -

              	 	
                Anyone
      providing international telecommunications services to the public in
      Israel under a general license from the Director;

                 

              
	
                Chosen
      operator -

              	 	
                An
      international operator chosen by appointment, under the provisions of
      section 43

              
	
                Access
      code -

              	 	
                A
      group of numbers in a certain order, the dialing of which allows access to
      a certain telecommunications service of a certain operator; dialing
      additional codes, as needed, and the subscriber number, should create a
      telecommunication connection to the subscriber’s end user equipment4
      ; if the access code is a manned call center, the service is given via the
      operator.

              

      

       

      
        

      

      
        2 The
phone number is determined by the licensee, according to rules and directives
prescribed by the Director.

          
          3 A chosen
operator may be Bezeq International, Barak or Golden Lines.

        

          
          4 for
example: dialing an access code for international services, and after a country
code, area code in that country and telephone number of the designated
subscriber abroad

           

           

          
            
              
              

            

            
              
                Second
Schedule—Appendix J – 1

              

              
                

              

            

            
              
              

            

          

          
            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix J

          

           

        

      

      
        	
                Short
      dialing code -

              	 	
                “00”
      ” and “188” access code, designated to receive international
      telecommunications services, by direct dialing, or via an operator, as
      explained in section 2;

                 

              
	
                Golden
      Lines -

              	 	
                The
      Golden Lines International Communications Services Company;

                 

              
	
                Subscriber
      ascription

              	 	
                The
      technically defining action an internal operator performs in his switch so
      that his subscriber’s calls, performed through a shortened dialing code,
      are channeled into the chosen operator’s switch;

                 

              
	
                Outgoing
      ITMS calls -

              	 	
                 Transferring
      a verbal message or facsimile message via an international
      telecommunications service, initiated by a Licensee
      subscriber;

                 

              
	
                Ingoing
      ITMS calls -

              	 	
                Transferring
      a verbal message or facsimile message via an international
      telecommunications service, initiated by an international
      caller;

                 

              
	
                International

                Telecommunications
      Services -

              	 	
                Telecommunications
      services given to the public in Israel, under license from the Director,
      via an international operator’s international telecommunication
      services;

                 

              
	
                 ITMS
      service

              	 	
                International
      telecommunications message service, that is, two-directional simultaneous
      transfer of talk and simultaneous transfer of facsimile messages, in an
      international telecommunications system.

                 

              

      

      

      
        
          	
                	
                  1.2

                	
                  Words
      and expressions in this document not defined above shall have the meaning
      as defined in the Law, regulations enacted by virtue thereof, in the
      Interpretation Law, 5741 – 1981, or as set out in the appropriate places
      in the Licensee’s general license and in the International Operators’
      licenses, unless otherwise deriving from the language or
      context.

                

        

      

       

      
        
          
            2.   
Allocation of Access
Code

          

        

      

      

      
        
          	
                  2.1

                	
                  A
      Licensee will channel subscriber dialing, to the international operators’
      switches, for access to international telecommunications’ services, using
      the following codes:

                

        

      

      

      
        
          	
                	
                  (A)

                	
                  double-digit access code
      – the ‘00’ access code, which will serve as short access code for
      international telecommunications services provided by a
  

                

        

      

       

       

      
        
          
            Second
Schedule—Appendix J – 2

          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

        Appendix J

      

       

      
        
          
            	
                  	
                     

                  	
                    chosen
      operator; the Licensee will channel a subscriber dialing the prefix ‘00’
      to the chosen operator;

                  

          

        

         

      

      
        
          	
                	
                  (B)

                	
                  triple-digit access code
      – an access code of ‘01X’ type, which will serve as an access code
      for international telecommunications services provided to a chance user;
      the Licensee will channel any subscriber dialing the prefix ‘01X’ code to
      the international operator according to the X digit; the X digit is the
      international operator’s code, according to the
  following:

                

        

      

      

      
        
          	
                	
                  1. 

                	
                  ‘2’
      – code for Golden Lines’
services;

                

        

      

      
        
          	
                	
                  2.

                	
                  ‘3’
      – code for Barak services;

                
	 	
                  3. 

                	
                  ‘4’
      – code for Bezeq International
services;

                

        

         

      

      
        
          
          

        

      

      
        
          	
                	
                  (C)

                	
                  ‘188’ access code – that
      will serve as a number for operator services ; any subscriber dialing
      ‘188’ will be channeled by the Licensee to the chosen operator’s operator
      services;

                

        

      

      

      
        
          	
                	
                  (D)

                	
                  four-digit access code –
      numbers of the ‘18XY’ type, that will serve as an access code for various
      international telecommunications services of any and all international
      operators; any subscriber dialing ‘18XY’ will be channeled by the Licensee
      to the international operator according to the X digit; the X digit is the
      code of the international operator under section 2.1(B); the Y digit is
      any number from 1 to 9 and the 0 digit; the use of the Y digit will be
      determined by the Director, under advisement with the international
      operators, in order to ensure uniformity and fair competition; each
      international operator will be allocated ten (10) such four digit numbers/
      these numbers will be accessible for both the chosen operator’s
      subscribers and for chance
callers.

                

        

      

      

      
        	
                2.2  

              	
                If
      the Licensee allows its subscriber the use of another short dial code
      (such as +), instead of the “00” dial code (hereinafter: a special code),
      all the provisions and rules applicable to the short “00” dial code will
      apply to the special code as well.

              

      

      

      
        	
                2.3  

              	
                Dial
      by pre-paid program for unidentified subscribers who are not blocked for
      outgoing ITMS calls will be possible only using three-digit access codes
      of the 01X type, and four-digit access codes of the 18XY type; upon
      dialing a short access code or a special access code, a voice announcement
      will be heard referring the customer to dial via said access codes
      available to him.

              

      

       

      
        	2A.
      A23
      	
                Subscriber
      Access to Outgoing ITMS Calls :

              
	 	 
	
                2A.1

              	
                The
      Licensee will allow subscribers to act as follows, with regard to outgoing
      ITMS calls:

              

      

       

      
        	
                (A)  

              	
                as
      an ascribed subscriber.

              

      

       

       

      
        
          
            Second
Schedule—Appendix J – 3

          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

        Appendix J

      

       

      
        	
                (B)  

              	
                As
      blocked

              

      

      
        	
                (C)  

              	
                As a
      chance caller only.

              

      

       

      
        	
                3.  

              	
                Blocking Outgoing
      International Calls and Removal of the
  Blocking

              

      

      

      
        	
                3.1

              	
                The
      Licensee will block outgoing ITMS calls, and may also block collect
      incoming ITMS calls for any subscriber requesting to block access to
      international services or subscribers for whom the international service
      for outgoing ITMS calls has been stopped or cut off, in accordance with
      the conditions of the License; the licensee may not block incoming ITMS
      calls except collect calls.

              

      

      

      
        	
                3.2  

              	
                If a
      block for outgoing ITMS calls has been implemented at a subscriber’s
      request, the Licensee will remove the block as follows: A23

              

      

      

      
        	
                (A)  

              	
                If
      the subscriber has asked to join, he will indicate his choice
      international operator who shall serve as his “chosen operator”, by his
      signature on the appropriate form; notice given by means of
      facsimile  will be deemed notice in writing given to by the
      subscriber in this matter.

              

      

      

      
        	
                (B)  

              	
                If
      the subscriber has asked to be a chance caller, he will notify the
      Licensee of such; if the notice is verbal, the Licensee will verify the
      requesting party’s identity.

              

      

      

      
        	
                3.3  

              	
                The
      Licensee will perform the block for ITMS or removal thereof, performed in
      accordance with the subscriber’s request, according to the
      following:

              

      

      

      
        	
                (A)  

              	
                70%
      - Within one working day of receipt of notice; requests received after
      1500 hours will be deemed having been received on the following work
      day;

              

      

      

      
        	
                (B)  

              	
                20%
      - within two working days of receipt of
notice;

              

      

      

      
        	
                (C)  

              	
                the
      rest – within 5 working days.

              

      

      

      
        	
                3.4  

              	
                The
      Licensee will ensure that a subscriber who has blocked his outgoing ITMS
      calls cannot make outgoing calls using ‘00’ dialing code, ‘01X’ dialing
      code, ‘188’ or ‘18XY’ dialing codes, or using any other code that may come
      in place thereof A23
      .

              

      

       

      
        	
                3.5  

              	
                The
      Licensee may collect reasonable payment for performance of a block for
      outgoing ITMS calls or for removal of the
block.

              

      

      

      
        	
                3.6  

              	
                Notwithstanding
      that stated in section 3., the Licensee will allow all its subscribers to
      block outgoing ITMS calls before initiation of services for such
      subscriber, free of charge.

              

      

       

       

      
        
          
            Second
Schedule—Appendix J – 4

          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

        Appendix J

      

       

      
        	
                3.7  

              	
                The
      Licensee will verify that all subscribers whose access to outgoing ITMS
      calls has been blocked receive appropriate voice message when dialing
      access codes or telephone numbers for international
    services.

              

      

      

      
        	
                3.8  

              	
                If a
      subscriber who has chosen a chosen operator asks to block outgoing ITMS
      calls, the Licensee shall notify such to the chosen operator, within seven
      (7) working days of the date of performance of the
  block.

              

      

       

      
        	
                4.  

              	
                Choosing a Chosen
      Operator

              

      

      

      
        	
                4.1  

              	
                A
      Licensee’s subscriber may notify the international operator in writing, on
      a signed form approved by the Director, regarding his choice of a chosen
      operator through whom such wishes to receive international
      telecommunications services using ‘00’ or ‘188’ access codes; the form
      will including the particulars of the subscriber – first name, last name
      or name of corporation, ID number of ID number of the corporation, address
      and telephone numbers the subscriber asks to define the international
      operator as the chosen operator for, and the date and time when
      instruction regarding the appointment was given. The form will explain
      that any phone number may have one chosen operator only, and such will
      fulfill the requirements prescribed in this matter in the international
      operator’s license7
      (hereinafter: the ascription form).

              

      

      

      
        	
                4.2  

              	
                Subscribers
      may change the chosen operator at any time by written notice on the
      ascription form; for initial ascription made at the subscriber’s request,
      the subscriber will not be asked to pay anything, however the subscriber
      may be charged a reasonable fee for any change in the
      ascription.

              

      

      

      
        	
                4.3  

              	
                The
      chosen operator will send the Licensee notice regarding the subscriber’s
      having chosen him as the chosen operator (hereinafter: ascription notice);
      ascription notice will include the subscriber’s particulars - first name
      and last name, address and telephone numbers the subscriber asked to
      define the international operator as the chosen operator for, and the date
      and time of the ascription form on which the subscriber signed; the chosen
      operator will give ascription notice to the Licensee in accordance with
      the ascription forms signed by him; ascription notice will be given via
      magnetic media files, or in any other manner agreed upon between the
      Licensee and the international operators. If two or more ascription
      notices are given to the Licensee, relating to the same telephone number,
      the sc will act in accordance with the ascription notice with the later
      date and hour.

              

      

      

      
        	
                4.4  

              	
                If a
      person has asked to become a new Licensee subscriber, he must make note,
      in the request to the international operator of his choice to engage with
      as a chosen operator; the Licensee will allow any new subscriber to choose
      a chosen operator for himself or to block the outgoing ITMS calls, or will
      allow the subscriber to receive ITMS

              

      

       

       

        
          

        

      

      
        7
Attention is called to section 52.3 of the Bezeq license, and section 56.4 to
the Golden Lines and Barak license.

      

       

      
        
          
            Second
Schedule—Appendix J – 5

          

        

        
          
          

          
            

          

        

        
          
            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix J

          

        

      

      
        

        
          	
                    

                	
                  services
      as a chance caller only; ascription services to a chosen operator or
      connection as a chance caller, and blocking outgoing ITMS calls will be
      given to new subscribers, at the time of initial registration, free of
      charge A23
      .

                

        

        

         

      

      
        	
                4.5  

              	
                In
      order to choose a chosen operator, and without derogating from the
      aforesaid, the Licensee will act as
follows:

              

      

      

      
        	
                (A)  

              	
                the
      Licensee will allow all subscribers having a subscriber line number to
      choose one  chosen operator will be for certain subscriber
      lines, and another for other subscriber
lines;

              

      

      

      
        	
                (B)  

              	
                VoidA2A23
      .

              

      

      

      
        	
                (C)  

              	
                the
      Licensee will perform ascription of a subscriber within one working day of
      receipt of ascription notice form the chosen operator A2A23.

              

      

      

      
        	
                (D)  

              	
                The
      Licensee will report to the international operator regarding completion of
      said subscriber ascription as stated in sub-clause (C) above, including
      change of ascription at the time and under such plan as agreed upon
      between the Licensee and the international operator; the report will
      include particulars of the subscriber – first name, last name or name of
      corporation, address and telephone numbers the subscriber asked to ascribe
      to the international operator.

              

      

      

      
        	
                (E)  
      

              	
                A20
      The Licensee will send a daily modification file of subscriber ascription
      to all international operators (hereinafter: the modification file),
      containing the particulars of the subscribers who ascribed to the
      international operator or who unsubscribed on that day. The modification
      file will be handed over at the time and under such procedure as shall be
      agreed upon between the Licensee and the international operator. The file
      will include the particulars of the subscriber, including at least the
      first name, last name or name of corporation, ID number of ID number of
      the corporation, address and telephone numbers the subscriber asks to
      define the international operator as the chosen operator for.  effect

              

      

      

      
        	
                (F)  

              	
                The
      Licensee may request that the Director allow in certain cases, all the
      prescription of rules and limitations on the matter
      of  subscriber ascription, the Licensee will set out the
      technical or operational reasons on which such request is based; if the
      Director consents to the Licensee’s said request, at his professional
      discretion, the Director will prescribe the time frame for the
      applicability of said rules and
limitation;

              

      

      

      
        	
                (G)  

              	
                The
      Licensee will submit a written quarterly report to the Director, by the
      15th
      of the month following the end of the quarter; the information in the
      report will be correct as of the last day of the calendar quarter
      preceding the date of the report, and will include the
      following:

              

      

       

      
        
          

        

        effect
This amendment will go into effect by no later than Thursday, the 29th of
Nissan, 5763 (May 1, 2003)

      

       

      
        
          
            Second
Schedule—Appendix J – 6

          

        

        
          
          

          
            

          

        

        
          
            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix J

          

        

      

      
 

      
        	
                (1)  

              	
                The
      number of subscribers blocked form international telecommunications
      services;

              

      

      

      
        	
                (2)  

              	
                The
      number of subscriber engaged for international services using short
      dialing codes or using special codes, for each of the international
      operators;

              

      

      

      
        	
                (3)  
      

              	
                A23
      The number of subscribers engaged for international services as chance
      dialers only.

              

      

      

      
        	
                (H)  

              	
                If
      there should be any disputes between the international operator or between
      the Licensee and the international operator on the matter of a subscribers
      choosing a chosen operator, the matter will resolved by the Director, or
      resolved by an independent arbitrator appointed by the Director, at his
      exclusive discretion.

              

      

      

      
        	
                4.6  

              	
                The
      Licensee will channel any subscriber dialing using the ‘00’ prefix or any
      other special prefix for access to international telecommunications
      services, or channeling a call to a Licensee’s subscriber located abroad
      using an international operator (follow-me subscriber service) to the
      chosen operator.

              

      

      

      
        	
                5.  

              	
                Void A23

              

      

      

      
        	
                6.  

              	
                Block for short
      dialing code

              

      

      

      
        	
                6.1  

              	
                Subject
      to the provisions of this appendix, the Licensee will perform a block for
      short dialing code for any subscriber so requestingA23
      .

              

      

      
        	
                6.2  

              	
                The
      Licensee will perform the block for short dialing code as follows: the
      Licensee will channel the subscriber’s calls using the double-digit ‘00’
      prefix and the ‘188’ prefix to an announcer playing a recorded
      announcement stating the following in Hebrew, English, Arabic and Russian:
      “This service is blocked, for further details please dial ___ (a telephone
      number of the announcer under the provisions of section 6.7)A23
      .

              

      

      

      
        	
                6.3  

              	
                Void
      A23

              

      

      

      
        	
                6.4  

              	
                Void
      A23

              

      

      

      
        	
                6.5  

              	
                Void
      A23

              

      

      

      
        	
                6.6  

              	
                Void
      A23

              

      

      

      
        	
                6.7  

              	
                The
      Licensee will operate the voice announcement  24 hours a day,
      including Saturdays and holidays, using such method and wording allowing a
      subscriber to receive an explanation regarding the ascription and overseas
      dialing, in Hebrew, English, Arabic and Russian; the explanation will
      include the following matters:

              

      

       

      
        
          
            Second
Schedule—Appendix J – 7

          

        

        
          
          

          
            

          

        

        
          
            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix J

          

        

      

      
 

      
        	
                (A)  

              	
                Performance
      of ascription – the ascription process and where to call in order to
      request the ascription form;

              

      

      

      
        	
                (B)  

              	
                How
      one may make an international call when the subscription is blocked for
      short dialing codes;

              

      

      

      
        	
                (C)  

              	
                The
      option of blocking overseas dialing and the option of removing such
      block;

              

      

      

      
        	
                (D)  

              	
                Where
      one may call in order to find out about additional matters – telephone
      numbers of international operators.

              

      

      

      
        	
                7.  

