Document:

EX-10.66

  EXHIBIT 10.66

   

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT VIR BIOTECHNOLOGY, INC. TREATS AS PRIVATE OR CONFIDENTIAL.

   

  LEASE

  THE EXCHANGE

   

   

   

   

   

   

  KRE EXCHANGE OWNER LLC

  a Delaware limited liability company

  as Landlord,

  and

  VIR BIOTECHNOLOGY, INC.,

  a Delaware corporation

  As Tenant.

  1800 Owens Street,
San Francisco, California

  North Tower

  Floors 8, 9, 10, 11 and 12

   

  

   

  Table of Contents

   

  			
	 
	Page

	1
	PREMISES, BUILDING, PROJECT AND COMMON AREAS
	5

	2
	LEASE TERM
	9

	3
	BASE RENT
	9

	4
	ADDITIONAL RENT
	10

	5
	USE OF PREMISES
	17

	6
	SERVICES AND UTILITIES
	24

	7
	REPAIRS
	28

	8
	ADDITIONS AND ALTERATIONS
	29

	9
	COVENANT AGAINST LIENS
	31

	10
	INSURANCE
	31

	11
	DAMAGE AND DESTRUCTION
	35

	12
	NONWAIVER
	37

	13
	CONDEMNATION
	37

	14
	ASSIGNMENT AND SUBLETTING
	38

	15
	SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL OF TRADE FIXTURES
	42

	16
	HOLDING OVER
	43

	17
	ESTOPPEL CERTIFICATES
	43

	18
	SUBORDINATION
	44

	19
	DEFAULTS; REMEDIES
	45

	20
	COVENANT OF QUIET ENJOYMENT
	47

	21
	SECURITY DEPOSIT
	47

	22
	INTENTIONALLY OMITTED
	50

	23
	SIGNS
	50

	24
	COMPLIANCE WITH LAW
	51

	25
	LATE CHARGES
	53

	26
	LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT
	53

	27
	PROJECT CONTROL BY LANDLORD; ENTRY BY LANDLORD
	53

	28
	TENANT PARKING
	54

	29
	MISCELLANEOUS PROVISIONS
	55

   

  -i-

  

   

  EXHIBITS

   

  		
	Exhibit 1.1.1-1
	Premises

	Exhibit 1.1.1-2
	Tenant Work Letter

	Exhibit 1.3
	Right of First Refusal Space

	Exhibit 2.1
	Form of Notice of Lease Term Dates

	Exhibit 4.4.3
	Mission Bay Requirements

	Exhibit 5.2
	Rules and Regulations

	Exhibit 5.3.1.1
	Environmental Questionnaire

	Exhibit 7.3
	Tenant/Landlord Maintenance Responsibility Matrix

	Exhibit 17
	Form of Tenant’s Estoppel Certificate

	Exhibit 21.1
	Form of Letter of Credit

	Exhibit 24.4
	Recognition of Covenants, Conditions, and Restrictions

	Exhibit 28.6
	Storage Area 

   

  -ii-

  

   

  Index of Defined Terms

   

  		
	Page

	Abatement Period
	3

	Additional Rent
	10

	Alterations
	29

	Applicable Laws
	51

	Audit Period
	16

	Bank Credit Threat
	47

	Bankruptcy Code
	48

	Base Building
	30

	Base Rent
	9

	BB HVAC System
	24

	Bicycle Improvements
	18

	Bicycle Storage Area
	18

	Bicycles
	17

	Brokers
	58

	Building
	6

	Building Common Areas
	6

	Building Hours
	26

	Building Structure
	28

	Building Systems
	28

	CASp Report
	52

	CC&Rs
	24

	Claims
	23

	Clean-up
	22

	Closure Letter
	22

	Code
	10

	Common Area Meeting Spaces
	8

	Common Areas
	6

	Company 40 Competitor List
	51

	Complex
	6

	Contemplated Effective Date
	40

	Contemplated Transfer Space
	40

	Control
	41

	Cost Pool
	14

	Costs of Reletting
	46

	Damage Termination Date
	36

	Damage Termination Notice
	36

	Direct Expenses
	10

	Dropbox Amendment
	8

	Environmental Assessment
	21

	Environmental Laws
	20

	Environmental Questionnaire
	18

	Environmental Report
	22

	Estimate
	15

	Estimate Statement
	15

	Estimated Direct Expenses
	15

	Excess Hours
	24

	Existing Sublease
	1

	Existing Tenant
	1

	Expense Year
	10

   

  -iii-

  

   

   

  		
	Page

	Extra HVAC Costs
	24

	First Refusal Commencement Date
	8

	First Refusal Notice
	7

	First Refusal Period
	7

	First Refusal Space
	7

	Force Majeure
	57

	Generator
	27

	Generator Facilities
	27

	Governmental Approvals
	18

	Hazardous Materials
	19

	Hazardous Materials Claims
	20

	HVAC
	24

	HVAC System Hours
	24

	Intention to Transfer Notice
	40

	L/C Security
	47

	Landlord
	1

	Landlord Bicycle Storage Area
	18

	Landlord Indemnitees
	23

	Landlord Parties
	31

	Landlord Repair Notice
	35

	Landlord’s Completion Notice
	35

	Landlord’s Hazardous Materials
	21

	Lease
	1

	Lease Commencement Date
	9

	Lease Expiration Date
	9

	Lease Term
	8

	Lease Year
	8

	Lender
	23

	Lines
	60

	Loading Dock Hours
	26

	Mail
	57

	Material Service Interruption
	27

	Mission Bay Requirements
	16

	Net Worth
	41

	Neutral Audit
	17

	Non Web-Enabled Water Sensors
	61

	North Building
	6

	North Complex
	6

	North Lobby
	6

	North Tower
	5

	Notices
	57

	Operating Expenses
	10

	Original Improvements
	33

	Original Tenant
	7

	Other Improvements
	60

	Outside Restoration Date
	36

	Parking Facilities
	54

	Parking Rate
	55

	Parking Rate Floor
	55

	PCBs
	19

	Permitted Assignee
	41

   

  -iv-

  

   

   

  		
	Page

	Permitted Transferee
	41

	Premises
	5

	Prohibited Persons
	62

	Project
	5

	Project Common Areas
	6

	Project Parking Use
	55

	Project Related Parkers
	55

	Proposition 13
	12

	Provider
	60

	Public Parking Use
	55

	Recapture Notice
	40

	Receivership
	49

	Redevelopment Agency
	52

	Redevelopment Plan
	52

	Regulations
	9

	REIT
	57

	Release
	19

	Relet Term
	46

	Renovations
	59

	Rent
	9

	Retail Space
	6

	Rules and Regulations
	17

	Security Deposit Laws
	49

	Security Personnel
	26

	Service Interruption
	27

	Service Interruption Notice
	27

	Six Month Period
	40

	South Building
	6

	South Complex
	6

	South Lobby
	6

	South Tower
	6

	Stairwell
	18

	Statement
	15

	Subject Space
	38

	Submetering Equipment
	25

	Summary
	1

	Supplemental HVAC Equipment
	28

	Tax Expenses
	13

	Tenant
	1

	Tenant Bicycle Storage Area
	18

	Tenant Energy Use Disclosure
	61

	Tenant Parties
	19

	Tenant Work Letter
	4

	Tenant’s Off-Premises Equipment
	29

	Tenant’s Property
	42

	Tenant’s Security System
	26

   

  -v-

  

   

   

  		
	Page

	Tenant’s Share
	14

	Tenant’s Subleasing Costs
	40

	Tenant-Exempt Tax Expenses
	16

	Transfer Notice
	39

	Transfer Premium
	39

	Transferee
	39

	Transfers
	39

	Underlying Documents
	52

	Unused L/C Proceeds
	49

	Web-Enabled Water Sensors
	61

   

  -vi-

  

   

  THE EXCHANGE

  LEASE

  This Lease (the “Lease”), dated as of the date set forth in Section 1 of the Summary of Basic Lease Information (the “Summary”), below, is made by and between KRE EXCHANGE OWNER LLC, a Delaware limited liability company (“Landlord”), and VIR BIOTECHNOLOGY, INC., a Delaware corporation (“Tenant”).

  A.	Tenant presently subleases the same leased premises (as the Premises in this Lease) pursuant to that certain Sublease entered into as of November 4, 2020, by and between Dropbox, Inc., a Delaware corporation (“Dropbox”) and Tenant (the “Existing Sublease”); Landlord’s predecessor-in-interest, KR Mission Bay, LLC, a Delaware limited liability company, consented to the Existing Sublease pursuant to a certain Consent to Sublease made as of December 21, 2020.

  B.	Pursuant to the Existing Sublease, Tenant has been working with Dropbox and Landlord, as master landlord, to process plans for the construction of alterations to the subleased premises to accomplish a build out of the subleased premises.

  C.	Subject to the terms and conditions of this Lease, Tenant desires to lease the Premises directly from Landlord, terminating the Sublease and replacing it with this Lease thereby eliminating Dropbox from its role as sublandlord (and the tenant under the primary lease with Landlord).

  D.	Effective as of the Lease Commencement Date (as defined below), this Lease supersedes and replaces the Existing Sublease, but notwithstanding the replacement of the Existing Sublease with this Lease, Tenant will remain in occupancy of the Premises without interruption.

  -1-

  

   

  SUMMARY OF BASIC LEASE INFORMATION

  			
	TERMS OF LEASE
 
	DESCRIPTION

	1.
	Dated as of:
	November 1, 2021

	2.
	Premises
(Article 1).
	 

	 
	2.1	Project:
	That certain project containing approximately 750,370 rentable square feet of space located at 1800 Owens Street, Sectors 1, 2, 3 and 4, San Francisco, California 94158. The Project is more particularly described in Section 1.1.2 below.

	 
	2.2	Premises:
	Approximately 133,896 rentable square feet of space on floors 8, 9, 10, 11 and 12 of the North Tower (as defined in Section 1.1.2 below), as further set forth in Exhibit 1.1.1-1 to the Lease.

	3.
	Lease Term
(Article 2).
	 

	 
	3.1	Length of Term:
	Twelve (12) years (i.e., one hundred forty-four (144) months).

	 
	3.2	Lease Commencement Date:
	The later of (i) November 1, 2021, and (ii) the date of Lease is executed and delivered by Landlord and Tenant and the existing lease with Dropbox has either been amended to eliminate floors eight (8) through twelve (12) of the North Tower therefrom or such existing lease has been partially terminated as to such floors (such that Landlord has recaptured such floors).

	 
	3.3	Rent Commencement Date:
	The same date as the Lease Commencement Date.

	 
	3.4	Lease Expiration Date:
	The last day of the one hundred forty-fourth (144th) full month of the Lease Term (e.g., if the Lease Commencement Date is, in fact, December 14, 2021, then the Lease Expiration Date will be December 31, 2033.

	4.
	Base Rent (Article 3):
	 

   

  -2-

  

   

  				
	Lease Months
	Annual
Base Rent
	Monthly
Installment
of Base Rent
	Monthly Base
Rent
per Rentable
Square Foot

	1 - 71
	$0.00
	$0.00
	$0.00

	82 - 12
	$4,251,198.00
	$850,239.60
	$6.35

	13 - 24
	$10,508,158.08
	$875,679.84
	$6.54

	25 - 36
	$10,829,508.48
	$902,459.04
	$6.74

	37 - 48
	$11,150,858.88
	$929,238.24
	$6.94

	49 - 60
	$11,488,276.80
	$957,356.40
	$7.15

	61 - 72
	$11,825,694.72
	$985,474.56
	$7. 36

	73 - 84
	$12,179,179.20
	$1,014,931.60
	$7.58

	85 - 96
	$12,548,732.40
	$1,045,727.70
	$7.81

	97 - 108
	$12,918,285.60
	$1,076,523.80
	$8.04

	109 - 120
	$13,303,905.60
	$1,108,658.80
	$8.28

	121 - 132
	$13,705,593.60
	$1,142,132.80
	$8.53

	133 - 144
	$14,123,349.60
	$1,176,945.80
	$8.79

   

  1 Tenant shall be entitled to receive a Base Rent abatement for the first seven (7) full calendar months of the Lease Term (the “Abatement Period”). Tenant shall be obligated to pay Tenant’s Share of Direct Expenses attributable to such period. Pursuant to Section 2.1 of this Lease, any partial calendar month of Month 1 shall be excluded from the Abatement Period.

  2 Tenant shall be entitled to a one-time credit against Base Rent for full calendar month 8 of the Lease Term in the amount of $693,666.03 pursuant to Section 1.3 of this Lease. Accordingly, Tenant’s payment amount for month 8’s Base Rent will be $156,573.57.

   

  -3-

  

   

  			
	5.
	Tenant Improvement Allowance:
	$36,151,920.00, to be used by Tenant to construct improvements in the Premises in accordance with the terms of the work letter attached hereto as Exhibit 1.1.1-2 (the “Tenant Work Letter”). In addition, Tenant shall be entitled to an additional $2,343,180.00 to be used by it to construct certain additional improvements in accordance with the Tenant Work Letter. 

	6.
	NNN Lease:
	In addition to the Base Rent, Tenant shall be responsible to pay Tenant’s Share of Direct Expenses in accordance with the terms of Article 4 of the Lease.

	7.
	Tenant’s Share
(Article 4):
	Shall mean the following percentages, as applicable: (i) 100% with respect to the Operating Expenses allocated by Landlord to the Premises; (ii) 17.844% (133,896 RSF ÷ 750,370 RSF) with respect to Operating Expenses allocated by Landlord to the entire Project; (iii) 44.74% (133,896 RSF ÷ 299,255 RSF) with respect to Operating Expenses allocated by Landlord to the North Tower; and (iv) such percentage as is reasonably calculated with respect to Operating Expenses allocated by Landlord to portions of the Project that include the Premises and consist of less than the entire Project but more than the North Tower.

	8.
	Permitted Use
(Article 5):
	The Premises shall be used only for general office and life sciences research and development, laboratory, storage and other lawful accessory uses reasonably related to and incidental to such specified uses, all (i) consistent with “Comparable Buildings” (as defined in Section 4.2.4 below) in the San Francisco, California area, and (ii) in compliance with, and subject to, Applicable Laws and the terms of this Lease.

	9.
	Security Deposit
(Article 21):
	$5,708,655.96, in the form of a letter of credit in accordance with Article 21 of this Lease and which amount is subject to reduction in accordance with Section 21.5 of this Lease.

	10.
	Guarantor
(Article 21):
	
None

	11.
	Parking Pass Ratio
(Article 28):
	One hundred thirty-four (134) (i.e., one (1) unreserved parking spaces for every 1,000 rentable square feet of the Premises, subject to the terms of Article 28 of the Lease.

   

  -4-

  

   

  			
	12.
	Address of Tenant
(Section 29.18):
	Vir Biotechnology, Inc.
499 Illinois Street, Suite 500
San Francisco, California 94158
Attention: General Counsel
 
with a copy to (which shall not constitute, nor be required for effective, notice):
 
Vir Biotechnology, Inc.
499 Illinois Street, Suite 500
San Francisco, California 94158
Attention: Head of Real Estate and Facilities

	13.
	Address of Landlord
(Section 29.18):
	KRE Exchange Owner LLC
c/o Longfellow Real Estate Partners
260 Franklin Street, Suite 1920
Boston, MA 02110
Attention: Asset Management and
 
KRE Exchange Owner LLC
c/o Longfellow Property Management Services CA, Inc.
1800 Owens Street, Suite 350
San Francisco, CA 94158
Attention: Property Management
 
and
 
KRE Exchange Owner LLC
c/o Longfellow Property Management Services CA, Inc.
1800 Owens Street, Suite 350
San Francisco, CA 94158
Attention: General Manager

	14.
	Broker(s)
(Section 29.24):
	Newmark Knight Frank, representing the Tenant exclusively

   

  1. PREMISES, BUILDING, PROJECT AND COMMON AREAS

  1.1 Premises, Building, Project and Common Areas.

  1.1.1 The Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the premises set forth in Section 2.2 of the Summary (the “Premises”). The outlines of each floor of the Premises are set forth in Exhibit 1.1.1-1 attached hereto. The parties hereto agree that the lease of the Premises is upon and subject to the terms, covenants and conditions herein set forth, and Tenant covenants as a material part of the consideration for this Lease to keep and perform each and all of such terms, covenants and conditions by it to be kept and performed and that this Lease is made upon the condition of such performance. The parties hereto hereby acknowledge that the purpose of Exhibit 1.1.1-1 is to show the approximate location of the Premises in the “Building” (as that term is defined in Section 1.1.2 below), only, and such Exhibit is not meant to constitute an agreement, representation or warranty as to the construction of the Premises, the precise area thereof or the specific location of the “Common Areas” (as that term is defined in Section 1.1.3 below), or the elements thereof or of the accessways to the Premises or the “Project” (as that term is defined in Section 1.1.2 below). Tenant shall accept the Premises in its presently existing “as-is” condition and Landlord shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Premises except as otherwise expressly set forth in this Lease or in the Tenant Work 

  -5-

  

   

  Letter attached hereto as Exhibit 1.1.1-2. Notwithstanding the foregoing, Landlord shall deliver to Tenant the Premises with the plumbing, electrical systems, fire sprinkler and life-safety system, lighting, air conditioning and heating systems and all other building systems serving the Premises (collectively, the “Building Systems”) in good operating condition and repair, and Landlord will be responsible for all repairs at its sole cost (and not as part of Operating Expenses) during the six (6) months following the Lease Commencement Date; provided, however, if any failure of the Building Systems to be in good operating condition and repair is attributable to Tenant’s construction of improvements pursuant to the Tenant Work Letter, then Tenant shall be solely liable for the cost of any such repairs. Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of the Premises, the Building or the Project or with respect to the suitability of any of the foregoing for the conduct of Tenant’s business, except as specifically set forth in this Lease and the Tenant Work Letter. The Premises shall exclude Common Areas, including without limitation exterior faces of exterior walls, the entry, vestibules and main lobby of the Building, the common stairways and stairwells, elevators and elevator wells, boiler room, sprinkler rooms, elevator rooms, mechanical rooms, loading and receiving areas, electric and telephone closets, janitor closets, and pipes, ducts, conduits, wires and appurtenant fixtures and equipment serving exclusively or in common with other parts of the Building.

  1.1.2 The Building and The Project. The Premises are a part of the Project set forth in Section 2.1 of the Summary, specifically a portion of the twelve-story building known as the North Tower (the “North Tower”. The term “Project”, as used in this Lease, shall mean (i) the North Tower located at 1800 Owens Street, Sector 1, San Francisco, California, containing 299,255 rentable square feet and the Common Areas, (ii) the land (which is improved with landscaping, parking facilities and other improvements) upon which the North Tower and the Common Areas are located, as more particularly described on Exhibit 1.1.2 attached hereto, (iii) the other buildings located in the Project known as “The Exchange”, more particularly described as that certain (1) six (6)-story building (the “North Building”) located at 1800 Owens, Sector 2, San Francisco, California, containing 125,200 rentable square feet, (2) twelve (12)-story building (the “South Tower”) located at 1800 Owens, Sector 3, San Francisco, California, containing 259,551 rentable square feet, and (3) six (6)-story building (the “South Building”) located at 1800 Owens, Sector 4, San Francisco, California, containing 66,365 rentable square feet, and the land upon which such other buildings are located, and (iv) at Landlord’s discretion, any additional real property, areas, land, buildings or other improvements added thereto outside of the Complex. The North Tower and the North Building are collectively, the “North Complex” containing a total of 424,455 retable square feet. The South Tower and the South Building are collectively, the “South Complex,” containing a total of 325,916 rentable square feet. The North Complex and the South Complex are each referred to herein as a “Complex.” The North Tower, North Building, South Tower and South Building may be referred herein separately as a sub-building and together as simply the “Building.” The Project contains a total of 750,370 square feet; provided however, approximately 14,670 rentable square feet is retail space on the ground floor of the North Complex (i.e., 12,289 rentable square feet in the North Tower and 2,381 rentable square feet is retail space in the North Building (collectively, the “Retail Space”).

  1.1.3 Common Areas. Tenant shall have the non-exclusive right to use in common with other tenants in the Project, and subject to the rules and regulations referred to in Article 5 of this Lease, those portions of the Project which are provided, from time to time, for use in common by Landlord, Tenant and any other tenants of the Project (such areas, together with such other portions of the Project designated by Landlord, in its discretion, including certain areas designated for the exclusive use of certain tenants, including Tenant, or to be shared by Landlord and certain tenants, including Tenant, are collectively referred to herein as the “Common Areas”). The Common Areas shall consist of the “Project Common Areas” and the “Building Common Areas.” The term “Project Common Areas”, as used in this Lease, shall mean the portion of the Project designated from time to time as such by Landlord (inclusive of any exterior landscaped areas). The term “Building Common Areas”, as used in this Lease, shall mean the portions of the Common Areas located within the Building designated from time to time as such by Landlord. The Project includes two (2) ground floor lobbies: one (1) lobby (the “North Lobby”) provides access to the North Building and North Tower, including the Retail Space; and one (1) lobby (the “South Lobby”) provides access to both the South Building and the South Tower. The North Lobby is a Building Common Area. For the sake of clarity, Tenant and each of its authorized employees and invitees shall have access to the North Lobby, the Parking Facility and the Bicycle Storage Ares in common with other occupants of the Complex. Landlord shall maintain the Common Areas in a condition consistent with Comparable Buildings. The term “Comparable Buildings” shall mean the Building and those other office and life science buildings which are comparable to the Building in terms of age (based upon the date of completion of construction or major renovation of the building), quality of construction, level of services and amenities, size and appearance, and are located in the City of San Francisco, 

  -6-

  

   

  California. Tenant’s use of the Common Areas shall be subject to such rules, regulations and restrictions as Landlord may make from time to time in accordance with Section 5.2 below. Any rules and regulations established by the Landlord for use of the Common Areas shall not unreasonably restrict Tenant’s access to or use of the Premises for conduct of its business, nor diminish Tenant’s rights under this Lease. In the event of any conflict between such rules and regulations and the terms of this Lease, the latter shall control Landlord reserves the right to close temporarily, make alterations or additions to, or change the location of elements of the Project and the Common Areas, provided that, in connection therewith, Landlord shall perform such closures, alterations, additions or changes in a commercially reasonable manner and, in connection therewith, shall use commercially reasonable efforts to minimize any material interference with Tenant’s use of and access to the Premises.

  1.2 Stipulation of Rentable Square Feet of Premises. For purposes of this Lease, the rentable square feet of the Premises and the North Tower shall be deemed to be as set forth in Section 2.2 of the Summary, and the rentable square feet of each of the North Building, South Tower and South Building shall be deemed as set forth in Section 1.1.2 above, none of which shall be subject to remeasurement or adjustment during the Lease Term unless the Premises are physically expanded or contracted.

  1.3 Adjustment of Rentable Square Feet of Premises. Landlord acknowledges that the installation of the Mechanical Shaft described in Section 2.2(e) of the Tenant Work Letter will result in a reduction of approximately 669 rentable square feet of Premises, and as a consequence thereof, Landlord will give to Tenant a credit against Base Rent for month 8 of the Lease Term in the amount of $693,666.03 as full and complete compensation to Tenant for the loss of such rentable square footage (and in exchange for Tenant enjoying such rent credit, Tenant will nevertheless pay Base Rent under this Lease without any reduction or adjustment in rentable square footage of the Premises).

  1.4 Right of First Refusal. Landlord hereby grants to the Tenant named in the Summary (the “Original Tenant”) and any Permitted Assignee a right of first refusal with respect to the entire seventh (7th) floor of the Building as more particularly described on Exhibit 1.4 (the “First Refusal Space”). Notwithstanding the foregoing, such first refusal right of Tenant shall commence only following the expiration or earlier termination of the Existing Lease with Dropbox of the First Refusal Space, and such right of first refusal shall be subordinate to all rights of Dropbox which are set forth in the Existing Lease as of the date hereof with respect to such First Refusal Space. Tenant’s right of first refusal shall not be applicable after the third (3rd) anniversary of the Lease Commencement Date (which three (3) year period may be referred to as the “First Refusal Period”). Tenant’s right of first refusal shall be on the terms and conditions set forth in this Section 1.4.

  1.4.1 Procedure for Offer. Prior to entering any lease for all or any portion of the First Refusal Space during the First Refusal Period, Landlord shall provide a written notice to Tenant (the “First Refusal Notice”), offering to lease to Tenant the applicable portion of the First Refusal Space. The First Refusal Notice shall describe the terms on which the other prospective tenant may lease the First Refusal Space, including setting forth the rent and the other material economic terms upon which Landlord is willing to lease such space to such other tenant.

  1.4.2 Procedure for Acceptance. If Tenant wishes to exercise Tenant’s right of first refusal with respect to the space described in the First Refusal Notice, then within seven (7) business days after delivery of the First Refusal Notice to Tenant, Tenant shall deliver notice to Landlord of Tenant’s election to exercise its right of first refusal with respect to the entire space described in the First Refusal Notice on the terms contained in such notice. If Tenant does not so notify Landlord within the seven (7) business day period, then Landlord shall be free to lease the space described in the First Refusal Notice to the other tenant or any affiliate thereof on generally the same terms as contained in the First Refusal Notice, provided that, prior to entering into a lease of such space on material economic terms that are more than seven and one-half percent (7.5%) more favorable to the tenant than the Base Rent set forth in the First Refusal Notice, Landlord shall first deliver another First Refusal Notice to Tenant offering such space to Tenant on such reduced terms. Tenant shall respond to any such “re-offer” within five (5) business days after delivery of such “re-offer” notice. Notwithstanding anything to the contrary contained herein, Tenant must elect to exercise its right of first refusal, if at all, with respect to all of the space covered by the First Refusal Notice, and Tenant may not elect to lease only a portion thereof. The First Refusal Space shall be leased by Tenant on all of the terms and conditions of this Lease except as set forth in the First Refusal Notice and this Section 1.3.

  1.4.3 Construction In First Refusal Space. Tenant shall take the First Refusal Space in its “as is” condition unless otherwise set forth in the First Refusal Notice.

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  1.4.4 Amendment to Lease. If Tenant timely exercises Tenant’s right to lease the First Refusal Space as set forth herein, then the First Refusal Space shall be added to the Premises on the terms set forth herein (except that the term of any such lease shall be appropriately adjusted to be co-terminous with the Lease Term of this Lease) and, at the election of Landlord or Tenant, the parties shall promptly thereafter execute an amendment to this Lease for such First Refusal Space (but the execution of such amendment shall not be required for the lease of the First Refusal Space to become effective). Tenant shall commence payment of Rent for the First Refusal Space, and the term of the First Refusal Space shall commence upon the date of delivery of the First Refusal Space to Tenant in the condition required by the First Refusal Notice (the “First Refusal Commencement Date”) and terminate on the Lease Expiration Date.

  1.4.5 Termination of Right of First Refusal. The rights contained in this Section 1.2 shall be personal to the Original Tenant (and any Permitted Assignee) and may only be exercised by the Original Tenant (and not any other assignee, sublessee or other transferee of the Original Tenant’s interest in this Lease other than a Permitted Assignee) if the Original Tenant or a Permitted Assignee occupies the entire Premises. Except as expressly set forth in this Section 1.4, the right of first refusal granted herein shall terminate as to a particular First Refusal Notice (and the First Refusal Space applicable thereto) upon the failure by Tenant to exercise its right of first refusal with respect to such First Refusal Space as offered by Landlord. Tenant shall not have the right to lease First Refusal Space, as provided in this Section 1.4, if, as of the date of the attempted exercise of any right of first refusal by Tenant, or as of the scheduled date of delivery of such First Refusal Space to Tenant, Tenant is in default under this Lease, after the expiration of any applicable notice and cure period, or Tenant has previously been in default, after the expiration of any applicable notice and cure period, under this Lease more than once during the First Refusal Period.

  1.5 Condition Precedent. Tenant acknowledges and agrees that this Lease is subject to the following express conditions precedent: (i) Landlord consummating an amendment with Dropbox of its lease covering the entire Project (other than the Retail Space) so as to eliminate floors eight (8) through twelve (12) of the North Tower therefrom (such that Landlord has recaptured such floors) and converting the Project from a single tenant project to a multi-tenant project (which amendment may be referred to as the “Dropbox Amendment”) and (ii) the termination of the Existing Sublease. The terms and conditions of the Dropbox Amendment shall be satisfactory to Landlord in its sole and absolute discretion.

  1.6 Meeting Rooms. So long as Tenant is not in default hereunder beyond applicable notice and cure periods, Landlord shall use commercially reasonable efforts to make available Common Area meeting rooms, if any, in the Project (collectively, the “Common Area Meeting Spaces”) for Tenant’s use for business meetings and special events. Such use shall be subject to availability, on a first come, first serve basis, and shall be upon and subject to such rules, regulations and limitations as Landlord may reasonably establish from time to time for use of the Common Area Meeting Spaces (including, without limitation, as to scheduling, catering, hours of use, the provision and cost of janitorial and security services, facility and equipment usage charges, reimbursement of Landlord’s costs and expenses reasonably incurred in facilitating such use by Tenant, and cleaning/security deposits); provided, however, that (a) Landlord shall use commercially reasonable efforts to give Tenant equitable access with other tenants to the Common Area Meeting Rooms and, accordingly, not allow other tenants of the Project to block-book the Common Area Meeting Rooms (i.e. reserve spaces for more than three (3) business days in a row unless connected to a special event); and (b) once Tenant has properly booked the use of the Common Area Meeting Spaces for a particular date and time, such booking may not be cancelled without Tenant’s prior consent. If requested by Tenant, Landlord will provide a schedule of available dates and times for use of the Common Area Meeting Spaces. In connection with its use of the Common Area Meeting Spaces, Tenant shall enter into Landlord’s then-current form of agreement for the use of such spaces. Tenant use of the Common Area Meeting Spaces shall be at Tenant’s sole risk and Tenant acknowledges and agrees that Landlord shall have no liability whatsoever to Tenant, its employees and/or visitors for personal injury or property damage or theft relating to or connected with any use of the Common Area Meeting Spaces by Tenant or its employees and/or visitors. Landlord specifically reserves the right to change the location, size, configuration, design, layout and all other aspects of the Common Area Meeting Spaces at any time and Tenant acknowledges and agrees that Landlord may from time to time, on a temporary basis, or on a permanent basis, close, close-off or restrict access to the Common Area Meeting Spaces. The right to use the Common Area Meeting Spaces may not be assigned or in any other way transferred to any other person or entity. Tenant acknowledges that the waiver of claims and indemnification provided in this Lease apply to the use of the Common Area Meeting Spaces by Tenant. Notwithstanding anything to the contrary contained in this Lease, Tenant acknowledges that, as of the date of this Lease, the Project does not have any Common Area Meeting Rooms.

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  2. LEASE TERM

  2.1 Lease Term. The terms and provisions of this Lease shall be effective as of the date of this Lease. The term of this Lease (the “Lease Term”) shall be as set forth in Section 3.1 of the Summary, shall commence on the date set forth in Section 3.2 of the Summary (the “Lease Commencement Date”), and shall terminate on the date set forth in Section 3.4 of the Summary (the “Lease Expiration Date”) unless this Lease is sooner terminated as hereinafter provided. For purposes of this Lease, the term “Lease Year” shall mean the consecutive twelve (12) month period following and including the Lease Commencement Date and each subsequent twelve (12) month period during the Lease Term; provided, however, if the Lease Commencement Date is other than the first (1st) day of a calendar month, “Month 1” will include the first full calendar month following the Lease Commencement Date plus any partial calendar month following the Lease Commencement Date. In the event Month 1 includes any partial calendar month, Tenant shall pay the prorated amount of Monthly Base Rent for such partial calendar month pursuant to Article 3 in addition to the Monthly Base Rent for the ninth (9th) full calendar month of the Lease Term (and to the extent that Month 1 is included as part of the Abatement Period, any such partial calendar month shall be excluded from the Abatement Period). At any time during the Lease Term, Landlord may deliver to Tenant a notice in the form as set forth in Exhibit 2.1, attached hereto, as a confirmation only of the information set forth therein, which Tenant shall execute (or provide factual correction to) and return to Landlord within ten (10) business days of receipt thereof, but execution of such instrument shall not be a condition to Lease commencement or Tenant’s obligations hereunder.

  3. BASE RENT

  3.1 Payment of Rent. Tenant shall pay, without prior notice or demand, to Landlord’s agent at the management office of the Project or at such place as Landlord may from time to time designate in writing, by a check for currency which, at the time of payment, is legal tender for private or public debts in the United States of America or pursuant to wire or electronic payment instructions provided by Landlord, base rent (“Base Rent”) as set forth in Section 4 of the Summary, payable in equal monthly installments as set forth in Section 4 of the Summary, in advance, on or before the first day of each and every calendar month during the Lease Term, without any setoff or deduction whatsoever, except as may be expressly set forth in this Lease. Base Rent for the first full month of the Lease Term shall be paid at the time of Tenant’s execution of this Lease. If any Rent payment date (including the Lease Commencement Date) falls on a day of the month other than the first day of such month or if any payment of Rent is for a period which is shorter than one month, the Rent for any fractional month shall accrue on a daily basis for the period from the date such payment is due to the end of such calendar month or to the end of the Lease Term at a rate per day which is equal to 1/365 of the applicable annual Rent. All other payments or adjustments required to be made under the terms of this Lease that require proration on a time basis shall be prorated on the same basis. Base Rent and Additional Rent shall together be denominated “Rent”. Without limiting the foregoing, Tenant’s obligation to pay Rent shall be absolute, unconditional and independent of any Landlord covenants and shall not be discharged or otherwise affected by any law or regulation now or hereafter applicable to the Premises, or any other restriction on Tenant’s use, or (except as expressly provided herein) any casualty or taking, or any failure by Landlord to perform any covenant contained herein, or any other occurrence; and Tenant assumes the risk of the foregoing and waives all rights now or hereafter existing to terminate or cancel this Lease or quit or surrender the Premises or any part thereof (absent a judicial order providing for such termination or cancellation), or to assert any defense in the nature of constructive eviction (in which Tenant asserts that its use and enjoyment of the Premises has been disrupted due to any entry by Landlord of the Premises in accordance with Section 27.2 of this Lease, any renovation of the Project or any casualty or condemnation affecting the Project) to any action seeking to recover rent (except to the extent Tenant’s obligation to pay Base Rent may be expressly abated pursuant to Articles 11 and 13 of this Lease). Tenant’s covenants contained herein are independent and not dependent, and Tenant hereby waives the benefit of any statute or judicial law to the contrary.

  3.2 Rents from Real Property. Landlord and Tenant hereby agree that it is their intent that all Base Rent, Additional Rent and other rent and charges payable to the Landlord under this Lease (hereinafter individually and collectively referred to as “Rent”) shall qualify as “rents from real property” within the meaning of Section 856(d) of the Internal Revenue Code of 1986, as amended (the “Code”), and the Department of the U.S. Treasury Regulations promulgated thereunder (the “Regulations”). Should the Code or the Regulations, or interpretations thereof by the Internal Revenue Service contained in revenue rulings or other similar public pronouncements, be changed so that any Rent no longer so qualifies as “rent from real property” for purposes of Section 856(d) of the Code and the Regulations promulgated thereunder, such Rent shall be adjusted in such manner as the Landlord may require so that it will so 

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  qualify; provided, however, that any adjustments required pursuant to this Section 7.3 shall be made so as to produce the equivalent (in economic terms) Rent as payable prior to such adjustment.

  4. ADDITIONAL RENT

  4.1 General Terms. In addition to paying the Base Rent specified in Article 3 of this Lease, Tenant shall pay “Tenant’s Share” of the annual “Direct Expenses” as those terms are defined in Sections 4.2.6 and 4.2.2 of this Lease, respectively. Such payments by Tenant, together with any and all other amounts payable by Tenant to Landlord pursuant to the terms of this Lease other than Base Rent, are hereinafter collectively referred to as the “Additional Rent”. All amounts due under this Article 4 as Additional Rent shall be payable for the same periods and in the same manner as the Base Rent. Without limitation on other obligations of Tenant which survive the expiration of the Lease Term, the obligations of Tenant to pay the Additional Rent provided for in this Article 4 shall survive the expiration of the Lease Term, subject to Section 4.4.1.

  4.2 Definitions of Key Terms Relating to Additional Rent. As used in this Article 4, the following terms shall have the meanings hereinafter set forth:

  4.2.1 Intentionally Omitted.

  4.2.2 “Direct Expenses” shall mean “Operating Expenses” and “Tax Expenses”.

  4.2.3 “Expense Year” shall mean each calendar year in which any portion of the Lease Term falls, through and including the calendar year in which the Lease Term expires, provided that Landlord, upon notice to Tenant, may change the Expense Year from time to time to any other twelve (12) consecutive month period, and, in the event of any such change, Tenant’s Share of Direct Expenses shall be equitably adjusted for any Expense Year involved in any such change.

  4.2.4 “Operating Expenses” shall mean all expenses, costs and amounts of every kind and nature which Landlord pays or accrues during any Expense Year because of or in connection with the ownership, management, maintenance, security, repair, replacement, restoration or operation of the Project or any portion thereof (including, without limitation, any amenities (e.g., fitness center) available to tenants within the Building or Project). Without limiting the generality of the foregoing, Operating Expenses shall specifically include any and all of the following: (i) the cost of supplying all utilities, the cost of operating, repairing, maintaining, and renovating the utility, telephone, mechanical, sanitary, storm drainage, and elevator systems, and the cost of maintenance and service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of contesting any governmental enactments which may affect Operating Expenses, and the costs incurred in connection with providing a shuttle service, if any, and the costs incurred in connection with any federal, state or municipal governmentally mandated transportation demand management program or similar program; (iii) the cost of all insurance carried by Landlord in connection with the Project (including, without limitation, commercial general liability insurance, physical damage insurance covering damage or other loss caused by fire, earthquake, flood and other water damage, explosion, vandalism and malicious mischief, theft or other casualty, rental interruption insurance, and such insurance as may be required by any lessor under any present or future ground or underlying lease of the Building or Project or any holder of a mortgage, trust deed or other encumbrance now or hereafter in force against the Building or Project or any portion thereof or as required pursuant to the Underlying Documents); (iv) the cost of landscaping, re-lamping, and all supplies, tools, equipment and materials used in the operation, repair and maintenance of the Project, or any portion thereof; (v) all costs incurred in connection with the Parking Facilities; (vi) fees and other costs, including management, consulting fees, legal fees and accounting fees, of all contractors and consultants in connection with the management, operation, maintenance and repair of the Project; (vii) payments under any equipment rental agreements and the fair rental value of any management space; (viii) wages, salaries and other compensation and benefits, including taxes levied thereon, of all persons engaged in the operation, maintenance and security of the Project; (ix) costs under any instrument pertaining to the sharing of costs by the Project; (x) operation, repair, maintenance and replacement of all systems and equipment and components thereof of the Project; (xi) the cost of janitorial, alarm, security and other services, replacement of wall and floor coverings, ceiling tiles and fixtures in Common Areas, maintenance and replacement of curbs and walkways, repair to roofs and re-roofing; (xii) amortization (including reasonable interest on the unamortized cost) over such period as Landlord shall reasonably determine, of the cost of acquiring or the rental expense of personal property used in the maintenance, operation and repair of the Project or any portion thereof; (xiii) the cost of capital improvements, capital repairs or other capital costs 

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  incurred in connection with the Project (A) which are intended to reduce expenses in the operation or maintenance of the Project, or any portion thereof, or to reduce current or future Operating Expenses or to enhance the safety or security of the Project or its occupants, (B) that are required to comply with present or anticipated mandatory energy conservation programs, (C) which are replacements or modifications of nonstructural items located in the Common Areas required to keep the Common Areas in the same good order or condition as on the Lease Commencement Date, or (D) that are required under any federal, state or municipal governmental law or regulation that was not in force or effect as of the Lease Commencement Date; provided, however, that the costs of any capital improvement shall be amortized (including with interest at the Amortization Interest Rate on the amortized cost as reasonably determined by Landlord) over the useful life of the capital item in question, as Landlord shall reasonably determine, in a manner consistent with the practices of landlords of “Comparable Buildings” (i.e., similar buildings located with the area depicted in Exhibit 4.2.4 attached hereto) and otherwise in accordance with sound real estate management and accounting practices or, with respect to cost saving capital expenditures, their recovery/payback period as Landlord shall reasonably determine, in a manner consist with the practices of landlords of Comparable Buildings and otherwise in accordance with sound real estate management and accounting practices, consistently applied; (xiv) costs, fees, charges or assessments imposed by, or resulting from any mandate imposed on Landlord by, any federal, state or municipal government for fire and police protection, trash removal, community services, or other services which do not constitute “Tax Expenses” (as that term is defined in Section 4.2.5 below); (xv) cost of tenant relation programs reasonably established by Landlord, and (xvi) payments under any Underlying Documents (as that term is defined in Article 24 below). In the event that Landlord or Landlord’s managers or agents perform services for the benefit of the Building off-site which would otherwise be performed on-site (e.g., accounting), the cost of such services shall be reasonably allocated among the properties benefitting from such service and shall be included in Operating Expenses. Notwithstanding the foregoing, for purposes of this Lease, Operating Expenses shall not, however, include:

  (a) costs, including legal fees, space planners’ fees, advertising and promotional expenses, and brokerage fees incurred in connection with the original construction or development, or original or future leasing of the Project, and costs, including permit, license and inspection costs, incurred with respect to the installation of tenant improvements made for tenants or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants of the Project (excluding, however, such costs relating to any Common Areas), and any costs or expenses incurred in connection with the relocation of any tenants of the Building or Project;

  (b) except as set forth in items (xii), (xiii), and (xiv) above, depreciation, interest and principal payments on mortgages and other debt costs, if any, penalties and interest, and costs of capital improvements (as distinguished from non-capital repairs or replacements);

  (c) costs for which Landlord is reimbursed by any tenant or occupant of the Project (other than as Direct Expenses) or by insurance by its carrier or any tenant’s carrier or by anyone else (or would have been reimbursed if Landlord had carried the insurance Landlord is required to carry pursuant to this Lease or enforced its rights against such third-party, as applicable), and electric power costs for which any tenant directly contracts with the local public service company or pays directly to Landlord;

  (d) any bad debt loss, rent loss, or reserves for bad debts or rent loss;

  (e) costs associated with the operation of the business of the partnership or entity which constitutes Landlord, as the same are distinguished from the costs of operation of the Project (which shall specifically include, but not be limited to, accounting costs associated with the operation of the Project). Costs associated with the operation of the business of the partnership or entity which constitutes Landlord include costs of partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating the Project or any of Landlord’s interest in the Project, and costs incurred in connection with any disputes between Landlord and its employees, between Landlord and Project management, or between Landlord and other tenants or occupants;

  (f) the wages and benefits of any employee who does not devote substantially all of his or her employed time to the Project unless such wages and benefits are prorated to reflect time spent on operating and managing the Project vis-a-vis time spent on matters unrelated to operating and managing the Project; provided, that in no event shall Operating Expenses for purposes of this Lease include wages and/or benefits attributable to personnel above the level of Project manager;

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  (g) amount paid as ground rental for the Project by Landlord;

  (h) except for a property management fee (and subject to the exclusion in item (q) below), overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for services in the Project to the extent the same exceeds the costs of such services rendered by qualified, first-class unaffiliated third parties on a competitive basis;

  (i) any compensation paid to clerks, attendants or other persons in commercial concessions operated by Landlord, provided that any compensation paid to any concierge at the Project shall be includable as an Operating Expense;

  (j) all items and services for which Tenant or any other tenant in the Project reimburses (or is obligated to reimburse) Landlord (other than as Direct Expenses) or which Landlord provides selectively to one or more tenants (other than Tenant) without reimbursement;

  (k) rent for any office space occupied by Project management personnel to the extent the size or rental rate of such office space exceeds the size or fair market rental value of office space occupied by management personnel of Comparable Buildings, with adjustment where appropriate for the size of the applicable project;

  (l) costs incurred to comply with laws relating to the removal of Hazardous Materials (other than Hazardous Materials typically found in comparable buildings, such as recyclable materials and typical construction materials, and costs to comply with the operation and maintenance plan, if any);

  (m) Landlord’s general overhead expenses not related to the Project;

  (n) legal fees, accountants’ fees (other than normal bookkeeping expenses) and other expenses incurred in connection with disputes of tenants or other occupants of the Project or associated with the enforcement of the terms of any leases with tenants or the defense of Landlord’s title to or interest in the Project or any part thereof;

  (o) any reserve funds;

  (p) costs arising due to a violation by Landlord or any other tenant of the Project of the terms and condition of a lease, or arising from the gross negligence or willful misconduct of Landlord, or its agents, employees, vendors, contractors, or providers of materials or services;

  (q) any management fee, of which Tenant’s Share in a particular Expense Year exceeds three percent (3%) of Tenant’s Base Rent (adjusted and grossed up during any period in which Tenant’s Base Rent (or portion thereof) is abated);

  (r) advertising and promotional expenditures, and costs of signs in or on the Project identifying the owner of the Project or any tenant of the Project;

  (s) fees, penalties and interest resulting from Landlord’s failure to pay any Operating Expense as and when due;

  (t) costs to comply with Applicable Laws where such violation of Applicable Laws existed as of the date the Project was originally built (i.e., 2018); and

  (u) any costs expressly excluded from Operating Expenses elsewhere in this Lease. 

  If Landlord is not furnishing any particular work or service (the cost of which, if performed by Landlord, would be included in Operating Expenses) to a tenant who has undertaken to perform such work or service in lieu of the performance thereof by Landlord, Operating Expenses shall be deemed to be increased by an amount equal to the additional Operating Expenses which would reasonably have been incurred during such period by Landlord if it had at its own expense furnished such work or service to such tenant. If the Project is not at least one hundred percent (100%) occupied during all or a portion of any Expense Year, Landlord shall make an appropriate adjustment to the 

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  components of Operating Expenses for such year to determine the amount of Operating Expenses that would have been incurred had the Project been one hundred percent (100%) occupied; and the amount so determined shall be deemed to have been the amount of Operating Expenses for such year. Landlord and Tenant acknowledge and agree that the intention of this Article 4 is to facilitate Landlord’s recovery of Operating Expenses as opposed to generating a profit center.

  4.2.5 Taxes.

  4.2.5.1 “Tax Expenses” shall mean all federal, state, county, or local governmental or municipal taxes, fees, charges or other impositions of every kind and nature, whether general, special, ordinary or extraordinary (including, without limitation, real estate taxes, general and special assessments, transit taxes, payments in lieu of taxes, business improvement district charges, leasehold taxes or taxes based upon the receipt of rent, including gross receipts or sales taxes applicable to the receipt of rent (inclusive of any so-called “Proposition C” taxes), unless required to be paid by Tenant, personal property taxes imposed upon the fixtures, machinery, equipment, apparatus, systems and equipment, appurtenances, furniture and other personal property used by Landlord in connection with the Project, or any portion thereof), which shall be paid or accrued during any Expense Year (without regard to any different fiscal year used by such governmental or municipal authority) because of or in connection with the ownership, leasing and operation of the Project, or any portion thereof (including, without limitation, the land upon which the Building, including the Parking Facilities, are located).

  4.2.5.2 Tax Expenses shall include, without limitation: (i) Any tax on the rent, right to rent or other income from the Project, or any portion thereof, or as against the business of leasing the Project, or any portion thereof; (ii) any assessment, tax, fee, levy or charge in addition to, or in substitution, partially or totally, of any assessment, tax, fee, levy or charge previously included within the definition of real property tax, it being acknowledged by Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California in the June 1978 election (“Proposition 13”) and that assessments, taxes, fees, levies and charges may be imposed by governmental agencies for such services as fire protection, street, sidewalk and road maintenance, refuse removal and for other governmental services formerly provided without charge to property owners or occupants, and, in further recognition of the decrease in the level and quality of governmental services and amenities as a result of Proposition 13, Tax Expenses shall also include any governmental or private assessments or the Project’s contribution towards a governmental or private cost-sharing agreement for the purpose of augmenting or improving the quality of services and amenities normally provided by governmental agencies; (iii) any assessment, tax, fee, levy, or charge allocable to or measured by the area of the Premises or the Rent payable hereunder, including, without limitation, any business or gross income tax or excise tax with respect to the receipt of such rent, or upon or with respect to the possession, leasing, operating, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises, or any portion thereof; and (iv) any assessment, tax, fee, levy or charge, upon this transaction or any document to which Tenant is a party, creating or transferring an interest or an estate in the Premises or the improvements thereon; and (v) all of the real estate taxes and assessments imposed upon or with respect to the buildings and all of the real estate taxes and assessments imposed on the land and improvements comprising the Project, including any such taxes or assessments relating to the Underlying Documents or Mission Bay Requirements. If at any time during the Lease Term there shall be assessed on Landlord, in addition to or lieu of the whole or any part of the ad valorem tax on real or personal property, a capital levy or other tax on the gross rents or other measures of building operations, or a governmental income, franchise, excise or similar tax, assessment, levy, charge or fee measured by or based, in whole or in part, upon building valuation, gross rents or other measures of building operations or benefits of governmental services furnished to the Building, then any and all of such taxes, assessments, levies, charges and fees, to the extent so measured or based, shall be included within the term Tax Expenses, but only to the extent that the same would be payable if the Building and Land were the only property of Landlord.

  4.2.5.3 Any costs and expenses (including, without limitation, reasonable attorneys’ and consultants’ fees) incurred in attempting to protest, reduce or minimize Tax Expenses in good faith shall be included in Tax Expenses in the Expense Year such expenses are incurred. Tax refunds shall be credited against Tax Expenses and refunded to Tenant regardless of when received, based on the Expense Year to which the refund is applicable, provided that in no event shall the amount to be refunded to Tenant for any such Expense Year exceed the total amount paid by Tenant as on account of Tax Expenses under this Article 4 for such Expense Year. The foregoing sentence shall survive the expiration or earlier termination of this Lease. If Tax Expenses for any period during the Lease Term or any extension thereof are increased after payment thereof for any reason, including, without limitation, escape 

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  assessment or error or reassessment by applicable governmental or municipal authorities, Tenant shall pay Landlord Tenant’s Share of any such increased Tax Expenses within thirty (30) days after Landlord’s request, together with supporting documentation of such increase. Notwithstanding anything to the contrary contained in this Section 4.2.5, there shall be excluded from Tax Expenses (i) all excess profits taxes, franchise taxes, gift taxes, capital stock taxes, inheritance and succession taxes, estate taxes, documentary transfer taxes (incurred in connection with the sale or financing of the Project or any portion thereof, but any changes in Tax Expenses following a reassessment of the Project relating to a change in ownership shall continue to be includable in Tax Expenses), federal and state income taxes, and other taxes to the extent applicable to Landlord’s general or net income (as opposed to rents, receipts or income attributable to operations at the Project), (ii) any items included as Operating Expenses, (iii) any items paid by Tenant under Section 4.5 of this Lease, (iv) tax penalties, fees or interest incurred as a result of Landlord’s failure to make payments and/or to file any tax or informational returns when due, and (v) any assessments on real property or improvements located outside of the Project. For purposes of calculating Tax Expenses for the Project for any Expense Year, if such Tax Expenses do not reflect an assessment (or Tax Expenses) for a one hundred percent (100%) leased, completed and occupied project (such that existing or future leasing, improvements and/or occupancy may result in an increased assessment and/or increased Tax Expenses) with the Project being one hundred percent (100%) occupied by tenants paying full rent, such Tax Expenses shall adjusted, on a basis consistent with sound real estate accounting principles, to reflect an assessment for (and Tax Expenses for) a one hundred percent (100%) leased, completed and occupied project with the Project being one hundred percent (100%) occupied by tenants paying full rent.

  4.2.5.4 Notwithstanding anything to the contrary set forth in this Lease, only Landlord may institute proceedings to reduce Tax Expenses and the filing of any such proceeding by Tenant without Landlord’s consent shall constitute a Default by Tenant.

  4.2.6 “Tenant’s Share” is based upon the ratio that the rentable square feet of the Premises bears to the rentable square feet of the Building and initially shall mean the percentage set forth in Section 7 of the Summary, subject to adjustment in the event that Tenant physically expands or contracts the Premises within the Building. For the avoidance of doubt, and notwithstanding anything to the contrary herein, no remeasurement of the Building or Project shall result in an increase in the Base Rent payable under this Lease.

  4.3 Allocation of Direct Expenses.

  4.3.1 Method of Allocation. The parties acknowledge that the Project contains four (4) sub- buildings or sectors (i.e., the North Tower, the North Building, the South Tower and the South Building, each a sub- building herein and together comprising the entire Building) and that the costs and expenses incurred in connection with the Project (i.e., the Direct Expenses) should be equitably allocated among those sub-buildings comprising the Project and shared by the tenants of each of those sub-buildings. Accordingly, as set forth in Section 4.2 above, Direct Expenses (which consist of Operating Expenses and Tax Expenses) attributable only to a particular sub-building or sub-buildings, but not the Project generally, shall be included in Direct Expenses for such sub-building or sub- buildings, but excluded from Direct Expenses for any other sub-buildings, and Direct Expenses that are attributable to the Project as a whole shall be allocated among the Building pro rata based on the relative rentable square footages of each of the sub-buildings as compared to the rentable square footage of the entire Building in the aggregate. Accordingly, such portion of Direct Expenses allocated to the tenants of the sub-building shall include all Direct Expenses attributable solely to the sub-building and an equitable portion of the Direct Expenses attributable to the entire Building as a whole. Further, Landlord shall have the right, from time to time, to allocate equitably some or all of the Direct Expenses for a sub-building or the Project among different portions or occupants of the sub-building or Project, in Landlord’s reasonable discretion, in a manner reflecting commercially reasonable cost pools for such Direct Expenses so allocated. The Direct Expenses within each cost pool shall be allocated and charged to the tenants within such cost pool in an equitable manner.

  4.3.2 Cost Pools. The parties acknowledge that certain of the costs and expenses incurred in connection with the Project (i.e., the Direct Expenses) should be separately allocated to the office space and the Retail Space. Direct Expenses shall be allocated between the office space and Retail Space (each, a “Cost Pool”) based on the estimated benefit derived by the space which is the subject of the Cost Pool, and such allocations shall be reasonably determined by Landlord. Accordingly, Direct Expenses shall be charged to the Retail Space and the office space by virtue of the creation of Cost Pools. Direct Expenses which apply equally to the Retail Space and the office space (such as Landlord’s insurance costs), as reasonably determined by Landlord, shall be allocated to the office 

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  space Cost Pool and the Retail Space Cost Pool based on the square footage of each of those spaces, respectively, compared to the total square footage of the applicable Building. After the date of this Lease, Landlord may reasonably establish additional Cost Pools in connection with any new leases of the Project, such as a life sciences Cost Pool. Any costs allocated to a Cost Pool (e.g. the Retail Space Cost Pool) which does not include a portion of the Premises shall be excluded from the definition of Direct Expenses for the purposes of this Lease.

  4.3.3 Costs Attributable to Laboratory Use. In addition to the payment of Tenant’s Share of Operating Expenses provided for hereinabove, Tenant shall be solely responsible for the payment of one hundred percent (100%) of any costs (whether or not otherwise included in Operating Expenses, but Tenant shall not be directly invoiced for costs already included in Operating Expenses) attributable to, or incurred or payable by Landlord as a consequence of, Tenant’s use of any portion of the Premises for the Laboratory Use, as determined by Landlord in its reasonable judgement and following the delivery of reasonable documentation supporting said additional costs as attributable to Tenant’s use of a portion of the Premises for the Laboratory Use. If not otherwise included as a special allocation to Tenant as contemplated by Section 4.3.2 above of any such costs in the Operating Expense payments made by Tenant, Landlord will invoice Tenant, on a periodic basis, for any such costs, and Tenant shall pay such costs as additional Rent hereunder within fifteen (15) days following Landlord’s delivery of any such invoice to Tenant. 

  4.4 Calculation and Payment of Additional Rent. Tenant shall pay to Landlord, in the manner set forth in Section 4.4.1 below, and as Additional Rent, Tenant’s Share of Direct Expenses for each Expense Year.