              	
                Interconnection

              

      

      

      
        	
                7.1  

              	
                The
      Licensee will connect its system to all international telecommunications
      system, directly or indirectly, according to the terms of its license, in
      a manner allowing provision of international telecommunications services
      to all subscribers through the international telecommunications services
      of all international operators, including outgoing and incoming ITMS
      calls, direct dialing, dialing through an operator (‘188’ service, as
      stated in section 2.2(A)), “Direct Israel” services, collect service (from
      abroad to Israel, from Israel abroad), international 1-800 service
      (incoming and outgoing), calling card services, from any destination
      abroad and to any destination
abroad.

              

      

      

      
        	
                7.2  

              	
                The
      technical, operational and commercial arrangements between the Licensee
      and any international operator will allow the provision of the following
      to all subscribers:

              

      

      

      
        	
                (A)  

              	
                Quality
      service, including service quality control and means for investigating and
      dealing with subscriber’s complaints regarding quality of
      service;

              

      

      

      
        	
                (B)  

              	
                Accurate
      and precise billing of subscriber, including control over the billing and
      means for investigating and dealing with subscriber’s complaints regarding
      incorrect billing and tools and means of identification and prevention of
      fraud and deception;

              

      

      

      
        	
                (C)  

              	
                Consumer
      response to subscriber’s queries and questions, including tools and means
      of providing an itemized bill for subscribers, and for investigating
      subscriber’s queries in all matters related to receipt of international
      services.

              

      

      

      
        	
                7.3  

              	
                In
      order to implement the provisions of this appendix, the Licensee will act,
      inter alia, as follows:

              

      

      

      
        	
                (A)  

              	
                Allow
      any subscriber who has not blocked outgoing international ITMS calls to
      make international calls at any time via his chosen international operator
      or as a chance caller, using dialing methods set out in section
      2;

              

      

       

      
        
          
            Second
Schedule—Appendix J – 8

          

        

        
          
          

          
            

          

        

        
          
            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix J

          

        

      

      
 

      
        	
                (B)  

              	
                Allow
      all subscribers to change their chosen operators; this service will be
      given in return for a reasonable
charge,

              

      

      

      
        	
                (C)  

              	
                Take
      reasonable measures to prevent subscriber ascription to a chosen operator
      without his knowledge or against the subscriber’s wishes (“slamming”);
      these measures will include identification of the subscriber and
      verification of the subscriber’s right to receive
  service;

              

      

      

      
        	
                (D)  

              	
                Give
      all subscribers, free of charge, service allowing them to identify the
      name of their chosen operators;

              

      

      

      
        	
                (E)  

              	
                The
      Licensee will offer non-discriminatory conditions to all international
      operators, including in all matters regarding the commercial conditions,
      billing and collections arrangements, availability of connection
      installations and quality of service; without derogating from the
      generality of the aforesaid, the Licensee will provide service for all
      international operators under equal conditions including in the matter of
      interconnection, provision of infrastructure installations and connection
      services to the network, performance of changes in switching, in
      installations, protocols and network
interface;

              

      

      

      
        	
                (F)  

              	
                The
      conditions for interconnection between the Licensee’s system and the
      international operator’s international telecommunications system will be
      reasonable and non-discriminatory; if the parties have not reached any
      agreement, the Minister will determine matters between
    them;

              

      

      

      
        	
                (G)  

              	
                A
      copy of any agreement between the Licensee and international operator in
      the matter of interconnection will be delivered to the
      Director;

              

      

      

      
        	
                (H)  

              	
                Any
      international operator requesting the particulars of a subscriber refusing
      to make payments to the Licensee designated for the international operator
      for services used via the international operator’s international
      telecommunications system will be given over, whether such subscriber was
      an ascription subscriber or a chance caller; these particulars will
      include the first name, last name or name of corporation, ID number of ID
      number of the corporation, address and telephone
  number.

              

      

      

      
        	
                (I)

              	
                A22
      Allow international operators to collect payment directly for services
      from   subscribers ascribed to such international operator,
      and who have chosen to receive billing and collections services directly;
      the Licensee will have any vital   information required by
      the international operator at his disposal allowing the international
      operator to provide billing and collection services for such aforesaid
      ascribed subscribers;

              

      

      

      
        	
                (J)

              	
                A22
      Provide services under equal and non-discriminatory conditions and for
      such charge not discriminating against an ascribed subscriber who has
      chosen to receive billing and collection services from the international
      operator.

              

      

       

      
        
          
            Second
Schedule—Appendix J – 9

          

        

        
          
          

          
            

          

        

        
          
            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix J

          

        

      

      
 

      
        	
                7.4  

              	
                The
      international operators will bear the costs of implementation of the
      interconnection including the process of survey and blocking short dialing
      codes, and, if so required, for a subscriber’s initial ascription to a
      chosen operator; the rate of payments, as stated, will be determined under
      negotiation between the Licensee and the international operator; the
      Licensee’s shared expenses that cannot be ascribed to a particular
      international operator will be divided equally between all international
      operators; if the parties have not come to an arrangement, the Minister
      will prescribe instructions in these matters, after giving the parties a
      fair opportunity to argue their claims before
  him.

              

      

      

      First
Schedule – Void A23

      

      Second
Schedule – Void A23

       

      

        
          
            
              Second
Schedule—Appendix J – 10

            

             

          

          
             

            
              

            

          

          
             

            
              Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

              Appendix K

            

          

        

      

      

      Appendix
K – Discontinuation of Service to Cellular End-User Equipment of the IS-54
typet7

       

      

      
        	
                Definitions 

              	
                1.

              	
                In
      this appendix -

              

      

       

      
        	
                “Old
      technology phone” –

                 

              	
                A
      cellular phone operating on IS-54 format;

              
	
                “New
      technology phone” -

              	
                A
      cellular phone operating on IS-136 format;

              
	
                 

                “Upgradeable
      telephone”  -

              	
                 

                An
      old technology phone that may be upgraded to a new technology
      phone;

              
	
                 

                “Date
      of cessation of service” -

              	
                 

                The
      date on which the Licensee ceases to provide cellular services to an old
      technology phone owner.

              
	
                 

                “Eligible
      customer” -

              	
                 

                The
      Licensee’s subscriber or customer who has lawfully purchased an old
      technology telephone and has not exchanged or upgraded it to a new
      technology phone;

              
	
                 

                “Telephone
      Number” -

              	
                 

                The
      number of the cellular telephone given to a subscriber or customer who
      lawfully purchased an old technology phone and connected to the Licensee’s
      network;

              
	
                 

                “Upgrade”
      -

              	
                 

                Exchanging
      the software version of the telephone  upgrades the telephone,
      wherein it becomes a new technology
phone.

              

      

      

      

      
        	
                Discontinuation
      of service

                 

              	
                2.

              	
                Notwithstanding
      the aforesaid in section C of chapter E of the General License, the
      Licensee may discontinue provision of cellular services to eligible
      customers, provided all the following provisions apply:

                 

              
	
                Publication

              	
                3.

              	
                (A)  The
      Licensee will publish an appropriate notice under these provisions in
      three of the largest newspapers in Israel, one of which is published in
      Arabic, on the closest Friday to the date 30 days before the date of
      cessation of service.

                 

                (B)   The
      Licensee will publish an appropriate notice under these
  

              

      

       

      t7 Amendment 7

       

      
        
          
          

        

        
          
            Second
Schedule—Appendix K – 1

          

          
            

          

        

        
          
            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix
K

          

        

      

       

      
        	 	 	
                provisions
      in three of the largest newspapers in Israel, one of which is published in
      Arabic, on the closest Friday to the date 30 days earlier than the end of
      six months from the date of cessation of service.

              
	 	 	 
	
                Exchange
      of telephone

              	
                4.

              	
                The
      Licensee will exchange an old technology telephone including all
      accessories thereto, including a hands-off device, for a new technology
      telephone, including all accessories thereto, for any eligible customer,
      on the basis of accessory for accessory, including the installation
      thereof, provided the new technology telephone is of no lesser features
      than the new technology telephone’s features, free of any direct or
      indirect charge to the customer.

                 

              
	
                Upgrade

              	
                5.

              	
                The
      Licensee will upgrade an eligible customer’s upgradeable telephone, free
      of any direct or indirect charge to the customer.

                 

              
	
                Telephone
      number

              	
                6.

              	
                The
      Licensee will keep the telephone number allocated to any eligible customer
      before the date of cessation of service for a period of six months from
      the date of cessation of service; after this period the Licensee may
      exchange the telephone number of an eligible customer who did not exchange
      the old technology telephone to a new technology telephone or did not
      upgrade an upgradeable phone during that period.

                 

              
	
                Notice
      of Application

                 

              	
                7.

              	
                The
      Licensee shall inform the Director in advance and in writing of the day of
      Discontinuation of Service and of the days of Publication as detailed in
      sub-sections 3(A) and (B) above and shall furnish the Director with copies
      of the notices as published.

              
	 	 	 
	
                Period

              	
                8.

              	
                The
      Licensee will fulfill the provisions of sections 4 and 5 above starting on
      the date of publication prescribed in sub-section 3(A) above for a period
      of 7 years from the date of cessation of service.

                 

              
	
                Conditions
      of service

              	
                9.

              	
                The
      provisions of sections 4, 5 and 6 will be deemed a condition of service,
      as defined in section 37B.(A)(1) of the Telecommunications
      Law.

              

      

      
 

      
        t7
Amendment 7

      

      
        
          
            Second
Schedule—Appendix K – 2

          

           

        

        
           

          
            

          

        

        
           

          
            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix O

          

        

      

      
 

      Appendix
O – Erotic Servicest36 effect

      

      1.
Definitions

      

      1.1     
In this appendix –

      

      
        	
                Licensee
      -

              	
                One
      who has been given a general license by the Minister for provision of NDO
      or cellular services;

                 

              
	
                Telephone
      bill -

              	
                A
      bill given to the subscriber by the Licensee for services
      provided;

                 

              
	
                Writing
      -

              	
                Including
      via facsimile or electronic mail;

                 

              
	
                Service
      number -

              	
                A
      number of digits allocated to an erotic services provider by the Licensee,
      given by dialing a telephone number, subject to the provisions of the
      numbering program and administrative provisions in this matter, the
      dialing of which, following a dialed prefix, allows the subscriber access
      to the service;

                 

              
	
                Services
      provider -

              	
                One
      who provides erotic services via the network, and payment for the service
      is made through the telephone bill; in the matter of erotic services
      provided through dialing a telephone number, access to the services is
      achieved through a service number;

                 

              
	
                Erotic
      promo

              	
                Broadcast
      or presentation of an audio or visual message with sexual content,
      including a recorded message, given via a telecommunications facility,
      directly or indirectly, and such message is intended to provide
      information on a service following or to encourage the use thereof,
      provided the broadcast of the message or presentation are made without
      additional charge beyond the charge for a telephone call collected via the
      telephone bill;

                In
      this matter, “indirectly” – including by way of creating a connection from
      the subscriber’s end user equipment as a condition of providing the erotic
      promo.

                 

              
	
                Area
      code

              	
                A
      national area code in such model as prescribed by the Ministry for erotic
      services;

                 

              
	
                The
      network -

              	
                The
      Licensee’s public telecommunications network.

                 

              
	
                Erotic
      services -

              	
                Audio
      broadcast or presentation of an audio or visual message with sexual
      content, including recorded messages, given via a telecommunications
      facility, directly or indirectly, including services
      for  dating, chats, or sending messages between chance callers,
      designated or serving, even in part, for sexual purposes,
  

              

      

       

        
          

        

      

      
        A36
Amendment no. 36

          
          effect
This amendment will go into effect  on the 1st of
Nissan, 5766(March 30, 2006)

        

      

      
        
          
          

        

        
          
            Appendix O
–  1

          

          
            

          

        

        
          
            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix
O

          

        

      

       

      
        	 	 which
      are any of the following: 

                 

                (1)  A
      service provided through the dialing of a telephone number given by a
      service provider; 

                (2)  An
      access service to a closed data base of contents including multimedia
      files, held by the Licensee or by another provider of the service with the
      Licensee’s consent (hereinafter: the “cellular
      portal”).

                In
      this matter, “indirectly” – including by way of creating a connection from
      the subscriber’s end user equipment as a condition of providing the
      service or for charging for it;

              
	 	 
	
                Payment
      regulations -

              	
                The
      Communications Law (Telecommunications and Broadcasts) (Payment for
      Telecommunications’ Services), 5765 – 2005;

                 

              
	
                Special
      payment -

              	
                 A
      price fixed as stated in section 6, which the subscriber is required to
      pay for erotic services in addition to the regular payment;

                 

              
	
                Payment
      Per time -

              	
                A
      special payment, the rate of which is determined by the amount of time the
      subscriber used the erotic service;

                 

              
	
                Regular
      payment -

              	
                One
      of the following:

                 

                (A)  For
      a call within the network – a payment that does not exceed the fixed
      charge according to the rate agreement between the subscriber and the
      Licensee regarding a call to another subscriber in the same
      network;

                (B)  For
      a call from one cellular network to another cellular network or to a
      NDONDO network – payment as set out in sub-section (A) plus a payment that
      does not exceed NIS 0.50 per minute (including VAT);

                (C)  For
      a call from the Bezeq company network to a cellular network – a charge
      that does not exceed that prescribed by the letter D in table A in the
      First Schedule of the Payment Regulations, plus NIS 0.50 per minute
      (including VAT);

                (D)  For
      a call from a NDONDO network, except the Bezeq company network, to a
      cellular network – a charge that does not exceed the fixed charge
      according to the rate agreement between NDO subscribers and NDO, with
      respect to another subscriber number within the same network, plus NIS
      0.50 per minute.

                (E)  For
      erotic services given via the cellular portal – a charge that does not
      exceed the fixed charge according to the rate agreement between the
      subscriber and the Licensee with regard to access service to the cellular
      portal.

              
	 
      	 
      

      

      2.  Access
through Dialing

      

      
        	
                2.1  

              	
                Subject
      to the provisions of section 4, access to erotic services given through
      dial-up will be made available to subscribers via an area code and service
      number.

              

      

       

       

       

      
        
          
          

        

        
          
            Appendix O
–  2

          

          
            

          

        

        
           

            Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

            Appendix
O

          

        

      

      
 

      
        	
                3.  

              	
                Allocation of Service
      Number

              

      

      

      
        	
                3.1.  

              	
                In
      the matter of erotic services provided by dial-up, the Licensee may
      allocate a service number to a service provider; in such case, the
      Licensee will allow the service provider to provide services to both the
      Licensee’s subscribers as well as subscriber to other
      licensees.

              

      

      

      
        	
                4.  

              	
                Blocking
      Access

              

      

       

      
        
          	
                  4.1  

                	
                  
                    A.
      A38
      A Licensee will block access to erotic services from all end-user
      equipments connected to the network; without derogating from the
      aforesaid, for the purpose of blocking access to erotic services given
      though the cellular portal, the Licensee may make use of a means of
      blocking, including content filtering programs, provided they efficiently
      block access to said service.

                     

                    
                      B.
      A38
      Should the Ministry of Communications notify the Licensee that an erotic
      promo is being given through the Licensee’s telephone line or network,
      without access through a service number, the Licensee will cut off said
      line, or block the line from receiving incoming
      calls;

                    

                  

                

        

         

      

      
        	
                4.2  

              	
                A
      subscriber 18 years of age or more may request the Licensee remove a block
      imposed as described in section 4.1AA38
      from his end user equipment.

              

      

      

      
        	
                4.3  

              	
                A
      request for such removal of a block will be made in writing, or verbally,
      provided the Licensee has prescribed a procedure allowing accurate
      identification of the requesting
subscriber.

              

      

      
        	 	 
	
                4.4  

              	
                If a
      subscriber has so requested a block removed, the Licensee will remove the
      block within a reasonable time, in a manner allowing the subscriber access
      to erotic services via the end user equipment in his
      possession.

              

      

      

      
        	
                4.5  

              	
                If a
      block has been removed for erotic services as stated, and the subscriber
      requests that his end user equipment again be blocked for such services,
      the Licensee shall perform the block at the soonest possible opportunity,
      and by no later than 2 work days from the date of receipt of the
      subscriber’s request.

              

      

      

      
        	
                4.6  

              	
                The
      first removal of a block against erotic services, made at the subscriber’s
      request as stated in sections 4.2 and 4.3 will be made free of charge; the
      Licensee may charge the subscriber a reasonable fee for any additional
      blocking access to erotic services or for additional removal of such
      block, made at the subscriber’s
request.

              

      

       

      
        	
                5.  

              	
                Early
      Registration

              

      

       

      
        
          	
                  5.1  

                	
                  Notwithstanding
      that stated in section 4 above, the Licensee may establish a duty of early
      subscriber registration for receipt of a password, a submission of which
      will be a precondition for receipt of erotic services. The provisions of
      this section do not derogate from the provisions of
      sections  4.2 and 4.3
above.

                

        

         

      

      
        	
                6.  

              	
                 Special
      Payment

              

      

      
         

         

        
          
            
            

          

          
            
              Appendix O
–  3

            

            
              

            

          

          
             

              Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

              Appendix
O

            

          

        

        

      

      
        	
                6.1  

              	
                If
      special payment is prescribed for erotic services, the rate shall be fixed
      by the Licensee or in agreement between the Licensee and the services
      provider.

              

      

      

      
        	
                7.  

              	
                Charging the
      Subscriber

              

      

      

      
        	
                7.1.  

              	
                If
      special payment is prescribed for erotic services, the Licensee’s phone
      bill will show the payment for the service separately from charges for the
      Licensee’s other services, unless the subscriber has requested
      otherwise.