  4.4.1 Statement of Actual Direct Expenses and Payment by Tenant. Landlord shall use commercially reasonable efforts to give to Tenant on or before May 1 following the end of each Expense Year, a statement (the “Statement”) which shall state the Direct Expenses incurred or accrued for such preceding Expense Year, and which shall indicate the amount of Tenant’s Share of Direct Expenses. Upon receipt of the Statement for each Expense Year commencing or ending during the Lease Term, Tenant shall pay, with its next installment of Base Rent due, the full amount of Tenant’s Share of Direct Expenses for such Expense Year, less the amounts, if any, paid during such Expense Year as “Estimated Direct Expenses” (as that term is defined in Section 4.4.2 below), and if Tenant paid more as Estimated Direct Expenses than the actual Tenant’s Share of Direct Expenses, Tenant shall receive a credit in the amount of Tenant’s overpayment against Rent next due under this Lease or, if Landlord elects, Landlord shall reimburse such overpayment amount to Tenant or, if the Lease Term has ended, Landlord shall refund such amount to Tenant within thirty (30) days of the date of such Statement. The failure of Landlord to timely furnish the Statement for any Expense Year shall not prejudice Landlord or Tenant from enforcing its rights under this Article 4, provided, however, that Tenant shall not be responsible for payment of any Direct Expenses first shown on a Statement delivered more than twenty-four (24) months after expiration of the applicable Expense Year. Even though the Lease Term has expired and Tenant has vacated the Premises, when the final determination is made of Tenant’s Share of Direct Expenses for the Expense Year in which this Lease terminates, Tenant shall pay to Landlord such amount within thirty (30) days after delivery of the applicable Statement to Tenant, and if Tenant paid more as Estimated Direct Expenses than the actual Tenant’s Share of Direct Expenses, Landlord shall, within thirty (30) days after delivery of the applicable Statement to Tenant, pay to Tenant the amount of the overpayment. The provisions of this Section 4.4.1 shall survive the expiration or earlier termination of the Lease Term.

  4.4.2 Statement of Estimated Direct Expenses. In addition, Landlord shall use commercially reasonable efforts to give Tenant on or before May 1 following the end of each Expense Year, a yearly expense estimate statement (the “Estimate Statement”) which shall set forth Landlord’s reasonable estimate (the “Estimate”) of what the total amount of Direct Expenses for the then-current Expense Year shall be and the estimated Tenant’s Share of Direct Expenses (the “Estimated Direct Expenses”). The failure of Landlord to timely furnish the Estimate Statement for any Expense Year shall not preclude Landlord from enforcing its rights to collect any Estimated Direct Expenses under this Article 4, nor shall Landlord be prohibited from revising any Estimate Statement or Estimated Direct Expenses theretofore delivered to the extent necessary (but not more than three (3) times per Expense Year). Thereafter, Tenant shall pay, with its next installment of Base Rent due, a fraction of the Estimated Direct Expenses for the then-current Expense Year (reduced by any amounts paid pursuant to the last sentence of this Section 4.4.2). Such fraction shall have as its numerator the number of months which have elapsed in such current Expense Year, including the month of such payment, and twelve (12) as its denominator. Until a new Estimate Statement is furnished (which Landlord shall have the right to deliver to Tenant at any time [but not more than three (3) times per Expense Year]), Tenant shall pay monthly, with the monthly Base Rent installments, an amount equal to one-twelfth (1/12) of the total Estimated Direct Expenses set forth in the previous Estimate Statement delivered by Landlord to Tenant.

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  4.4.3 Mission Bay Requirements. As set forth in Exhibit 4.4.3 attached hereto, the Project is subject to certain covenants, requirements, and disclosures (collectively, the “Mission Bay Requirements”), which include, without limitation, certain limitations on (i) Landlord’s ability to lease space at the Project to a Tax-Exempt Entity and (ii) Landlord’s ability to obtain reductions in the assessed value of the Project below the Minimum Amount. In connection with the foregoing, to the extent that Tenant is exempt from certain Tax Expenses, but Landlord is otherwise obligated to continue to pay such Tax Expenses (the “Tenant-Exempt Tax Expenses”), then, notwithstanding Tenant’s tax-exempt status, Tenant shall continue to be obligated to pay to Landlord, as part of Direct Expenses, all such Tenant-Exempt Tax Expenses.

  4.5 Taxes and Other Charges for Which Tenant Is Directly Responsible.

  4.5.1 Tenant shall be liable for and shall pay before delinquency, taxes levied against Tenant’s equipment, furniture, fixtures and any other personal property located in or about the Premises. If any such taxes on Tenant’s equipment, furniture, fixtures and any other personal property are levied against Landlord or Landlord’s property or if the assessed value of Landlord’s property is increased by the inclusion therein of a value placed upon such equipment, furniture, fixtures or any other personal property and if Landlord pays the taxes based upon such increased assessment, which Landlord shall have the right to do regardless of the validity thereof but only under proper protest if requested by Tenant, Tenant shall within thirty (30) days after Landlord’s demand (together with reasonable back-up evidencing the same) repay to Landlord the taxes so levied against Landlord or the proportion of such taxes resulting from such increase in the assessment, as the case may be.

  4.5.2 If the improvements in the Premises, whether installed and/or paid for by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, are assessed for real property tax purposes at a valuation higher than the valuation at which “building standard” improvements are assessed, then the Tax Expenses levied against Landlord or the property by reason of such excess assessed valuation shall be deemed to be taxes levied against personal property of Tenant and shall be governed by the provisions of Section 4.5.1 above. Landlord and Tenant hereby agree that the valuation of Landlord’s “building standard” improvements for all tenants of the Project shall be equal to One Hundred Dollars ($100.00) per rentable square foot. Landlord and Tenant shall cooperate with respect to the information provided by either of them to the appropriate taxing authority regarding the valuation of the improvements in the Premises so as to avoid duplicative assessments being levied on such improvements.

  4.5.3 Notwithstanding any contrary provision herein, Tenant shall pay prior to delinquency any (i) rent tax (e.g., gross receipts tax on commercial rents) or sales tax, service tax, transfer tax or value added tax, or any other applicable tax on the rent or services herein or otherwise respecting this Lease, or (ii) taxes assessed upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any portion of the Project, including the Parking Facilities.

  4.6 Landlord’s Books and Records. Following Tenant’s receipt of a Statement, Tenant shall have the right by written notice to Landlord to commence and complete an audit of Landlord’s books concerning the Direct Expenses for the Expense Year which are the subject of such Statement, within the later to occur of (x) six (6) months following the delivery of such Statement and (y) the date that is sixty (60) days after Landlord makes Landlord’s books and records available for Tenant’s audit, provided that Tenant notifies Landlord of Tenant’s intent to audit Landlord’s books and records within the six (6) month period described in clause (x) above (the “Audit Period”). Following the giving of such written notice, Tenant shall have the right during Landlord’s regular business hours taking into account the workload of Landlord’s employees involved in the audit at the time of the audit request and on reasonable prior notice, to audit, at Landlord’s corporate offices in the San Francisco Bay area, at Tenant’s sole cost, Landlord’s records, provided that Tenant is not then in Default. The audit of Landlord’s records may be conducted only by a reputable certified public accountant, subject to Landlord’s approval, which approval shall not be unreasonably withheld. Any accounting firm selected by Tenant in connection with the audit (i) shall be a reputable independent nationally or regionally recognized certified public accounting firm which has previous experience in auditing financial operating records of landlords of office/life science buildings; (ii) shall not already be providing accounting and/or lease administration services to Tenant and shall not have provided accounting and/or lease administration services to Tenant in the past three (3) years; (iii) shall not be retained by Tenant on a contingency fee basis (i.e. Tenant must be billed based on the actual time and materials that are incurred by the accounting firm in the performance of the audit), a copy of the executed audit agreement, between Tenant and auditor, shall be provided to Landlord prior to the commencement of the audit; and (iv) at Landlord’s option, both Tenant and its agent shall be 

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  required to execute a commercially reasonable confidentially agreement prepared by Landlord. Any audit report prepared by Tenant’s auditors shall be delivered concurrently to Landlord and Tenant within the Audit Period. If, after such audit of Landlord’s records, Tenant disputes the amount of Direct Expenses for the year under audit, Landlord and Tenant shall meet and attempt in good faith to resolve the dispute. If the parties are unable to resolve the dispute within sixty (60) days after completion of Tenant’s audit, then, at Tenant’s request, a certified public accounting firm selected by Landlord, and reasonably approved by Tenant, shall, at Tenant’s cost, conduct an audit of the relevant Direct Expenses (the “Neutral Audit”). Tenant shall pay all costs and expenses of the Neutral Audit unless the final determination in such Neutral Audit is that Landlord overstated Direct Expenses in the Statement for the year being audited by more than five percent (5%) in which case Landlord shall pay all costs and expenses of the Neutral Audit, as well as Tenant’s reasonable out-of-pocket costs actually incurred by Tenant in the audit of Landlord’s books and records. In any event, Landlord will reimburse or provide a credit for any overstatement of Direct Expenses and Tenant shall pay to Landlord any understatement of Direct Expenses. To the extent Landlord and Tenant fail to otherwise reach mutual agreement regarding Direct Expenses, the foregoing audit and Neutral Audit procedures shall be the sole methods to be used by Tenant to dispute the amount of any Direct Expenses payable by Tenant pursuant to the terms of the Lease.

  5. USE OF PREMISES

  5.1 Permitted Use. Tenant shall use the Premises solely for the Permitted Use set forth in Section 8 of the Summary and Tenant shall not use or permit the Premises or the Project to be used for any other purpose or purposes whatsoever without the prior written consent of Landlord, which consent may be withheld in Landlord’s sole discretion.

  5.2 Prohibited Uses. The uses prohibited under this Lease shall include, without limitation, use of the Premises or a portion thereof for (i) offices of any agency or bureau of the United States or any state or political subdivision thereof; (ii) offices or agencies of any foreign governmental or political subdivision thereof; (iii) offices of any health care professionals or service organization (but occupational health professionals employed by Tenant shall not violate the foregoing prohibition); (iv) schools or other training facilities which are not ancillary to corporate, executive or professional office use; (v) retail use or the operation of any restaurant offering services to the public; or (vi) communications firms such as radio and/or television stations. Tenant further covenants and agrees that Tenant shall not use, or suffer or permit any person or persons claiming by, through, or under Tenant to use, the Premises or any part thereof for any use or purpose contrary to the provisions of the Rules and Regulations attached hereto as Exhibit 5.2, as the same may be amended by Landlord from time to time (the “Rules and Regulations”), or in violation of Applicable Laws or any Underlying Documents. Any modifications to the Rules and Regulations shall be reasonable and non-discriminatory and shall be provided to Tenant in writing or posted to a conspicuous place in the Building. In the event of a conflict between any modifications to the Rules and Regulations and the terms of this Lease, the latter shall control. Tenant shall not do or permit anything to be done in or about the Premises which will in any way damage the reputation of the Project or unreasonably obstruct or interfere with the rights of other tenants or occupants of the Building, or injure or annoy them or use or allow the Premises to be used for any improper, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall comply with, and Tenant’s rights and obligations under the Lease and Tenant’s use of the Premises shall be subject and subordinate to, all Underlying Documents; provided that, following the date of this Lease, Landlord shall not voluntarily enter into new, or modify existing, Underlying Documents that would unreasonably interfere with Tenant’s access to the Premises or use of the Premises for the Permitted Use. Tenant shall only place equipment within the Premises with floor loading consistent with the Building’s structural design, and such equipment shall be placed in a location designed to carry the weight of such equipment. Tenant shall cause any equipment or machinery to be installed in the Premises so as to reasonably prevent sounds or vibrations therefrom from extending into the Common Areas or other offices in the Project.

  5.3 Tenant’s Bicycles. Tenant’s employees shall be permitted to bring their bicycles (“Bicycles”) into portions of the Project designated by Landlord for Bicycle storage, subject to the provisions of this Section 5.3, and such additional reasonable rules and regulations as may be promulgated by Landlord from time to time (in Landlord’s reasonable discretion) that do not unreasonably interfere with Tenant’s ability to park its Bicycles as contemplated herein and provided to Tenant, and only to the extent such Bicycles are used on a daily basis for commuting to and from work by such employees. AT NO TIME ARE RIDERS ALLOWED TO RIDE ANY BICYCLE IN THE PREMISES, THE PARKING FACILITIES OR THE BUILDINGS. Storage of any Bicycle anywhere on the Project 

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  other than as expressly set forth in this Section 5.3 is prohibited. Tenant shall keep its employees informed of these rules and regulations and any modifications thereto.

  5.3.1 Bicycle Storage Area. The Parking Facilities include a secured bicycle storage area that will accommodate at least two hundred (200) Bicycles (collectively, the “Landlord Bicycle Storage Area”). Tenant shall have the non-exclusive right (at no additional charge other than Tenant’s Share of Direct Expenses relating thereto) to use the Landlord Bicycle Storage Area for day use parking of Bicycles by Tenant and Tenant’s employees, visitors, invitees and sublessees not to exceed Tenant’s pro rata share (which is presently 40 based on the Landlord Bicycle Storage presently accommodating up to 228 Bicycles) of the number of Bicycles that the Landlord Bicycle Storage Area from time to time accommodates (which shall not be less than 200 Bicycles), and Tenant shall also have the right, at Tenant’s sole cost and expense, to convert certain areas of the Parking Facilities, reasonably designated by Landlord and approved by Tenant, for additional exclusive day use parking (the “Tenant Bicycle Storage Area”) for Bicycles by Tenant and its employees, visitors, invitees and sublessees, which shall include the installation of Bicycle storage lockers or other Bicycle storage facilities, installed as an Alteration (“Bicycle Improvements”). The Landlord Bicycle Storage Area and Tenant Bicycle Storage Area are collectively, the “Bicycle Storage Area”. Other than the Bicycle Storage Area, Tenant and Tenant’s employees, visitors, invitees and sublessees shall not be entitled to use any secured bicycle storage areas at the Project, and Tenant’s employees shall not be permitted to bring their Bicycles in the Premises. Motorized vehicles of any kind, including motorcycles and mopeds, are prohibited in the Bicycle Storage Area, as is the storage of any property other than Bicycles. Each rider shall use the Bicycle Storage Area at its sole risk. Landlord specifically reserves the right to reasonably change the location, size, configuration, design, layout and all other aspects of the Landlord Bicycle Storage Area at any time (provided that no such action will materially diminish the capacity of the Landlord Bicycle Storage Area on other than a temporary basis), and Tenant acknowledges and agrees that Landlord may, without incurring any liability to Tenant and without any abatement of Rent under this Lease, from time to time, temporarily close-off or restrict access to the Bicycle Storage Area for purposes of permitting or facilitating any such construction, alteration or improvements. Landlord has no obligation to provide any security whatsoever in connection with the Bicycle Storage Area except as expressly set forth in this Section 5.3.1. Landlord shall provide twenty-four (24) hours per day, seven (7) days per week, reasonable access control services for the Landlord Bicycle Storage Area in a manner materially consistent with the services provided by landlords of Comparable Buildings. Notwithstanding the foregoing, Landlord shall in no case be liable for personal injury or property damage for any error with regard to the admission to or exclusion from the Bicycle Storage Area of any person. Upon the expiration or earlier termination of this Lease, Tenant shall have removed all Bicycles belonging to its employees from the Bicycle Storage Area and Tenant, at Tenant’s sole cost and expense, shall repair all damage to the Bicycle Storage Area caused by the removal of Tenant’s property therefrom, and if Tenant fails to repair such damage, Landlord may undertake such repair on account of Tenant and Tenant shall pay to Landlord upon demand the cost of such repair. If Tenant fails to remove any Bicycles at the expiration or earlier termination of this Lease, Landlord may dispose of said Bicycles in such lawful manner as it shall determine in its sole and absolute discretion.

  5.4 Tenant’s Use of Base Building Stairwells. Subject to Applicable Laws and Tenant’s receipt of all necessary governmental or quasi-governmental approvals (collectively, “Governmental Approvals”), Tenant shall have right during the Lease Term to use the base building stairwells between the floors of the Premises (each, a “Stairwell”) solely for purposes of ingress and egress from and between different floors of the Premises. In its use of the Stairwells, Tenant shall comply with all Applicable Laws, Governmental Approvals and the rules and regulations for the Project. Tenant shall have no right to alter or change any Stairwell in any manner whatsoever, except that Tenant may paint or perform other purely decorative Alterations or Improvements to the Stairwells in accordance with Article 8 or the Work Letter, as applicable, and may install Tenant’s Security System as set forth in Section 6.1.11 below. Tenant acknowledges and agrees that Tenant’s use of the Stairwells shall be at Tenant’s sole risk and Landlord shall have no liability whatsoever in connection therewith. Tenant hereby waives any and all claims against Landlord for any damages arising from Tenant’s exercise of its rights under this Section 5.5.

   

  5.5 Hazardous Materials.

  5.5.1 Tenant’s Obligations.

  5.5.1.1 Prohibitions. As a material inducement to Landlord to enter into this Lease with Tenant, Tenant has fully and accurately completed Landlord’s Pre-Leasing Environmental Exposure Questionnaire 

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  (the “Environmental Questionnaire”), which is attached as Exhibit 5.5.1.1. Tenant hereby represents, warrants and covenants that except for those chemicals or materials, and their respective quantities, specifically listed on the Environmental Questionnaire (as may be updated from time to time as described below), neither Tenant nor Tenant’s subtenants or assigns, or any of their respective employees, contractors and subcontractors of any tier, entities with a contractual relationship with such parties (other than Landlord), or any entity acting as an agent or sub-agent of such parties or any of the foregoing (collectively, “Tenant Parties”) will produce, use, store or generate any “Hazardous Materials”, as that term is defined below, on, under or about the Premises, nor cause or permit any Hazardous Material to be brought upon, placed, stored, manufactured, generated, blended, handled, recycled, used or “Released”, as that term is defined below, on, in, under or about the Premises or Project. If any information provided to Landlord by Tenant on the Environmental Questionnaire, or otherwise relating to information concerning Hazardous Materials is intentionally false, incomplete, or misleading in any material respect, the same shall be deemed a default by Tenant under this Lease. Upon Landlord’s request, or in the event of any “Material Change” in Tenant’s use of Hazardous Materials at the Premises, Tenant shall deliver to Landlord an updated Environmental Questionnaire. As used herein, “Material Change” shall refer to any change in the use, presence (including, without limitation, a material change in the quantity stored within the Premises at any one time) or handling of Hazardous Materials by Tenant that would (A)reasonably be expected to have a significant effect on the Premises or the Project, (B) violate the compliance with or provisions of any existing permits, licenses, registrations and other similar documents used by any governmental or quasi-governmental authority that authorizes any use, storage or handling of Hazardous Materials in, on or about the Premises or the Project by Tenant or any Tenant Parties, or (C) cause the information provided in the Environmental Questionnaire, as previously updated from time to time, to become untrue or inaccurate in any material respect. Landlord’s prior written consent shall be required for any Hazardous Materials use for the Premises not described on the initial Environmental Questionnaire, but such consent not to be unreasonably withheld, conditioned or delayed. Whenever Tenant submits to Landlord an updated Environmental Questionnaire, Landlord shall respond to Tenant within five (5) business days with its approval or disapproval thereof. Tenant shall not install or permit any underground storage tank on the Premises. In addition, Tenant agrees that it: (i) shall not cause or suffer to occur, the Release (as defined below) of any Hazardous Materials at, upon, under or within the Premises or any contiguous or adjacent premises; and (ii) shall not engage in activities at the Premises that give rise to, or lead to the imposition of, liability upon Tenant or Landlord or the creation of an environmental lien or use restriction upon the Premises. For purposes of this Lease, “Hazardous Materials” means all flammable explosives, petroleum and petroleum products, oil, radon, radioactive materials, toxic pollutants, asbestos, polychlorinated biphenyls (“PCBs”), medical waste, chemicals known to cause cancer or reproductive toxicity, pollutants, contaminants, hazardous wastes, toxic substances or related materials, including without limitation any chemical, element, compound, mixture, solution, substance, object, waste or any combination thereof, which is or may hereafter be determined to be hazardous to human health, safety or to the environment due to its radioactivity, ignitability, corrosiveness, reactivity, explosiveness, toxicity, carcinogenicity, infectiousness or other harmful or potentially harmful properties or effects, or defined as, regulated as or included in, the definition of “hazardous substances”, “hazardous wastes”, “hazardous materials”, or “toxic substances” under any Environmental Laws. The term “Hazardous Materials” for purposes of this Lease shall also include any mold, fungus or spores, whether or not the same is defined, listed, or otherwise classified as a “hazardous material” under any Environmental Laws, if such mold, fungus or spores may pose a risk to human health or the environment or negatively impact the value of the Premises. Hazardous Materials shall also include any “biohazardous waste,” “medical waste,” or other waste under California Health and Safety Code Division 20, Chapter 6.1 (Medical Waste Management Act).  For purposes of this Lease, “Release” or “Released” or “Releases” shall mean any release, deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing, or other movement of Hazardous Materials into the environment.

  Any use or storage of Hazardous Materials by Tenant permitted pursuant to this Article 5 shall not exceed Tenant’s legally permissible quantity of similarly classed Hazardous Materials. Notwithstanding anything contained herein to the contrary, in no event shall Tenant or anyone claiming by through or under Tenant perform work above the risk category Biosafety Level 3 as established by the Department of Health and Human Services (“DHHS”) and as further described in the DHHS publication Biosafety in Microbiological and Biomedical Laboratories (5th Edition) (as it may be or may have been further revised, the “BMBL”) or such nationally recognized new or replacement standards as Landlord may reasonable designate. Tenant shall comply with all applicable provisions of the standards of the BMBL to the extent applicable to Tenant’s operations in the Premises.

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  5.5.1.2 Notices to Landlord. Unless Tenant is required by Applicable Laws to give earlier notice to Landlord, Tenant shall notify Landlord in writing as soon as possible but in no event later than five (5) days after (i) Tenant becomes aware of the occurrence of any actual, alleged or threatened Release of any Hazardous Material in, on, under, from, about or in the vicinity of the Premises (whether past or present), regardless of the source or quantity of any such Release, or (ii) Tenant becomes aware of any regulatory actions, inquiries, inspections, investigations, directives, or any cleanup, compliance, enforcement or abatement proceedings (including any threatened or contemplated investigations or proceedings) relating to or potentially affecting the Premises, or (iii) Tenant becomes aware of any claims by any person or entity relating to any Hazardous Materials in, on, under, from, about or in the vicinity of the Premises, whether relating to damage, contribution, cost recovery, compensation, loss or injury. Collectively, the matters set forth in clauses (i), (ii) and (iii) above are hereinafter referred to as “Hazardous Materials Claims”. Tenant shall promptly forward to Landlord copies of all orders, notices, permits, applications and other communications and reports in connection with any Hazardous Materials Claims. Additionally, Tenant shall promptly advise Landlord in writing of Tenant’s discovery of any occurrence or condition on, in, under or about the Premises that could subject Tenant or Landlord to any liability, or restrictions on ownership, occupancy, transferability or use of the Premises under any “Environmental Laws”, as that term is defined below. Tenant shall not enter into any legal proceeding or other action, settlement, consent decree or other compromise with respect to any Hazardous Materials Claims without first notifying Landlord of Tenant’s intention to do so and affording Landlord the opportunity to join and participate, as a party if Landlord so elects, in such proceedings and in no event shall Tenant enter into any agreements which are binding on Landlord or the Project without Landlord’s prior written consent. Landlord shall have the right to appear at and participate in, any and all legal or other administrative proceedings concerning any Hazardous Materials Claim.  For purposes of this Lease, “Environmental Laws” means all applicable present and future laws relating to the protection of human health, safety, wildlife or the environment, including, without limitation, (i) all requirements pertaining to reporting, licensing, permitting, investigation and/or remediation of emissions, discharges, Releases, or threatened Releases of Hazardous Materials, whether solid, liquid, or gaseous in nature, into the air, surface water, groundwater, or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of Hazardous Materials; and (ii) all requirements pertaining to the health and safety of employees or the public.  Environmental Laws include, but are not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC § 9601, et seq., the Hazardous Materials Transportation Authorization Act of 1994, 49 USC § 5101, et seq., the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, and Hazardous and Solid Waste Amendments of 1984, 42 USC § 6901, et seq., the Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977, 33 USC § 1251, et seq., the Clean Air Act of 1966, 42 USC § 7401, et seq., the Toxic Substances Control Act of 1976, 15 USC § 2601, et seq., the Safe Drinking Water Act of 1974, 42 USC §§ 300f through 300j, the Occupational Safety and Health Act of 1970, as amended, 29 USC § 651 et seq., the Oil Pollution Act of 1990, 33 USC § 2701 et seq., the Emergency Planning and Community Right-To-Know Act of 1986, 42 USC § 11001 et seq., the National Environmental Policy Act of 1969, 42 USC § 4321 et seq., the Federal Insecticide, Fungicide and Rodenticide Act of 1947, 7 USC § 136 et seq., asbestos, polychlorobiphenyls (i.e., PCB’s) and petroleum and petroleum by products; and any other State of California or local law counterparts, as amended, as such Applicable Laws, are in effect as of the Lease Commencement Date, or thereafter adopted, published or promulgated.

  5.5.1.3 Releases of Hazardous Materials. If due to the acts or omissions of Tenant or any Tenant Party any Release of any Hazardous Material in, on, under, from or about the Premises in violation of, or requiring any Clean-Up (as defined below), in addition to notifying Landlord as specified above, Tenant, at its own sole cost and expense, shall (i) immediately comply with any and all reporting requirements imposed pursuant to any and all Environmental Laws, (ii) provide a written certification to Landlord indicating that Tenant has complied with all applicable reporting requirements, (iii) take any and all necessary investigation, corrective, remedial and other Clean-up action in accordance with any and all applicable Environmental Laws, utilizing an environmental consultant reasonably approved by Landlord, all in accordance with the provisions and requirements of this Section 5.6, including, without limitation, Section 5.5.4, and (iv) take any such additional investigative, remedial and corrective actions as Landlord shall in its reasonable discretion deem necessary such that the Premises and Project are remediated to a condition allowing unrestricted use of the Premises (i.e., to a level that will allow any future use of the Premises, including residential, without any engineering controls or deed restrictions), all in accordance with the provisions and requirements of this Section 5.5. Landlord may, as required by any and all Environmental Laws, report the Release of any Hazardous Material by Tenant or any Tenant Party to the appropriate governmental authority, identifying Tenant as the responsible party. Tenant shall deliver to Landlord copies of all administrative orders, notices, demands, directives or other communications directed to Tenant from any governmental authority with respect to any Release 

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  of Hazardous Materials in, on, under, from, or about the Premises, together with copies of all investigation, assessment, and remediation plans and reports prepared by or on behalf of Tenant in response to any such regulatory order or directive.

  5.5.1.4 Indemnification.

  5.5.1.4.1 In General. Without limiting in any way Tenant’s obligations under any other provision of this Lease, Tenant shall be solely responsible for and shall protect, defend, indemnify and hold the Landlord Parties harmless from and against any and all claims, judgments, losses, damages, costs, expenses, penalties, enforcement actions, taxes, fines, remedial actions, liabilities (including, without limitation, actual attorneys’ fees, litigation, arbitration and administrative proceeding costs, expert and consultant fees and laboratory costs) including, without limitation, consequential damages and sums paid in settlement of claims, which arise during or after the Lease Term, whether foreseeable or unforeseeable, directly or indirectly arising out of or attributable to the presence, use, generation, manufacture, treatment, handling, refining, production, processing, storage, Release or presence of Hazardous Materials in, on, under or about the Premises or Project by any Tenant Party, except to the extent such liabilities result from the negligence or willful misconduct of Landlord following the Lease Commencement Date. The foregoing obligations of Tenant shall include, without limitation: (i) the costs of any required or necessary removal, repair, cleanup or remediation of the Premises and Project, and the preparation and implementation of any closure, removal, remedial or other required plans; (ii) judgments for personal injury or property damages; and (iii) all costs and expenses incurred by Landlord in connection therewith. It is the express intention of the parties to this Lease that Tenant assumes all such liabilities, and holds Landlord harmless from all such liabilities, associated with the environmental condition of the Premises, arising on or after the date Tenant takes possession of the Premises.

  5.5.1.4.2 Limitations. Notwithstanding anything to the contrary in this Lease, Tenant shall not be responsible to remediate nor otherwise be liable or responsible for (not shall Tenant be responsible to indemnify Landlord with respect to except to the extent that Tenant’s construction activities and/or Tenant’s other acts or omissions caused or exacerbated the subject claim) any Hazardous Materials (i) located in, on, under or about the Project, Building and/or Premises prior to the date of the Existing Sublease, (ii) brought upon the Project by Landlord or any Landlord Party(ies), or (iii) that have migrated onto the Project, Building and/or Premises from other properties or premises (“Landlord’s Hazardous Materials”), except to the extent any of the Hazardous Materials described in items (i), (ii) or (iii) are generated, used, transported, exacerbated, released or disturbed, by Tenant or any Tenant Party. To the extent that Landlord’s Hazardous Materials are discovered at the Project, Building or Premises and remediation of the same is required a governmental authority with jurisdiction (which remediation is not triggered because of the particular use of the Premises by Tenant or its subtenants or assigns), any remediation thereof of the Landlord’s Hazardous Substances (to the extent required by the applicable governmental authority) by Landlord shall be at Landlord’s sole cost and expense, and not subject to inclusion in Operating Expenses.

  5.5.1.5 Compliance with Environmental Laws. Without limiting the generality of Tenant’s obligation to comply with Applicable Laws as otherwise provided in this Lease, Tenant shall, at its sole cost and expense, comply with all Environmental Laws applicable to the use, handling, storage and disposal by Tenant or by any Tenant’s Agents of any Hazardous Materials. Tenant shall obtain and maintain any and all necessary permits, licenses, certifications and approvals appropriate or required for the use, handling, storage, and disposal of any Hazardous Materials used, stored, generated, transported, handled, blended, or recycled by Tenant on the Premises. Landlord shall have a continuing right, without obligation, to require Tenant to obtain, and to review and inspect any and all such permits, licenses, certifications and approvals, together with copies of any and all Hazardous Materials management plans and programs, any and all Hazardous Materials risk management and pollution prevention programs, and any and all Hazardous Materials emergency response and employee training programs respecting Tenant’s use of Hazardous Materials. If Landlord has grounds to be concerned that Tenant has failed to comply with the provisions of this Article 5, then upon request of Landlord, Tenant shall deliver to Landlord a narrative description explaining the nature and scope of Tenant’s activities involving Hazardous Materials and showing to Landlord’s reasonable satisfaction compliance with all Environmental Laws and the terms of this Lease.

  5.5.2 Assurance of Performance.

  5.5.2.1 Environmental Assessments In General. Provided that Landlord gives Tenant no less than two (2) days prior notice of intended entry (other than in any emergency context) and complies with Tenant’s security measures then in effect Landlord may, but shall not be required to, engage from time to time such contractors 

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  as Landlord determines to be appropriate to perform “Environmental Assessments”, as that term is defined below, to ensure Tenant’s compliance with the requirements of this Lease with respect to Hazardous Materials. For purposes of this Lease, “Environmental Assessment” means an assessment including, without limitation: (i) an environmental site assessment conducted in accordance with the then-current standards of the American Society for Testing and Materials and meeting the requirements for satisfying the “all appropriate inquiries” requirements; and (ii) sampling and testing of the Premises based upon potential recognized environmental conditions or areas of concern or inquiry identified by the environmental site assessment.

  5.5.2.2 Costs of Environmental Assessments. All costs and expenses incurred by Landlord in connection with any such Environmental Assessment initially shall be paid by Landlord; provided that if any such Environmental Assessment shows that Tenant has failed to comply with the provisions of this Section 5.5, then all of the costs and expenses of such Environmental Assessment shall be reimbursed by Tenant as Additional Rent within thirty (30) days after receipt of written demand therefor, together with documentation of such cost.

  5.5.3 Tenant’s Obligations upon Surrender. At the expiration or earlier termination of the Lease Term, Tenant, at Tenant’s sole cost and expense, shall: (i) cause an Environmental Assessment of the Premises to be conducted in accordance with Section 15.3; (ii) cause all Hazardous Materials for which Tenant is responsible for under this Lease to be removed from the Premises and disposed of in accordance with all Environmental Laws and as necessary to allow the Premises to be used for any purpose in a manner consistent with Comparable Buildings (but for the sake of clarity, Tenant’s return to Landlord of the Premises in the condition that existed prior to the Lease Commencement Date shall satisfy Tenant’s obligation as to removal of Hazardous Materials from the Premises); and (iii) cause to be removed all containers installed or used by any Tenant Parties to store any Hazardous Materials on the Premises, and cause to be repaired any damage to the Premises caused by such removal.

  5.5.4 Clean-up.

  5.5.4.1 Environmental Reports; Clean-Up. If any written report, including any report containing results of any Environmental Assessment (an “Environmental Report”) shall indicate (i) the presence of any Hazardous Materials as to which Tenant has a removal or remediation obligation under this Section 5.5, and (ii) that as a result of same, the investigation, characterization, monitoring, assessment, repair, closure, remediation, removal, or other clean-up (the “Clean-up”) of any Hazardous Materials is required, Tenant shall immediately prepare and submit to Landlord within thirty (30) days after receipt of the Environmental Report a comprehensive plan, subject to Landlord’s written approval (not to be unreasonably withheld), specifying the actions to be taken by Tenant to perform the Clean-up so that the Premises are restored to the conditions required by this Lease. Upon Landlord’s approval of the Clean-up plan, Tenant shall, at Tenant’s sole cost and expense, without limitation of any rights and remedies of Landlord under this Lease, immediately implement such plan with a consultant reasonably acceptable to Landlord and proceed to Clean-Up Hazardous Materials in accordance with all applicable laws and as required by such plan and this Lease. If, within thirty (30) days after receiving a copy of such Environmental Report, Tenant fails either (a) to complete such Clean-up, or (b) with respect to any Clean-up that cannot be completed within such 30-day period, fails to proceed with diligence to prepare the Clean-up plan and complete the Clean-up as promptly as practicable, then Landlord shall have the right, but not the obligation, and without waiving any other rights under this Lease, to carry out any Clean-up recommended by the Environmental Report or required by any governmental authority having jurisdiction over the Premises, and recover all of the costs and expenses thereof from Tenant as Additional Rent, payable within thirty (30) days after receipt of written demand therefor, together with documentation of such cost.

  5.5.4.2 No Rent Abatement. Tenant shall continue to pay all Rent due or accruing under this Lease during any Clean-up, and shall not be entitled to any reduction, offset or deferral of any Base Rent or Additional Rent due or accruing under this Lease during any such Clean-up.

  5.5.4.3 Surrender of Premises. Tenant shall complete any Clean-up required by this Section 5.5 prior to surrender of the Premises upon the expiration or earlier termination of this Lease and shall fully comply with all Environmental Laws and requirements of any governmental authority with respect to such completion, including, without limitation, fully comply with any requirement to file a risk assessment, mitigation plan or other information with any such governmental authority in conjunction with the Clean-up prior to such surrender. If applicable, Tenant shall obtain and deliver to Landlord a letter or other written determination from the overseeing governmental authority confirming that the Clean-up has been completed in accordance with all requirements of such 

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  governmental authority and that no further response action of any kind is required for the unrestricted use of the Premises (“Closure Letter”), unless such governmental authority’s standard practices at the relevant time do not provide for such Closure Letter. Upon the expiration or earlier termination of this Lease, Tenant shall also be obligated to close all permits obtained in connection with Hazardous Materials in accordance with Applicable Laws.

  5.5.4.4 Failure to Timely Clean-Up. Should any Clean-up for which Tenant is responsible for under this Section 5.5 not be completed, or should Tenant not receive the Closure Letter (unless such governmental authority’s standard practices at the relevant time do not provide for such Closure Letter) and any governmental approvals required under Environmental Laws in conjunction with such Clean-up prior to the expiration or earlier termination of this Lease, and Tenant’s failure to receive the Closure Letter is prohibiting Landlord from leasing the Premises or any part thereof to a third party, or prevents the occupancy or use of the Premises or any part thereof by a third party, then Tenant shall be liable to Landlord as a holdover tenant (as more particularly provided in Article 16) until Tenant has fully complied with its obligations under this Section 5.5.

  5.5.5 Confidentiality. Unless compelled to do so by applicable law, Tenant agrees that Tenant shall not disclose, discuss, disseminate or copy any information, data, findings, communications, conclusions and reports regarding the environmental condition of the Premises to any Person (other than Tenant’s consultants, attorneys, property managers and employees that have a need to know such information), including any governmental authority, without the prior written consent of Landlord. In the event Tenant reasonably believes that disclosure is required by Applicable Laws, it shall provide Landlord ten (10) days’ advance notice (or such shorter time as may be necessary due to applicable laws) of disclosure of confidential information so that Landlord may attempt to obtain a protective order. Tenant may additionally release such information to bona fide prospective purchasers, lenders, assignees or subtenants, subject to any such parties’ written agreement to be bound by the terms of this Section 5.5.

  5.5.6 Copies of Environmental Reports. Within thirty (30) days of receipt thereof, Tenant shall provide Landlord with a copy of any and all environmental assessments, audits, studies and reports regarding Tenant’s activities with respect to the Premises, or ground water beneath the Land, or the environmental condition or Clean-up thereof that are in Tenant’s possession or control. Tenant shall be obligated to provide Landlord with a copy of such materials without regard to whether such materials are generated by Tenant or prepared for Tenant, or how Tenant comes into possession of such materials, unless to do so would expose Tenant to a claim of breach of nondisclosure obligation or be a violation of applicable law.

  5.5.7 Signs, Response Plans, Etc. Tenant shall be responsible for posting on the Premises any signs required under applicable Environmental Laws. Tenant shall also complete and file any business response plans or inventories required by any applicable Environmental Laws. Tenant shall concurrently file a copy of any such business response plan or inventory with Landlord.

  5.5.8 Survival. Each covenant, agreement, representation, warranty and indemnification made by Tenant set forth in this Section 5.5 shall survive the expiration or earlier termination of this Lease and shall remain effective until all of Tenant’s obligations under this Section 5.5 have been completely performed and satisfied.

  5.6 Premises Compliance with ADA. Notwithstanding any other provision herein to the contrary, Tenant shall be responsible for all liabilities, costs and expenses arising out of or in connection with the compliance of the Premises with the Americans with Disabilities Act, 42 U.S.C. § 1210 I, et seq., and any state and local accessibility laws, codes, ordinances and rules (collectively, and together with regulations promulgated pursuant thereto, the “ADA”), and Tenant shall indemnify, save, defend (at Landlord’s option and with counsel reasonably acceptable to Landlord) and hold Landlord and its affiliates, employees, agents and contractors; and any lender, mortgagee or beneficiary (each, a “Lender” and, collectively with Landlord its partners and subpartners, and their respective officers, members, directors, shareholders, agents, property managers, employees and independent contractors, the “Landlord Indemnitees”) harmless from and against any demands, claims, liabilities, losses, costs, expenses, actions, causes of action, damages or judgments, and all reasonable expenses (including reasonable attorneys’ fees, charges and disbursements) incurred in investigating or resisting the same (collectively, “Claims”) arising out of any such failure of the Premises to comply with the ADA. Notwithstanding the foregoing or anything to the contrary in this Lease, Tenant’s foregoing indemnity obligations shall not apply to any liability arising from noncompliance of the Premises with the ADA where such noncompliance existed prior to the date of the Existing Sublease. The provisions of this Section shall survive the expiration or earlier termination of this Lease.

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  5.7 Rules and Regulations, CC&Rs, Parking Facilities and Common Areas.

  5.7.1 Tenant shall have the non-exclusive right, in common with others, to use the Common Areas, subject to the Rules and Regulations. The manner in which the Common Areas are maintained and operated shall be at the sole discretion of Landlord (but such maintenance and operations must be consistent with Comparable Buildings) and the use thereof shall be subject to the Rules and Regulations, as Landlord may make from time to time, subject to Section 5.2.

  5.7.2 This Lease is subject to any recorded covenants, conditions or restrictions on the Project or Property (the “CC&Rs”), as the same may be amended, amended and restated, supplemented or otherwise modified from time to time; provided that any such amendments, restatements, supplements or modifications do not materially modify Tenant’s rights or obligations hereunder, or materially restrict or impair (other than for a reasonable, temporary period) Tenant’s access to the Premises or parking facilities. Tenant shall comply with the CC&Rs.

  5.7.3 Tenant shall have a non-exclusive, irrevocable license to use throughout the Lease Term the number of unreserved parking passes set forth in Section 11 of the Summary in at such locations in the parking facilities serving the Building as may be determined by Landlord from time to time in common with the other occupants of the Building, on an unreserved basis at no cost to Tenant. Tenant shall use only such parking facilities to park Tenant’s vehicles. In no event shall Tenant park or store any items other than automotive vehicles at such parking facilities.

  5.7.4 Tenant agrees not to unreasonably overburden the parking facilities and agrees to cooperate with Landlord and other tenants in the use of the parking facilities. Landlord reserves the right to determine that parking facilities are becoming overcrowded and to limit Tenant’s use thereof in a non-discriminatory manner with respect to other tenants of the Project (and provided that Tenant still has the right to the number of unreserved parking passes set forth in Section 11 of the Summary). Landlord may reasonably allocate parking spaces among Tenant and other tenants of the Building or the Project and Tenant shall be entitled to use throughout the Lease Term the number of unreserved parking passes set forth in Section 11 of the Summary. Nothing in this Section, however, is intended to create an affirmative duty on Landlord’s part to monitor parking.

  5.7.5 Landlord reserves the right to modify the Common Areas, including the right to add or remove exterior and interior landscaping and to subdivide real property, in accordance with the terms and conditions of this Lease. Tenant acknowledges that Landlord specifically reserves the right to allow the exclusive use of corridors and restroom facilities located on specific floors to one or more tenants occupying such floors; provided, however, that Tenant shall not be deprived of the use of the corridors reasonably required to serve the Premises or of restroom facilities serving the floor upon which the Premises are located. Landlord reserves the right to close temporarily, make alterations or additions to, or change the location of elements of the Project and the Common Areas. Landlord agrees to use commercially reasonable efforts to mitigate interference with Tenant’s use of and access to the Premises in connection with such closures, alterations or additions to the Common Areas.

  5.8 Storage Facilities. [***].

  6. SERVICES AND UTILITIES

  6.1 Standard Tenant Services.  Landlord shall provide the following services during the Lease Term.

  6.1.1 HVAC. In accordance with the “Base Building” definition as provided in Section 1 of the Work Letter, the Building shall be equipped with a heating and air conditioning (“HVAC”) system serving the Premises (the “BB HVAC System”). Subject to limitations imposed by all governmental rules, regulations and guidelines applicable thereto, Landlord shall provide BB HVAC System service during the “HVAC System Hours” (defined below). Landlord will operate the BB HVAC System for the benefit of the Premises the hours of 8:00 A.M. to 6:00 P.M. on Monday through Friday (the “HVAC System Hours”). Tenant shall cooperate fully with Landlord at all times and abide by all regulations and requirements that Landlord may reasonably prescribe for the proper functioning and protection of the BB HVAC System. If Tenant requires after-hours operation of the BB HVAC System (“Excess Hours”) and Tenant gives Landlord at least twenty-four (24) hours advance notice on a business day, then Landlord shall supply such HVAC to Tenant at Landlord’s actual cost (which shall be treated as Additional Rent, but not as an Operating Expense) on a zone-by-zone basis, including the cost of increased depreciation on the BB HVAC 

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  System, but excluding the cost of electricity to the extent already paid for directly by Tenant, but including the electrical costs specified as follows; provided, however, if Tenant gives Landlord less than twenty-four (24) hours advance notice, Landlord will nevertheless endeavor to accommodate Tenant’s request so long as such shorter notice is given on a business day. Landlord shall reasonably and equitably allocate the portion of the electrical costs of the BB HVAC System attributable to Tenant’s use of the BB HVAC System for the Excess Hours to Tenant, and Tenant shall pay for the costs of such use along with the increased depreciation as set forth above, within thirty (30) days after demand, and as Additional Rent under this Lease (and not as part of the Operating Expenses) (the “Extra HVAC Costs”). Notwithstanding anything to the contrary contained in the foregoing, the HVAC Systems Hours shall not be applicable to the lab portions of the Premises (located on floors 10, 11 and 12); instead, Landlord shall operate the BB HVAC System as to the lab floors on a twenty-four (24) hours per day basis, and Tenant shall have the ability from within the Premises to access thermostats for controlling the temperature settings for the HVAC serving the lab floors of the Premises (it being understood that Tenant needs to operate the HVAC, and all other rooftop equipment exclusively serving the lab floors, outside of Building Hours and will run HVAC, and all other rooftop equipment exclusively serving the lab floors, 24 hours per day), and Tenant shall be liable for the Extra HVAC Costs.

  6.1.2 Electricity. Landlord shall provide electrical wiring and facilities for connection to Tenant’s lighting and Tenant’s incidental use equipment as described in Schedule 2 to Exhibit B. Tenant shall not use combined electrical load for Tenant’s incidental use equipment and Tenant’s lighting fixtures in excess of its pro rata share of the capacity of the feeders, which electrical usage shall be subject to Applicable Laws, including Title 24. Tenant shall bear the cost of replacement of lamps, starters and ballasts for non-Building standard lighting fixtures within the Premises (Landlord, as part of Operating Expenses, will replace Building-standard lamps, starters and ballasts). Tenant shall reasonably cooperate with Landlord at all times and abide by all regulations and requirements that Landlord may reasonably prescribe for the proper functioning and protection of the Building Systems. All electricity usage at the Project shall be monitored using separate submeters (the “Submetering Equipment”) which shall be (i) installed by Landlord or any tenant, for other tenant space in the Project, (ii) installed by Tenant for the Premises (not including the “Building Systems”, as that term is defined in Article 7 of this Lease), and (iii) installed by Landlord for the Common Areas and Building Systems. Tenant shall have no obligation to pay for any costs of electricity (including as part of Operating Expenses) shown on the Submetering Equipment described in item (i) above. Tenant shall be responsible to pay directly, and not as a part of Operating Expenses, for the cost of all electricity shown on the Submetering Equipment described in item (ii) above. The cost of all electricity shown on the Submetering Equipment described in item (iii) above (except to the extent included in the Extra HVAC Costs) shall be included in Operating Expenses. Tenant may audit Landlord’s readings of the Submetering Equipment and Landlord shall deliver reasonably detailed invoices to Tenant reflecting Landlord’s reading of the Submetering Equipment and resulting electricity costs.

  6.1.3 Water and Sewer. Landlord shall cause water and sewer to be supplied to the regular Building outlets for drinking, lavatory and toilet purposes within the Building and for laboratory purposes within the Premises (to the extent consistent with usage volumes for life science tenants within Comparable Buildings). Landlord shall reasonably and equitably allocate the portion of such utilities attributable to Tenant’s direct use to Tenant, and Tenant shall pay for the costs of such direct use, within thirty (30) days after demand and as Additional Rent under this Lease (and not as part of the Operating Expenses), and other water and sewer costs shall be reasonably and equitably included as part of Operating Expenses, to the extent permitted by the terms of Section 4.2.4 above or charged directly to other tenants of the Project. If Landlord determines that Tenant may be using an amount of water in excess of its pro rata share, Landlord reserves the right to install submetering equipment, at Tenant’s expense, to monitor Tenant’s usage and bill Tenant for such usage. Landlord shall designate the utility providers from time to time.

  6.1.4 Gas. Landlord shall cause gas to be supplied to the Project, and Tenant shall be entitled to its pro rata share of gas supplied to the Project. The portion of the gas used in connection with the Retail Space shall be separately submetered and paid for directly by such retail tenants. The cost of all other gas supplied to the Project shall be included in Operating Expenses. Landlord’s approval shall be required if Tenant desires gas service within the Premises. If Landlord approves such request, the cost of installing any equipment and lines necessary for such service shall be at Tenant’s sole cost and expense, including, without limitation, the cost of installing and maintaining submeters to monitor such gas usage within the Premises. Landlord will invoice Tenant periodically for such direct gas use as shown on such submeters (as a direct expense and not part of Operating Expenses) and Tenant shall be paid by it within fifteen (15) days following Landlord’s delivery of any such invoice to Tenant.

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  6.1.5 Janitorial. Landlord shall provide janitorial services for the Common Areas and exterior window washing services, in a manner consistent with the Comparable Buildings; but Landlord shall not provide janitorial services for the Premises. Tenant shall perform all janitorial services and other cleaning within the Premises in a manner consistent with the standards of other first-class, institutionally owned office/life science buildings in the City of San Francisco (“City”) using a janitorial contract approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed (provided, however, Landlord hereby preapproves AC Janitorial Service and CW Maintenance as janitorial contractors that may be retained by Tenant). Without Landlord’s prior consent, Tenant shall not use (and upon notice from Landlord shall cease using) janitorial service providers who would, in Landlord’s reasonable and good faith judgment, disturb labor harmony with the workforce or trades engaged in performing other work, labor or services in or about the Buildings or the Common Areas.

  6.1.6 Elevator. Landlord shall provide non-attended automatic passenger elevator service during the building hours reasonably designated by Landlord (the “Building Hours”) and shall have one (1) elevator available serving each Building at all other times.

  6.1.7 Loading Dock. Landlord shall provide use of the loading dock in the North Tower for deliveries to Tenant, provided that (i) Tenant shall schedule its use of such loading dock with Landlord at least 24 hours in advance (provided, however, in the event that Tenant has not given such advance notice, Tenant’s use of the loading dock shall be subject to the prior use thereof by users who have scheduled such use in advance), and (ii) use of the loading dock is limited to between 6:00 AM and 5:00 PM Monday through Friday (“Loading Dock Hours”), such hours subject to change upon written notice from Landlord; provided, however, if Tenant requests access to the loading dock outside of the Loading Dock Hours, Tenant shall pay Landlord an after-hours charge of $50 per visit for Landlord to engage its security personnel in connection with such loading dock access (such after-hours charge subject to adjustment by Landlord from time to time). The Loading Dock Hours shall not apply to Tenant’s initial move-in to the Premises and the loading dock shall be made available for Tenant’s initial move-in without charge; provided, that Tenant shall reasonably coordinate such initial move-in with Landlord.

  6.1.8 Risers, Raceways, Shafts, Conduits. Subject to Landlord’s reasonable rules, regulations, and restrictions and the terms of this Lease, Landlord shall permit Tenant, at no additional charge to Tenant, to utilize the Building’s risers, raceways, shafts and conduit, provided that there is available space in the Building’s risers, raceways, shafts and/or conduit for Landlord’s reasonable use and reasonable use by the other tenants of the Project, which availability shall be determined by Landlord in Landlord’s sole discretion. Landlord shall have the right to re- route the planned location of Tenant’s cabling in such risers, raceways, shafts and conduit, as determined by Landlord in its reasonable discretion.

  6.1.9 Access Control. The Building and Parking Facilities have an access-control system, including, without limitation, door access controls, lobby turnstiles and elevator access controls; provided however, the parties acknowledge that the North Lobby is open to the public, and access will not be restricted during general business hours. Landlord shall not be obligated to provide any other security equipment. Notwithstanding any provision to the contrary set forth in this Lease, in no case, shall Landlord be liable for personal injury or property damage for any lack of security in the Building or for any error with regard to the admission to or exclusion from the Buildings or Project of any person.

  6.1.10 Security Personnel. Landlord shall provide on-site security services, including security personnel in the North Lobby and the Parking Facilities, consistent with the services provided by landlords at Comparable Buildings (the “Security Personnel”), the costs of which shall be included in Direct Expenses. In addition, (a) the Security Personnel shall be licensed and bonded and shall at all times maintain any and all required licenses or other governmental permits required in connection with any weapons carried by Security Personnel and/or the performance of its duties under this Lease and shall at all times conduct themselves in a manner consistent with a first class office and life sciences building project, (b) a commercially reasonable background check shall be performed on all Security Personnel, and (c) all of the Security Personnel shall be union labor and comply with the Mission Bay Requirements and the Underlying Documents.

  6.1.11 Tenant’s Security System. Landlord hereby agrees that Tenant shall have the right to install a card key security system (“Tenant’s Security System”) in the Premises and Stairwells on the floors of the Premises and to connect such system to Landlord’s access-control system for the Project; provided that Tenant shall work with Landlord to connect Landlord’s existing access card keys for the Project to Tenant’s Security System, or, if such 

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  connection is not possible, shall provide Landlord with a reasonable number of card keys for Landlord’s access to the Buildings and/or the Premises pursuant to the terms of this Lease. Tenant’s Security System shall by subject to Landlord’s prior review and approval (not to be unreasonably withheld), and the installation thereof shall be deemed an Alteration and shall be performed pursuant to Article 8 of this Lease, below or shall be installed as an Improvement pursuant to the Work Letter. In addition, Tenant shall coordinate the selection, installation and operation of Tenant’s Security System with Landlord in order to ensure that Tenant’s Security System is compatible with the Building Systems and permits Landlord to identify any persons entering and exiting any Buildings, and Tenant shall not be entitled to install and/or operate the Tenant’s Security System if Tenant’s Security System does not comply with the foregoing. Tenant shall be solely responsible, at Tenant’s sole cost and expense, for the installation, monitoring, operation and removal of Tenant’s Security System.

  6.1.12 Access. Subject to Applicable Laws and the other provisions of this Lease, and except in the event of an emergency, Tenant shall have access to the above utilities and the Buildings, the Premises and the Common Areas, other than common areas requiring access with a Building engineer, the Parking Facilities and freight elevator, if any, twenty-four (24) hours per day, seven (7) days per week, every day of the year; provided, however, that Tenant shall pay Landlord’s reasonable out-of-pocket costs that are incurred if Tenant uses the loading dock, mailroom and other limited-access areas of the Buildings during other than normal Building Hours.

  6.1.13 Emergency Generator. The Base Building has one (1) non-exclusive emergency generator serving the North Complex, the Tenant’s pro rata share of which shall be available, on a non-exclusive basis, for connection to Tenant’s standby equipment and systems (each, a “Generator”). All connections (cables, cable trays, etc.) (the “Generator Facilities”) from such Generator to the Premises shall be located in areas approved by Landlord, in its sole discretion, and shall comply with Applicable Laws. Commencing on the date that Tenant first connects the Generator Facilities to a Generator, as reasonably determined by Landlord, Tenant shall reimburse Landlord within thirty (30) days of request, as Additional Rent, Tenant’s pro rata share (based on Tenant’s use of such Generator and use of such Generator by other parties, as reasonably determined by Landlord based on the respective connections to such Generator (not the respective rentable square footage of any space leased in the Project by such users)), of all costs and expenses incurred by Landlord as a result of or in connection with operation, use, repairs, and maintenance of such Generator, including costs for fuel, and depreciation (as reasonably determined by Landlord). Tenant acknowledges that Landlord shall not be liable for any damage that may occur with respect to a Generator.

  6.1.14 Mailroom. Tenant shall have no access rights to any of the other tenant’s mailrooms located in the Complex. Tenant shall have reasonable access rights to the USPS mailroom serving the entire Complex. Tenant shall be solely responsible for collecting deliveries from the loading dock in the North Tower (such loading dock access shall be subject to Section 6.1.7 above).

  6.2 Interruption of Use. Tenant agrees that Landlord shall not be liable for damages, by abatement of Rent or otherwise (except as specifically set forth in this Section 6.2 below), for failure to furnish or delay in furnishing any service (including telephone and telecommunication services and Generator service), or for any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by breakage, repairs, replacements, or improvements, by any strike, lockout or other labor trouble, by inability to secure electricity, gas, water, or other fuel at the Buildings or Project after reasonable effort to do so, by any riot or other dangerous condition, emergency, accident or casualty whatsoever (other than the gross negligence or willful misconduct of Landlord, its employees or agents), by act or default of Tenant or other parties, or by any other cause; and such failures or delays or diminution shall, except if caused by the gross negligence or willful misconduct of Landlord, its employees or agents, never be deemed to constitute an eviction or disturbance of Tenant’s use and possession of the Premises or relieve Tenant from paying Rent (except as specifically set forth in this Section 6.2 of this Lease) or performing any of its obligations under this Lease. Notwithstanding anything to the contrary contained in the foregoing, in the event that there shall be an interruption, curtailment or suspension of any service required to be provided by Landlord pursuant to Section 6.1 (and no reasonably equivalent alternative service or supply is provided by Landlord) that shall materially interfere with Tenant’s use and enjoyment of a material portion of the Premises, and Tenant actually ceases to use the affected portion of the Premises (any such event, a “Service Interruption”), and if (i) such Service Interruption shall continue for six (6) consecutive business days following receipt by Landlord of written notice from Tenant describing such Service Interruption (the “Service Interruption Notice”), and (ii) such Service Interruption shall not have been caused, in whole or in part, by reasons beyond Landlord’s reasonable control or by an act or omission in violation of this Lease by any Tenant Party or by any negligence of Tenant any Tenant 

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  Parties, (a Service Interruption that satisfies the foregoing conditions being referred to hereinafter as a “Material Service Interruption”) then, as liquidated damages and Tenant’s sole remedy at law or equity, Tenant shall be entitled to an equitable abatement of Base Rent and Tenant’s Share of Direct Expenses, based on the nature and duration of the Material Service Interruption, the area of the Premises affected, and the then current Rent amounts, for the period that shall begin on the commencement of such Material Service Interruption and that shall end on the day such Material Service Interruption shall cease. To the extent a Material Service Interruption is caused by an event covered by Articles 11 or 13 of this Lease, then Tenant’s right to abate rent shall be governed by the terms of such Article 11 or 13, as applicable, and the provisions of this paragraph shall not apply.