              

      

      

      
        	
                7.2.  

              	
                The
      Licensee shall provide the subscriber, upon demand and within ten (10)
      working days, details of the special payment for erotic services as
      follows:

              

      

      

      
        	
                (A)  

              	
                The
      service number the service
allocated;

              

      

      

      
        	
                (B)  

              	
                The
      date and time service was provided;

              

      

       

      
        	
                (C)  

              	
                Billing
      time units – when charging per time – the number of time units charged or
      the total amount of the special payment; in the case of a charge according
      to traffic volume (such as MB, KB), the number of volume units
      transferred;

              

      

      

      
        	
                (D)  

              	
                The
      sum charged for the service.

              

      

      

      The
Licensee may collect a reasonable fee for specification of the special
payment.

      

      
        	
                8.  

              	
                Mandatory
      Tender

              

      

       

      
        
          	
                  8.1  

                	
                  
                    If a
      special payment has been fixed for erotic services provided through the
      network, the Licensee, either himself or via the services provider, will
      play a recorded message at the beginning of the call, containing the
      following details:

                  

                

        

         

      

      
        	
                A.  

              	
                The
      essence of the service;

              

      

      

      
        	
                B.  

              	
                Rate
      of special payment for the service, according to payment per time or per
      traffic volume, as the case may be;

              

      

      

      
        	
                C.  

              	
                The
      option to discontinue the service, without charge, before the signal is
      heard, as stated in section 8.4.

              

      

      

      
        	
                8.2  

              	
                The
      recorded message will be played in the language in which the erotic
      service is provided, in comprehensible language, at a reasonable pace and
      without recording defects.

              

      

      

      
        	
                8.3  

              	
                At
      the start of erotic services provided in a language not Hebrew, a message
      will be played announcing the language in which the service is provided,
      and after, the recorded message will be played, as stated in sections 8.1
      and 8.2, in the language in which the service is
  provided.

              

      

      

      
        	
                8.4  

              	
                Upon
      completion of the recorded message, as stated in section 8.1, the caller
      will have a 5 second interval, at the end of which a signal indicating the
      start of the erotic services; if the caller disconnected the call before
      the signal was heard, he will not be charged the special payment.
      Alternatively, the caller will be asked to press a certain key on his end
      

              

      

       

      
         

        
          
            
            

          

          
            
              Appendix O
–  4

            

            
              

            

          

          
             

              Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

              Appendix
O

            

          

        

        

      

      
        	 	user
      equipment in order to confirm that he desires to accept the service, and
      will be charged the special payment only from the moment he so
    acts.
	 	 
	
                8.5  

              	
                If a
      special payment is fixed for erotic services provided by access to the
      cellular portal, the Licensee will notify subscribers regarding the price
      of the service in an obvious and clear manner, providing the subscriber
      the option to disconnect from the service without being charged the
      special payment.

              

      

      

      
        	
                9.  

              	
                Licensee –Services
      Provider Relations

              

      

      

      
        	
                9.1  

              	
                The
      Licensee may allow a services provider to perform
      telecommunications  operations via its installations in order to
      provide erotic services; the services provider will be exempt from the
      duty of obtaining a license for telecommunications services, under the
      provisions of section 3(5) of the
Law.

              

      

      

      
        	
                9.2  

              	
                The
      Licensee will include the provisions of this appendix, mutatis mutandis,
      in the agreement between the Licensee and the services provider, in such
      manner that the services provider will be obligated to fulfill said
      provisions.

              

      

      

      
        	
                9.3  

              	
                The
      Licensee will provide the Director with any agreement between such and a
      services provider, upon demand.

              

      

      

      
        	
                10.  

              	
                Interconnection

              

      

      

      
        	
                10.1  

              	
                The
      conditions for interconnection between the network and the Licensee’s
      public telecommunications network, in all matters relating to provision of
      billing and collection services by one Licensee to another licensee, for
      purposes of provision of erotic services given via the network to another
      licensee’s subscriber, will be formalized in an agreement between the
      Licensee and the other licensee; if the parties cannot reach an agreement,
      the Minister will decide on the
matter.

              

      

      

      
        	
                10.2  

              	
                The
      Licensee will, upon demand, provide the Director with a signed copy of all
      agreement it has with other licensees in the matter of said
      interconnection.

              

      

      

      
        	
                11.  

              	
                General

              

      

      

      
        	
                11.1  

              	
                The
      Licensee will be responsible to handle all erotic services customer
      complaints, in all matters relating to subscriber access to the service,
      and problems of billing and collection in connection with the service, and
      will establish a mechanism for dealing with customer queries for such
      purpose; the services provider will be responsible to deal with subscriber
      complaints in regard to service content. If the Licensee himself provides
      the erotic services, the Licensee will be responsible to handle erotic
      services customer complaints regarding the service content as
      well.

              

      

      

      
        	
                11.2  

              	
                The
      Licensee may not disconnect, stop or harm the basic telephone services of
      a subscriber who has used erotic services and refuses to pay for such,
      however, the Licensee may disconnect such subscriber from continued use of
      the erotic services.

              

      

      

      
        	
                11.3  

              	
                 The
      Licensee may not provide a subscriber’s particulars to another services
      provider or to others, without the subscriber’s written consent , and only
      after verification of the authenticity of such
  consent.

              

      

       

      
         

        
          
            
            

          

          
            
              Appendix O
–  5

            

            
              

            

          

          
             

              Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) Services. Consolidated Version as of August 20,
2007.

              Appendix
O

            

          

        

        

      

      
 

      
        	
                11.4  

              	
                A
      Licensee shall, within three (3) working days, provide any subscriber so
      requesting the following particulars regarding the services provider,
      without charge:

              

      

      

      
        	
                A.  

              	
                The
      name and address of the provider;

              

      

      
        	
                B.  

              	
                The
      telephone number at which such provider may be
  reached.

              

      

      

      
        	
                11.5  

              	
                The
      provisions of this appendix will apply, mutatis mutandis, to provision of
      erotic services provided as a network service to the Licensee’s
      subscribers only.

              

      

      
        	 	 
	
                11.6  

              	
                The
      Licensee may himself provide erotic services, and the provisions of this
      appendix will apply thereto, mutatis
mutandis.

              

      

       

        

      
        Appendix O
–  6EX-4.1

 

EXHIBIT 4.1

 

 

MEDCO HEALTH SOLUTIONS, INC.

TO

U.S. BANK TRUST NATIONAL ASSOCIATION

Trustee

 

INDENTURE

Dated as of March 18, 2008

 

 

 

 

MEDCO HEALTH SOLUTIONS, INC.

Reconciliation and tie between Trust Indenture Act

of 1939 and Indenture, dated as of March 18, 2008

	 	 	 	 	 	 	 	 	 
	Trust Indenture	 	 	 	 
	Act Section	 	 	 	Indenture Section
	=
	 	310	 	(a)(l)	 	 	 	609
	 
	 	 	 	(a)(2)	 	 	 	609
	 
	 	 	 	(a)(3)	 	 	 	Not Applicable
	 
	 	 	 	(a)(4)	 	 	 	Not Applicable
	 
	 	 	 	(b)	 	 	 	608
	 
	 	 	 	 	 	 	 	610
	=
	 	311	 	(a)	 	 	 	613(a)
	 
	 	 	 	(b)	 	 	 	613(b)
	 
	 	 	 	(b)(2)	 	 	 	703(a)(2)
	 
	 	 	 	 	 	 	 	703(b)
	=
	 	312	 	(a)	 	 	 	701
	 
	 	 	 	 	 	 	 	702(a)
	 
	 	 	 	(b)	 	 	 	702(b)
	 
	 	 	 	(c)	 	 	 	702(c)
	=
	 	313	 	(a)	 	 	 	703(a)
	 
	 	 	 	(b)	 	 	 	703(b)
	 
	 	 	 	(c)	 	 	 	703(a), 703(b)
	 
	 	 	 	(d)	 	 	 	703(c)
	=
	 	314	 	(a)	 	 	 	704
	 
	 	 	 	(b)	 	 	 	Not Applicable
	 
	 	 	 	(c)(1)	 	 	 	102
	 
	 	 	 	(c)(2)	 	 	 	102
	 
	 	 	 	(c)(3)	 	 	 	Not Applicable
	 
	 	 	 	(d)	 	 	 	Not Applicable
	 
	 	 	 	(e)	 	 	 	102
	=
	 	315	 	(a)	 	 	 	601(a)
	 
	 	 	 	(b)	 	 	 	602
	 
	 	 	 	 	 	 	 	703(a)(6)
	 
	 	 	 	(c)	 	 	 	601(b)
	 
	 	 	 	(d)	 	 	 	601(c)
	 
	 	 	 	(d)(1)	 	 	 	601(a)(1)
	 
	 	 	 	(d)(2)	 	 	 	601(c)(2)
	 
	 	 	 	(d)(3)	 	 	 	601(c)(3)
	 
	 	 	 	(e)	 	 	 	514
	=
	 	316	 	(a)	 	 	 	101
	 
	 	 	 	(a)(1)(A)	 	 	 	502
	 
	 	 	 	 	 	 	 	512
	 
	 	 	 	(a)(1)(B)	 	 	 	513
	 
	 	 	 	(a)(2)	 	 	 	Not Applicable
	 
	 	 	 	(b)	 	 	 	508
	=
	 	317	 	(a)(1)	 	 	 	503
	 
	 	 	 	(a)(2)	 	 	 	504
	 
	 	 	 	(b)	 	 	 	1003
	=
	 	318	 	(a)	 	 	 	107

 

			
	NOTE:	 	This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	RECITALS OF THE COMPANY
 	 	 	1	 
	 
	 	ARTICLE ONE	 	 	 	 
	 
	 	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 101.
	 	Definitions	 	 	1	 
	SECTION 102.
	 	Compliance Certificates and Opinions	 	 	8	 
	SECTION 103.
	 	Form of Documents Delivered to Trustee	 	 	9	 
	SECTION 104.
	 	Acts of Holders; Record Dates	 	 	9	 
	SECTION 105.
	 	Notices, Etc., to Trustee and Company	 	 	11	 
	SECTION 106.
	 	Notice to Holders; Waiver	 	 	11	 
	SECTION 107.
	 	Conflict with Trust Indenture Act	 	 	12	 
	SECTION 108.
	 	Effect of Headings and Table of Contents	 	 	12	 
	SECTION 109.
	 	Successors and Assigns	 	 	12	 
	SECTION 110.
	 	Separability Clause	 	 	12	 
	SECTION 111.
	 	Benefits of Indenture	 	 	12	 
	SECTION 112.
	 	Governing Law	 	 	12	 
	SECTION 113.
	 	Legal Holidays	 	 	12	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE TWO	 	 	 	 
	 
	 	SECURITY FORMS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 201.
	 	Forms Generally	 	 	13	 
	SECTION 202.
	 	Form of Face of Security	 	 	13	 
	SECTION 203.
	 	Form of Reverse of Security	 	 	15	 
	SECTION 204.
	 	Additional Provisions Required in Global Security	 	 	18	 
	SECTION 205.
	 	Form of Trustee’s Certificate of Authentication	 	 	19	 

 

			
	NOTE:	 	This table of contents shall not, for any purpose, be deemed to be a part
of the Indenture.

-ii-

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE THREE	 	 	 	 
	 
	 	THE SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 301.
	 	Title and Terms	 	 	19	 
	SECTION 302.
	 	Denominations	 	 	22	 
	SECTION 303.
	 	Execution, Authentication, Delivery and Dating	 	 	22	 
	SECTION 304.
	 	Temporary Securities	 	 	24	 
	SECTION 305.
	 	Registration, Registration of Transfer and Exchange	 	 	24	 
	SECTION 306.
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	 	26	 
	SECTION 307.
	 	Payment of Interest; Interest Rights Preserved	 	 	26	 
	SECTION 308.
	 	Persons Deemed Owners	 	 	28	 
	SECTION 309.
	 	Cancellation	 	 	28	 
	SECTION 310.
	 	Computation of Interest	 	 	28	 
	SECTION 311.
	 	CUSIP Numbers	 	 	28	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE FOUR	 	 	 	 
	 
	 	SATISFACTION AND DISCHARGE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 401.
	 	Satisfaction and Discharge of Indenture	 	 	29	 
	SECTION 402.
	 	Application of Trust Money	 	 	30	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE FIVE	 	 	 	 
	 
	 	REMEDIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 501.
	 	Events of Default	 	 	30	 
	SECTION 502.
	 	Acceleration of Maturity; Rescission and Annulment	 	 	32	 
	SECTION 503.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	33	 
	SECTION 504.
	 	Trustee May File Proofs of Claim	 	 	34	 
	SECTION 505.
	 	Trustee May Enforce Claims Without Possession of Securities	 	 	35	 
	SECTION 506.
	 	Application of Money Collected	 	 	35	 
	SECTION 507.
	 	Limitation on Suits	 	 	35	 

 

			
	NOTE:	 	This table of contents shall not, for any purpose, be deemed to be a part
of the Indenture.

-iii-

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 508.
	 	Unconditional Right of Holders to Receive Principal, Premium and Interest	 	 	36	 
	SECTION 509.
	 	Restoration of Rights and Remedies	 	 	36	 
	SECTION 510.
	 	Rights and Remedies Cumulative	 	 	36	 
	SECTION 511.
	 	Delay or Omission Not Waiver	 	 	36	 
	SECTION 512.
	 	Control by Holders	 	 	37	 
	SECTION 513.
	 	Waiver of Past Defaults	 	 	37	 
	SECTION 514.
	 	Undertaking for Costs	 	 	38	 
	SECTION 515.
	 	Waiver of Stay or Extension Laws	 	 	38	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE SIX	 	 	 	 
	 
	 	THE TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 601.
	 	Certain Duties and Responsibilities	 	 	38	 
	SECTION 602.
	 	Notice of Defaults	 	 	39	 
	SECTION 603.
	 	Certain Rights of Trustee	 	 	40	 
	SECTION 604.
	 	Not Responsible for Recitals or Issuance of Securities	 	 	41	 
	SECTION 605.
	 	May Hold Securities	 	 	41	 
	SECTION 606.
	 	Money Held in Trust	 	 	41	 
	SECTION 607.
	 	Compensation and Reimbursement	 	 	41	 
	SECTION 608.
	 	Disqualification; Conflicting Interests	 	 	42	 
	SECTION 609.
	 	Corporate Trustee Required; Eligibility	 	 	42	 
	SECTION 610.
	 	Resignation and Removal; Appointment of Successor	 	 	42	 
	SECTION 611.
	 	Acceptance of Appointment by Successor	 	 	44	 
	SECTION 612.
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	45	 
	SECTION 613.
	 	Preferential Collection of Claims Against Company	 	 	45	 
	SECTION 614.
	 	Appointment of Authenticating Agent	 	 	45	 

 

			
	NOTE:	 	This table of contents shall not, for any purpose, be deemed to be a part
of the Indenture.

-iv-

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE SEVEN	 	 	 	 
	 
	 	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 701.
	 	Company to Furnish Trustee Names and Addresses of Holders	 	 	47	 
	SECTION 702.
	 	Preservation of Information; Communications to Holders	 	 	47	 
	SECTION 703.
	 	Reports by Trustee	 	 	48	 
	SECTION 704.
	 	Reports by Company	 	 	49	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE EIGHT	 	 	 	 
	 
	 	CONSOLIDATION, MERGER, CONVEYANCE,  TRANSFER OR LEASE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 801.
	 	Company May Consolidate, Etc.,  Only on Certain Terms	 	 	49	 
	SECTION 802.
	 	Successor Corporation Substituted	 	 	50	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE NINE	 	 	 	 
	 
	 	SUPPLEMENTAL INDENTURE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 901.
	 	Supplemental Indentures Without Consent of Holders	 	 	50	 
	SECTION 902.
	 	Supplemental Indentures With Consent of Holders	 	 	51	 
	SECTION 903.
	 	Execution of Supplemental Indentures	 	 	53	 
	SECTION 904.
	 	Effect of Supplemental Indentures	 	 	53	 
	SECTION 905.
	 	Conformity with Trust Indenture Act	 	 	53	 
	SECTION 906.
	 	Reference in Securities to Supplemental Indentures	 	 	53	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE TEN	 	 	 	 
	 
	 	COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1001.
	 	Payment of Principal, Premium and Interest	 	 	53	 
	SECTION 1002.
	 	Maintenance of Office or Agency	 	 	54	 
	SECTION 1003.
	 	Money for Securities Payments to Be Held in Trust	 	 	54	 
	SECTION 1004.
	 	Corporate Existence	 	 	55	 
	SECTION 1005.
	 	Payment of Taxes and Other Claims	 	 	55	 
	SECTION 1006.
	 	Restrictions on Liens	 	 	56	 
	SECTION 1007.
	 	Statement by Officers as to Default	 	 	57	 

 

			
	NOTE:	 	This table of contents shall not, for any purpose, be deemed to be a part
of the Indenture.