  6.3 Use of Shafts and Utility Connections. Landlord shall have reasonable access, and shall be entitled to allow other tenants of the Buildings, if any, reasonable access, through existing Building shafts to other portions of the Buildings (including the roof, mechanical floors and tenant spaces (including the Premises)), or to utility connections outside the Buildings, for the installation, repair, and maintenance of ducts, pipes, connections, and equipment for cables, conduits, transmitters, receivers, and other office, computer, communications and word and data processing equipment and facilities, including any technological devices not yet developed, whether similar or dissimilar to the foregoing, which may hereafter become necessary or desirable for any permitted use of the Project; provided, however, that to the extent such shafts or utility connections are located within the Premises, such access shall not materially and unreasonably interfere with Tenant’s occupancy of the Premises (Landlord’s efforts in such regard will include, where reasonably possible, limiting the performance of any such work which might be disruptive to weekends or the evening and the cleaning of any work area prior to the commencement of the next business day). To the extent that Landlord installs, maintains, uses, repairs or replaces pipes, cables, ductwork, conduits, utility lines, and/or wires through hung ceiling space, exterior perimeter walls and column space, adjacent to and in demising partitions and columns, in or beneath the floor slab or above, below, or through the Premises, then in the course of making any such installation or repair: (x) Landlord shall not reduce Tenant’s usable space, except to a de minimus extent, if the same are not installed behind existing walls or ceilings; (y) Landlord shall box in any of the same installed adjacent to existing walls with construction materials substantially similar to those existing in the affected area(s) of the Premises; and (z) Landlord shall repair all damage caused by the same and restore such area(s) of the Premises to substantially the condition existing immediately prior to such work. The terms of this Section 6.3 shall be subject to the terms of Section 29.32 below.

  6.4 Supplemental HVAC. Subject to Landlord’s prior consent, which consent shall not be unreasonably withheld, conditioned or delayed, Tenant shall have the right to install a supplemental HVAC equipment serving all or any portion of the Premises (“Supplemental HVAC Equipment”). Any Supplemental HVAC Equipment shall be installed pursuant to the terms of Article 8 or the Work Letter, if installed as part of the initial Improvements, and shall be deemed an Alteration (or Improvement, as applicable) for purposes of this Lease; provided, however, it shall be deemed reasonable for Landlord to withhold its approval to the extent any such installation would void the warranties of any Building systems or equipment, interfere with other tenant’s systems or equipment, or materially interfere with, or materially increase the cost of, Landlord’s maintenance or operation of the Project, unless Tenant agrees to pay for such increased costs, or if any such installation would violate Applicable Laws or the Mission Bay Requirements or the Underlying Documents (as that term is defined in Section 24.4 below). Tenant shall bear all costs of the equipment, and all costs of installation and removal thereof.

  7. REPAIRS

  7.1 Landlord’s Repair Obligations. Landlord shall at all times during the Lease Term maintain in good condition and operating order and in a manner reasonably commensurate with the maintenance standards of owners of Comparable Buildings, the structural portions of the Buildings, including, without limitation, the foundation, exterior walls, the structural portions of the floors (including the floor slabs), ceilings, roof, columns, beams, shafts, stairs, stairwells, escalators, elevators, base building restrooms and all Common Areas (collectively, the “Building Structure”), and the Base Building mechanical, electrical, life safety, plumbing, sprinkler, security and HVAC systems installed or furnished by Landlord (collectively, the “Building Systems”); provided, however, if any repairs to the foregoing are required due to the negligence or willful misconduct of Tenant, Landlord shall nevertheless make such repairs at Tenant’s expense, or, if covered by Landlord’s insurance, Tenant shall only be obligated to pay any deductible in connection therewith. In addition, Landlord shall use commercially reasonable efforts, at all times during the Lease Term, to cause the Building Systems to perform in accordance with the design specifications for such equipment. Except as specifically set forth in this Lease to the contrary, Tenant shall not be required to repair the 

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  Building Structure and/or the Building Systems, except to the extent required because of Tenant’s use of the Premises for other than the Permitted Use; provided, however, that Landlord shall nevertheless make such repairs at Tenant’s expense, or, if covered by Landlord’s insurance, Tenant shall only be obligated to pay any deductible in connection therewith.

  7.2 Tenant’s Repair Obligations. Tenant shall, at Tenant’s own expense, keep the Premises, including all improvements, fixtures, furnishings, and systems and equipment within the Premises, and any of Tenant’s improvements, property or equipment located outside of the Premises if permitted by Landlord in its sole discretion (such items located outside of the Premises, if any, are, collectively, “Tenant’s Off-Premises Equipment”), in good order, repair and condition at all times during the Lease Term. In addition, Tenant shall, at Tenant’s own expense, [but under the reasonable supervision and subject to the prior reasonable approval of Landlord to the extent (i) the cost of such repairs are reasonably expected to exceed $25,000.00, (ii) such repairs will affect the Building Structure, Building Systems or equipment, or (iii) such repairs may disturb any other tenants or occupants of the Building], and within any reasonable period of time specified by Landlord, promptly and adequately repair all damage to the Premises and replace or repair all damaged, broken, or worn fixtures and appurtenances, except for damage caused by ordinary wear and tear and casualty; provided however, that if Tenant fails to make such repairs within applicable notice and cure periods, Landlord may, but need not, make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including a percentage of the cost thereof sufficient to reimburse Landlord for all overhead, general conditions and other costs or expenses arising from Landlord’s involvement with such repairs and replacements plus a management fee of [***] of such cost within twenty (20) days after being billed for same. Without limitation, Tenant shall be responsible for electrical, plumbing, heating, ventilating and air-conditioning systems and other utility services either located within the Premises or serving solely the Premises and located outside of the Premises from the Building connection point to the Premises (but only to the extent serving Tenant exclusively) (e.g., any Supplemental HVAC Equipment), and Tenant shall secure, pay for, and keep in force contracts with appropriate and reputable service companies reasonably approved by Landlord providing for the regular maintenance of such systems.  Subject to the terms of Article 27 below, Landlord may, but shall not be required to, enter the Premises at all reasonable times and upon reasonable prior notice to make such repairs, alterations, improvements or additions to the Premises or to the Project or to any equipment located in the Premises as Landlord shall desire or deem necessary or as Landlord may be required to do by governmental or quasi-governmental authority or court order or decree. Tenant hereby waives and releases its right to make repairs at Landlord’s expense under Sections 1941 and 1942 of the California Civil Code or under any similar law, statute or ordinance now or hereafter in effect. Tenant’s obligation hereunder shall include maintenance and repair of all telecommunications wire and cabling with the Building’s network cabling exclusively serving the Premises.

  7.3 Tenant/Landlord Maintenance Responsibility Matrix. To clarify the respective obligations of Tenant and Landlord with respect to maintenance and repair under this Lease, the matrix attached hereto as Exhibit 7.3 sets forth the respective obligations of Tenant and Landlord with respect to the mechanical systems of the Building and other Building Systems and Tenant installed systems identified therein. 

  8. ADDITIONS AND ALTERATIONS

  8.1 Landlord’s Consent to Alterations. Tenant may not make any improvements, alterations, additions or changes to the Premises or any mechanical, plumbing, HVAC facilities or other utility or Building systems pertaining to the Premises (collectively, the “Alterations”) without first procuring the prior written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less than twenty (20) business days prior to the commencement thereof. Landlord shall not unreasonably withhold or delay its consent to any proposed nonstructural Alterations, provided that such Alterations (1) are not visible from the outside of the Building, (2) do not affect the use of or require access to any part of the Building other than the Premises, (3) do not do not violate any certificate of occupancy for the Building or any other permits or licenses relating to the Project, (4) do not adversely affect any service required to be furnished to Tenant or to any other tenant or occupant of the Building, (5) do not affect any Building systems or Common Areas, (6) do not reduce the value or utility of the Building, (7) do not consist of painting the underside or top of the structure slab, and (8) otherwise comply with the Rules and Regulations and this Article 8. Notwithstanding the foregoing, Tenant shall be permitted to make Alterations following ten (10) business days’ notice to Landlord, but without Landlord’s prior consent, to the extent that such Alterations (i) are purely cosmetic in nature (such as painting, carpeting and the like), (ii) do not affect the Building Structure, Building systems or equipment, (iii) don not require a building or construction permit, (iv) are not visible from the exterior of the Building, (v) do not consist of painting the underside or top of the structure slab, and (vi) cost less than $175,000.00 for a particular job of 

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  work. For the sake of clarity, the construction of the initial improvements to the Premises shall be governed by the terms of the Tenant Work Letter and not the terms of this Article 8

  Prior to commencing any Alterations affecting air distribution or disbursement from MEP or other systems serving Tenant or the Building, including without limitation the installation of Tenant’s exhaust systems, Tenant shall provide Landlord with a third party report from a consultant, and in a form reasonably acceptable to Landlord, showing that such work will not adversely affect the ventilation systems or air quality of the Building (or of any other tenant in the Building) and shall, upon completion of such work, provide Landlord with a certification reasonably satisfactory to Landlord from such consultant confirming that no such adverse effects have resulted from such work.

  8.2 Manner of Construction. Landlord may impose, as a condition of its consent to any and all Alterations or repairs of the Premises or about the Premises, such requirements as Landlord in its reasonable discretion may deem desirable, including, but not limited to, the requirement that Tenant utilize for such purposes only contractors, subcontractors, materials, mechanics and materialmen selected by Tenant and approved by Landlord (which approval shall not be unreasonably withheld, conditioned or delayed) and the requirement that upon Landlord’s request at the time Landlord approves said Alterations (subject to the terms of Section 8.5 below), Tenant shall, at Tenant’s expense, remove such Alterations upon the expiration or any early termination of the Lease Term. Tenant shall construct such Alterations and perform such repairs in a good and workmanlike manner, in conformance with any and all Applicable Laws and, where required by Applicable Law, pursuant to a valid building permit, issued by the City, all in conformance with Landlord’s construction rules and regulations. In the event Tenant performs any Alterations in the Premises which require or give rise to governmentally required changes to the “Base Building,” as that term is defined below, then Landlord shall, at Tenant’s expense, make such changes to the Base Building. The “Base Building” shall mean the Building Structure, the Building Systems, including the Building Systems on the floor or floors on which the Premises is located as well as the Common Areas. In performing the work of any such Alterations, Tenant shall have the work performed in such manner so as not to obstruct access to the Project or any portion thereof, by any other tenant of the Project, and so as not to obstruct the business of Landlord or other tenants in the Project. Tenant shall not use (and upon notice from Landlord shall cease using) contractors, services, workmen, labor, materials or equipment that, in Landlord’s reasonable judgment, would disturb labor harmony with the workforce or trades engaged in performing other work, labor or services in or about the Building or the Common Areas. Upon completion of any Alterations (or repairs), Tenant agrees to cause a Notice of Completion to be recorded in the office of the Recorder of the County in which the Project is located in accordance with Section 8182 of the Civil Code of the State of California or any successor statute, and shall deliver to Landlord final lien waivers from all contractors, subcontractors, design professionals, service providers, suppliers and materialmen who performed such work and whose labor, supplies or services give rise to a lien under California law. In addition to Tenant’s obligations under Article 9 of this Lease, upon completion of any Alterations, Tenant shall deliver to the Project management office a reproducible copy of the “as built” drawings of the Alterations in CAD format as well as copies of all permits, approvals and other documents issued by any governmental agency in connection with the Alterations, if applicable.

  8.3 Payment for Improvements. If Tenant orders any work directly from Landlord, Tenant shall pay to Landlord a percentage of the cost thereof sufficient to reimburse Landlord for all overhead, general conditions and other costs or expenses arising from Landlord’s involvement with such repairs and replacements plus a management fee of [***] of such cost. If Tenant does not order any work directly from Landlord, Tenant shall reimburse Landlord for Landlord’s reasonable, actual, out-of-pocket costs and expenses actually incurred in connection with Landlord’s review of any proposed Alterations. If payment is made directly to contractors, Tenant shall, at Tenant’s cost, comply with Landlord’s requirements for final lien releases and waivers in connection with Tenant’s payment for work to contractors. For purposes of determining the cost of an Alteration, work done in phases or stages shall be considered part of the same Alteration, and any Alteration shall be deemed to include all trades and materials involved in accomplishing a particular result. 

  (i)	Construction Insurance. In addition to the requirements of Article 10 of this Lease, in the event that Tenant makes any Alterations, prior to the commencement of such Alterations, Tenant shall provide Landlord with evidence that Tenant or Tenant’s general contractor carries “Builder’s All Risk” insurance in an amount approved by Landlord covering the construction of such Alterations, and such other insurance as Landlord may reasonably require, it being understood and agreed that all of such Alterations shall be insured by Tenant pursuant to Article 10 of this Lease immediately upon completion thereof. In connection with any Alterations, Tenant shall cause any architect and engineer to carry professional liability insurance with limits of not less than $2,000,000 per claim and in the annual aggregate covering professional services performed by the respective party, and such coverage 

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  must be maintained for the greatest period under which a claim may be properly asserted under the applicable statute of limitations or repose. In addition, Tenant’s contractors and subcontractors shall be required to carry Commercial General Liability Insurance in an amount approved by Landlord and otherwise in accordance with the requirements of Article 10 of this Lease and such general liability insurance shall name the Landlord Parties (as defined below) as additional insureds. Landlord may, in its discretion, require Tenant to obtain and record a statutory form of lien bond, or obtain performance and payment bonds, or some alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien-free completion of such Alterations and naming Landlord as a co-obligee, in each case in form and substance reasonably satisfactory to Landlord (to the extent that the cost of the work shall exceed $100,000). In addition, Tenant’s contractors and subcontractors shall be required to carry workers compensation insurance with a waiver of subrogation in favor of Landlord Parties.

  8.4 Landlord’s Property. All Alterations, improvements, fixtures, equipment and/or appurtenances which may be installed or placed in or about the Premises, from time to time, shall be at the sole cost of Tenant and shall be and become the property of Landlord [other than Tenant’s trade fixtures and moveable equipment paid for solely by Tenant and capable of being removed without damage to the Premises (or, if damage is likely to occur, that Tenant will be able to repair and fully restore] and remain in place at the Premises following the expiration or earlier termination of this Lease. Notwithstanding the foregoing to the contrary, if requested by Tenant when procuring Landlord’s consent to any Alterations in accordance with Section 8.1 above, Landlord will, by written notice to Tenant give Tenant notice as to whether Landlord will (or reserves the right to) require Tenant, at Tenant’s expense, to remove any Alterations and/or improvements and/or systems within the Premises (excluding the Tenant Improvements) and to repair any damage to the Premises and Building caused by such removal and return the affected portion of the Premises to a building standard tenant improved condition as determined by Landlord. If Tenant fails to complete any such removal and/or to repair any damage caused by the removal of any Alterations and/or systems and equipment in the Premises and return the affected portion of the Premises to a building standard tenant improved condition as reasonably determined by Landlord, Landlord may do so and may charge the actual and reasonable cost thereof to Tenant. Tenant hereby protects, defends, indemnifies and holds Landlord harmless from any liability, cost, obligation, expense or claim of lien in any manner relating to the installation, placement, removal or financing of any such Alterations, improvements, fixtures and/or equipment in, on or about the Premises (except to the extent resulting from the gross negligence or willful misconduct of Landlord or any of the Landlord Parties), which obligations of Tenant shall survive the expiration or earlier termination of this Lease. Notwithstanding anything to the contrary in this Lease, Tenant shall not be required to remove any of the Tenant Improvements upon the expiration or earlier termination of this Lease.

  9. COVENANT AGAINST LIENS

  Tenant shall keep the Project, the Building and Premises free from any liens or encumbrances arising out of the work performed, materials or services furnished or obligations incurred by or on behalf of Tenant (which expressly excludes the Landlord Work), and shall protect, defend, indemnify and hold Landlord harmless from and against any claims, liabilities, judgments or costs (including, without limitation, reasonable attorneys’ fees and costs) arising out of same or in connection therewith. Tenant shall give Landlord notice at least fifteen (15) days prior to the commencement of any work, services or obligations related to the Premises giving rise to any such liens or encumbrances (or such additional time as may be necessary under Applicable Laws) to afford Landlord the opportunity of posting and recording appropriate notices of non-responsibility (to the extent applicable pursuant to then Applicable Laws). Tenant shall remove any such lien or encumbrance by statutory lien bond or otherwise within ten (10) business days after written notice by Landlord, and if Tenant shall fail to do so, Landlord may pay the amount necessary to remove such lien or encumbrance, without being responsible for investigating the validity thereof. The amount so paid all be deemed Additional Rent under this Lease payable within thirty (30) days after demand, without limitation as to other remedies available to Landlord under this Lease. Nothing contained in this Lease shall authorize Tenant to do any act which shall subject Landlord’s title to the Project, Buildings or Premises to any liens or encumbrances whether claimed by operation of law or express or implied contract.

  10. INSURANCE

  10.1 Indemnification and Waiver. Except to the extent arising from the negligence or willful misconduct of Landlord or any Landlord Parties (defined below) but subject to this Section 10.1, to the maximum extent permitted pursuant to Applicable Laws, Tenant hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises, the Bicycle Storage Area and any of Tenant’s Off-Premises Equipment from any cause whatsoever 

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  (including, but not limited to, any personal injuries resulting from a slip and fall in, upon or about the Premises) and agrees that, to the extent permitted pursuant to Applicable Laws, Landlord, its lenders, partners, subpartners and their respective officers, agents, servants, employees, and independent contractors (collectively, “Landlord Parties”) shall not be liable for, and are hereby released from any responsibility for, any damage either to person or property or resulting from the loss of use thereof, which damage is sustained by Tenant or by other persons claiming through Tenant, except to the extent resulting from the gross negligence or willful misconduct of Landlord or any of the Landlord Parties. Tenant shall indemnify, defend, protect, and hold harmless the Landlord Parties from any and all loss, cost, damage, injury, expense and liability (including without limitation court costs and reasonable attorneys’ fees) during the Lease Term, or any period of Tenant’s occupancy of the Premises prior to the commencement or after the expiration of the Lease Term, incurred in connection with or arising from (i) any cause in, on or about the Premises, the Bicycle Storage Area or Tenant’s Off-Premises Equipment (including, but not limited to, a slip and fall), provided that the terms of the foregoing indemnity shall not apply to the extent of any gross negligence or willful misconduct of Landlord or any of the Landlord Parties, (ii) any negligent acts or omissions of Tenant or of any person claiming by, through or under Tenant, or of the contractors, agents, servants, employees, invitees, guests or licensees of Tenant or any such person, in, on or about the Project (including without limitation on account of Tenant’s use of the Bicycle Storage Area and any of Tenant’s Off-Premises Equipment/Special Systems), or (iii) any breach of the terms of this Lease by Tenant, either prior to, during, or after the expiration of the Lease Term. Should Landlord be named as a defendant in any suit brought against Tenant for which Tenant’s indemnity obligation is applicable, Tenant shall pay to Landlord its reasonable and actual out-of-pocket costs and expenses incurred in such suit, including without limitation, its actual professional fees such as appraisers’, accountants’ and attorneys’ fees. The provisions of this Section 10.1 shall survive the expiration or sooner termination of this Lease. Subject to this Section 10.1, Landlord hereby indemnifies and agrees to defend, save and hold Tenant and its partners, subpartners and their respective officers, agents, servants, employees, and independent contractors harmless from and against any and all claims for injury or death to persons or damage to property to the extent resulting from the negligent acts or omissions of Landlord or any Landlord Parties. Should Tenant be named as a defendant in any suit brought against Landlord for which Landlord’s indemnity obligation is applicable, Landlord shall pay to Tenant its reasonable and actual out-of-pocket costs and expenses incurred in such suit, including without limitation, its actual professional fees such as appraisers’, accountants’ and attorneys’ fees. Notwithstanding anything to the contrary set forth in this Lease, either party’s agreement to indemnify the other party as set forth in this Section 10.1 shall be ineffective to the extent the matters for which the indemnitor agreed to indemnify the indemnitee are covered by insurance required to be carried by the indemnitee pursuant to this Lease (or would have been covered had the indemnitee carried the insurance required). Further, Tenant’s agreement to indemnify Landlord and Landlord’s agreement to indemnify Tenant pursuant to this Section 10.1 are not intended to and shall not relieve any insurance carrier of its obligations under policies required to be carried pursuant to the provisions of this Lease, to the extent such policies cover, or if carried, would have covered the matters, subject to the parties’ respective indemnification obligations; nor shall they supersede any inconsistent agreement of the parties set forth in any other provision of this Lease. The provisions of this Section 10.1 shall survive the expiration or sooner termination of this Lease with respect to any claims or liability arising in connection with any event occurring prior to such expiration or termination.

  10.2 Tenant’s Compliance With Landlord’s Property Insurance. Tenant shall, at Tenant’s expense, comply with all insurance company requirements pertaining to the use of the Premises. If Tenant’s conduct or use of the Premises for any purpose other than the Permitted Use causes any increase in the premium for such insurance policies then Tenant shall reimburse Landlord for any such increase. Tenant, at Tenant’s expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National Board of Fire Underwriters) and with any similar body.

  10.3 Tenant’s Insurance. Tenant shall maintain the following coverages in the following amounts:

  10.3.1 Commercial General Liability Insurance on an ISO CG 00 01 occurrence form covering the insured against claims of bodily injury, personal and advertising injury and property damage (including loss of use thereof) arising out of Tenant’s operations, products/completed operations, and contractual liability including a Broad Form endorsement covering the insuring provisions of this Lease and the performance by Tenant of the indemnity agreements set forth in Section 10.1 of this Lease (including products and completed operations coverage) for limits of liability of not less than those set forth below, which may be accomplished by any combination of primary and excess layers, provided the umbrella sits excess to the underlying commercial generally liability, automobile liability, and employer’s liability insurance. Such insurance shall be written on an “occurrence” basis. Landlord and any other 

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  party the Landlord so specifies that has a material financial interest in the Project, including Landlord’s managing agent, ground lessor and/or lender, if any, shall be named as additional insureds as their interests may appear using Insurance Service Organization’s form CG2011 or a comparable form approved by Landlord. The coverage shall also be extended to include damage caused by heat, smoke or fumes from a hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations. Limits of liability insurance shall not be less than the following (provided, however, such limits may be achieved through the use of an umbrella/excess policy):

   

  		
	Bodily Injury and
Property Damage Liability
	$11,000,000 each occurrence
$11,000,000 annual aggregate

	Personal Injury and Advertising Liability
	$11,000,000 each occurrence
$11,000,000 annual aggregate 0% Insured’s participation

	Tenant Legal Liability/Damage to Rented
Premises Liability
	$10,000,000

   

  10.3.2 Property Insurance covering (i) all office furniture, business and trade fixtures, office equipment, free-standing cabinet work, movable partitions, merchandise and all other items of Tenant’s property on the Premises installed by, for, or at the expense of Tenant, and (ii) the Tenant Improvements described in Exhibit 1.1.1-2 and any other tenant improvements that exist in the Premises (excluding the Base Building) as of the Lease Commencement Date (the “Original Improvements”). Such insurance shall be written on a Special Form basis, for the full replacement cost value (subject to reasonable deductible amounts) new, without deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include coverage for (a) all perils included in the CP 10 30 04 02 Coverage Special Form, (b) water damage from any cause whatsoever, including, but not limited to, sprinkler leakage, bursting, leaking or stoppage of any pipes, explosion, and backup or overflow from sewers or drains, (c) terrorism (to the extent such terrorism insurance is available as a result of the Terrorism Risk Insurance Act of 2002 (Pub. L. 107-297, 116 Stat. 2322), the Terrorism Risk Insurance Program Reauthorization Act of 2005 (Pub. l. 109-144), and the Terrorism Risk Insurance Program Reauthorization Act of 2007 (Pub. L. 110-160, 121 Stat. 183), any successor statute or regulation, or is otherwise available at commercially reasonable rates) and (d) earthquake insurance. Such insurance shall be written on an “all risks” of physical loss or damage basis, for the full replacement cost value (subject to reasonable deductible amounts) new without deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include coverage for damage or other loss caused by fire or other peril including, but not limited to, vandalism and malicious mischief, theft, water damage of any type, including sprinkler leakage, bursting or stoppage of pipes, and explosion. Notwithstanding the foregoing, Tenant may elect to self-insure terrorism and earthquake insurance required in this Section 10.3.1 and self-insurance shall not reduce the coverage amounts required to be maintained by Tenant hereunder and any self-insured amount shall be deemed to contain all of the terms and conditions applicable to the insurance required in this Lease, including, without limitation, full waiver of subrogation in favor of Landlord.

  10.3.3 Business Income Interruption for one (1) year plus Extra Expense insurance in such amounts as will reimburse Tenant for actual direct or indirect loss of earnings and continuing expenses, including rent, attributable to the risks outlined in Section 10.3.2 above with a three hundred and sixty-five (365) day extended period of indemnity.

  10.3.4 Worker’s Compensation and Employer’s Liability with limits not less than $1,000,000 each accident; $1,000,000 disease – each employee; and $1,000,000 disease policy limit with minimum limits of not less than $1,000,000 each accident/employee/disease or other similar insurance pursuant to all applicable state and local statutes and regulations. The policy will include a waiver of subrogation in favor of the Landlord Parties.

  10.3.5 Environmental/Pollution Liability Insurance. Tenant shall procure and maintain during the Lease Term and for no fewer than three (3) years thereafter, a stand-alone (covering pollution conditions at and migrating from the Project and/or the Project) pollution legal liability insurance policy covering all environmental risks of Tenant’s business for claims relating to clean-up, bodily injury, and property damage, with limits of not less than Ten Million Dollars ($10,000,000.00) per claim and Ten Million Dollars ($10,000,000.00) in the aggregate, with 

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  respect to environmental contamination and pollution caused or made worse by Tenant. Such coverage shall have no exclusions for medical, special or biohazardous waste, mold, microbial matter, bacteria, viruses, fungi, infectious disease, or for any materials, solutions, solid, liquid or gas and/or particles expected to be handled and/or generated by Tenant Parties in the course of Tenant’s operations and occupancy of the Premises. Such policy shall include (i) full terrorism coverage (whether considered certified or non-certified acts), (ii) coverage for any underground storage tanks and/or above-ground storage tanks, where applicable, and (iii) coverage for radioactive materials if such materials are part of Tenant’s operations; and (iv) that this Lease and the indemnification requirements herein are included and scheduled as a lease contract on the pollution legal liability policy. In the event of any environmental/pollution condition arising from Tenant’s occupancy or operations at the Premises, Tenant shall immediately notify Landlord. Tenant’s environmental/pollution liability insurance shall be maintained for a period not less than ten (10) years after expiration of this Agreement or such greater time provided by the statute of limitation and/or repose.

  10.3.6 Commercial automobile liability insurance covering all Owned (if any), Hired, or Non- owned vehicles with limits not less than $1,000,000 combined single limit for bodily injury and property damage.

  10.3.7 Intentionally Omitted.

  10.3.8 Contractor and Vendor Insurance. In addition to the insurance Tenant is required to maintain under this Lease, if Tenant hires or brings a contractor or vendor onto the Premises or Building to perform or provide any services or products, Tenant shall have a written agreement with vendor whereby vendor will be required to carry Commercial General Liability insurance (subject to minimum limits of $1,000,000 per occurrence, $2,000,000 in the general aggregate), $2,000,000 products completed operations, and the same insurance coverages required of Tenant herein for Auto (if applicable) and Worker’s Compensation and Employer’s Liability insurance; provided, however, Landlord reserves the right to require greater coverage limitations for contractors pursuant to Section 8.4 above. Tenant shall cause written agreement to require each vendor to provide true and complete copies of all insurance policies and endorsements to Tenant promptly after Tenant’s request, and Tenant shall deliver the same to Landlord prior to entry onto the Premises by such vendors. Tenant shall also require that such vendors’ insurance will meet same additional terms as required of Tenant herein with regards to adding Additional Insureds as additional insureds.