-v-

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1008.
	 	Waiver of Certain Covenants	 	 	57	 
	SECTION 1009.
	 	Restrictions on Sale and Leasebacks	 	 	58	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE ELEVEN	 	 	 	 
	 
	 	REDEMPTION OF SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1101.
	 	Applicability of Article	 	 	59	 
	SECTION 1102.
	 	Election to Redeem; Notice to Trustee	 	 	59	 
	SECTION 1103.
	 	Selection by Trustee of Securities to Be Redeemed	 	 	59	 
	SECTION 1104.
	 	Notice of Redemption	 	 	60	 
	SECTION 1105.
	 	Deposit of Redemption Price	 	 	60	 
	SECTION 1106.
	 	Securities Payable on Redemption Date	 	 	61	 
	SECTION 1107.
	 	Securities Redeemed in Part	 	 	61	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE TWELVE	 	 	 	 
	 
	 	SINKING FUNDS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1201.
	 	Applicability of Article	 	 	61	 
	SECTION 1202.
	 	Satisfaction of Sinking Fund Payments with Securities	 	 	62	 
	SECTION 1203.
	 	Redemption of Securities for Sinking Fund	 	 	62	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE THIRTEEN	 	 	 	 
	 
	 	DEFEASANCE AND COVENANT DEFEASANCE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1301.
	 	Applicability of Article: Company's
Option to Effect Defeasance or Covenant Defeasance	 	 	62	 
	SECTION 1302.
	 	Defeasance and Discharge	 	 	63	 
	SECTION 1303.
	 	Covenant Defeasance	 	 	63	 
	SECTION 1304.
	 	Conditions to Defeasance or Covenant Defeasance	 	 	64	 
	SECTION 1305.
	 	Deposited Money and U.S.
Government  Obligations to Be Held in Trust; Other Miscellaneous Provisions	 	 	65	 

 

			
	NOTE:	 	This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

-vi-

 

          INDENTURE, dated as of March 18, 2008, from Medco Health Solutions, Inc., a corporation duly
organized and existing under the laws of the State of Delaware (herein called the “Company”),
having its principal office at 100 Parsons Pond Drive, Franklin Lakes, New Jersey, 07417, to U.S.
Bank Trust National Association, a national banking association, as Trustee.

RECITALS OF THE COMPANY

          The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured debentures, notes or other evidences of
indebtedness (herein called the “Securities”), to be issued in one or more series as in this
Indenture provided.

          All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of series thereof, as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

SECTION 101. Definitions.

          For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

     (1) the terms defined in this Article have the meanings assigned to them in
this Article and include the plural as well as the singular;

     (2) all other terms used herein which are defined in the Trust Indenture Act,
either directly or by reference therein, have the meanings assigned to them therein;

     (3) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles, and,
except as otherwise herein expressly provided, the term “generally accepted
accounting principles” with respect to any computation required or permitted
hereunder shall mean such accounting principles as are generally accepted at the
date of such computation;

 

 

     (4) unless the context otherwise requires, any reference to an “Article” or a
“Section” refers to an Article or a Section, as the case may be, of this Indenture;
and

     (5) the words “herein,” “hereof” and “hereunder” and other words of similar
import refer to this Indenture as a whole and not to any particular Article, Section
or other subdivision.

          Certain terms, used principally in Article Six, are defined in that Article.

          “Act,” when used with respect to any Holder, has the meaning specified in Section 104.

          “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing Investment.

          “applicants” has the meaning specified in Section 702.

          “Attributable Debt” in respect of a Sale and Leaseback Transaction means, at the time of
determination, the present value of the obligation of the lessee for net rental payments
(excluding, however, any amounts required to be paid by such lessee, whether or not designated as
rent or additional rent, on account of maintenance and repairs, insurance, taxes, assessments,
water rates or similar charges or any amounts required to be paid by such lessee thereunder
contingent upon the amount of sales or similar contingent amounts) during the remaining term of the
lease included in such Sale and Leaseback Transaction including any period for which such lease has
been extended or may, at the option of the lessor, be extended. Such present value shall be
calculated using a discount rate equal to the rate of interest implicit in such lease, determined
in accordance with GAAP.

          “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities of one or more series.

          “Board of Directors” means either the board of directors of the Company or any committee of
that board duly authorized to act hereunder.

          “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, and delivered to the Trustee.

          “Business Day” when used with respect to any Place of Payment, means each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of
Payment are authorized or obligated by law or executive order to close.

-2-

 

“Capital Stock” means:

(1) in the case of a corporation, corporate stock;

(2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

(3) in the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited); and

(4) any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of, the
issuing Person, but excluding any debt securities convertible into, or exchangeable
for, such Capital Stock.

          “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, as amended, or, if at any time after the
execution of this instrument such Commission is not existing and performing the duties now assigned
to it under the Trust Indenture Act, then the body performing such duties at such time.

          “Company” means Medco Health Solutions, Inc., a Delaware corporation, and any and all
successors thereto.

          “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board, its President or a Vice President, and by its Treasurer,
an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

          “Consolidated Net Tangible Assets” means total assets (less accumulated depreciation and
valuation reserves and other reserves and items deductible from gross book value of specific asset
accounts under GAAP) after deducting therefrom (a) all current liabilities, (b) any item
representing investments in Unrestricted Subsidiaries and (c) all goodwill, recorded intangible
assets, trade names, trademarks, patents, unamortized debt discount, organization expenses and
other like intangibles, all as set forth on the most recent balance sheet of the relevant Person
and its consolidated Restricted Subsidiaries and computed in accordance with GAAP.

          “Corporate Trust Office” means the principal office of the Trustee in New York, New York at
which at any particular time its corporate trust
business shall be administered, which as of the date hereof is 100 Wall Street, Suite 1600,
New York, New York 10005, Attention: Corporate Trust Services.

          “corporation” includes a corporation, association, company, companies or business trust.

          “covenant defeasance” has the meaning specified in Section 1303.

-3-

 

          “Defaulted Interest” has the meaning specified in Section 307.

          “defeasance” has the meaning specified in Section 1302.

          “Depositary” means, with respect to the Securities of any series issuable or issued in whole
or in part in the form of one or more Global Securities, the Person designated as Depositary by the
Company pursuant to Section 301, and if at any time there is more than one such Person,
“Depositary” as used with respect to the Securities of any series shall mean the Depositary with
respect to the Securities of such series.

          “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

          “Event of Default” has the meaning specified in Section 501.

          “Expiration Date” has the meaning specified in Section 104.

          “GAAP” means generally accepted accounting principles as in effect from time to time in the
United States of America.

          “Global Security” means a Security in the form prescribed in Section 204 evidencing all or
part of a series of Securities, issued to the Depositary for such series or its nominee, and
registered in the name of such Depositary or nominee.

          “Holder” means a Person in whose name a Security is registered in the Security Register.

          “Indenture” means this instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and shall include the terms of particular series of Securities
established as contemplated by Section 301.

          “interest”, when used with respect to an Original Issue Discount Security that by its terms
bears interest only after Maturity, means interest payable after Maturity.

          “Interest Payment Date” when used with respect to any Security, means the Stated Maturity of
an installment of interest on such Security.

          “Investment Company Act” means the Investment Company Act of 1940 and any statute successor
thereto, in each case as amended from time to time.

          “Lien” means, with respect to any asset, any mortgage, lien, pledge, security interest or
other encumbrance; provided that in no event shall an operating lease or any Uniform
Commercial Code financing statement filed in respect thereof be deemed to constitute a Lien.

          “mandatory sinking fund payment” has the meaning specified in Section 1201.

-4-

 

          “Maturity” when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

          “Notice of Default” means a written notice of the kind specified in Section 501(4) or 501(5).

          “Officers’ Certificate” means a certificate signed on behalf of the Company by two officers of
the Company, one of whom must be the principal executive officer, the principal financial officer,
the treasurer or the principal accounting officer of the Company, and delivered to the Trustee.

          “Opinion of Counsel” means a written opinion of legal counsel, who may be counsel for the
Company, and who shall be reasonably acceptable to the Trustee.

          “optional sinking fund payment” has the meaning specified in Section 1201.

          “Original Issue Discount Security” means any Security that provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502.

          “Outstanding” when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture, except:

     (i) Securities theretofore cancelled by the Trustee or delivered to the
Trustee for cancellation;

     (ii) Securities for whose payment or redemption money in the necessary
amount has been theretofore deposited with the Trustee or any Paying Agent
(other than the Company) in trust or set aside and segregated in trust by
the Company (if the Company shall act as its own Paying Agent) for the
Holders of such Securities; provided that, if such
Securities are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made;

     (iii) Securities which have been defeased pursuant to Section 1302
hereof; and

     (iv) Securities which have been paid pursuant to Section 306 or in
exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in
respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in
whose hands such Securities are valid obligations of the Company;

-5-

 

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given, made or taken any request, demand,
authorization, direction, notice, consent, waiver or other action hereunder as of any date, (i) the
principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding
shall be the amount of the principal thereof that would be due and payable as of the date of such
determination upon acceleration of the Maturity thereof pursuant to Section 502, (ii) the principal
amount of a Security denominated in a foreign currency or currencies shall be the U.S. dollar
equivalent, determined on the date of original issuance of such Security, of the principal amount
(or, in the case of an Original Issue Discount Security, the U.S. dollar equivalent on the date of
original issuance of such Security of the amount determined as provided in (i) above) of such
Security, and (iii) Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent, waiver or other action, only
Securities which the Trustee knows to be so owned shall be so disregarded obligor.

          “Paying Agent” means any Person authorized by the Company to pay the principal of (and
premium, if any) or interest on any Securities on behalf of the Company.

          “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability company, or government
or any agency or political subdivision thereof.

          “Place of Payment” when used with respect to the Securities of any series, means the place or
places where the principal of (and premium, if any) and interest on the Securities of that series
are payable as specified as contemplated by Section 301.

          “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security
authenticated and delivered under Section 306 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated,
destroyed, lost or stolen Security.

          “Principal Property” means (a) the land, land improvements, buildings and fixtures (to the
extent they constitute real property interests, including any leasehold interest therein)
constituting the principal corporate office, any automated dispensing pharmacy, prescription
processing center, call center, data center or office (whether now owned or hereafter acquired)
which is owned by the Company or one of its Restricted Subsidiaries and is located in the United
States; provided that no such property shall be deemed a Principal Property if its gross
book value (before deducting accumulated depreciation) is less than 1% of the Company’s
Consolidated Net Tangible Assets, and (b) any Capital Stock or indebtedness of any Restricted
Subsidiary owning any such property; provided that “Principal Property” shall not include
any facility that in the opinion of the Company’s Board of Directors is not of material importance
to the total business conducted by the Company and its Restricted Subsidiaries, considered as a
whole.

-6-

 

          “Receivables and Related Assets” means accounts receivable, instruments, chattel paper,
obligations, general intangibles and other similar assets, including interests in merchandise or
goods, the sale or lease of which give rise to the foregoing, related contractual rights,
guarantees, insurance proceeds, collections, other related assets and proceeds of all the
foregoing.

          “Receivables Program” means, with respect to any Person, any accounts receivable
securitization program pursuant to which such Person pledges, sells or otherwise transfers or
encumbers its accounts receivable.

          “Redemption Date” when used with respect to any Security to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.

          “Redemption Price” when used with respect to any Security to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.

          “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 301.

          “Responsible Officer” when used with respect to the Trustee, means any Vice President, any
assistant secretary, any assistant treasurer, any trust officer or assistant trust officer, or any
other officer of the Trustee customarily performing functions similar to those performed by any of
the above designated officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of and familiarity with
the particular subject.

          “Restricted Subsidiary” means a Subsidiary which owns or leases any Principal Property.

          “Sale and Leaseback Transactions” means any direct arrangement relating to a Principal
Property now owned or hereafter acquired whereby the Company or a Restricted Subsidiary transfers
such Principal Property to another Person and the Company or a Restricted Subsidiary leases it from
such other Person.

          “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.

          “Security
Register” has the meaning specified in Section 305.

          “Security Registrar” has the meaning specified in Section 305.

          “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 307.

          “Stated Maturity,” when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date

-7-

 

on which
the principal of such Security or such installment of principal or interest is due and payable.

          “Subsidiary” means a corporation, partnership or trust more than 50% of the outstanding Voting
Stock of which is owned, directly or indirectly, by the Company or by one or more other
Subsidiaries, or by the Company and one or more other Subsidiaries.

          “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which the relevant instrument was executed, except as provided in Section 905.

          “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series shall mean the Trustee with respect to the Securities of that series.

          “U.S. Government Obligations” has the meaning specified in Section 1304(l).

          “Vice President,” when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president.”

          “Voting Stock” means stock or other interests evidencing ownership in a corporation,
partnership or trust which ordinarily has voting power for the election of directors, or other
persons performing equivalent functions, whether at all times or only so long as no senior class of
stock has such voting power by reason of any contingency.

          “Wholly Owned Subsidiary” of any specified Person means a Subsidiary of such Person, all of
the outstanding Capital Stock or other ownership interests of which (other than directors’
qualifying shares) are owned by such Person and/or by one or more Wholly Owned Subsidiaries of such
Person.

SECTION 102. Compliance Certificates and Opinions.

          Except as otherwise expressly provided by this Indenture, upon any application or request by
the Company to the Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee (i) an Officers’ Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with and
(ii) an Opinion of Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with; provided, however, that in the case of
any such application or request as to which the furnishing of such documents is specifically
required by any provision of this Indenture relating to such particular application or request,
including any request to authenticate and deliver Securities of any series pursuant to Section 303,
no additional certificate or opinion need be furnished.

          Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include

-8-

 

     (1) a statement that each individual signing such certificate or opinion has
read such covenant or condition and the definitions herein relating thereto;

     (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate or
opinion are based;

     (3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed
opinion as to whether or not such covenant or condition has been complied with; and

     (4) a statement as to whether, in the opinion of each such individual, such
condition or covenant has been complied with.

SECTION 103. Form of Documents Delivered to Trustee.

          In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

          Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or Opinion of Counsel, or representations by counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate or Opinion of Counsel or representations by
counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of,
or representations by, an officer or officers of the Company stating that the information with
respect to such factual matters is in the possession of the Company, unless such counsel knows, or
in the exercise of reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.

          Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

SECTION 104. Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar tenor
signed by such Holders in person or by an agent duly appointed in writing; and,
except as herein otherwise expressly provided, such action shall become effective
when such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such

-9-

 

instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to as
the “Act” of the Holders signing such instrument or instruments. Proof of execution
of any such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 601) conclusive in favor
of the Trustee and the Company, if made in the manner provided in this Section.

     (b) The fact and date of the execution by any Person of any such instrument or
writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument or
writing acknowledged to him the execution thereof sufficient.

     (c) The ownership of Securities shall be proved by the Security Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or
other Act of the Holder of any Security shall bind every future Holder of the same
Security and the Holder of every Security issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof in respect of anything done,
omitted or suffered to be done by the Trustee or the Company in reliance thereon,
whether or not notation of such action is made upon such Security.

     The Company may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to give, make or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided or permitted
by this Indenture to be given, made or taken by Holders of Securities of such series, provided
that the Company may not set a record date for, and the provisions of this paragraph shall not
apply with respect to, the giving or making of (i) any Notice of Default, (ii) any declaration of
acceleration referred to in Section 502, (iii) any request to institute proceedings referred to in
Section 507(2) or (iv) any direction referred to in Section 512. If any record date is set pursuant
to this paragraph, the Holders of Outstanding Securities of the relevant series on such record
date, and no other Holders, shall be entitled to take the relevant action, whether or not such
Holders remain Holders after such record date; provided that no such action shall be effective
hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite
principal amount of Outstanding Securities of such series on such record date. Nothing in this
paragraph shall be construed to prevent the Company from setting a new record date for any action
for which a record date has previously been set pursuant to this paragraph (whereupon the record
date previously set shall automatically and with no action by any Person be cancelled and of no
effect), and nothing in this paragraph shall be construed to render ineffective any action taken by
Holders of the requisite principal amount of Outstanding Securities of the relevant series on the
date such action is taken. Promptly after any record date is set pursuant to this paragraph, the
Company, at its own expense, shall cause notice of such record date, the proposed action by Holders
and the applicable Expiration Date to be given to the Trustee in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106.

-10-

 

     With respect to any record date set pursuant to this Section, the Company may designate any
day as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or
later day; provided that no such change shall be effective unless notice of the proposed new
Expiration Date is given to the Trustee in writing, and to each Holder of Securities of the
relevant series in the manner set forth in Section 106, on or prior to the existing Expiration
Date. If an Expiration Date is not designated with respect to any record date set pursuant to this
Section, the Company shall be deemed to have initially designated the 180th day after such record
date as the Expiration Date with respect thereto, subject to its right to change the Expiration
Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date.

SECTION 105. Notices, Etc., to Trustee and Company.

          Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,

     (1) the Trustee by any Holder or by the Company shall be sufficient for every
purpose hereunder if made, given, furnished or filed in writing to or with the
Trustee at its Corporate Trust Office, or

     (2) the Company by the Trustee or by any Holder shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if in writing and
mailed, first-class postage prepaid, to the Company addressed to it at the address
of its principal office specified in the first paragraph of this instrument or at
any other address previously furnished in writing to the Trustee by the Company.

SECTION 106. Notice to Holders; Waiver.

          Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date, and not earlier than the earliest date,
prescribed for the giving of such notice. In any case where notice to Holders is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in reliance upon such
waiver.

          In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

-11-

 

SECTION 107. Conflict with Trust Indenture Act.

          If any provision hereof limits, qualifies or conflicts with another provision hereof which is
required to be included in this Indenture by any of the provisions of the Trust Indenture Act, such
required provision shall control.

SECTION 108. Effect of Headings and Table of Contents.

          The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

SECTION 109. Successors and Assigns.

          All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

SECTION 110. Separability Clause.

          In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

SECTION 111. Benefits of Indenture.

          Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder and the Holders, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

SECTION 112. Governing Law.

          This Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York.

SECTION 113. Legal Holidays.

          In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities) payment of interest or principal (and premium, if
any) need not be made at such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment with the same force and effect as if made on the Interest
Payment Date or Redemption Date, or at the Stated Maturity; provided that, unless otherwise
provided in the terms of the Securities, no interest shall accrue for the period from and after
such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be.

-12-

 

ARTICLE TWO

SECURITY FORMS

SECTION 201. Forms Generally.

          The Securities of each series shall be in substantially the form set forth in this Article, or
in such other form (including permanent global form) as shall be established by or pursuant to a
Board Resolution or in one or more indentures supplemental hereto, in each case with such
appropriate insertions, omissions, substitutions and other variations as are required or permitted
by this Indenture, and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may be required to comply with the rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be determined by the
officers executing such Securities, as evidenced by their execution of such Securities. If the
form of Securities of any series is established by action taken pursuant to a Board Resolution, a
copy of an appropriate record of such action shall be certified by the Secretary or an Assistant
Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 303 for the authentication and delivery of such Securities. If all of
the Securities of any series established by action taken pursuant to a Board Resolution are not to
be issued at one time, it shall not be necessary to deliver a record of such action at the time of
issuance of each Security of such series, but an appropriate record of such action shall be
delivered at or before the time of issuance of the first Security of such series.

          The Trustee’s certificates of authentication shall be in substantially the form set forth in
this Article.

          The definitive Securities shall be printed, lithographed or engraved on steel engraved borders
or may be produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

SECTION 202. Form of Face of Security.

          [Insert any legend required by the Internal Revenue Code and the regulations thereunder.]

MEDCO HEALTH SOLUTIONS, INC.

 

			
	No.                                        
	 	$                                        

CUSIP No.                     

          MEDCO HEALTH SOLUTIONS, INC., a corporation duly organized and existing under the laws of
Delaware (herein called the “Company,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to, or registered
assigns, the principal sum of                      Dollars
on              
            
                            
          , [If the
Security is to bear interest prior to Maturity, insert —, and to pay interest thereon from
                     or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on                      and                      in each year,

-13-

 

commencing                     , at the rate of ___% per annum, until the principal hereof is paid or made
available for payment [If applicable, insert — and (to the extent that the payment of such
interest shall be legally enforceable) at the rate of ___% per annum on any overdue principal and
premium and on any overdue installment of interest].[ Interest on this Security shall be calculated
on a pro rata basis using twelve 30-day months and a 360-day year. ] The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest,
which shall be the ______ or
______ (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided
for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture].

          [If the Security is not to bear interest prior to Maturity, insert — The principal of
this Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this
Security shall bear interest at the rate of ___% per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such default in payment
to the date payment of such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue principal that is not so
paid on demand shall bear interest at the rate of ___% per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of such demand for
payment to the date payment of such interest has been made or duly provided for, and such interest
shall also be payable on demand.]

          Payment of the principal of (and premium, if any) and [if applicable, insert — any
such] interest on this Security will be made at the office or agency of the Company maintained for
that purpose in Franklin Lakes, New Jersey], in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts [if
applicable, insert —; provided, however, that at the option of the Company
payment of interest may be made by check mailed to the address of the Person entitled thereto as
such address shall appear in the Security Register].

          Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

-14-

 

          The Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York.

          All terms used in this Security that are defined in the Indenture shall have the meaning
assigned to them in the Indenture.

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	MEDCO HEALTH SOLUTIONS, INC.

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Attest:

                                                            

SECTION 203. Form of Reverse of Security.

          This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
March 18, 2008 (herein called the “Indenture”), from the Company to U.S. Bank Trust National
Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto reference is
hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof [, limited in aggregate principal amount to $___].

          [If applicable insert — The Securities of this series are subject to redemption upon
not less than 30 days’ notice by mail, [if
applicable, insert — (1) on ______ in any
year commencing with the year ______ and ending with the year
______ through operation of the sinking
fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)] 
at any time [on or after ______, 20____], as a whole or in part, at the election of the Company, [at the
following Redemption Prices (expressed as percentages of the principal amount): If redeemed [on or
before ______, ______%, and if
redeemed] during the 12-month period beginning
______ of the
years indicated,

	 	 	 
	Year	 	Redemption Price	 	 	Year	 	 	Redemption Price

-15-

 

and thereafter] at a Redemption Price equal to ___% of the principal amount, together in the case
of any such redemption [if applicable, insert — (whether through operation of the sinking
fund or otherwise)] [if applicable insert — plus [    ]] with accrued and unpaid
interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Regular Record Dates referred to on
the face hereof, all as provided in the Indenture.]

          [If applicable, insert — The Securities of this series are subject to redemption upon
not less than 30 days’ notice by mail, (1) on
______ in any year commencing with the year ______
and ending with the year ______ through operation of sinking fund for this series at the Redemption
Prices for redemption through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below, and (2) at any time [on or
after ______], as
a whole or in part, at the election of the Company, [at the Redemption Prices for redemption
otherwise than through operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below: If redeemed during the 12 month period beginning
______ of the years indicated,

	 	 	 
	 	 	 	 	 	Redemption Price For Redemption
	 	 	Redemption Price For Redemption	 	 	Otherwise Than Through
	 	 	Through Operation of the	 	 	Operation of the
	Year	 	Sinking Fund	 	 	Sinking Fund

and thereafter] at a Redemption Price equal to ___% of the principal amount, together in the case
of any such redemption (whether through operation of the sinking fund or otherwise) [if
applicable insert — plus [     ]] with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity is on or prior to such Redemption Date will be payable
to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of
business on the relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]

          [The
sinking fund for this series provides for the redemption on ______ in
each year beginning with the year ______ and ending with the
year ______ of [not less than] $___
[(“mandatory sinking fund”) and not more than $______] aggregate principal amount of Securities of
this series. [Securities of this series acquired or redeemed by

-16-

 

the Company otherwise than through [mandatory] sinking fund payments may be credited against
subsequent [mandatory] sinking fund payments otherwise required to be made.]

          In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

          [If applicable, insert — The Indenture contains provisions for defeasance at any time
of [the entire indebtedness of this Security] [or] [certain restrictive covenants and Events of
Default with respect to this Security] [, in each case] upon compliance with certain conditions set
forth in the Indenture.]

          [If the Security is not an Original Issue Discount Security, insert — If an Event of
Default with respect to Securities of this series shall occur and be continuing, the principal of
the Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.]

          [If the Security is an Original Issue Discount Security, insert — If an Event of
Default with respect to Securities of this series shall occur and be continuing, an amount of
principal of the Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture. Such amount shall be equal to — insert formula for
determining the amount. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal, overdue premium and overdue interest (in each case
to the extent that the payment of such interest shall be legally enforceable), all of the Company’s
obligations in respect of the payment of the principal of and premium and interest, if any, on the
Securities of this series shall terminate.]

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

          [As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee

-17-

 

to institute proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates expressed herein.]

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest on this Security at the times, place and rate,
and in the coin or currency, herein prescribed.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of (and premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

          The Securities of this series are issuable only in registered form without coupons in
denominations of $______ and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

          No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

          All terms used in this Security that are defined in the Indenture shall have the meaning
assigned to them in the Indenture.

SECTION 204. Additional Provisions Required in Global Security.

          Any Global Security issued hereunder shall, in addition to the provisions contained in
Sections 202 and 203, bear a legend in substantially the following form:

-18-

 

   
  “This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depositary or a nominee
of a Depositary. This Security is exchangeable for Securities registered in the
name of a person other than the Depositary or its nominee only in the limited
circumstances described in the Indenture and may not be transferred except as a
whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary.”

          Unless otherwise provided as contemplated by Section 301 with respect to any series of
Securities, any Global Security shall provide, in addition to the provisions set forth in Sections
202 and 203 and the preceding paragraph, that the Depositary will not sell, assign, transfer or
otherwise convey any beneficial interest in such Global Security unless such beneficial interest is
in an amount equal to an authorized denomination for Securities of such series, and that the
Depositary, by accepting such Global Security, agrees to be bound by such provision.

SECTION 205. Form of Trustee’s Certificate of Authentication.

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

Dated: ________

	 	 	 	 	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION

As Trustee

 	 
	 	By  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

ARTICLE THREE

THE SECURITIES

SECTION 301. Title and Terms.

          The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited.

          The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution and, subject to Section 303, set forth, or determined in the manner provided,
in an Officers’ Certificate, or established in one or more indentures supplemental hereto, prior to
the issuance of Securities of any series,

-19-

 

     (1) the title of the Securities of the series (which shall distinguish the
Securities of the series from all other Securities);

     (2) any limit upon the aggregate principal amount of the Securities of the
series which may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Section 304,
305, 306, 906 or 1107 and except for any Securities which, pursuant to Section 303,
shall not have been issued and sold by the Company and are therefore deemed never to
have been authenticated and delivered hereunder);

     (3) the Person to whom any interest on a Security of the series shall be
payable, if other than the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record
Date for such interest;

     (4) the date or dates on which the principal of the Securities of the series is
payable;

     (5) the rate or rates (or the formula pursuant to which such rate or rates
shall be determined) at which the Securities of the series shall bear interest, if
any, including the rate of interest applicable on overdue payments of principal or
interest, if different from the rate of interest stated in the title of the
Security; the date or dates from which such interest shall accrue, the Interest
Payment Dates on which such interest shall be payable and the Regular Record Date
for the interest payable on any Interest Payment Date;

     (6) the place or places where the principal of (and premium, if any) and
interest on the Securities of the series shall be payable;

     (7) if applicable, the period or periods within which, the price or prices at
which and the terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Company;

     (8) the obligation, if any, of the Company to redeem or purchase Securities of
this series pursuant to any sinking fund or analogous provisions or at the option of
a Holder thereof and the period or periods within which, the price or prices at
which and the terms and conditions upon which Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

     (9) if other than denominations of $1,000 and any integral multiple thereof,
the denominations in which Securities of the series shall be issuable;

     (10) the currency or currencies, including composite currencies, in which
payment of the principal of and any premium and interest on the Securities of the
series shall be payable if other than the currency of the United States, which may
be different for principal, premium, if any, and interest;

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     (11) if the principal of (and premium, if any) or interest, if any, on the
Securities of the series are to be payable, at the election of the Company or a
Holder thereof, in a currency or currencies other than that on which the Securities
are stated to be payable, the currency or currencies in which payment of the
principal of (and premium, if any) or interest on Securities of such series as to
which such election is made shall be payable, and the period or periods within
which, and the terms and conditions upon which, such election may be made;

     (12) if the amount of payments of principal of and any premium or interest on
the Securities of the series may be determined with reference to an index, the
manner in which such amounts shall be determined;

     (13) if other than the principal amount thereof, the portion of the principal
amount of Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 502;

     (14) any Event of Default with respect to the Securities of the series, if not
set forth herein;

     (15) the application, if any, of either or both of Section 1302 and Section
1303 to the Securities of the series; and

     (16) whether the Securities of the series shall be issued in whole or in part
in the form of one or more Global Securities and, in such case, the Depositary for
such Global Security or Securities, which Depositary shall be, if then required by
applicable law or regulation, a clearing agency registered under the Securities
Exchange Act of 1934, as amended;

     (17) any mandatory or optional sinking fund or analogous provisions or
provisions for redemption at the option of the Company;

     (18) if applicable, the date after which and the price at which, the periods
within which, and the terms and conditions upon which the Securities of the series
may, pursuant to any optional or mandatory redemption provisions, be redeemed and
other detailed terms and provisions of those optional or mandatory redemption
provisions, if any;

     (19) if applicable, the terms and conditions upon which the Securities of the
series may be repayable prior to final maturity at the option of the Holder thereof
(which option may be conditional);

     (20) if the Securities of the series may be converted into or exercised or
exchanged for other Securities of the Company or other securities or debt or equity
securities of third parties, the terms on which conversion, exercise or exchange may
occur, including whether conversion, exercise or exchange is mandatory, at the
option of the Holder or at the option of the Company, the period during which
conversion, exercise or exchange may occur, the initial conversion, exercise or
exchange price or rate and the circumstances or manner in which the

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amount of other Securities of the Company or other securities or the debt or
equity securities of third parties issuable upon conversion, exercise or exchange
may be adjusted;

     (21) any addition to, deletion from or change in the covenants set forth in
Article 10 which applies to Securities of the series; and

     (22) any other terms of the series (which terms shall not be inconsistent with
the provisions of this Indenture, except as permitted by Section 901(5)).

          All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth, or determined in the manner provided, in the Officers’
Certificate referred to above or in any such indenture supplemental hereto. All Securities of any
one series need not be issued at one time and, unless otherwise provided, a series may be reopened
for issuances of additional Securities of such series.

          If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of
the Officers’ Certificate setting forth the terms of the series. If all of the Securities of any
series established by action taken pursuant to a Board Resolution are not to be issued at one time,
it shall not be necessary to deliver a record of such action at the time of issuance of each
Security of such series, but an appropriate record of such action shall be delivered at or before
the time of issuance of the first Security of such series.

SECTION 302. Denominations.

          The Securities of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 301. In the absence of any such
provisions with respect to the Securities of any series, the Securities of such series shall be
issuable in denominations of $1,000 and any integral multiple thereof.

SECTION 303. Execution, Authentication, Delivery and Dating.

          The Securities shall be executed on behalf of the Company by its Chairman of the Board, its
Vice Chairman of the Board, its President or one of its Vice Presidents, attested by its Secretary
or one of its Assistant Secretaries. The signature of any of these officers on the Securities may
be manual or facsimile.

          Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of

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such Securities, and the Trustee in accordance with the Company Order shall authenticate and
make available for delivery such Securities. If all of the Securities of any series are not to be
issued at one time and if the Board Resolution or supplemental indenture establishing such series
shall so permit, such Company Order may set forth procedures acceptable to the Trustee for the
issuance of such Securities and determining the terms of particular Securities of such series, such
as interest rate, maturity date, date of issuance and date from which interest shall accrue. In
authenticating such Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Section
601) shall be fully protected in relying upon, an Opinion of Counsel stating,

     (a) if the form of such Securities has been established by or pursuant to a
Board Resolution as permitted by Section 201, that such form has been established in
conformity with the provisions of this Indenture;

     (b) if the terms of such Securities have been established by or pursuant to a
Board Resolution as permitted by Section 301, that such terms have been established
in conformity with the provisions of this Indenture; and

     (c) that such Securities, when authenticated and delivered by the Trustee and
issued by the Company in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of the
Company, enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general
equity principles and, if applicable, to provisions of law which may require that a
judgment for money damages rendered by a court in the United States be expressed in
United States dollars.

If such forms or terms have been so established, the Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will affect the
Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in
a manner which is not reasonably acceptable to the Trustee.

          Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
time of authentication of each Security of such series if such documents are delivered at or prior
to the time of authentication upon original issuance of the first Security of such series to be
issued.

          Each Security shall be dated the date of its authentication.

          No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such

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Security has been duly authenticated and delivered hereunder and is entitled to the benefits
of this Indenture. Notwithstanding the foregoing, if any Security shall have been authenticated
and delivered hereunder but never issued and sold by the Company, and the Company shall deliver
such Security to the Trustee for cancellation as provided in Section 309 together with a written
statement (which need not comply with Section 102 and need not be accompanied by an Opinion of
Counsel) stating that such Security has never been issued and sold by the Company, for all purposes
of this Indenture such Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture.

SECTION 304. Temporary Securities.

          Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, reproduced or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their execution of such
Securities.

          If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series the
Company shall execute, and the Trustee shall authenticate and make available for delivery, in
exchange therefor a like principal amount of definitive Securities of the same series and tenor of
authorized denominations. Until so exchanged the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive Securities of such
series.

SECTION 305. Registration, Registration of Transfer and Exchange.

          The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office and in any other office or agency of the Company in a Place
of Payment being herein sometimes referred to as the “Security Register”) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the registration of
Securities and of transfers of Securities. The Trustee is hereby appointed “Security Registrar” for
the purpose of registering Securities and transfers of Securities as herein provided.

          Upon surrender for registration of transfer of any Security of any series at the office or
agency in a Place of Payment for that series, the Company shall execute, and the Trustee shall
authenticate and make available for delivery, in the name of the designated transferee or
transferees, one or more new Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount.

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          At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized denominations and of like tenor and aggregate principal amount,
upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities
are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and
make available for delivery, the Securities that the Holder making the exchange is entitled to
receive.

          All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

          Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.

          No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.

          The Company shall not be required (i) to issue, register the transfer of or exchange any
Security during a period beginning at the opening of business 15 days before the mailing of a
notice of redemption of Securities of like tenor and of the series of which such Security is a part
and ending at the close of business on the date of such mailing to all Holders of Securities of
such series to be redeemed, or (ii) to register the transfer of or exchange any Security so
selected for redemption in whole or in part, except the unredeemed portion of any Security being
redeemed in part.

          Notwithstanding the foregoing, any Global Security shall be exchangeable pursuant to this
Section 305 for Securities registered in the names of Persons other than the Depositary or its
nominee for such Global Security only if (i) such Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for such Global Security or if at any time such
Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as
amended, and the Depositary for such Global Security is then required by applicable law or
regulation to be so registered, (ii) the Company executes and delivers to the Trustee a Company
Order that such Global Security shall be so exchangeable or (iii) there shall have occurred and be
continuing an Event of Default or an event which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default with respect to the Securities. Any Global Security that
is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered
in such names as the Depositary shall direct.