  Landlord makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Tenant’s property, business operations or obligations under this Lease.

  10.4 Form of Policies. The minimum limits of policies of insurance required of Tenant under this Lease shall in no event limit the liability of Tenant under this Lease. Landlord, its subsidiaries and affiliates, Landlord’s property and/or development manager and any other party Landlord so specifies, shall be named as an additional insured under the policies listed in Sections 10.3.1, 10.3.2 and 10.3.3 using Insurance Service Organization’s form CG2011 or a comparable form approved by Landlord. All insurance policies required to be maintained by Tenant shall (i) cover the liability assumed by Tenant under this Lease, including, but not limited to, Tenant’s obligations under Section 10.1 of this Lease; (ii) be issued by an insurance company having a rating of not less than A:VIII in Best’s Insurance Guide or which is otherwise acceptable to Landlord and licensed to do business in the State of California; (iii) be primary insurance as to all claims thereunder and provide that any insurance carried by Landlord is excess and is non-contributing with any insurance required of Tenant; (iv) be in form and content reasonably acceptable to Landlord (Tenant shall provide full and complete copies of any policies that Landlord reasonably requests); and (v) provide that said insurer shall endeavor to provide written notice to Landlord and any mortgagee of Landlord, to the extent such names are furnished to Tenant prior to the cancellation of such policy. Tenant shall deliver said policy or policies or certificates thereof to Landlord on or before the earlier to occur of (A) the Lease Commencement Date, and (B) the date upon which Tenant is first provided access to the Premises, and at least ten (10) days before the expiration dates thereof. In the event Tenant shall fail to procure such insurance, or to deliver such policies or certificate within ten (10) days after written notice from Landlord, Landlord may, at its option, procure such policies for the account of Tenant, and the cost thereof shall be paid to Landlord within five (5) days after delivery to Tenant of bills therefor.

  10.5 Subrogation. Landlord and Tenant intend that their respective property loss risks shall be borne by reasonable insurance carriers to the extent above provided, and Landlord and Tenant hereby agree to look solely to, and seek recovery only from, their respective insurance carriers in the event of a property loss to the extent that such coverage is agreed to be provided hereunder. The parties each hereby waive all rights and claims against each other for such losses and waive all rights of subrogation of their respective insurers, provided such waiver of subrogation 

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  shall not affect the right of the insured to recover thereunder. The parties agree that their respective insurance policies specify now or shall specify that the waiver of subrogation shall not affect the right of the insured to recover thereunder. Tenant will cause all subtenants and licensees of the Premises claiming by, under, or through Tenant to execute and deliver to Landlord a waiver of claims similar to the waiver in this Section 10.5 and to obtain such waiver of subrogation rights endorsements. If either party hereto fails to maintain the waivers set forth in items (i) and (ii) above, the party not maintaining the requisite waivers shall indemnify, defend, protect, and hold harmless the other party for, from and against any and all Losses arising out of, resulting from, or relating to, such failure.

  10.6 Additional Insurance Obligations. Tenant shall carry and maintain during the entire Lease Term, at Tenant’s sole cost and expense, increased amounts of insurance and such additional coverages as Landlord may reasonably require; provided, however, that (a) in no event shall such new or increased amounts or types of insurance exceed that required of comparable tenants by landlords of the Comparable Buildings and (b) Landlord shall not have the right to require that Tenant adjust its insurance coverage more than once in any twenty-four (24) month period, and not during the initial twenty-four (24) months of the Lease Term.

  10.7 Landlord’s Fire and Casualty Insurance. Landlord shall insure the Buildings during the Lease Term against loss or damage due to fire and other casualties covered within the classification of fire and extended coverage, vandalism coverage and malicious mischief, sprinkler leakage, water damage and special extended coverage. Such coverage shall be in such amounts, from such companies, and on such other terms and conditions, as Landlord may from time to time reasonably determine. Landlord shall also carry rental loss insurance. Additionally, at the option of Landlord, such insurance coverage may include the risks of earthquakes and/or flood damage and additional hazards, a rental loss endorsement and one or more loss payee endorsements in favor of the holders of any mortgages or deeds of trust encumbering the interest of Landlord in the Project or the ground or underlying lessors of the Project, or any portion thereof. Notwithstanding the foregoing provisions of this Section 10.7, the coverage and amounts of insurance carried by Landlord in connection with the Buildings shall, at a minimum, be comparable to the coverage and amounts of insurance which are carried by reasonably prudent landlords of Comparable Buildings (provided that in no event shall Landlord be required to carry earthquake insurance). Tenant shall, at Tenant’s expense, promptly following notice, comply with all insurance company requirements pertaining to the use of the Premises. If Tenant’s conduct or use of the Premises causes any increase in the premium for such insurance policies then Tenant shall reimburse Landlord for any such increase. Tenant, at Tenant’s expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National Board of Fire Underwriters) and with any similar body.

  11. DAMAGE AND DESTRUCTION

  11.1 Repair of Damage to Premises by Landlord. Tenant shall promptly notify Landlord of any damage to the Premises resulting from fire or any other casualty. If the Premises or any Common Areas serving or providing access to the Premises shall be damaged by fire or other casualty, Landlord will, as soon as reasonably possible following the date of the damage, deliver to Tenant an estimate of the time necessary to repair the damage in question such that the Premises may be used by and accessible to Tenant and the Buildings and Common Areas operable in a manner consistent with the operation prior to such damage; such notice will be based upon the review and opinions of Landlord’s architect and contractor (“Landlord’s Completion Notice”). Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters beyond Landlord’s reasonable control, and subject to all other terms of this Article 11, restore such Common Areas and the Premises to substantially the same condition as existed prior to the casualty, except for modifications required by zoning and building codes and other laws or by the holder of a mortgage on the Building or Project or any other modifications to the Common Areas deemed desirable by Landlord, which are consistent with the character of the Project, provided that access to the Premises shall not be materially impaired. Upon the occurrence of any damage to the Premises, upon notice (the “Landlord Repair Notice”) to Tenant from Landlord delivered on or before the date that is ninety (90) days after the date of the damage, Tenant shall assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant under Tenant’s insurance required under Section 10.3.2(ii) of this Lease, and Landlord shall repair any injury or damage to the Improvements and the Original Improvements and shall return such Improvements and Original Improvements to their original condition (any such work will be competitively bid by Landlord to ensure that Landlord receives commercially reasonable pricing for the performance of such work so that, to the extent reasonably possible, the cost of such work does not unnecessarily exceed the proceeds of Tenant’s insurance); provided that if the cost of such repair by Landlord exceeds the amount of insurance proceeds received by Landlord from Tenant’s insurance carrier, as assigned by Tenant, the portion of the cost of such repairs which is not so covered by Tenant’s 

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  insurance proceeds shall be paid by Tenant to Landlord prior to Landlord’s commencement of repair of the damage. In the event that Landlord does not deliver the Landlord Repair Notice within ninety (90) days following the date the casualty becomes known to Landlord, Tenant shall, at its sole cost and expense, repair any injury or damage to the Improvements and the Original Improvements installed in the Premises and shall return such Improvements and Original Improvements to their original condition, or an alternate condition described by Tenant (but subject to Landlord’s prior written approval). Whether or not Landlord delivers a Landlord Repair Notice, prior to the commencement of construction, Tenant shall submit to Landlord, for Landlord’s review and approval, all plans, specifications and working drawings relating thereto (it being acknowledged that the cost to prepare such plans may be paid for out of the applicable insurance proceeds received by Tenant), and Landlord shall select the contractors to perform such improvement work. Landlord shall not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant’s business resulting in any way from such damage or the repair thereof; provided however, that if such fire or other casualty shall have damaged the Premises or Common Areas necessary to Tenant’s occupancy, and the Premises are not occupied by Tenant as a result thereof, then during the time and to the extent the Premises are unfit for occupancy, the Rent shall be abated in proportion to the ratio that the amount of rentable square feet of the Premises which is unfit for occupancy for the Permitted Use bears to the total rentable square feet of the Premises; provided, further, however, that if the damage or destruction is due to the negligence or willful misconduct of Tenant or any of its agents, employees, contractors, invitees or guests, Tenant shall be responsible for any reasonable, applicable insurance deductible (which shall be payable to Landlord upon demand, not to materially exceed the levels of deductibles for such insurance then maintained by owners of Comparable Buildings). In the event that Landlord shall not deliver the Landlord Repair Notice, Tenant’s right to rent abatement pursuant to the preceding sentence shall terminate as of the date which is reasonably determined by Landlord to be the date Tenant should have completed repairs to the Premises assuming Tenant used reasonable due diligence in connection therewith.

  11.2 Landlord’s Option to Repair. Notwithstanding the terms of Section 11.1 of this Lease, Landlord may elect not to rebuild and/or restore the Premises, Building and/or Project, and instead terminate this Lease, by notifying Tenant in writing of such termination within ninety (90) days after the date of discovery of the damage, such notice to include a termination date giving Tenant ninety (90) days to vacate the Premises, but Landlord may so elect only if the Building or Project shall be damaged by fire or other casualty or cause, whether or not the Premises are affected, and one or more of the following conditions is present: (i) in Landlord’s reasonable judgment, repairs cannot reasonably be completed within eighteen (18) months after the date of discovery of the damage (when such repairs are made without the payment of overtime or other premiums); (ii) the holder of any mortgage on the Building or Project or ground lessor with respect to the Building or Project shall require that the insurance proceeds or any portion thereof be used to retire the mortgage debt, or shall terminate the ground lease, as the case may be; (iii) more than One Million Dollars ($1,000,000.00) of the cost of repair of such damage is not fully covered by Landlord’s insurance policies (unless such shortfall is a result of Landlord’s failure to maintain the insurance that Landlord is required to maintain pursuant to Section 10.7 below); (iv) Landlord decides to rebuild the Building or Common Areas so that they will be substantially different structurally or architecturally; (v) the damage occurs during the last twelve (12) months of the Lease Term; provided, however, that if such fire or other casualty shall have damaged the Premises or a portion thereof or Common Areas necessary to Tenant’s occupancy and as a result of such damage the Premises is unfit for occupancy, and provided that Landlord does not elect to terminate this Lease pursuant to Landlord’s termination right as provided above, and either (a) the repairs cannot, in the reasonable opinion of Landlord’s contractor, as set forth in Landlord’s Completion Notice, be completed within eighteen (18) months after being commenced, or (b) the damage occurs during the last twelve (12) months of the Lease Term and will reasonably require in excess of ninety (90) days to repair, Tenant may elect, no earlier than sixty (60) days after Tenant’s receipt of the Landlord’s Completion Notice and not later than ninety (90) days after the date of Tenant’s receipt of the Landlord’s Completion Notice, to terminate this Lease by written notice to Landlord effective as of the date specified in the notice, which date shall not be less than thirty (30) days nor more than sixty (60) days after the date such notice is given by Tenant. In addition, if such restoration is not substantially complete on or before the later of (i) the date that occurs eighteen (18) months after the date of discovery of the damage, and (ii) the date that occurs ninety (90) days after the expiration of the estimated period of time to substantially complete such restoration, as set forth in Landlord’s Completion Notice (the “Outside Restoration Date”), then Tenant shall have the additional right during the first ten (10) business days of each calendar month following the Outside Restoration Date until such repairs are complete, to terminate this Lease by delivery of written notice to Landlord (the “Damage Termination Notice”), which termination shall be effective on a date specified by Tenant in such Damage Termination Notice (the “Damage Termination Date”), which Damage Termination Date shall not be less than ten (10) business days, nor greater than thirty (30) days, following the date such Damage Termination Notice was delivered to Landlord. In the event this Lease is terminated in accordance with 

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  the terms of this Section 11.2, Tenant shall assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant under Tenant’s insurance required under subsections (ii) and (iii) of Section 10.3.2 of this Lease.

  11.3 Waiver of Statutory Provisions. The provisions of this Lease, including this Article 11, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, the Building or the Project, and any statute or regulation of the State of California, including, without limitation, Sections 1932(2) and 1933(4) of the California Civil Code, with respect to any rights or obligations concerning damage or destruction in the absence of an express agreement between the parties, and any other statute or regulation, now or hereafter in effect, shall have no application to this Lease or any damage or destruction to all or any part of the Premises, the Building or the Project.

  12. NONWAIVER

  No provision of this Lease shall be deemed waived by either party hereto unless expressly waived in a writing signed thereby. The waiver by either party hereto of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of same or any other term, covenant or condition herein contained. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such Rent. No acceptance of a lesser amount than the Rent herein stipulated shall be deemed a waiver of Landlord’s right to receive the full amount due, nor shall any endorsement or statement on any check or payment or any letter accompanying such check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the full amount due. No receipt of monies by Landlord from Tenant after the termination of this Lease shall in any way alter the length of the Lease Term or of Tenant’s right of possession hereunder, or after the giving of any notice shall reinstate, continue or extend the Lease Term or affect any notice given Tenant prior to the receipt of such monies, it being agreed that after the service of notice or the commencement of a suit, or after final judgment for possession of the Premises, Landlord may receive and collect any Rent due, and the payment of said Rent shall not waive or affect said notice, suit or judgment. No payment of Rent by Tenant after a breach by Landlord shall be deemed a waiver of any breach by Landlord.

  13. CONDEMNATION

  If the whole or substantially all of the Premises, Building or Project shall be taken by power of eminent domain or condemned by any competent authority for any public or quasi-public use or purpose, or if all reasonable access to the Building is so taken or condemned, or if Landlord shall grant a deed or other instrument in lieu of such taking by eminent domain or condemnation, Landlord shall have the option to terminate this Lease effective as of the date possession is required to be surrendered to the authority; provided, however, that Landlord shall only have the right to terminate this Lease as provided above if Landlord terminates the leases of all other tenants in the Building, if any, similarly affected by the taking and provided further that to the extent that the Premises is not adversely affected by such taking and Landlord continues to operate the Building as office building and/or life sciences building, Landlord may not terminate this Lease. If more than twenty-five percent (25%) of the rentable square feet of the Premises is taken, or if access to the Premises is substantially impaired, in each case for a period in excess of one hundred eighty (180) days, Tenant shall have the option to terminate this Lease effective as of the date possession is required to be surrendered to the authority. Tenant shall not because of such taking assert any claim against Landlord or the authority for any compensation because of such taking and Landlord shall be entitled to the entire award or payment in connection therewith, except that Tenant shall have the right to file any separate claim available to Tenant for any taking of Tenant’s personal property and fixtures belonging to Tenant and removable by Tenant upon expiration of the Lease Term pursuant to the terms of this Lease, and for moving expenses, so long as such claims do not diminish the award available to Landlord, its ground lessor with respect to the Building or Project or its mortgagee, and such claim is payable separately to Tenant. All Rent shall be apportioned as of the date of such termination. If any part of the Premises shall be taken, and this Lease shall not be so terminated, the Rent shall be proportionately abated. Notwithstanding anything to the contrary contained in this Article 13, in the event of a temporary taking of all or any portion of the Premises for a period of twelve (12) months or less, and provided that such temporary taking does not materially preclude or unreasonably diminish Tenant’s ability to conduct business from the Premises, then this Lease shall not terminate but the Base Rent and Tenant’s Share of Direct Expenses shall be abated for the period of such taking in proportion to the ratio that the amount of rentable square feet of the Premises taken bears to the total rentable 

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  square feet of the Premises. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of The California Code of Civil Procedure. Landlord shall be entitled to receive the entire award made in connection with any such temporary taking, provided, however, that Tenant shall be entitled to a share of the award for any loss of fixtures and improvements and for moving and other reasonable expenses that do not otherwise reduce Landlord’s recovery. If this Lease does not terminate on account of any such eminent domain or condemnation proceeding, then Landlord shall, to the extent practicable, restore the affected area of the Premises, Building or Project. In no event shall Landlord have any obligation to undertake restoration on account of any condemnation or eminent domain proceeding except to the extent of the award actually received by Landlord. Notwithstanding anything to the contrary contained in this Article 13, in the event of a temporary taking of all or any portion of the Premises for a period of twelve (12) months or less, then this Lease shall not terminate but the Base Rent and the Additional Rent shall be abated for the period of such taking in proportion to the ratio that the amount of rentable square feet of the Premises taken bears to the total rentable square feet of the Premises. Landlord shall be entitled to receive the entire award made in connection with any such temporary taking.

  14. ASSIGNMENT AND SUBLETTING

  14.1 Transfers. Tenant shall not, without the prior written consent of Landlord (except in connection with a Permitted Transfer [as that term is defined in Section 14.8 below]), assign, mortgage, pledge, hypothecate, encumber, or permit any lien to attach to, or otherwise transfer, this Lease or any interest hereunder, permit any assignment, or other transfer of this Lease or any interest hereunder by operation of law, sublet the Premises or any part thereof, or enter into any license or concession agreements or otherwise permit the occupancy or use of the Premises or any part thereof by any persons other than Tenant and its employees and contractors (all of the foregoing are hereinafter sometimes referred to collectively as “Transfers” and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a “Transferee”). If Tenant desires Landlord’s consent to any Transfer, Tenant shall notify Landlord in writing, which notice (the “Transfer Notice”) shall include (i) the proposed effective date of the Transfer, which shall not be less than fifteen (15) days nor more than two hundred seventy (270) days after the date of delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the “Subject Space”), (iii) all of the terms of the proposed Transfer and the consideration therefor, including calculation of the “Transfer Premium”, as that term is defined in Section 14.3 below, in connection with such Transfer, the name and address of the proposed Transferee, and a copy of all existing executed and/or proposed documentation pertaining to the proposed Transfer, (iv) current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, business credit and personal references and history of the proposed Transferee, (v) any other information reasonably required by Landlord which will enable Landlord to determine the financial responsibility, character, and reputation of the proposed Transferee, nature of such Transferee’s business and proposed use of the Subject Space, which information is requested within five (5) business days following Tenant’s submission to Landlord of the items described in clauses (i), (ii), (iii), (iv) and (vi) of this Section 14.1, and (vi) an executed estoppel certificate from Tenant in the form attached hereto as Exhibit 17. Any Transfer made without Landlord’s prior written consent shall, at Landlord’s option, be null, void and of no effect, and shall, at Landlord’s option, constitute a default by Tenant under this Lease. Whether or not Landlord consents to any proposed Transfer, Tenant shall pay Landlord’s reasonable review and processing fees, as well as any reasonable professional fees (including, without limitation, attorneys’, accountants’, architects’, engineers’ and consultants’ fees) incurred by Landlord, not to exceed $5,000 in total, within thirty (30) days after written request by Landlord.

  14.2 Landlord’s Consent. Landlord shall not unreasonably withhold, condition or delay its consent to any proposed sublet of the Subject Space or assignment of this Lease on the terms specified in the Transfer Notice and shall grant or withhold such consent within fifteen (15) days following the date upon which Landlord receives a “complete” Transfer Notice from Tenant (i.e., a Transfer Notice that includes all documents and information required pursuant to Section 14.1 of this Lease). ). If Landlord fails to respond within such fifteen (15) day period, Tenant may send a written “reminder notice”. If Landlord fails to respond to such request within five (5) Business Days after delivery of the “reminder notice”, then such nonresponse shall be deemed Landlord’s approval of such Transfer request. Without limitation as to other reasonable grounds for withholding consent, the parties hereby agree that it shall be reasonable under this Lease and under any Applicable Law for Landlord to withhold consent to any proposed sublet or assignment where one or more of the following apply:

  14.2.1 The Transferee is, in Landlord’s commercially reasonable business judgment, of a character or reputation or engaged in a business which is not consistent with the quality of the Building or the Project;

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  14.2.2 The Transferee intends to use the Subject Space for purposes which are not permitted under this Lease;

  14.2.3 The Transferee is either a governmental agency or instrumentality thereof;

  14.2.4 The Transferee is a Tax-Exempt Entity (as defined in Exhibit 4.4.3 attached hereto), unless such Transferee, at no cost to Landlord, complies with and satisfies all of the applicable Mission Bay Requirements relating to a Transfer to a Tax-Exempt Entity as set forth in Exhibit 4.4.3 attached hereto, to the extent that Landlord continues to be subject to such requirements at the time of such Transfer;

  14.2.5 The Transferee is not, in Landlord’s commercially reasonable business judgment, a party of reasonable financial worth and/or financial stability in light of the responsibilities to be undertaken in connection with the Transfer on the date consent is requested;

  14.2.6 The proposed Transfer would cause a violation of another lease for space in the Project, or would give an occupant of the Project a right to cancel its lease; or

  14.2.7 Either the proposed Transferee, or any person or entity which directly or indirectly, controls, is controlled by, or is under common control with, the proposed Transferee, is actively negotiating with Landlord or has negotiated with Landlord during the four (4) month period immediately preceding the date Landlord receives the Transfer Notice, to lease space in the Project and there is space in the Project then available, or will be available timely, for such Transferee within the Project.

  14.2.8 In Landlord’s reasonable determination, the sub-rent, additional rent or other amounts received or accrued by Tenant from subleasing, assigning or otherwise Transferring all or any portion of the Premises is based on the income or profits of any person, or the assignment or sublease could cause any portion of the amounts received by Landlord pursuant to this Lease to fail to qualify as “rents from real property” within the meaning of section 856(d) of the Internal Revenue Code of 1986, as amended (the “Code”), or any similar or successor provision thereto or which would cause any other income of Landlord to fail to qualify as income described in section 856(c)(2) of the Code.

  If Landlord consents to any Transfer pursuant to the terms of this Section 14.2 (and does not exercise any recapture rights Landlord may have under Section 14.4 of this Lease), Tenant may within six (6) months after Landlord’s consent, but not later than the expiration of said six-month period, enter into such Transfer of the Premises or portion thereof, upon substantially the same terms and conditions as are set forth in the Transfer Notice furnished by Tenant to Landlord pursuant to Section 14.1 of this Lease, provided that if there are any changes in the terms and conditions from those specified in the Transfer Notice (i) such that Landlord would initially have been entitled to refuse its consent to such Transfer under this Section 14.2, Tenant shall again submit the Transfer to Landlord for its approval and other action under this Article 14 (including Landlord’s right of recapture, if any, under Section 14.4 of this Lease). Notwithstanding anything to the contrary in this Lease, if Tenant or any proposed Transferee claims that Landlord has withheld or delayed its consent in violation of this Section 14.2 or otherwise has breached its obligations under this Article 14, their sole remedies shall be a suit for contract damages (other than damages for injury to, or interference with, Tenant’s business including, without limitation, loss of profits, however occurring) or declaratory judgment and an injunction for the relief sought without any monetary damages, and Tenant hereby waives the provisions of Section 1995.310 of the California Civil Code, or any successor statute, and all other remedies, including, without limitation, any right at law or equity to terminate this Lease, on its own behalf and, to the extent permitted under all Applicable Laws, on behalf of the proposed Transferee. Tenant shall indemnify, defend and hold harmless Landlord from any and all Losses, causes of action and proceedings involving any third party or parties (including without limitation Tenant’s proposed subtenant or assignee) who claim they were damaged by Landlord’s wrongful withholding or conditioning of Landlord’s consent.

  14.3 Transfer Premium. If Landlord consents to a Transfer constituting an assignment of the Lease or a sublease of the Premises, as a condition thereto which the parties hereby agree is reasonable, Tenant shall pay to Landlord fifty percent (50%) of any “Transfer Premium”, as that term is defined in this Section 14.3, received by Tenant from such Transferee (other than any Permitted Transferee). “Transfer Premium” shall mean all rent, additional rent or other consideration received by such Transferee in connection with the Transfer in excess of the Rent and Additional Rent payable by Tenant under this Lease during the term of the Transfer on a per rentable square 

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  foot basis if less than all of the Premises is transferred, after deducting the reasonable third party expenses incurred by Tenant for (i) any design and construction costs incurred on account of changes, alterations and improvements to the Premises in connection with the Transfer, (ii) any free base rent and tenant improvement allowances reasonably provided to the Transferee in connection with the Transfer (provided that such free rent and tenant improvement allowances shall be deducted only to the extent the same is included in the calculation of total consideration payable by such Transferee), (iii) any brokerage commissions and marketing costs in connection with the Transfer, and (iv) legal fees and disbursements reasonably incurred in connection with the Transfer (collectively, “Tenant’s Subleasing Costs”). “Transfer Premium” shall also include, but not be limited to, any lump sum payment, key money, bonus money or other cash consideration paid by Transferee to Tenant in connection with such Transfer, and any payment in excess of fair market value for services rendered by Tenant to Transferee or for assets, fixtures, inventory, equipment, or furniture (other than Tenant Improvements and Alterations) transferred by Tenant to Transferee in connection with such Transfer. For purposes of calculating any such effective rent all such concessions shall be amortized on a straight-line basis over the relevant term. The determination of the amount of Landlord’s applicable share of the Transfer Premium shall be made on a monthly basis as rent or other consideration is received by Tenant under the Transfer. No Transfer Premium shall be payable in connection with any Permitted Transfer.

  14.4 Landlord’s Option as to Subject Space. Notwithstanding anything to the contrary contained in this Article 14, in the event Tenant contemplates a Transfer involving either (1) more than two (2) full floors of the Premises for a term that is either (i) more than five (5) years, or (ii) extends into any portion of the final three (3) years of the Lease Term, or (2) at least one (1) full floor at any time within the final three (3) years of the Lease Term, Tenant shall give Landlord notice (the “Intention to Transfer Notice”) of such contemplated Transfer (whether or not the contemplated Transferee or the terms of such contemplated Transfer have been determined). The Intention to Transfer Notice shall specify the portion of and amount of rentable square feet of the Premises which Tenant intends to Transfer (the “Contemplated Transfer Space”), the contemplated date of commencement of the Contemplated Transfer (the “Contemplated Effective Date”), and the contemplated length of the term of such contemplated Transfer, and shall specify that such Intention to Transfer Notice is delivered to Landlord pursuant to this Section 14.4 in order to allow Landlord to elect to recapture the Contemplated Transfer Space. Thereafter, Landlord shall have the option, by giving written notice to Tenant (a “Recapture Notice”) within thirty (30) days after receipt of any Intention to Transfer Notice, to recapture the Contemplated Transfer Space. Such recapture shall cancel and terminate this Lease with respect to such Contemplated Transfer Space as of the Contemplated Effective Date. In the event of a recapture by Landlord, if this Lease shall be canceled with respect to less than the entire Premises, the Rent reserved herein shall be prorated on the basis of the number of rentable square feet retained by Tenant in proportion to the number of rentable square feet contained in the Premises, and this Lease as so amended shall continue thereafter in full force and effect, and upon request of either party, the parties shall execute written confirmation of the same. If Landlord declines, or fails to elect in a timely manner to recapture the Contemplated Transfer Space under this Section 14.4, then, subject to the other terms of this Article 14, for a period of six (6) months (the “Six-Month Period”) commencing on the last day of such thirty (30) day period, Landlord shall not have any right to recapture the Contemplated Transfer Space with respect to any Transfer made during the Six Month Period, provided that any such Transfer is substantially on the terms set forth in the Intention to Transfer Notice, and provided further that any such Transfer shall be subject to the remaining terms of this Article 14. If such a Transfer is not so consummated within the Six-Month Period (or if a Transfer is so consummated, then upon the expiration of the term of any Transfer of such Contemplated Transfer Space consummated within such Six-Month Period), Tenant shall again be required to submit a new Intention to Transfer Notice to Landlord with respect any contemplated Transfer of the Contemplated Transfer Space, as provided above in this Section 14.4. Notwithstanding the foregoing to the contrary, Tenant may, within ten (10) days following receipt of any Recapture Notice, rescind the Intention to Transfer Notice (and thereby negate the recapture of the Contemplated Transfer Space) to which it applies provided that Tenant does not proceed with the contemplated Transfer giving rise to the applicable Intention to Transfer Notice.