          Notwithstanding any other provision in this Indenture, a Global Security may not be
transferred except as a whole by the Depositary with respect to such Global Security to a

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nominee of such Depositary or by a nominee of such Depositary to such Depositary or another
nominee of such Depositary. Unless otherwise provided as contemplated by Section 301 with respect
to any series of Securities evidenced in whole or in part by a Global Security, the Depositary may
not sell, assign, transfer or otherwise convey any beneficial interest in a Global Security
evidencing all or part of the Securities of such series unless such beneficial interest is in an
amount equal to an authorized denomination for Securities of such series.

SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.

          If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and
of like tenor and principal amount and bearing a number not contemporaneously outstanding.

          If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security, a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

          In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.

          Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

          Every new Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that series duly issued hereunder.

          The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.

SECTION 307. Payment of Interest; Interest Rights Preserved.

          Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest.

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          Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having
been such holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the
Person or Persons in whose names the Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security of such series and the date
of the proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to the
Trustee for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest, which shall be not
more than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice of
the proposed payment. The Trustee shall promptly notify the Company of such Special
Record Date and, in the name and at the expense of the Company, shall cause notice
of the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each Holder of Securities of
such series at his address as it appears in the Security Register, not less than 10
days prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Securities of
such series (or their respective Predecessor Securities) are registered at the close
of business on such Special Record Date and shall no longer be payable pursuant to
the following Clause (2).

     (2) The Company may make payment of any Defaulted Interest on the Securities of
any series in any other lawful manner not inconsistent with the requirements of any
securities exchange on which such Securities may be listed, and upon such notice as
may be required by such exchange, if, after notice given by the Company to the
Trustee of the proposed payment pursuant to this Clause, such manner of payment
shall be deemed practicable by the Trustee.

          Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

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SECTION 308. Persons Deemed Owners.

          Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of principal of (and
premium, if any) and (subject to Section 307) interest on such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.

          Notwithstanding the foregoing, with respect to any Global Security, nothing herein shall
prevent the Company, the Trustee, or any agent of the Company or the Trustee, from giving effect to
any written certification, proxy or other authorization furnished by a Depositary or impair, as
between a Depositary and holders of beneficial interests in any Global Security, the operation of
customary practices governing the exercise of the rights of the Depositary as Holder of such Global
Security.

SECTION 309. Cancellation.

          All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the
Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of in
accordance with the Trustee’s customary procedures, or at the request of the Company, by return to
the Company.

SECTION 310. Computation of Interest.

          Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

SECTION 311. CUSIP Numbers.

          The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and,
if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or omission of such
numbers. The Company will promptly notify the Trustee in writing of any change in the “CUSIP”
numbers.

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ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401. Satisfaction and Discharge of Indenture.

          This Indenture shall upon Company Request cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein expressly provided
for), and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture when

          (1) either

     (A) all Securities theretofore authenticated and delivered (other than
(i) Securities which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 306 and (ii) Securities for whose
payment money has theretofore been deposited in trust or segregated and held
in trust by the Company and thereafter repaid to the Company or discharged
from such trust, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or

     (B) all such Securities not theretofore delivered to the Trustee for
cancellation

     (i) have become due and payable, or

     (ii) will become due and payable at their Stated Maturity
within one year, or

     (iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the
Company,

and the Company, in the case of (i), (ii) or (iii) above, has deposited or caused to
be deposited with the Trustee as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal (and premium,
if any) and interest to the date of such deposit (in the case of Securities which
have become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;

     (2) the Company has paid or caused to be paid all other sums payable hereunder
by the Company; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein

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provided for relating to the satisfaction and discharge of this Indenture have
been complied with.

          Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, and, if money shall have been deposited with the Trustee
pursuant to subclause (B) of Clause (1) of this Section, the obligations of the Trustee under
Section 402 and the last paragraph of Section 1003 shall survive.

SECTION 402. Application of Trust Money.

          Subject to the provisions of the last paragraph of Section 1003, all money deposited with the
Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose
payment such money has been deposited with the Trustee.

ARTICLE FIVE

REMEDIES

SECTION 501. Events of Default.

          “Event of Default,” wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

     (1) default in the payment of any interest upon any Security of that series
when it becomes due and payable, and continuance of such default for a period of 30
days; or

     (2) default in the payment when due of the principal of (or premium, if any,
on) any Security of that series; or

     (3) default in the deposit of any sinking fund payment when and as due by the
terms of a Security of that series; or

     (4) default in the performance, or breach, of any covenant of the Company in
this Indenture (other than a covenant default in whose performance or whose breach
is elsewhere in this Section specifically dealt with or which has expressly been
included in this Indenture solely for the benefit of series of Securities other than
that series), and continuance of such default or breach for a period of 60 days
after there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities of that series a

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written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder; or

     (5) acceleration of any debt aggregating in excess of $100,000,000 (including
debt securities of any series other than that series), if such acceleration has not
been rescinded or annulled within 20 days after written notice given to the Company
by the Trustee or the Holders of at least 25% in principal amount of the outstanding
debt securities of such series; or

     (6) the entry by a court having jurisdiction in the premises of (A) a decree or
order for relief in respect of the Company in an involuntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency, reorganization or
other similar law or (B) a decree or order adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company under any
applicable Federal or State law, or appointing a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company or of any
substantial part of its property, or ordering the winding up or liquidation of its
affairs, and the continuance of any such decree or order for relief or any such
other decree or order unstayed and in effect for a period of 60 consecutive days; or

     (7) failure to pay one or more final, non-appealable judgments (i) for the
payment of money in an aggregate amount in excess of $100,000,000 (except to the
extent covered by insurance or other right of reimbursement or indemnification), or
(ii) which results, or would reasonably be expected to result, in a material adverse
effect, rendered against the Company, any Subsidiary or any combination thereof,
which remains undischarged for a period of 60 consecutive days during which
execution shall not be effectively stayed or bonded pending appeal; or

     (8) the commencement by the Company of a voluntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other similar
law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or
the consent by it to the entry of a decree or order for relief in respect of the
Company in an involuntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or to the commencement
of any bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under any
applicable Federal or State law, or the consent by it to the filing of such petition
or to the appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of the Company or of any
substantial part of its property, or the making by it of an assignment to the
benefit of creditors, or the admission by it in writing of its inability to pay its
debts generally as they become due, or the taking of corporate action by the Company
in furtherance of any such action; or

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     (9) any other Event of Default provided with respect to Securities of that
series.

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing and has not been cured, then in every such case the Trustee or the Holders of not
less than 25% in principal amount of the Outstanding Securities of that series may declare the
principal amount (or, if any of the Securities of that series are Original Issue Discount
Securities, such portion of the principal amount of such Securities as may be specified in the
terms thereof) of all of the Securities of that series to be due and payable immediately, by a
notice in writing to the Company (and to the Trustee if given by Holders), and upon any such
declaration such principal amount (or specified amount) shall become immediately due and payable.
If an Event of Default specified in Section 501(6) or 501(8) with respect to Securities of any
series at the time Outstanding occurs, the principal amount of all the Securities of that series
(or, if any Securities of that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified by the terms thereof) shall automatically,
and without any declaration or other action on the part of the Trustee or any Holder, become
immediately due and payable.

          At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if

     (1) the Company has paid or deposited with the Trustee a sum sufficient to pay

     (A) all overdue interest on all Securities of that series,

     (B) the principal of (and premium, if any, on) any Securities or that
series which have become due otherwise than by such declaration of
acceleration and interest thereon at the rate or rates prescribed therefor
in such Securities,

     (C) to the extent that payment of such interest is lawful, interest
upon overdue interest at the rate or rates prescribed therefor in such
Securities, and

     (D) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel;

          and

     (2) all Events of Default with respect to Securities of that series, other than
the nonpayment of the principal of Securities of that series which have

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become due solely by such declaration of acceleration, have been cured or
waived as provided in Section 513.

No such rescission shall affect any subsequent default or impair any right consequent thereon.

          Upon receipt by the Trustee of any declaration of acceleration, or rescission and annulment
thereof, with respect to Securities of a series all or part of which is represented by a Global
Security, the Trustee shall establish a record date for determining Holders of Outstanding
Securities of such series entitled to join in such declaration of acceleration, or rescission and
annulment, as the case may be, which record date shall be at the close of business on the day the
Trustee receives such declaration of acceleration, or rescission and annulment, as the case may be.
The Holders on such record date, or their duly designated proxies, and only such Persons, shall be
entitled to join in such declaration of acceleration, or rescission and annulment, as the case may
be, whether or not such Holders remain Holders after such record date; provided, that
unless such declaration of acceleration, or rescission and annulment, as the case may be, shall
have become effective by virtue of the requisite percentage having been obtained prior to the day
which is 90 days after such record date, such declaration of acceleration, or rescission and
annulment, as the case may be, shall automatically and without further action by any Holder be
cancelled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy
of a Holder, from giving, after expiration of such 90-day period, a new declaration of
acceleration, or rescission or annulment thereof, as the case may be, that is identical to a
declaration of acceleration, or rescission or annulment thereof, which has been cancelled pursuant
to the proviso to the preceding sentence, in which event a new record date shall be established
pursuant to the provisions of this Section 502.

SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

          The Company covenants that if

     (1) default is made in the payment of any interest on any Security when such
interest becomes due and payable and such default continues for a period of 30 days,

     (2) default is made in the payment of the principal of (or premium, if any, on)
any Security at the Maturity thereof, or

     (3) default is made in the making or satisfaction of any sinking fund payment
or analogous obligation when the same becomes due pursuant to the terms of any
Security,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal, including any
sinking fund payment or analogous obligations (and premium, if any) and interest and, to the extent
that payment of such interest shall be legally enforceable, interest on any overdue principal (and
premium, if any) and on any overdue interest, at the rate or rates prescribed therefor in such
Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

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          If the Company fails to pay such amounts promptly upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of the property of the
Company or any other obligor upon such Securities, wherever situated.

          If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

SECTION 504. Trustee May File Proofs of Claim.

          In case of any judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their creditors, the Trustee
shall be entitled and empowered, by intervention in such proceeding or otherwise,

     (i) to file and prove a claim for the whole amount of principal (and
premium, if any) and interest, if any, owing and unpaid in respect of the
Securities and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders allowed in such judicial
proceeding, and

     (ii) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

          Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or
similar official and be a member of a creditors’ or other similar committee.

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SECTION 505. Trustee May Enforce Claims Without Possession of Securities.

          All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered.

SECTION 506. Application of Money Collected.

          Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal (or premium, if any) or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

          FIRST: To the payment of all amounts due the Trustee under Section 607; and

     SECOND: To the payment of the amounts then due and unpaid for principal of (and
premium, if any) and interest on the Securities in respect of which or for the benefit of
which such money has been collected, ratably, without preference or priority of any kind,
according to the amounts due and payable on such Securities for principal (and premium, if
any) and interest, respectively.

SECTION 507. Limitation on Suits.

          No Holder of any Security of any series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless

     (1) such Holder has previously given written notice to the Trustee of a
continuing Event of Default with respect to the Securities of that series;

     (2) the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

     (3) such Holder or Holders have offered to the Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in compliance with such
request;

     (4) the Trustee for 60 days after its receipt of such notice, request and offer
of indemnity has failed to institute any such proceeding; and

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     (5) no direction inconsistent with such written request has been given to the
Trustee during such 60-day period by the Holders of a majority in principal amount
of the Outstanding Securities of that series;

it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such Holders.

SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest.

          Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of (and
premium, if any) and (subject to Section 307) interest on such Security on the Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date) and
to institute suit for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

SECTION 509. Restoration of Rights and Remedies.

          If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every such case, subject to
any determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such proceeding had been
instituted.

SECTION 510. Rights and Remedies Cumulative.

          Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

SECTION 511. Delay or Omission Not Waiver.

          No delay or omission of the Trustee or of any Holder of any Securities to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or acquiescence therein. Every right and remedy given by this
Article or by law to the Trustee or to the Holders may be exercised from time to

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time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.

SECTION 512. Control by Holders.

          The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series, provided that

     (1) such direction shall not be in conflict with any rule of law or with this
Indenture, and

     (2) the Trustee may take any other action deemed proper by the Trustee that is
not inconsistent with such direction.

          Upon receipt by the Trustee of any such direction with respect to Securities of a series all
or part of which is represented by a Global Security, the Trustee shall establish a record date for
determining Holders of Outstanding Securities of such series entitled to join in such direction,
which record date shall be at the close of business on the day the Trustee receives such direction.
The Holders on such record date, or their duly designated proxies, and only such Persons, shall be
entitled to join in such direction, whether or not such Holders remain Holders after such record
date; provided, that unless such majority in principal amount shall have been obtained
prior to the day which is 90 days after such record date, such direction shall automatically and
without further action by any Holder be cancelled and of no further effect. Nothing in this
paragraph shall prevent a Holder, or a proxy of a Holder, from giving, after expiration of such
90-day period, a new direction identical to a direction which has been cancelled pursuant to the
proviso to the preceding sentence, in which event a new record date shall be established pursuant
to the provisions of this Section 512.

SECTION 513. Waiver of Past Defaults.

          The Holders of not less than a majority in principal amount of the Outstanding Securities of
any series may on behalf of the Holders of all the Securities of such series waive any past default
hereunder with respect to such series and its consequences, except a default

     (1) in the payment of the principal of (or premium, if any) or interest on any
Security of such series, or

     (2) in respect of a covenant or provision hereof which under Article Nine
cannot be modified or amended without the consent of the Holder of each Outstanding
Security of such series affected.

          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Persons entitled to waive any past default hereunder. If a record date is fixed,
the Holders on such record date, or their duly designated proxies, and only such Persons, shall be
entitled to waive any default hereunder, whether or not such Holders remain Holders after such
record date; provided, that unless such majority in principal amount shall have been
obtained

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prior to the date which is 90 days after such record date, any such waiver previously given
shall automatically and without further action by any Holder be cancelled and of no further effect.

          Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.

SECTION 514. Undertaking for Costs.

          All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities
of any series, or to any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest on any Security on or after the Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption, on or after the Redemption
Date).

SECTION 515. Waiver of Stay or Extension Laws.

          The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully
do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will
not hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

ARTICLE SIX

THE TRUSTEE

SECTION 601. Certain Duties and Responsibilities.

     (a) Except during the continuance of an Event of Default,

     (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations
shall be read into this Indenture against the Trustee; and

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     (2) in the absence of bad faith on its part, the Trustee may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming to
the requirements of this Indenture; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to be furnished to
the Trustee, the Trustee shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Indenture.

          (b) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and shall use the same degree of care and
skill in their exercise, as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs.

          (c) No provision of this Indenture shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct,
except that

     (1) this Subsection shall not be construed to limit the effect of Subsection
(a) of this Section;

     (2) the Trustee shall not be liable for any error of judgment reasonably made
in good faith by a Responsible Officer, unless it shall be proved that the Trustee
was negligent in ascertaining the pertinent facts;

     (3) the Trustee shall not be liable with respect to any action taken or omitted
to be taken by it in good faith in accordance with the direction of the Holders of a
majority in principal amount of the outstanding Securities of any series, determined
as provided in Section 512, relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture with respect to the Securities of
such series; and

     (4) no provision of this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

          (d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

SECTION 602. Notice of Defaults.

          Within 90 days after the occurrence of any default hereunder with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders of Securities of such series, as
their names and addresses appear in the Security Register, notice of such default hereunder known
to the Trustee, unless such default shall have been cured or waived; provided,

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however, that, except in the case of a default in the payment of the principal of (or
premium, if any) or interest on any Security of such series or in the payment of any sinking fund
installment with respect to Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive committee or a
trust committee of directors or Responsible Officers of the Trustee in good faith determine that
the withholding of such notice is in the best interest of the Holders of Securities of such series;
and provided, further, that in the case of any default of the character specified
in Section 501(5) with respect to Securities of such series, no such notice to Holders shall be
given until at least 30 days after the occurrence thereof. For the purpose of this Section, the
term “default” means any event that, after giving effect to any applicable grace period, is, or
after notice or lapse of time or both would become, an Event of Default with respect to Securities
of such series.

SECTION 603. Certain Rights of Trustee.

          Subject to the provisions of Section 601:

          (a) the Trustee may rely and shall be protected in acting or refraining from acting
upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties;

          (b) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order or as otherwise expressly provided herein
and any resolution of the Board of Directors may be sufficiently evidenced by a Board
Resolution;

          (c) whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed)
may, in the absence of bad faith on its part, rely upon an Officers’ Certificate;

          (d) the Trustee may consult with counsel of its selection and the written advice of
such counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon;

          (e) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders pursuant
to this Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which might be incurred
by it in compliance with such request or direction;

          (f) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if the

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Trustee shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally or by agent
or attorney;

          (g) the Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder) either directly or by or through agents or attorneys and the Trustee
shall not be responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder;

          (h) the Trustee may request that the Company deliver a certificate setting forth the
names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture; and

          (i) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder.

SECTION 604. Not Responsible for Recitals or Issuance of Securities.

          The recitals contained herein and in the Securities, except the trust, registrar certificates
of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or application by the
Company of Securities or the proceeds thereof.

SECTION 605. May Hold Securities.

          The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

SECTION 606. Money Held in Trust.

          Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Company.

SECTION 607. Compensation and Reimbursement.

          The Company agrees

     (1) to pay to the Trustee from time to time such compensation as shall be
agreed to in writing between the Company and the Trustee for all services rendered
by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);

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     (2) except as otherwise expressly provided herein, to reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any provision of this Indenture (including
the reasonable compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be attributable to
its negligence or bad faith; and

     (3) to indemnify the Trustee for, and to hold it harmless against, any and all
loss, liability, damage, claim or expense incurred without negligence or bad faith
on its part, arising out of or in connection with the acceptance or administration
of the trust or trusts hereunder, including the costs and expenses of defending
itself against any claim or liability in connection with the exercise or performance
of any of its powers or duties hereunder.

     The provisions of this Section shall survive the termination of this Indenture.

SECTION 608. Disqualification; Conflicting Interests.

          If the Trustee has or shall acquire any conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.
To the extent permitted by such Act, the Trustee shall not be deemed to have a conflicting interest
with respect to Securities of any series by virtue of being a trustee under this Indenture with
respect to any particular series of Securities.

SECTION 609. Corporate Trustee Required; Eligibility.

          There shall at all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States of America, any State thereof or the District of
Columbia, authorized under such laws to exercise corporate trust powers, having a combined capital
and surplus of at least $50,000,000 subject to supervision or examination by Federal or State
authority and having its Corporate Trust Office in the Borough of Manhattan, The City of New York.
If such corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in this Article Six.

SECTION 610. Resignation and Removal; Appointment of Successor.

          If the instruments of acceptance by a successor Trustee required by Section 611 shall not have
been delivered to the Trustee within 30 days after the giving of such notice of removal, the
Trustee being removed may petition, at the expense of the Company, any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

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          (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 611.

          (b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition, at the expense of the
Company, any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

          (c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company.

          (d) If at any time:

     (1) the Trustee shall fail to comply with Section 608 after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a
Security for at least six months, or

     (2) the Trustee shall cease to be eligible under Section 609 and shall fail to
resign after written request therefor by the Company or by any such Holder, or

     (3) the Trustee shall become incapable of acting or shall be adjudged a
bankrupt or insolvent or a receiver of the Trustee or of its property shall be
appointed or any public officer shall take charge or control of the Trustee or of
its property or affairs for the purpose of rehabilitation, conservation or
liquidation,

then, in any such case, (i) the Company by a Board Resolution may remove the Trustee with respect
to all Securities, or (ii) subject to Section 514, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

          (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the Securities of one or more
series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees
with respect to the Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of such series and
that at any time there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 611. If, within one year after
such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the Holders of a majority
in principal amount of the Outstanding Securities of such series delivered to the Company and the
retiring Trustee, the successor Trustee so appointed shall, forthwith upon

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its acceptance of such appointment in accordance with the applicable requirements of Section
611, become the successor Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to
the Securities of any series shall have been so appointed by the Company or the Holders and
accepted appointment in the manner required by Section 611, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

          (f) The Company shall give notice of each resignation and removal of the Trustee with respect
to the Securities of any series and each appointment of a successor Trustee with respect to the
Securities of any series by mailing written notice of such event by first-class mail, postage
prepaid, to all Holders of Securities of such series as their names and addresses appear in the
Security Register. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

          (g) If the instrument of acceptance by a successor Trustee required by Section 611 shall not
have been delivered to the Trustee within 60 days after the giving of such notice of removal, the
Trustee being removed may petition, at the expense of the Company, any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

SECTION 611. Acceptance of Appointment by Successor.

          (a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.

          (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring
Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be

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necessary to provide for or facilitate the administration of the trusts hereunder by more than
one Trustee, it being understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee
of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered
by any other such Trustee; and upon the execution and delivery of such supplemental indenture the
resignation or removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor Trustee relates; but,
on request of the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the appointment of such
successor Trustee relates.

          (c) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in Subsection (a) or (b) of this Section, as the case
may be.

          (d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

SECTION 612. Merger, Conversion, Consolidation or Succession to Business.

          Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of any of the parties
hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee
then in office, any successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with the same effect as
if such successor Trustee had itself authenticated such Securities.

SECTION 613. Preferential Collection of Claims Against Company.

          If and when the Trustee shall be or become a creditor of the Company (or any other obligor
under the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor).

SECTION 614. Appointment of Authenticating Agent.

          The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all purposes as if

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authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia, authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000
and subject to supervision or examination by Federal or State authority. If such Authenticating
Agent publishes reports of condition at least annually, pursuant to law or to the requirements of
said supervising or examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the effect specified in
this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all the corporate agency or corporate trust business of an Authenticating Agent,
shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further act on the part of
the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment in the manner provided in Section 106 to all Holders of Securities of
the series with respect to which such Authenticating Agent will serve. Any successor Authenticating
Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers
and duties of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under
the provisions of this Section.

     The Trustee may pay to each Authenticating Agent from time to time reasonable compensation as
shall be agreed to in writing between the Trustee and each Authenticating Agent for all services
under this Section, and, if so paid, the Trustee shall be entitled to be reimbursed for such
payments, subject to the provisions of Section 607.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternative certificate of authentication in the following form:

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     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION,

As Trustee

 	 
	 	By  	
 	, 
	 	 	As Authenticating Agent 	 
	 	 	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE

AND COMPANY

SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.

          The Company will furnish or cause to be furnished to the Trustee

          (a) semi-annually, either (i) not later than March 31 and September 30 in each year in
the case of Original Issue Discount Securities of any series which by their terms do not
bear interest prior to Maturity, or (ii) not more than 15 days after each Regular Record
Date in the case of Securities of any other series, a list, each in such form as the
Trustee may reasonably require, of the names and addresses of the Holders of Securities of
such series as of the preceding March 16 or September 15 or as of such Regular Record Date,
as the case may be; and

          (b) at such other times as the Trustee may request in writing, within 30 days after
the receipt by the Company of any such request, a list of similar form and content as of a
date not more than 15 days prior to the time such list is furnished;

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.

SECTION 702. Preservation of Information; Communications to Holders.

          (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 701 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701
upon receipt of a new list so furnished.

          (b) If three or more Holders (herein referred to as “applicants”) apply in writing to the
Trustee, and furnish to the Trustee reasonable proof that each such applicant has owned a Security
for a period of at least six months preceding the date of such application, and

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such application states that the applicants desire to communicate with other Holders with
respect to their rights under this Indenture or under the Securities and is accompanied by a copy
of the form of proxy or other communication which such applicants propose to transmit, then the
Trustee shall, within five business days after the receipt of such application, at its election,
either

          (i) afford such applicants access to the information preserved at the
time by the Trustee in accordance with Section 702(a), or

          (ii) inform such applicants as to the approximate number of Holders
whose names and addresses appear in the information preserved at the time by
the Trustee in accordance with Section 702(a), and as to the approximate
cost of mailing to such Holders the form of proxy or other communication, if
any, specified in such application.

          If the Trustee shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Holder whose name and
address appear in the information preserved at the time by the Trustee in accordance with Section
702(a) a copy of the form of proxy or other communication that is specified in such request with
reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or
provision for the payment, of the reasonable expenses of mailing, unless within five days after
such tender the Trustee shall mail to such applicants and file with the Commission, together with a
copy of the material to be mailed, a written statement to the effect that, in the opinion of the
Trustee, such mailing would be contrary to the best interest of the Holders or would be in
violation of applicable law. Such written statement shall specify the basis of such opinion. If
the Commission, after opportunity for a hearing upon the objections specified in the written
statement so filed, shall enter an order refusing to sustain any of such objections or if, after
the entry of an order, sustaining one or more of such objections, the Commission shall find, after
notice and opportunity for hearing, that all the objections so sustained have been met and shall
enter an order so declaring, the Trustee shall mail copies of such material to all such Holders
with reasonable promptness after the entry of such order and the renewal of such tender; otherwise
the Trustee shall be relieved of any obligation or duty to such applicants respecting their
application.

          (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable (i) by reason of the disclosure of any such information as to the names and addresses
of the Holders in accordance with Section 702(b), regardless of the source from which such
information was derived, or (ii) by reason of mailing any material pursuant to a request made under
Section 702(b).

SECTION 703. Reports by Trustee.

          (a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the
Trustee shall, within sixty days after each May 15 following the date of the

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initial issuance of Securities under this Indenture deliver to Holders a brief report, dated
as of such May 15, which complies with the provisions of such Section 313(a).

          (b) At the time of such transmission to the Holders, a copy of each such report shall be filed
by the Trustee with each stock exchange upon which any Securities are listed, with the Commission
and with the Company. The Company will notify the Trustee when any Securities are listed on any
stock exchange and of any delisting thereof.

SECTION 704. Reports by Company.

          The Company shall:

     (1) file with the Trustee, within 15 days after the Company files the same with
the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission
may from time to time by rules and regulations prescribe) which the Company files
with the Commission pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934; or, if the Company is not required to file information,
documents; or reports pursuant to either of said Sections, then it shall file with
the Trustee and the Commission, in accordance with rules and regulations prescribed
from time to time by the Commission, such of the supplementary and periodic
information, documents and reports which may be required pursuant to Section 13 of
the Securities Exchange Act of 1934 in respect of a security listed and registered
on a national securities exchange as may be prescribed from time to time in such
rules and regulations;

     (2) file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional
information, documents and reports with respect to compliance by the Company with
the conditions and covenants of this Indenture as may be required from time to time
by such rules and regulations; and transmit by mail to all Holders, at their names
and addresses as they appear in the Security Register, within 30 days after the
filing thereof with the Trustee, such summaries of any information, documents and
reports required to be filed by the Company pursuant to paragraphs (1) and (2) of
this Section, as may be required by rules and regulations prescribed from time to
time by the Commission.

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE,

TRANSFER OR LEASE

SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.

          The Company shall not consolidate with or merge into any other Person or sell, transfer or
lease its properties and assets substantially as an entirety to any Person, and the

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Company shall not permit any Person to consolidate with or merge into the Company or convey,
transfer or lease its properties and assets substantially as an entirety to the Company, unless:

     (1) in case the Company shall consolidate with or merge into another Person or
sell its assets substantially as an entirety to any Person, the Person formed by
such consolidation or into which the Company is merged or the Person which acquires
by conveyance or transfer, or which leases, the properties and assets of the Company
substantially as an entirety shall be a corporation, partnership or trust, shall be
organized and validly existing under the laws of the United States of America, any
State thereof or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of (and
premium, if any) and interest on all the Securities and the performance of every
covenant of this Indenture on the part of the Company to be performed or observed;

     (2) immediately after giving effect to such transaction no Event of Default,
and no event which, after notice or lapse of time or both, would become an Event of
Default, shall have happened and be continuing; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation or transfer and, if a
supplemental indenture is required in connection with such transaction, such
supplemental indenture comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.

SECTION 802. Successor Corporation Substituted.

          Upon any consolidation of the Company with, or merger by the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

ARTICLE NINE

SUPPLEMENTAL INDENTURE

SECTION 901. Supplemental Indentures Without Consent of Holders.

          Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more

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indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following
purposes:

     (1) to evidence the succession of another Person to the Company and the
assumption by any such successor of the covenants of the Company herein and in the
Securities; or

     (2) to add to the covenants of the Company for the benefit of the Holders of
all or any series of Securities (and if such covenants are to be for the benefit of
less than all series of Securities, stating that such covenants are expressly being
included solely for the benefit of such series) or to surrender any right or power
herein conferred upon the Company; or

     (3) to add any additional Events of Default; or

     (4) to add to or change any of the provisions of this Indenture to such extent
as shall be necessary to permit or facilitate the issuance of Securities in bearer
form, registrable or not registrable as to principal, and with or without interest
coupons, or to permit or facilitate the issuance of Securities in uncertificated
form; or

     (5) to change or eliminate any of the provisions of this Indenture,
provided that any such change or elimination shall become effective only
when there is no Security Outstanding of any series created prior to the execution
of such supplemental indenture which is entitled to the benefit of such provision;
or

     (6) to secure the Securities; or

     (7) to establish the form or terms of Securities of any series as permitted by
Sections 201 and 301; or

     (8) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Securities of one or more series and to add to
or change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 611(b); or

     (9) to cure any ambiguity, to correct or supplement any provision herein which
may be defective or inconsistent with any other provision, herein, or to make any
other provisions with respect to matters or questions arising under this Indenture,
provided such action shall not adversely affect the interests of the Holders
of Securities of any series in any material respect.

SECTION 902. Supplemental Indentures With Consent of Holders.

          With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized by a Board

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Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities;
of such series under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security affected thereby,

     (1) change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Security, or reduce the principal amount thereof or
the rate of interest thereon or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue Discount Security that would
be due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 502, or reduce the amount of, or postpone the date fixed for,
the payment of any sinking fund or analogous obligation, or change any Place of
Payment where, or the coin or currency in which, any Security or any premium or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in the
case of redemption, on or after the Redemption Date) or impair the Holder’s right,
if any, to exchange or convert the Security for or into other property, or

     (2) reduce the percentage in principal amount of the Outstanding Securities of
any series, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver (of compliance
with certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or

     (3) modify any of the provisions of this Section, Section 513 or Section 1008,
except to increase any such percentage or to provide that certain other provisions
of this Indenture cannot be modified or waived without the consent of the Holder of
each Outstanding Security affected thereby, provided, however, that
this clause shall not be deemed to require the consent of any Holder with respect to
changes in the references to “the Trustee” and concomitant changes in this Section
and Section 1008, or the deletion of this proviso, in accordance with the
requirements of Sections 611(b) and 901(8).

A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series; with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Persons entitled to consent to any indenture supplemental hereto. If a record date
is fixed, the Holders on such record date or their duly designated proxies and only such Persons,
shall be entitled to consent to such supplemental indenture, whether or not such Holders remain
Holders after such record date; provided, that unless such consent shall have become
effective by virtue of the requisite percentage having been obtained prior to the date which is 90

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days after such record date, any such consent previously given shall automatically and without
further action by any Holder be cancelled and of no further effect.

          It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

SECTION 903. Execution of Supplemental Indentures.

          In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise.

SECTION 904. Effect of Supplemental Indentures.

          Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

SECTION 905. Conformity with Trust Indenture Act.

          Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

SECTION 906. Reference in Securities to Supplemental Indentures.

          Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall, if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.

ARTICLE TEN

COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

          The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of (and premium, if any) and interest on the Securities of
that series in accordance with the terms of the Securities and this Indenture.

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SECTION 1002. Maintenance of Office or Agency.

          The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

          The company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no
such designation or rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in each Place of Payment for Securities of any series for such
purposes. The Company will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or agency.

SECTION 1003. Money for Securities Payments to Be Held in Trust.

          If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of the principal of (and premium, if any) or
interest on any of the Securities of that series, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure so to act.

          Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of (and premium, if any) or interest on any
Securities of that series, deposit with a Paying Agent a sum sufficient to pay the principal (and
premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or interest, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

          The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will:

     (1) hold all sums held by it for the payment of the principal of (and premium,
if any) or interest on Securities of that series in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or otherwise
disposed of as herein provided;

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     (2) give the Trustee notice of any default by the Company (or any other obligor
upon the Securities of that series) in the making of any payment of principal (and
premium, if any) or interest on the Securities of that series; and

     (3) at any time during the continuance of any such default, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held in trust by
such Paying Agent.

          The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

          Any money deposited with the Trustee or any Paying Agent, or then held by the Company in trust
for the payment of the principal of (and premium, if any) or interest on any Security of any series
and remaining unclaimed for two (2) years after such principal (and premium, if any) or interest
has become due and payable shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, shall at the request and at
the expense of the Company cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation in the Borough of
Manhattan, The City of New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

SECTION 1004. Corporate Existence.

          Subject to Article Eight, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence, rights (charter and statutory)
and franchises; provided, however, that the Company shall not be required to
preserve any such right or franchise if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of the Company.

SECTION 1005. Payment of Taxes and Other Claims.

          The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the
Company or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary,
and (2) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a
lien upon the property of the Company or any Subsidiary;

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provided, however, that the Company shall not be required to pay or discharge
or cause to be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate proceedings.

SECTION 1006. Restrictions on Liens.

          The Company will not, and will not permit any Restricted Subsidiary to, create, incur, assume
or permit to exist any indebtedness secured by any Lien upon (i) any of its Principal Property or
the Principal Property of any Restricted Subsidiary or (ii) any Equity Interest of a Restricted
Subsidiary, unless, in each case (i) or (ii), the outstanding Securities shall be secured equally
and ratably with (or prior to) such indebtedness secured by such Lien; provided that the
foregoing restrictions do not apply to indebtedness secured by:

     (1) Liens on any assets, whether now owned or hereafter acquired, of the Company or of any
Restricted Subsidiary, securing indebtedness under any credit agreement to which the Company or
any of its Subsidiaries is a party;

     (2) Liens on property or assets of a Person existing at the time such Person (a) is merged
with or into or consolidated with the Company or any of its Subsidiaries or (b) otherwise
becomes a Subsidiary of the Company; provided, that such Liens were in existence prior
to such merger or consolidation or such Person’s becoming a Subsidiary and do not extend to any
assets other than those of the Person merged into or consolidated with the Company or the
Company’s Subsidiary;

     (3) Liens on property existing at the time of purchase, lease or other acquisition
thereof, or to secure the payment of all or part of the purchase price of such property, or to
secure debt incurred or guaranteed for the purpose of financing all or part of the purchase
price of such property or construction or improvements thereon, which indebtedness is incurred
or guaranteed prior to, at the time of, or within 180 days after the later of such acquisition,
completion of such improvements or construction, or commencement of full operation of such
property;

     (4) Liens existing on the date hereof;

     (5) Liens for taxes, assessments, governmental charges, levies or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded;

     (6) Liens on receivables and related assets to reflect sales of receivables pursuant to a
Receivables Program;

     (7) Liens securing hedging obligations;

     (8) Liens on the Company’s property or that of a Restricted Subsidiary in favor of the
United States or any state or political subdivision thereof, or in favor of any other country
or political subdivision thereof, created in connection with certain payments pursuant to any
contract or statute or indebtedness incurred or guaranteed for the purpose of financing all or
any part of the purchase price or the cost of construction of the property subject to such

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Liens (including, but not limited to, indebtedness secured by Liens incurred in connection
with pollution control industrial revenue bond or similar financing);

     (9) Liens to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the ordinary course of
business;

     (10) Liens securing indebtedness or other obligations of a Subsidiary owing to the Company
or a Restricted Subsidiary;

     (11) Liens to secure obligations under capital leases;

     (12) mechanics’ or other similar Liens;

     (13) Liens arising out of litigation or judgments being contested;

     (14) Liens in favor of the Company or any Restricted Subsidiary;

     (15) Liens permitted under Section 1009; or

     (16) any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in any of the foregoing clauses.