  14.5 Effect of Transfer. If Landlord consents to a Transfer, (i) the terms and conditions of this Lease shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed consent to any further Transfer by either Tenant or a Transferee, (iii) Tenant shall deliver to Landlord, promptly after execution, an original executed copy of all documentation pertaining to the Transfer in form reasonably acceptable to Landlord, (iv) Tenant shall furnish upon Landlord’s request a complete statement, certified by an independent certified public accountant, or Tenant’s chief financial officer, setting forth in detail the computation of any Transfer Premium Tenant has derived and shall derive from such Transfer, and (v) no Transfer relating to this Lease or agreement entered into with respect thereto, whether with or without Landlord’s consent, shall relieve Tenant or any guarantor of the Lease from any 

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  liability under this Lease, including, without limitation, in connection with the Subject Space. Landlord or its authorized representatives shall have the right at all reasonable times and upon reasonable prior notice to audit the books, records and papers of Tenant relating to any Transfer at Tenant’s office, and shall have the right to make copies thereof. If the Transfer Premium respecting any Transfer shall be found understated, Tenant shall, within thirty (30) days after demand, pay the deficiency, and if understated by more than two percent (2%), Tenant shall pay Landlord’s costs of such audit.

  14.6 Sublease/Transfer Restrictions. Notwithstanding anything contained herein to the contrary and without limiting the generality of Section 14.1 above, Tenant shall not: (a) sublet all or part of the Premises or assign or otherwise Transfer this Lease on any basis such that the rental or other amounts to be paid by the subtenant or assignee thereunder would be based, in whole or in part, on the income or profits derived by the business activities of the subtenant or assignee; (b) sublet all or part of the Premises or assign this Lease to any person or entity in which, under Section 856(d)(2)(B) of the Code, Longfellow Atlantic REIT, Inc., a Delaware corporation (the “Company”), or any affiliate of the Company owns, directly or indirectly (by applying constructive ownership rules set forth in Section 856(d) (5) of the Code), a ten percent (10%) or greater interest; or (c) sublet all or part of the Premises or assign this Lease in any other manner or otherwise derive any income which could cause any portion of the amounts received by Landlord pursuant hereto or any sublease to fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code, or which could cause any other income received by Landlord to fail to qualify as income described in Section 856(c) (2) of the Code. The requirements of this Section 14.4 shall likewise apply to any further subleasing, assignment or other Transfer by any subtenant or assignee. All references herein to Section 856 of the Code also shall refer to any amendments thereof or successor provisions thereto.

  14.7 Occurrence of Default. Any Transfer hereunder shall be subordinate and subject to the provisions of this Lease, and if this Lease shall be terminated during the term of any Transfer, Landlord shall have the right to (and each sublease shall provide Landlord with the ability to): (i) treat such Transfer as cancelled and repossess the Subject Space by any lawful means, or (ii) require that such Transferee attorn to and recognize Landlord as its landlord under any such Transfer. If Tenant shall be in default under this Lease beyond any applicable notice and cure periods, Landlord is hereby irrevocably authorized, as Tenant’s agent and attorney-in-fact, to direct any Transferee to make all payments under or in connection with the Transfer directly to Landlord (which Landlord shall apply towards Tenant’s obligations under this Lease) until such default is cured. Such Transferee shall rely on any representation by Landlord that Tenant is in default hereunder, without any need for confirmation thereof by Tenant. Upon any assignment, the assignee shall assume in writing all obligations and covenants of Tenant thereafter to be performed or observed under this Lease. No collection or acceptance of rent by Landlord from any Transferee shall be deemed a waiver of any provision of this Article 14 or the approval of any Transferee or a release of Tenant from any obligation under this Lease, whether theretofore or thereafter accruing. In no event shall Landlord’s enforcement of any provision of this Lease against any Transferee be deemed a waiver of Landlord’s right to enforce any term of this Lease against Tenant or any other person. If Tenant’s obligations hereunder have been guaranteed, Landlord’s consent to any Transfer shall not be effective unless the guarantor also consents to such Transfer.

  14.8 Non-Transfers. Notwithstanding anything to the contrary contained in this Article 14, (i) an assignment or subletting of all or a portion of the Premises to an affiliate of Tenant (an entity which is controlled by, controls, or is under common control with, Tenant), (ii) an assignment of the Premises to an entity which acquires all or substantially all of the assets or beneficial interests (partnership, stock or other) of Tenant, (iii) an assignment of the Premises to an entity which is the resulting entity of a merger or consolidation of Tenant (or a transaction where Tenant is the surviving corporation of the merger), or (iv) or any other transfer of Tenant’s stock, on a nationally- recognized stock exchange (any of the foregoing, a “Permitted Transferee”), shall not be deemed a Transfer under this Article 14, provided that (A) except in the case of clause (i) above, Tenant notifies Landlord of any such assignment or sublease and promptly supplies Landlord with any documents or information requested by Landlord regarding such assignment or sublease or such affiliate, (B) such assignment or sublease is not a subterfuge by Tenant to avoid its obligations under this Lease, (C) with respect to clause (i), such Permitted Transferee shall be of a character and reputation consistent with the quality of the Building, and (D) with respect to an assignment to a Permitted Transferee or a Transfer pursuant to clauses (i), (ii) or (iii) above, the resulting Tenant under this Lease shall have a tangible net worth (not including goodwill as an asset) computed in accordance with generally accepted accounting principles (“Net Worth”) at least equal to the Net Worth of Tenant on the day that is [three (3)] months prior to the effective date of such assignment or sublease. An assignee of Tenant’s entire interest that is also a Permitted Transferee may also be known as a “Permitted Assignee”. “Control”, as used in this Section 14.8, shall mean the ownership, 

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  directly or indirectly, of at least fifty-one percent (51%) of the voting securities of, or possession of the right to vote, in the ordinary direction of its affairs, of at least fifty-one percent (51%) of the voting interest in, any person or entity and the ability to direct the day-to-day affairs of such person or entity. No such permitted assignment or subletting or other Transfer permitted with or without Landlord’s consent pursuant to this Article 14 shall serve to release Tenant from any of its obligations under this Lease. Landlord acknowledges that, as of the date hereof, Tenant’s stock is traded on a public exchange (NASDAQ: VIR). For the avoidance of doubt, so long as Tenant’s stock is traded on a public exchange, no sale, buy-back, split or other transfer whatsoever of Tenant’s stock shall be deemed a “Transfer” under this Lease.

  15. SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL OF TRADE FIXTURES

  15.1 Surrender of Premises. No act or thing done by Landlord or any agent or employee of Landlord during the Lease Term shall be deemed to constitute an acceptance by Landlord of a surrender of the Premises unless such intent is specifically acknowledged in writing by Landlord. The delivery of keys to the Premises to Landlord or any agent or employee of Landlord shall not constitute a surrender of the Premises or effect a termination of this Lease, whether or not the keys are thereafter retained by Landlord, and notwithstanding such delivery Tenant shall be entitled to the return of such keys at any reasonable time upon request until this Lease shall have been properly terminated. The voluntary or other surrender of this Lease by Tenant, whether accepted by Landlord or not, or a mutual termination hereof, shall not work a merger, and at the option of Landlord shall operate as an assignment to Landlord of all subleases or subtenancies affecting the Premises or terminate any or all such sublessees or subtenancies.

  15.2 Removal of Tenant Property by Tenant. Upon the expiration of the Lease Term, or upon any earlier termination of this Lease, Tenant shall, subject to the provisions of this Article 15, quit and surrender possession of the Premises to Landlord in as good order and condition as when Tenant took possession and as thereafter improved by Landlord and/or Tenant, reasonable wear and tear, casualty and repairs which are specifically made the responsibility of Landlord hereunder excepted. Upon such expiration or termination, Tenant shall, without expense to Landlord, remove or cause to be removed from the Premises all Alterations that Tenant is required to remove in accordance with Section 8.3 of this Lease, any debris and rubbish, and such items of furniture, equipment, free- standing cabinet work, movable partitions and other articles of personal property, including all Lines, owned by Tenant or installed or placed by Tenant at its expense in the Premises, and such similar articles of any other persons claiming under Tenant (collectively, “Tenant’s Property”), as Landlord may, in its sole discretion, require to be removed (provided that Tenant, in its sole discretion, may remove all of Tenant’s personal property and trade fixtures, at any time, regardless of any such election by Landlord), and Tenant shall repair at its own expense all damage to the Premises and Building resulting from such removal. Tenant’s personal property includes only those items that are not built into the Premises and that have not been constructed or installed by Landlord.

  15.3 Environmental Assessment. Prior to the expiration of the Lease (or within thirty (30) days after any earlier termination), Tenant shall clean and otherwise decommission all interior surfaces (including floors, walls, ceilings, and counters), piping, supply lines, waste lines and plumbing in or serving the Premises, and all exhaust or other ductwork in or serving the Premises, in each case that has carried, released or otherwise been exposed to any Hazardous Materials due to Tenant’s use or occupancy of the Premises, and shall otherwise clean the Premises so as to permit the Environmental Assessment called for by this Section 15.3 to be issued. Prior to the expiration of this Lease (or within thirty (30) days after any earlier termination), Tenant, at Tenant’s expense, shall obtain for Landlord a report (an “Environmental Assessment”) addressed to Landlord (and, at Tenant’s election, Tenant) by a reputable licensed environmental engineer or industrial hygienist that is designated by Tenant and acceptable to Landlord in Landlord’s reasonable discretion, which report shall be based on the environmental engineer’s inspection of the Premises and shall state, to Landlord’s reasonable satisfaction, that (a) the Hazardous Materials described in the first sentence of this paragraph, to the extent, if any, existing prior to such decommissioning, have been removed in accordance with Applicable Laws; (b) all Hazardous Materials described in the first sentence of this paragraph, if any, have been removed in accordance with Applicable Laws from the interior surfaces of the Premises (including floors, walls, ceilings, and counters), piping, supply lines, waste lines and plumbing, and all such exhaust or other ductwork in the Premises, may be reused by a subsequent tenant or disposed of in compliance with Applicable Laws without incurring special costs or undertaking special procedures for demolition, disposal, investigation, assessment, cleaning or removal of such Hazardous Materials and without giving notice in connection with such Hazardous Materials; and (a) the Premises may be reoccupied for office, research and development, or laboratory use, demolished or renovated without incurring special costs or undertaking special procedures for disposal, investigation, assessment, cleaning or 

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  removal of Hazardous Materials described in the first sentence of this paragraph and without giving notice in connection with Hazardous Materials. Further, for purposes of clauses (b) and (c), “special costs” or “special procedures” shall mean costs or procedures, as the case may be, that would not be incurred but for the nature of the Hazardous Materials as Hazardous Materials instead of non-hazardous materials. The report shall also include reasonable detail concerning the clean-up measures taken, the clean-up locations, the tests run and the analytic results. Tenant shall submit to Landlord the identity of the applicable consultants and the scope of the proposed Environmental Assessment for Landlord’s reasonable review and approval at least 30 days prior to commencing the work described therein or at least forty-five (45) days prior to the expiration of the Lease Term, whichever is earlier.

  If Tenant fails to perform its obligations under this Section 15.3, without limiting any other right or remedy, Landlord may, on five (5) business days’ prior written notice to Tenant perform such obligations at Tenant’s expense if Tenant has not commenced to do so within said five day period, and Tenant shall within ten (10) days of written demand (together with supporting documentation) reimburse Landlord for all reasonable out-of-pocket costs and expenses incurred by Landlord in connection with such work. Tenant’s obligations under this Section 15.3 shall survive the expiration or earlier termination of this Lease. In addition, at Landlord’s election, Landlord may inspect the Premises and/or the Project for Hazardous Materials at Landlord’s cost and expense within sixty (60) days of Tenant’s surrender of the Premises at the expiration or earlier termination of this Lease. Tenant shall pay for all such costs and expenses incurred by Landlord in connection with such inspection if such inspection reveals that a release or threat of release of Hazardous Materials exists at the Project or Premises as a result of the acts or omission of Tenant, its officers, employees, contractors, and agents (except to the extent resulting from (i) Landlord’s Hazardous Materials, or (ii) the acts or omissions of Landlord or Landlord’s agents, employees or contractors).

  16. HOLDING OVER

  If Tenant holds over after the expiration of the Lease Term or earlier termination thereof, with the express written consent of Landlord, such tenancy shall be from month-to-month only and shall not constitute a renewal hereof or an extension for any further term. If Tenant holds over after the expiration of the Lease Term of earlier termination thereof, without the express written consent of Landlord, such tenancy shall be deemed to be a tenancy at sufferance only and shall not constitute a renewal hereof or an extension for any further term. In either case, Base Rent shall be payable at a daily rate equal to (i) one hundred fifty percent (150%) of the Base Rent applicable during the last rental period of the Lease Term for the first (1st) two (2) months of such holdover, and (ii) two hundred percent (200%) thereafter plus one hundred percent (100%) of all Additional Rent. Such month-to-month tenancy or tenancy by sufferance, as the case may be, shall be subject to every other applicable term, covenant and agreement contained herein. Nothing contained in this Article 16 shall be construed as consent by Landlord to any holding over by Tenant, and Landlord expressly reserves the right to require Tenant to surrender possession of the Premises to Landlord as provided in this Lease upon the expiration or other termination of this Lease. The provisions of this Article 16 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. If Tenant fails to surrender the Premises upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss, costs (including reasonable attorneys’ fees) and liability resulting from such failure, including, without limiting the generality of the foregoing, any claims made by any succeeding tenant founded upon such failure to surrender and/or any lost profits and consequential or indirect damages to Landlord resulting therefrom. Tenant agrees that any proceedings necessary to recover possession of the Premises, whether before or after expiration of the Lease Term, shall be considered an action to enforce the terms of this Lease for purposes of the awarding of any attorney’s fees in connection therewith.

  17. ESTOPPEL CERTIFICATES

  Within ten (10) business days following a request in writing by Landlord, Tenant shall execute, acknowledge and deliver to Landlord an estoppel certificate, which, as submitted by Landlord, shall be substantially in the form of Exhibit 17 attached hereto (or such other commercially reasonable form as may be reasonably required by any prospective mortgagee or purchaser of the Project, or any portion thereof), indicating therein any exceptions thereto that may exist at that time, and shall also contain any other information reasonably requested by Landlord or Landlord’s mortgagee or prospective mortgagee. Any such certificate may be relied upon by any prospective mortgagee or purchaser of all or any portion of the Project. Tenant shall execute and deliver whatever other commercially reasonable instruments may be reasonably required for such purposes. Failure of Tenant to timely execute, acknowledge and deliver such estoppel certificate or other instruments shall constitute an acceptance of the 

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  Premises and an acknowledgment by Tenant that statements included in the estoppel certificate are true and correct, without exception. At any time during the Lease Term (but not more than twice per year, provided Tenant is not in default hereunder beyond applicable notice and cure periods), but only in the case of (i) a default of Tenant hereunder, (ii) a proposed sale or refinancing of the Project, or (iii) a proposed Permitted Transfer by Tenant, Landlord may require Tenant to provide Landlord with a current financial statement and financial statements of the two (2) years prior to the current financial statement year. Such statements shall be prepared in accordance with generally accepted accounting principles and, if such is the normal practice of Tenant, shall be audited by an independent certified public accountant. If no audited financial statement is prepared, such statement will be certified by the CFO or Treasurer of Tenant. Notwithstanding anything to the contrary contained in this Section 17, if Tenant is publicly traded on a nationally recognized stock exchange, Tenant will not be required to deliver to Landlord financial statements as and when those documents are publicly available.

  18. SUBORDINATION

  This Lease shall be subject and subordinate to all future ground or underlying leases of the Building or Project and to the lien of any mortgage, trust deed or other encumbrances now or hereafter in force against the Building or Project or any part thereof, if any, and to all renewals, extensions, modifications, consolidations and replacements thereof, and to all advances made or hereafter to be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages, trust deeds or other encumbrances, or the lessors under such ground lease or underlying leases require in writing that this Lease be superior thereto; provided that, for so long as Tenant is not in default hereunder, Tenant’s occupancy of the Premises shall not be disturbed. Tenant covenants and agrees that in the event any proceedings are brought for the foreclosure of any such mortgage or deed in lieu thereof (or if any ground lease is terminated), to attorn, without any deductions or set-offs whatsoever, to the lienholder or purchaser or any successors thereto upon any such foreclosure sale or deed in lieu thereof (or to the ground lessor), if so requested to do so by such purchaser or lienholder or ground lessor; provided that, for so long as Tenant is not in default hereunder, Tenant’s occupancy of the Premises shall not be disturbed. Notwithstanding any other provision of this Lease to the contrary, no holder of any such mortgage, trustee deed or other encumbrance and no such ground lessor, shall be obligated to perform or liable in damages for failure to perform any of Landlord’s obligations under this Lease unless and until such holder shall foreclose such mortgage, trust deed or other encumbrance, or the lessors under such ground lease or underlying leases otherwise acquire title to the Property, and then shall only be liable for Landlord’s obligations arising or accruing after such foreclosure or acquisition of title, provided the foregoing shall not release any such holder or ground lessor from performing ongoing obligations of Landlord from and after the date of such foreclosure or acquisition of title, such as repair and maintenance obligations. No such holder shall ever be obligated to perform or be liable in damages for any of Landlord’s obligations arising or accruing before such foreclosure or acquisition of title. Tenant shall, within ten (10) business days of request by Landlord, execute a commercially reasonable subordination, non-disturbance and attornment agreement as Landlord may reasonably deem necessary to evidence or confirm the subordination or superiority of this Lease to any such mortgages, trust deeds, ground leases or underlying leases. Tenant waives the provisions of any current or future statute, rule or law which may give or purport to give Tenant any right or election to terminate or otherwise adversely affect this Lease and the obligations of Tenant hereunder in the event of any foreclosure proceeding or sale.

  Landlord’s interest herein may be assigned as security at any time to any Mortgagee. Notwithstanding the foregoing or anything to the contrary herein, no Mortgagee succeeding to the interest of Landlord hereunder shall be (i) liable in any way to Tenant for any act or omission, neglect or default on the part of Landlord under this Lease, (ii) responsible for any monies owing by or on deposit with Landlord to the credit of Tenant (except to the extent any such deposit is actually received by such mortgagee or ground lessor), (iii) subject to any counterclaim or setoff which theretofore accrued to Tenant against Landlord, (iv) bound by any amendment or modification of this Lease subsequent to such mortgage, or by any previous prepayment of Rent for more than one (1) month, which was not approved in writing by the Mortgagee, (v) liable beyond such Mortgagee’s interest in the Project, or (vi) responsible for the payment or performance of any work to be done by Landlord under this Lease to render the Premises ready for occupancy by Tenant or for the payment of any tenant improvements allowances. Nothing in clause (i), above, shall be deemed to relieve any Mortgagee succeeding to the interest of Landlord hereunder of its obligation to comply with the obligations of Landlord under this Lease from and after the date of such succession.

  No Mortgagee shall, either by virtue of the Mortgage or any assignment of leases executed by Landlord for the benefit of such Mortgagee, be or become a mortgagee in possession or be or become subject to any liability or obligation under the Lease or otherwise until such Mortgagee shall have acquired the interest of Landlord in the 

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  Property, by foreclosure or otherwise, or in fact have taken possession of the Property as a mortgagee in possession and then such liability or obligation of Mortgagee under the Lease shall extend only to those liability or obligations accruing subsequent to the date that such Mortgagee has acquired the interest of Landlord in the Premises, or in fact taken possession of the Property as a mortgagee in possession.

  19. DEFAULTS; REMEDIES

  19.1 Events of Default. The occurrence of any of the following shall constitute a default of this Lease by Tenant:

  19.1.1 Any failure by Tenant to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, when due and such failure shall continue for five (5) days after written notice of such failure is given to Tenant; or

  19.1.2 Except where a specific time period is otherwise set forth for Tenant’s performance in this Lease, in which event the failure to perform by Tenant within such time period shall be a default by Tenant under this Section 19.1.2, any failure by Tenant to observe or perform any other provision, covenant or condition of this Lease to be observed or performed by Tenant where such failure continues for thirty (30) days after written notice thereof from Landlord to Tenant; provided that if the nature of such default is such that the same cannot reasonably be cured within a thirty (30) day period, Tenant shall not be deemed to be in default if it diligently commences such cure within such period and thereafter diligently proceeds to rectify and cure such default; or

  19.1.3 Abandonment of the Premises by Tenant pursuant to California Civil Code Section 1951.3; or

  19.1.4 The failure by Tenant to observe or perform according to the provisions of Articles 5, 10, 14, 17 or 18 of this Lease where such failure continues for more than two (2) business days after written notice from Landlord; or

  19.1.5 If a receiver, guardian, conservator, trustee in bankruptcy or similar officer shall be appointed by a court of competent jurisdiction to take charge of all or any part of Tenant’s or any guarantor’s property and such appointment is not discharged within ninety (90) days thereafter or if a petition including, without limitation, a petition for reorganization or arrangement is filed by Tenant or any guarantor under any bankruptcy law or is filed against Tenant or any guarantor and, in the case of a filing against Tenant only, the same shall not be dismissed within ninety (90) days from the date upon which it is filed.

  The notice periods provided herein are in lieu of, and not in addition to, any notice periods provided by law.

  19.2 Remedies Upon Default. Upon the occurrence of any event of default by Tenant beyond applicable notice and cure periods, Landlord shall have, in addition to any other remedies available to Landlord at law or in equity (all of which remedies shall be distinct, separate and cumulative), the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever. Tenant hereby waives, for Tenant and for all those claiming under Tenant, any and all rights now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ, Tenant’s right of occupancy of the Premises after any termination of this Lease.

  19.2.1 Terminate this Lease (pursuant to Section 1951.2 of the California Civil Code), in which event Tenant shall, upon written notice, immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any part thereof, without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant the following:

  (i) The worth at the time of award of the unpaid rent which has been earned at the time of such termination; plus

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  (ii) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus

  (iii) The worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus

  (iv) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, specifically including but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the Premises or any portion thereof for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant (“Costs of Reletting”); notwithstanding the above, if Landlord relets the Premises for a term (the “Relet Term”) that extends past the originally scheduled Lease Expiration Date, the Costs of Reletting which may be included in Landlord’s damages shall be limited to a prorated portion of the Costs of Reletting, based on the percentage that the length of the originally scheduled Lease Term remaining on the date Landlord terminates this Lease or Tenant’s right to possession bears to the length of the Relet Term. For example, if there are two (2) years left on the Lease Term at the time that Landlord terminates possession and, prior to the expiration of the two (2) year period, Landlord enters into a lease with a new tenant with a Relet Term of ten (10) years, then only twenty percent (20%) of the Costs of Reletting shall be included when determining Landlord’s damages; and

  (v) At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law.

  The term “rent” as used in this Section 19.2 shall be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in Sections 19.2.1(i) and (ii), above, the “worth at the time of award” shall be computed by allowing interest at the rate set forth in Article 25 of this Lease, but in no case greater than the maximum amount of such interest permitted by law. As used in Section 19.2.1(iii) above, the “worth at the time of award” shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).

  19.2.2 Landlord shall have the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee’s breach and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations). Accordingly, if Landlord does not elect to terminate this Lease on account of any default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover all rent as it becomes due.

  19.2.3 Landlord shall at all times have the rights and remedies (which shall be cumulative with each other and cumulative and in addition to those rights and remedies available under this Section 19.2, or any law or other provision of this Lease), without prior demand or notice except as required by Applicable Law, to seek any declaratory, injunctive or other equitable relief, and specifically enforce this Lease, or restrain or enjoin a violation or breach of any provision hereof. The provisions of this Section 19.2.6 are not dependent upon the occurrence of a default.

  19.2.4 Any obligation imposed by law upon Landlord to relet the Premises after any termination of the Lease shall be subject to the reasonable requirements of Landlord to lease to high quality tenants on such terms as Landlord may from time to time deem appropriate and to develop the Building in a harmonious manner with an appropriate mix of uses, tenants, floor areas and terms of tenancies, and the like, and Landlord shall not be obligated to relet the Premises to any party to whom Landlord or its affiliate may desire to lease other available space in the Building.

  19.2.5 Nothing herein shall limit or prejudice the right of Landlord to prove and obtain in a proceeding for bankruptcy, insolvency, arrangement or reorganization, by reason of the termination, an amount equal to the maximum allowed by a statute of law in effect at the time when, and governing the proceedings in which, the 

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  damages are to be proved, whether or not the amount is greater to, equal to, or less than the amount of the loss or damage which Landlord has suffered.

  19.3 Subleases of Tenant. Whether or not Landlord elects to terminate this Lease on account of any events of default by Tenant, as set forth in this Article 19, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such subleases, licenses, concessions or arrangements. In the event of Landlord’s election to succeed to Tenant’s interest in any such subleases, licenses, concessions or arrangements, Tenant shall, as of the date of notice by Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder.

  19.4 Efforts to Relet. No re-entry or repossession, repairs, maintenance, changes, alterations and additions, reletting, appointment of a receiver to protect Landlord’s interests hereunder, or any other action or omission by Landlord shall be construed as an election by Landlord to terminate this Lease or Tenant’s right to possession, or to accept a surrender of the Premises, nor shall same operate to release Tenant in whole or in part from any of Tenant’s obligations hereunder, unless express written notice of such intention is sent by Landlord to Tenant. Tenant hereby irrevocably waives any right otherwise available under any law to redeem or reinstate this Lease.

  19.5 Landlord Default.

  19.5.1 General. Notwithstanding anything to the contrary set forth in this Lease, Landlord shall not be in default in the performance of any obligation required to be performed by Landlord pursuant to this Lease unless Landlord fails to perform such obligation within thirty (30) days after the receipt of notice from Tenant specifying in detail Landlord’s failure to perform; provided, however, if the nature of Landlord’s obligation is such that more than thirty (30) days are required for its performance, then Landlord shall not be in default under this Lease if it shall commence such performance within such thirty (30) day period and thereafter diligently pursue the same to completion. Upon any such default by Landlord under this Lease, Tenant may, except as otherwise specifically provided in this Lease to the contrary, exercise any of its rights provided at law or in equity.

  20. COVENANT OF QUIET ENJOYMENT

  Landlord covenants that Tenant, on paying the Rent, charges for services and other payments herein reserved and on keeping, observing and performing all the other terms, covenants, conditions, provisions and agreements herein contained on the part of Tenant to be kept, observed and performed, shall, during the Lease Term, peaceably and quietly have, hold and enjoy the Premises subject to the terms, covenants, conditions, provisions and agreements hereof without interference by any persons lawfully claiming by or through Landlord. The foregoing covenant is in lieu of any other covenant express or implied.

  21. SECURITY DEPOSIT

  21.1 Delivery of Letter of Credit. Concurrently with Tenant’s execution of this Lease, Tenant shall deposit with Landlord an unconditional, clean, irrevocable negotiable letter of credit (the “L/C Security”) in the amount set forth in Section 9 of the Summary as security for the faithful performance by Tenant of all of its obligations under this Lease as follows:

  (a) Tenant shall provide Landlord and maintain in full force and effect throughout the Term and until the date that is ninety (90) days after the Lease Expiration Date, an evergreen letter of credit substantially in the form of Exhibit 21.1 issued by an issuer reasonably satisfactory to Landlord, in the amount set forth in Section 9 of the Summary. Silicon Valley Bank is hereby approved as an issuer of the L/C Security. If at any time during the Term (i) the financial condition of such issuer is reduced below a long term issuer credit rating from Standard and Poor’s Professional Rating Service of BBB+ or a comparable rating from Moody’s Professional Rating Service or Landlord determines in its sole reasonable discretion that the financial condition of issuer has changed in any materially adverse way from the financial condition of such issuer as of the date of execution of this Lease (any of the foregoing, a “Bank Credit Threat”) including, without limitation, if such issuer is declared insolvent or is placed into receivership or conservatorship by the Federal Deposit Insurance Corporation, or any successor or similar entity, if a trustee, receiver or liquidator is appointed for such issuer, if the credit rating of the long-term debt of the issuer of the letter of credit (according to Moody’s, Standard & Poor’s or similar national rating agency reasonably identified 

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  by Landlord) is downgraded to a grade below investment grade, if the issuer enters into any supervisory agreement with any governmental authority or fails to meet any capital requirements imposed by applicable law, Landlord may require the L/C Security to be replaced by an L/C Security issued by a different issuer, in which event Tenant shall, within fifteen (15) business days after written notice from Landlord, deliver to Landlord a replacement L/C Security issued by a commercial bank or savings and loan association acceptable to Landlord in its sole reasonable discretion and that meets all other requirements of this Article. If Tenant has actual notice, or Landlord notifies Tenant at any time, that any issuer of the L/C Security has become insolvent or placed into FDIC receivership, then Tenant shall promptly deliver to Landlord (without the requirement of further notice from Landlord) substitute L/C Security issued by a commercial bank or savings and loan association acceptable to Landlord in its reasonable discretion and that meets all other requirements of this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state-chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks).