          Notwithstanding the above, the Company or the Subsidiaries may, without securing the
Securities, issue, assume or guarantee secured indebtedness which would otherwise be subject to the
foregoing restrictions; provided that after giving effect thereto the aggregate amount of
indebtedness that would otherwise be subject to the foregoing restrictions then outstanding (not
including (i) secured indebtedness permitted under the foregoing exceptions, (ii) indebtedness that
is secured equally and ratably with (or on a basis subordinated to) the Securities or (iii) the
Securities) does not exceed 15% of the Company’s Consolidated Net Tangible Assets as of the end of
the previous fiscal year.

SECTION 1007. Statement by Officers as to Default.

          The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company ending after the date hereof, an Officers’ Certificate signed by the principal
executive officer, principal financial officer or principal accounting officer, stating whether or
not to the best knowledge of the signers thereof the Company is in default in the performance and
observance of any of the terms, provisions and conditions of Sections 1004, 1006 and 1009, and if
the Company shall be in default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.

SECTION 1008. Waiver of Certain Covenants.

          The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Sections 1004 and 1005, inclusive, with respect to the Securities of any
series if before the time for such compliance the Holders of a majority in principal amount of the
Outstanding Security such series shall, by Act of such Holders, either waive compliance in such
instance or generally waive compliance with such term, provision or

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condition, but no such waiver shall extend to or affect such term, provision or condition
except to the extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such term, provision or
condition shall remain in full force and effect.

          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Persons entitled to waive compliance with any term, provision or condition referred
to in the immediately preceding paragraph. If a record date is fixed, the Holders on such record
date, or their duly designated proxies, and only such Persons, shall be entitled to waive
compliance with any such term, provision or condition, whether or not such Holders remain Holders
after such record date; provided, that unless such requisite percentage in principal amount shall
have been obtained prior to the date which is 90 days after such record date, any such waiver
previously given shall automatically and without further action by any Holder be cancelled and of
no further effect.

SECTION 1009. Restrictions on Sale and Leasebacks.

          If so provided in the action establishing the terms of a series of Securities, sale and
leaseback transactions of any Principal Property by the Company or any Restricted Subsidiary are
prohibited unless:

     (1) the Company or such Restricted Subsidiary would be entitled hereunder to issue, assume
or guarantee indebtedness secured by a Lien upon such Principal Property at least equal in
amount to the Attributable Debt in respect of such transaction without equally and ratably
securing the debt securities, provided that such Attributable Debt shall thereupon be
deemed to be debt subject to the provisions described above under “Restrictions on Liens”;

     (2) the Company applies an amount in cash equal to such Attributable Debt to the retirement
of non-subordinated indebtedness of the Company or a Restricted Subsidiary within 180 days;

     (3) the Company applies an amount in cash equal to such Attributable Debt to the
purchase of other property that will constitute Principal Property having a value at
least equal to the net proceeds of the sale; or

     (4) the Company or that Restricted Subsidiary, as applicable, delivers to the
Trustee for cancellation debt securities in an aggregate principal amount at least equal
to the net proceeds of the sale.

          The restrictions described under clauses (1) through (4) above shall not apply to:

     (1) any transaction involving a lease with a term of up to five years;

     (2) leases between the Company and a Subsidiary or between Subsidiaries; or

     (3) leases of any Principal Property entered into within 120 days after the later of the
acquisition, completion of construction or commencement of full operation of such Principal
Property.

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          Notwithstanding anything to the contrary here, the Company may enter into Sale and Leaseback
Transactions that would not otherwise be permitted in accordance with the limitations described
above if the sum of the aggregate amount of all of the Company’s indebtedness and the indebtedness
of the Company’s Restricted Subsidiaries that is secured by Liens on any of the Company’s Principal
Properties and the Principal Properties of any of the Company’s Restricted Subsidiaries (other than
(i) indebtedness secured solely by liens permitted under Section 1006, (ii) indebtedness that is
secured equally and ratably with (or on a basis subordinated to) the Securities and (iii) the
Securities) and the aggregate amount of all the Company’s Attributable Debt and the Attributable
Debt of the Company’s Restricted Subsidiaries with respect to all Sale and Leaseback Transactions
outstanding at such time (other than Sale and Leaseback Transactions permitted in accordance
herewith) would not exceed 15% of the Company’s Consolidated Net Tangible Assets.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article.

          Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 301
for Securities of any series) in accordance with this Article.

SECTION 1102. Election to Redeem; Notice to Trustee.

          The election of the Company to redeem any Securities shall be evidenced by a Board Resolution.
In case of any redemption at the election of the Company including a redemption of less than all
the Securities of any series, the Company shall, at least 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date, of the tenor, if applicable, of the Securities to be redeemed, and
of the principal amount of Securities of such series to be redeemed. In the case of any redemption
of Securities prior to the expiration of any restriction on such redemption provided in the terms
of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers’ Certificate evidencing compliance with such restriction.

SECTION 1103. Selection by Trustee of Securities to Be Redeemed.

          If less than all the Securities of any series are to be redeemed (unless all of the Securities
of a specified tenor are to be redeemed), the particular Securities to be redeemed shall be
selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series subject to such redemption and not previously called for redemption, by
such method as the Trustee shall deem fair and appropriate and which may provide for the election
for redemption of portions (equal to the minimum authorized denomination for Securities of that
series or any integral multiple thereof) of the principal amount of Securities of such varies of a
denomination larger than the minimum authorized denomination for Securities of that series. If less
than all of the Securities of such series and of a specified tenor are to be redeemed, the
particular Securities to be redeemed shall be selected not

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more than 45 days prior to the Redemption Date by the Trustee, from the Outstanding Securities
of such series and specified tenor not previously called for redemption in accordance with the
preceding sentence.

          The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

          For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

SECTION 1104. Notice of Redemption.

          Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register.

          All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price,

     (3) if less than all the Outstanding Securities of any series are to be
redeemed, the identification (and, in the case of partial redemption, the principal
amounts) of the particular Securities to be redeemed,

     (4) the CUSIP numbers of the Securities to be redeemed,

     (5) that on the Redemption Date the Redemption Price will become due and
payable upon each such Security to be redeemed and, if applicable, that interest
thereon will cease to accrue on and after said date,

     (6) the place or places where such Securities are to be surrendered for payment
of the Redemption Price, and

     (7) that the redemption is for a sinking fund, if such is the case.

          Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company.

SECTION 1105. Deposit of Redemption Price.

          Prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust

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as provided in Section 1003) an amount of money sufficient to pay the Redemption Price of, and
(except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities which are to be redeemed on that date.

SECTION 1106. Securities Payable on Redemption Date.

          Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by the Company at the
Redemption Price, together with accrued interest to the Redemption Date; provided,
however, that installments of interest whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Regular Record Dates
according to their terms and the provisions of Section 307.

          If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in the Security.

SECTION 1107. Securities Redeemed in Part.

          Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new
Security or Securities of the same series and of like tenor, of any authorized denomination as
requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered. If a Global Security is so surrendered,
such new Security so issued shall be a new Global Security.

ARTICLE TWELVE

SINKING FUNDS

SECTION 1201. Applicability of Article.

          The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of any series except as otherwise specified as contemplated by Section 301 for
Securities of such series.

          The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment.” If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to

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reduction as provided in Section 1202. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of Securities of such series.

SECTION 1202. Satisfaction of Sinking Fund Payments with Securities. 

          The Company (1) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (2) may apply as a credit Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series; provided that such Securities have
not been previously so credited. Such Securities shall be received and credited for such purpose by
the Trustee at the Redemption Price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

SECTION 1203. Redemption of Securities for Sinking Fund.

          Not less than 60 days prior to each sinking fund payment date for any series of Securities,
the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next
ensuing sinking fund payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities of that series pursuant to Section 1202
and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 days prior
to each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon
such sinking fund payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 1104. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 1106 and 1107.

ARTICLE THIRTEEN

DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1301. Applicability of Article: Company’s Option to Effect Defeasance or Covenant Defeasance.

          Unless provision is made pursuant to Section 301 for neither (a) defeasance of the Securities
of a series under Section 1302 nor (b) covenant defeasance of the Securities of a series under
Section 1303, then the provisions of such Section or Sections, as the case may be, together with
the other provisions of this Article Thirteen, shall be applicable to the Securities of such
series, and the Company may, at its option, by Board Resolution, at any time, with respect to the
Securities of such series, elect to have either Section 1302 (if applicable) or Section 1303 (if

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applicable) be applied to the Outstanding Securities of such series upon compliance with the
conditions set forth below in this Article Thirteen.

SECTION 1302. Defeasance and Discharge.

          Upon the Company’s exercise of the above option applicable to this Section, the Company shall
be deemed to have been discharged from its obligations with respect to the Outstanding Securities
of such series on and after the date the conditions precedent set forth below are satisfied but
subject to satisfaction of the conditions subsequent set forth below (hereinafter, “defeasance”).
For this purpose, such defeasance means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by the Outstanding Securities of such series and to
have satisfied all its other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall survive until otherwise
terminated or discharged hereunder: (A) the rights of Holders of Outstanding Securities of such
series to receive, solely from the trust fund described in Section 1304 and as more fully set forth
in such Section, payments of the principal of (and premium, if any) and interest on such Securities
when such payments are due, (B) the Company’s obligations with respect to such Securities under
Sections 304, 305, 306, 1001, 1002 and 1003, and (C) such obligations, rights, powers, trusts, as
shall be provided in respect of this Article Thirteen. Subject to compliance with this Article
Thirteen, the Company may exercise its option under this Section 1302 notwithstanding the prior
exercise of its option under Section 1303 with respect to the Securities of such series. Following
a defeasance, payment of the Securities of such series may not be accelerated because of an Event
of Default.

SECTION 1303. Covenant Defeasance.

          Upon the Company’s exercise of the above option applicable to this Section, the Company shall
be released from its obligations under Section 801, Sections 1005, 1006, and 1009, any covenants
provided pursuant to Section 901 for the benefit of the Holders of such Securities and any other
Section applicable to such Securities that are determined pursuant to Section 301 to be subject to
this provision and the occurrence of an event of default specified in Sections 501(4) through
501(8), inclusive, shall be deemed not to be an Event of Default with respect to the Outstanding
Securities of such series on and after the date the conditions precedent set forth below are
satisfied but subject to satisfaction of the conditions subsequent set forth below (hereinafter,
“covenant defeasance”). For this purpose, such covenant defeasance means that, with respect to the
Outstanding Securities of such series, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such Section, whether
directly or indirectly by reason of any reference elsewhere herein to any such Section or by reason
of any reference in any such Section to any other provision herein or in any other document, but
the remainder of this Indenture and such Securities shall be unaffected thereby. Following a
covenant defeasance, payment of the Securities of such series may not be accelerated because of an
Event of Default specified in Section 501(6) or by reference to such other Section specified above
in this Section 1303.

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SECTION 1304. Conditions to Defeasance or Covenant Defeasance.

          The following shall be the conditions precedent or, as specifically noted below, subsequent to
application of either Section 1302 or Section 1303 to the Outstanding Securities of such series:

     (1) the Company shall irrevocably have deposited or caused to be deposited with
the Trustee (or another trustee satisfying the requirements of Section 609 who shall
agree to comply with the provisions of this Article Thirteen applicable to it) as
trust funds in trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefit of the Holders of such
Securities, (A) money in an amount, or (B) U.S. Government Obligations which through
the scheduled payment of principal and interest in respect thereof in accordance
with their terms will provide, not later than one day before the due date of any
payment, money in an amount, or (C) a combination thereof, sufficient in the opinion
of a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay and discharge, and
which shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, (i) the principal of (and premium, if any) and interest on the
Outstanding Securities of such series to maturity or redemption, as the case may be,
and (ii) any mandatory sinking fund payments or analogous payments applicable to the
Outstanding Securities of such series on the due dates thereof. Before such a
deposit, the Company may make arrangements reasonably satisfactory to the Trustee
for the redemption of Securities at a future date or dates in accordance with
Article Eleven, which shall be given effect in applying the foregoing. For this
purpose, “U.S. Government Obligations” means securities that are (x) direct
obligations of the United States of America for the payment of which its full faith
and credit is pledged or (y) obligations of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America the payment
of which is unconditionally guaranteed as a full faith and credit obligation by the
United States of America, which, in either case, are not callable or redeemable at
the option of the issuer thereof, and shall also include a depository receipt issued
by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended)
as custodian with respect to any such U.S. Government Obligation or a specific
payment of principal of or interest on any such U.S. Government Obligation held by
such custodian for the account of the holder of such depository receipt,
provided that (except as required by law) such custodian is not authorized
to make any deduction from the amount payable to the holder of such depository
receipt from any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of principal of or interest on the U.S.
Government Obligation evidenced by such depository receipt.

     (2) No Event of Default or event which, after giving effect to any applicable
grace period, with notice or lapse of time or both would become an Event of Default
with respect to the Securities of such series shall have occurred and be continuing
(A) on the date of such deposit or (B) insofar as Subsections

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501(6) and (7) are concerned, at any time during the period ending on the 90th
day after the date of such deposit.

     (3) Such defeasance or covenant defeasance shall not (A) cause the Trustee for
the Securities of such series to have a conflicting interest as defined in Section
608 or for purposes of the Trust Indenture Act with respect to any securities of the
Company or (B) result in the trust arising from such deposit to constitute, unless
it is qualified as, a regulated investment company under the Investment Company Act.

     (4) Such defeasance or covenant defeasance shall not result in a breach or
violation of, or constitute a default under any other agreement or instrument to
which the Company is a party or by which it is bound.

     (5) In the case of an election under Section 1302, the Company shall have
delivered to the Trustee an Opinion of Counsel stating that (x) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling, or (y) since the date of this Indenture there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based
thereon such opinion shall confirm that, the Holders of the Outstanding Securities
of such series will not recognize income, gain or loss for Federal income tax
purposes as a result of such defeasance and will be subject to Federal income tax on
the same amounts, in the same manner and at the same times as would have been the
case if such defeasance had not occurred.

     (6) In the case of an election under Section 1303, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders of the
Outstanding Securities of such series will not recognize income, gain or loss for
Federal income tax purposes as a result of such covenant defeasance and will be
subject to Federal income tax on the same amounts, in the same manner and at the
same times as would have been the case if such covenant defeasance had not occurred.

     (7) Such defeasance or covenant defeasance shall be effected in compliance with
any additional terms, conditions or limitations that may be imposed on the Company
in connection therewith pursuant to Section 301.

     (8) The Company shall have delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent provided for
relating to either the defeasance under Section 1302 or the covenant defeasance
under Section 1303, as the case may be, have been complied with.

SECTION 1305. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions. 

          Subject to the provisions of the last paragraph of Section 1003, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee (or

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other qualifying trustee — collectively, for purposes of this Section 1305, the “Trustee”)
pursuant to Section 1304 in respect of the Outstanding Securities of such series shall be held in
trust and applied by the Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent (but not including the
Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such
Securities, of all sums due and to become due thereon in respect of principal (and premium, if any)
and interest, but such money need not be segregated from other funds except to the extent required
by law.

          The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the money or U.S. Government Obligations deposited pursuant to Section 1304
or the principal and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of Outstanding Securities.

          Anything herein to the contrary notwithstanding, the Trustee shall deliver or pay to the
Company from time to time upon Company Request any money or U.S. Government Obligations held by it
as provided in Section 1304 which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to effect an equivalent
defeasance or covenant defeasance.

          Anything herein to the contrary notwithstanding, if and to the extent the deposited money or
U.S. Government Obligations (or the proceeds thereof) either (i) cannot be applied by the Trustee
in accordance with this Section because of a court order or (ii) are for any reason insufficient in
amount, then the Company’s obligations to pay principal of (and premium, if any) and interest on
the Securities of such series shall be reinstated to the extent necessary to cover the deficiency
on any due date for payment. In any case specified in Clause (i), the Company’s interest in the
deposited money and U.S. Government Obligations (and proceeds thereof) shall be reinstated to the
extent the Company’s payment obligations are reinstated.

          This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

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          IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto
affixed and attested, all as
of the day and year first above written.

	 	 	 	 	 
	 	MEDCO HEALTH SOLUTIONS, INC.

 	 
	 	By:  	/s/ Peter Gaylord
 	 
	 	 	Name:  	Peter Gaylord 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 
	 

Signature Page

Indenture

 

 

	 	 	 	 	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Thomas E. Tabor
 	 
	 	 	Name:  	Thomas E. Tabor 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page

Indenture

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