  (b) Landlord may draw upon the L/C Security, and hold and apply the proceeds for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default, if: (i) a default beyond applicable notice and cure periods exists (or would have existed with the giving of notice and passage of applicable cure periods, but only if transmittal of a default notice is stayed or barred by applicable bankruptcy or other similar law); (ii) as of the date sixty (60) days before any L/C Security expires Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the date that is ninety (90) days after the then-current Lease Expiration Date; (iii) Tenant fails to pay any bank charges for Landlord’s transfer of the L/C Security when due; (iv) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security (and fails to permit drawing upon the L/C Security by overnight courier or facsimile); (v) Tenant has filed a voluntary petition under the U.S. Bankruptcy Code or any state bankruptcy code (collectively, the “Bankruptcy Code”); or (vi) a Bank Credit Threat or Receivership (as such Term is defined in Section below) has occurred and Tenant has failed to comply with the requirements of either Section above or below, as applicable. This Section does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. The use, application or retention of the L/C Security, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any Applicable Law, it being intended that Landlord shall not first be required to proceed against the L/C Security and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the L/C Security, either prior to or following a “draw” by Landlord of any portion of the L/C Security, regardless of whether any dispute exists between Tenant and Landlord as to Landlord’s right to draw upon the L/C Security. No condition or term of this Lease shall be deemed to render the L/C Security conditional to justify the issuer of the L/C Security in failing to honor a drawing upon such L/C Security in a timely manner. Tenant agrees and acknowledges that (i) the L/C Security constitutes a separate and independent contract between Landlord and the issuer, (ii) Tenant is not a third party beneficiary of such contract, (iii) Tenant has no property interest whatsoever in the L/C Security or the proceeds thereof, and (iv) in the event Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right to restrict or limit Landlord’s claim and/or rights to the L/C Security and/or the proceeds thereof by application of Section 502(b)(6) of the U. S. Bankruptcy Code or otherwise. In the event of any such draw upon the L/C Security, Tenant shall within fifteen (15) business days thereafter provide Landlord with a replacement letter of credit, or amendment to the existing letter of credit increasing the amount of such letter of credit, in the amount of L/C Security, and in the form, required hereunder, and Tenant’s failure to do so shall be a material breach of this Lease.

  (c) If Landlord transfers its interest in the Premises, then Landlord shall transfer the L/C Security to the transferee of its interest and notify Tenant of such transfer, and Tenant shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security Deposit changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

  (d) If and to the extent Landlord is holding the proceeds of the L/C Security in cash from time to time, such cash shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, 

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  covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of Tenant’s obligations under this Lease. If Tenant defaults (beyond applicable notice and cure periods) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default as provided in this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, any cash security then being held by Landlord shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. Landlord shall deliver or credit to any purchaser of Landlord’s interest in the Premises the funds then held hereunder by Landlord, and thereupon (and upon confirmation by the transferee of such funds, whether expressly or by written assumption of this Lease, generally) Landlord shall be discharged from any further liability with respect to such funds. This provision shall also apply to any subsequent transfers. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the cash security, if any, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within ninety (90) days after the expiration or earlier termination of this Lease. If and to the extent the security held by Landlord hereunder shall be in cash, Landlord shall hold such cash in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the cash security but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on such cash security.

  21.2 Letter of Credit not a Security Deposit. Landlord and Tenant acknowledge and agree that in no event or circumstance shall the L/C Security, the “security deposit” (as that term is defined in Section 21.3 below), if applicable, or any renewal thereof or any proceeds thereof, be (i) deemed to be or treated as a “security deposit” within the meaning of California Civil Code Section 1950.7, (ii) subject to the terms of such Section 1950.7, or (iii) intended to serve as a “security deposit” within the meaning of such Section 1950.7. The parties hereto (A) recite that the L/C Security and the Security Deposit (if applicable) are not intended to serve as a security deposit and such Section 1950.7 and any and all other laws, rules and regulations applicable to security deposits in the commercial context (“Security Deposit Laws”) shall have no applicability or relevancy thereto and (B) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws.

  21.3 Proceeds of Draw. In the event Landlord draws down on the L/C Security pursuant to Section 21.1(b)(ii) and (vi) above, the proceeds of the L/C Security may be held by Landlord and applied by Landlord against any Rent payable by Tenant under this Lease that is not paid when due (subject to applicable notice and cure periods) and/or to pay for all losses and damages that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach or default by Tenant under this Lease. Any unused proceeds shall constitute the property of Landlord and need not be segregated from Landlord’s other assets. Tenant hereby (i) agrees that (A) Tenant has no property interest whatsoever in the proceeds from any such draw, and (B) such proceeds shall not be deemed to be or treated as a “security deposit” under the Security Deposit Laws, and (ii) waives all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws. Landlord agrees that the amount of any proceeds of the L-C received by Landlord, and not (a) applied against any Rent payable by Tenant under this Lease that was not paid when due or (b) used to pay for any losses and/or damages suffered by Landlord (or reasonably estimated by Landlord that it will suffer) as a result of any breach or default by Tenant under this Lease (the “Unused L/C Proceeds”), shall be paid by Landlord to Tenant (x) upon receipt by Landlord of a replacement L/C Security in the required amount, which replacement L/C Security shall comply in all respects with the requirements of this Article 21, and (y) immediately after the LC Expiration Date; provided, however, that if prior to the LC Expiration Date a voluntary petition is filed by Tenant, or an involuntary petition is filed against Tenant by any of Tenant’s creditors, under the Bankruptcy Code, then Landlord shall not be obligated to make such payment in the amount of the Unused L/C Proceeds until either all preference issues relating to payments under this Lease have been resolved in such bankruptcy or reorganization case or such bankruptcy or reorganization case has been dismissed.

  21.4 Issuing Bank Placed Into Receivership. In the event the issuer is placed into receivership or conservatorship (any such event, a “Receivership”) by the Federal Deposit Insurance Corporation or any successor or similar entity (the “FDIC”), then, effective as of the date such Receivership occurs, the L/C Security shall be deemed to not meet the requirements of this Article 21, and, within ten (10) business days following Landlord’s notice to Tenant of such Receivership, Tenant shall replace the L/C Security with a substitute L/C Security from a different 

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  issuer reasonably acceptable to Landlord and that complies in all respects with the requirements of this Article 21. If Landlord draws upon the L/C Security due to solely Tenant’s failure to provide a substitute L/C Security due to a Bank Credit Threat or Receivership, such failure shall not constitute a default hereunder and Tenant shall thereafter have the right to provide a substitute L/C Security that satisfies the requirements of this Lease, in which case, Landlord shall concurrently refund the proceeds of the draw or the Security Deposit, as applicable. In connection with the foregoing, Tenant shall not be entitled to any interest on the Security Deposit, and Landlord’s use of the proceeds of the L/C Security shall be subject to the terms and conditions of the Lease pertaining to Landlord’s right to use the proceeds of the L/C Security.

  21.5 Reduction of L-C Amount. Provided that Tenant has not previously been in default beyond all applicable notice and cure periods within the twenty-four (24) months immediately prior to the effective date of the reduction request and further if Tenant is not in default at the time of such request, upon written request by Tenant given at any time after the first day of the forty-ninth (49th) full calendar month of the Lease Term, the L/C Security amount shall be reduced to $3,805,770.64. The reduction of the L/C Security amount shall be effectuated by Tenant’s delivery to Landlord of a certificate of amendment to the existing L/C Security, conforming in all respects to the requirements of this Article 21, in the amount of the applicable reduced L/C Security amount. If Tenant is allowed to reduce the L/C Security amount pursuant to the terms of this Section 21.5, then Landlord shall reasonably cooperate with Tenant in order to effectuate such reduction.

  22. INTENTIONALLY OMITTED

  23. SIGNS

  23.1 Signage. Tenant shall not install any signage (including, without limitation, any signs identifying Tenant’s name or advertising Tenant’s merchandise or otherwise) in or about the Premises that is visible from the exterior of the Premises or in any other part of the Project except as expressly permitted in this Section 23.1 or Section 23.2 below. Subject to Landlord’s prior written approval, in its reasonable discretion, and provided all signs are in keeping with the quality, design and style of the Building and Project, Tenant, at its sole cost and expense, may install one sign identifying Tenant at the entry to the Premises on each floor of the Premises, which identification signage shall be consistent with building standard signage as determined by Landlord. All permitted signs shall be maintained by Tenant at its expense in a first-class and safe condition and appearance. Upon the expiration or earlier termination of this Lease, Tenant shall remove all of its signs at Tenant’s sole cost and expense. Tenant shall repair any damage to the Premises or Project, inside or outside, resulting from the erection, maintenance or removal of any signs. Tenant’s signage must also comply with all Applicable Laws. All Building signage shall be subject to the existing rights of other tenants in the Building and any declaration of covenants for the Project.

  23.2 Full Floors. Subject to Landlord’s prior written approval, in its reasonable discretion, and provided all signs are in keeping with the quality, design and style of the Buildings and Project, (a) to the extent that the Premises includes any full floor(s) of any Building, Tenant, at its sole cost and expense, may install identification signage anywhere on such floor(s), and (b) to the extent that the Premises includes any partial floor(s) of any Building, Tenant, at its sole cost and expense, may install Building standard identification signage in the elevator lobby and at the entrance to the Premises on such floor(s). Subject to Landlord’s consent, Tenant will be entitled to Building-standard identification signage in the elevator lobby or lobbies serving the Premises as well as in any ground floor Building lobby directory. Tenant shall be solely responsible, at Tenant’s sole cost and expense, for the installation and removal of such signage. Tenant’s signage in any ground floor Building Lobby will be limited 9” x 18” and will be the monochromatic/black and white lettering or logo for Tenant. Additionally, with the prior written consent of Landlord, and in compliance with the provisions of this Lease, Tenant may, at Tenant’s sole cost and expense, install customized branding signage in the elevator lobby on the eighth (8th), ninth (9th), tenth (10th), eleventh (11th) and/or twelfth (12th) floor of the North Tower, provided that Tenant will be obligated to remove any such signage and repair any damage caused by the installation and/or removal of such signage at the expiration or sooner termination of this Lease.

  23.3 Prohibited Signage and Other Items. Any signs, notices, logos, pictures, names or advertisements which are installed and are visible from the exterior of the Premises or in any other part of the Project and that have not been separately approved by Landlord may be removed without notice by Landlord at the sole expense of Tenant. Tenant may not install any signs on the exterior or roof of the Project or the Common Areas. Any signs, displays, window coverings, window lettering, or blinds (even if the same are located behind the Landlord-approved window coverings for the Building), or other items or Alterations visible from the exterior of the Premises or Building, shall 

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  be subject to the prior approval of Landlord, in its sole discretion. Tenant shall not place or install any projections, antennae, aerials, or similar devices inside or outside of the Building, without the prior written approval of Landlord, subject to Tenant’s rights pursuant to Section 23.2 above.

  23.4 Exterior Building Signage. During the Lease Term for so long as Tenant or a Permitted Assignee occupies at least seventy percent (70%) of the Premises, Landlord shall not allow any Competitor of Tenant to have exterior Building signage on the North Tower above eyebrow signage height. As used herein, “Competitor of Tenant” means (i) a life science company that primarily focuses on an immunological approach to developing pharmaceuticals for treating and preventing serious infectious diseases and (ii) is identified by Tenant as a competitor of Tenant on the list of competitors delivered by Tenant to Landlord from time to time and then in effect as between Landlord and Tenant as contemplated by this Section 23.4. At any time following the execution and delivery of this Lease by Landlord and Tenant, Tenant may deliver to Landlord, in writing, an initial list of competitors containing no more than ten (10) companies, and such list will be valid (i.e., in full force and effect) for the ensuing twenty-four (24) months (which list of competitors, as updated from time to time in accordance with this Section 23.4, may be referred to as the “Competitor List”). Thereafter, Tenant may update the initial Competitor List and any subsequently updated Competitor List every twenty-our (24) months during the Lease Term. If Tenant either fails to deliver to Landlord (i) an initial Competitor List, (ii) an update to the initial Competitor List after twenty-four (24) months have elapsed, or (ii) an update of the then most recently updated Competitor List after twenty-four (24) months have elapsed, then Landlord may give to Tenant written notice requesting Tenant deliver to Landlord either the initial Competitor List or an updated Competitor List, as applicable, and Tenant shall thereafter have ten (10) business days to deliver to Landlord a Competitor List identifying no more than ten (10) companies, and such Competitors List shall be valid for the ensuing twenty-four (24) months. If Tenant fails to deliver to Landlord an initial Competitor List, Landlord may give to Tenant a second written notice reminding Tenant of the need to provide an initial Competitor List and if Tenant fails to provide such an initial Competitor List, then Landlord shall not be subject to any prohibition relating to exterior Building signage on the North Tower for the ensuing twenty-four (24) months; if Tenant fails to deliver to Landlord an updated Competitor List within the time period for Tenant’s response, then the previous Competitor List will continue to remain valid for an additional, ensuing twenty-four (24) months. Notwithstanding anything to the contrary contained in this Section 23.4, Landlord shall (i) be entitled to grant any retail tenants the rights to install their standard building sign package, including eyebrow signage, blade signage and store front signage, on or about their premises, (ii) be entitled to grant any tenants monument signage rights, and (iii) have no responsibility or liability for any exterior Building signage in any way attributable to Dropbox.

  24. COMPLIANCE WITH LAW

  24.1 By Tenant. Tenant shall not do anything or suffer anything to be done by any Tenant Party in or about the Premises or the Project which will in any way conflict with any law, statute, ordinance or other federal, state or local governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated (collectively, “Applicable Laws”). At its sole cost and expense, Tenant shall promptly comply with all such Applicable Laws which relate to (i) Tenant’s use of the Premises, (ii) any Alterations made by Tenant to the Premises or the Tenant Improvements, or (iii) the Base Building, but as to the Base Building, only to the extent such obligations are triggered by Alterations or Tenant Improvements to the extent such Alterations are not normal and customary business office improvements in Comparable Buildings, or triggered by the Tenant Improvements to the extent such Tenant Improvements ae not normal and customary business office improvements, or triggered by Tenant’s particular use of the Premises and Project as opposed to customary business office use. Tenant shall not, however, be responsible for the cost of complying with Applicable Laws to the extent that any such compliance is required as a result of the Base Building failing to comply with Applicable Laws in effect as of date the Building was substantially completed (i.e., 2018). Notwithstanding the foregoing terms of this Article 24 to the contrary, Tenant may defer such compliance with Applicable Laws while Tenant contests, in a court of proper jurisdiction, in good faith, the applicability of such Applicable Laws to the Premises or Tenant’s specific use or occupancy of the Premises; provided, however, Tenant may only defer such compliance if such deferral shall not (a) prohibit Tenant from obtaining or maintaining a certificate of occupancy for the Premises, (b) prohibit Landlord from obtaining or maintaining a certificate of occupancy for the Building or any portion thereof, (c) unreasonably and materially affect the safety of the employees and/or invitees of Landlord or of any tenant in the Building (including Tenant), (d) create a significant health hazard for the employees and/or invitees of Landlord or of any tenant in the Building (including Tenant), (e) otherwise materially and adversely affect Tenant’s use of or access to the Buildings or the Premises, or (f) impose material obligations, liability, fines, or penalties upon Landlord or any other tenant of the Building, or would materially and 

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  adversely affect the use of or access to the Building by Landlord or other tenants or invitees of the Building. The judgment of any court of competent jurisdiction or the admission of Tenant in any judicial action, regardless of whether Landlord is a party thereto, that Tenant has violated any of said governmental measures, shall be conclusive of that fact as between Landlord and Tenant. Landlord shall comply with all Applicable Laws relating to the Common Areas of the Building, provided that compliance with such Applicable Laws is not the responsibility of Tenant under this Lease, and provided further that Landlord’s failure to comply therewith would prohibit Tenant from obtaining or maintaining a certificate of occupancy for the Premises, or would unreasonably and materially affect the safety of Tenant’s employees or create a significant health hazard for Tenant’s employees, or would otherwise materially and adversely affect Tenant’s use of or access to the Premises. Landlord shall be permitted to include in Operating Expenses any costs or expenses incurred by Landlord under this Article 24 to the extent not prohibited by the terms of Section 4.2.4 above.

  24.2 By Landlord. Except as provided in the Tenant Work Letter, to the extent required in order for Tenant to obtain a Certificate of Occupancy to legally occupy the Premises for normal and customary office use, assuming normal and customary office occupancy density, or to the extent required in order for Tenant to pull a construction permit or to otherwise comply with the requirements of the applicable permitting authority, Landlord (rather than Tenant) shall comply with all Applicable Laws relating to the Base Building and Common Areas, except to the extent such compliance is triggered by (a) Tenant’s particular use of the Premises for other than normal and customary business office use or (b) Tenant’s construction of Alterations or Improvements in the Premises that are not normal and customary office improvements for Comparable Buildings in which case compliance with such Applicable Laws shall be the responsibility of Tenant under this Lease. Landlord shall be permitted to include in Operating Expenses any costs or expenses incurred by Landlord under this Article 24 to the extent not prohibited by the terms of Article 4 above.

  24.3 Certified Access Specialist. For purposes of Section 1938 of the California Civil Code, Landlord hereby discloses to Tenant, and Tenant hereby acknowledges, that neither the Premises, the Building nor the Common Areas have undergone inspection by a Certified Access Specialist (CASp). Pursuant to California Civil Code Section 1938, Tenant is hereby notified as follows: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of any CASp inspection, the payment of the fee for the CASp inspection and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.” If Tenant requests to perform a CASp inspection of the Premises, Tenant shall, at its cost, retain a CASp approved by Landlord (provided that Landlord may designate the CASp, at Landlord’s option) to perform the inspection of the Premises at a time agreed upon by the parties. Tenant shall provide Landlord with a copy of any report or certificate issued by the CASp (the “CASp Report”). Landlord and Tenant agree that any modifications necessary to correct violations of construction-related accessibility standards identified in the CASp Report shall be the responsibility of Tenant. Tenant agrees to keep the information in the CASp Report confidential except as necessary for the Tenant to complete such modifications.

  24.4 Underlying Documents. Tenant shall comply with all easements, licenses, operating agreements, declarations, restrictive covenants, or instruments pertaining to the sharing of costs by Landlord with respect to the Project, including, without limitation, any covenants, conditions and restrictions affecting the Project, and reciprocal easement agreements affecting the Project, any parking licenses, and any agreements with transit agencies affecting the Project (collectively, “Underlying Documents”), including, without limitation, (i) that certain Amended and Restated Declaration and Agreement of Covenants, Conditions and Restrictions for the UCSF Mission Bay Campus recorded July 19, 1999 in the Official Records as Instrument No. 99¬G622193-00, (ii) that certain Master Declaration of Covenants, Conditions, Restrictions and Reservation of Easements for Mission Bay Commercial, recorded January 16, 2001 in the Official Records as Instrument No. 2001-G889923-00, (iii) that certain Mission Bay South Owner Participation Agreement between the Redevelopment Agency of the City and County of San Francisco (the “Redevelopment Agency”) and Catellus Development Corporation (“CDC”) recorded December 3, 1998 in the Official Records as Instrument No. 98-G477258-00 (as amended, the “OPA”), (iv) that certain Redevelopment Plan for the Mission Bay South Redevelopment Project recorded November 18, 1998 in the Official Records as Instrument 

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  No. 98-G470337-00 (the “Redevelopment Plan”), and (v) that certain Mission Bay South Redevelopment Plan Area Declaration of Restrictions recorded December 3, 1998 in the Official Records as Instrument No. 98-G477250-00. Additionally, Tenant acknowledges that the Project may be subject to future Underlying Documents, which Landlord, in Landlord’s discretion, deems reasonably necessary or desirable, and Tenant agrees that this Lease shall be subject and subordinate to such Underlying Documents and Tenant shall promptly execute and acknowledge, within fifteen (15) business days of a request by Landlord, a “Recognition of Covenants, Conditions, and Restrictions,” in a form substantially similar to that attached hereto as Exhibit 24.4 agreeing to and acknowledging the applicable Underlying Document.

  25. LATE CHARGES

  If any installment of Rent or any other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) business days after the date due, then Tenant shall pay to Landlord a late charge equal to five percent (5%) of the overdue amount plus any reasonable attorneys’ fees incurred by Landlord by reason of Tenant’s failure to pay Rent and/or other charges when due hereunder. Notwithstanding the foregoing, Landlord shall not charge Tenant a late charge for the first (1st) late payment in any twelve (12) month period unless Tenant fails to timely pay such amount within five (5) business days following notice from Landlord that such amount is past due. The late charge shall be deemed Additional Rent and the right to require it shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall not be construed as liquidated damages or as limiting Landlord’s remedies in any manner. In addition to the late charge described above, any Rent or other amounts owing hereunder which are not paid within ten (10) days after the date they are due shall bear interest from the date when due until paid at a rate per annum equal to the lesser of (i) the annual “Bank Prime Loan” rate cited in the Federal Reserve Statistical Release Publication H.15, published on the first Tuesday of each calendar month (or such other comparable index as Landlord and Tenant shall reasonably agree upon if such rate ceases to be published) plus four (4) percentage points, and (ii) the highest rate permitted by Applicable Law.

  26. LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT

  26.1 Landlord’s Cure. All covenants and agreements to be kept or performed by Tenant under this Lease shall be performed by Tenant at Tenant’s sole cost and expense and without any reduction of Rent, except to the extent, if any, otherwise expressly provided herein. If Tenant shall fail to perform any obligation under this Lease, and such failure shall continue in excess of the time allowed under Section 19.1.2 above, unless a specific time period is otherwise stated in this Lease, Landlord may, but shall not be obligated to, make any such payment or perform any such act on Tenant’s part without waiving its rights based upon any default of Tenant and without releasing Tenant from any obligations hereunder. Except as may be specifically provided to the contrary in this Lease, Tenant shall pay to Landlord, within five (5) days after delivery by Landlord to Tenant of statements therefor: (i) sums equal to expenditures reasonably made and obligations incurred by Landlord in connection with the remedying by Landlord of Tenant’s defaults pursuant to the provisions of Section 26.1; (ii) sums equal to all losses, costs, liabilities, damages and expenses referred to in Article 10 of this Lease; and (iii) sums equal to all expenditures made and obligations incurred by Landlord in collecting or attempting to collect the Rent or in enforcing or attempting to enforce any rights of Landlord under this Lease or pursuant to law, including, without limitation, all reasonable legal fees and other amounts so expended. Tenant’s obligations under this Section 26.1 shall survive the expiration or sooner termination of the Lease Term.

  27. PROJECT CONTROL BY LANDLORD; ENTRY BY LANDLORD

  27.1 Project Control. Landlord reserves full control over the Building and the Project to the extent not inconsistent with Tenant’s enjoyment of the Premises as provided by this Lease. This reservation includes Landlord’s right to subdivide the Project; convert the Building or Project to condominium units; change the size of the Project by selling all or a portion of the Project or adding real property and any improvements thereon to the Project; grant assessments and licenses to third parties; maintain or establish ownership of the Building separate from fee title to the Property; make additions to or reconstruct portions of the Building and the Project; install, use, maintain, repair, replace and relocate for service to the Premises and other parts of the Building or the Project pipes, ducts, conduits, wires and appurtenant fixtures, wherever located in the Premises, the Building or elsewhere at the Project; and alter or relocate any other Common Area or facility, including private drives, lobbies and entrances. Landlord’s right pursuant to this Section 27.1, including without limitation the rights to construct, maintain, relocate, alter, improve, or adjust the Building or the Project shall be subject to the condition that (i) the exercise of any of such rights shall 

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  not materially and adversely interfere with Tenant’s use of the Premises or materially decrease the number of Tenant’s parking spaces, (ii) Landlord shall provide reasonable prior notice to Tenant before exercising any such rights which may materially and adversely interfere with Tenant’s use of the Premises, provided that such use of the Premises is in accordance with the Permitted Use, and (iii) Landlord shall use reasonable efforts to minimize to the extent possible any interference with Tenant’s business, provided that such business is in accordance with the Permitted Use, including, when reasonable, scheduling such work after business hours or on weekends. Possession of areas of the Premises necessary for utilities, services, safety and operation of the Building is reserved to Landlord. Notwithstanding the foregoing, Landlord shall provide Tenant reasonable prior notice of required access to the Premises for such activities.

  27.2 Entry by Landlord. Landlord reserves the right at all reasonable times and upon not less than three (3) days’ prior notice to Tenant (except in the case of an emergency or with respect to regularly scheduled services) to enter the Premises to (i) inspect them; (ii) show the Premises to prospective purchasers, or to current or prospective mortgagees, ground or underlying lessors or insurers or, during the last nine (9) months of the Lease Term, to prospective tenants; (iii) post notices of non-responsibility (to the extent applicable pursuant to then Applicable Law); or (iv) alter, improve or repair the Premises or the Building, or for structural alterations, repairs or improvements to the Building or the Building’s systems and equipment.  Notwithstanding the foregoing, if Landlord desires to enter the Premises upon less than three (3) days’ notice, Tenant shall use good faith, diligent efforts to accommodate Landlord’s entry upon such shorter notice. Tenant shall additionally have the right to require that Landlord be accompanied by a representative of Tenant during any such entry as an escort for Landlord’s personnel so long as Tenant makes a representative available at commercially reasonable times; provided, however, any entry into the BSL 3 laboratory area shall be restricted to persons (i) with proper training as to Tenant’s applicable safety and security protocols, (ii) appropriate personal protective equipment as reasonably required by Tenant, and (iii) accompanied by a representative of Tenant as an escort for such persons (which representative Tenant shall make available at all commercially reasonable times). Provided that Landlord employs commercially reasonable efforts to minimize interference with the conduct of Tenant’s business in connection with entries into the Premises, Landlord may make any such entries without creating a default by Landlord and shall take such reasonable steps as required to accomplish the stated purposes. In making any such entry, Landlord shall use commercially reasonable efforts to follow, and cause third parties making entry at the request of Landlord to follow, Tenant’s safety and security protocols of which Landlord has prior notice. In an emergency, Landlord shall have the right to use any means that Landlord may deem proper to open the doors in and to the Premises. Landlord also shall have the right at any time, without the same constituting an actual or constructive eviction and without incurring any liability to Tenant therefor, to change the arrangement or location of entrances or passageways, doors and doorways, and corridors, elevators, stairs, toilets, or other public parts of the Building and to change the name, address, number or designation by which the Premises is commonly known, provided any such change does not (A) unreasonably reduce, interfere with or deprive Tenant of access to the Premises nor compromise the safety and security protocols applicable to the laboratory areas within the Premises, or (B) reduce the rentable area (except by a de minimis amount) of the Premises. Any entry into the Premises by Landlord in the manner hereinbefore described shall not be deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an actual or constructive eviction of Tenant from any portion of the Premises and the Base Rent (and any other item of Rent) shall under no circumstances abate while said repairs, alterations, improvements, additions or restorations are being made, by reason of loss or interruption of business of Tenant, or otherwise. If Tenant shall not be present when for any reason entry into the Premises shall be necessary or permissible, Landlord or Landlord’s agents, representatives, contractors or employees may enter the same without rendering Landlord or such agents liable therefor if during such entry Landlord or Landlord’s agents shall accord reasonable care under the circumstances to Tenant’s Property, and without in any manner affecting this Lease. Tenant shall, at all times during the Term, be responsible for ensuring that Landlord has any and all keys, cards, codes or other means necessary to access the Premises.

  28. TENANT PARKING

  28.1 Parking Passes. During the Lease Term Landlord shall provide Tenant with parking passes for use by standard size automobiles in an amount equal to the number of parking passes set forth in Section 11 of the Summary, which parking passes shall pertain to the Project parking facility facilities (the “Parking Facilities”). All such parking shall be on a first-come, first-serve basis in common with others entitled to use the same. Tenant’s continued right to use the parking passes is conditioned upon Tenant abiding by all rules and regulations which are prescribed from time to time for the orderly operation and use of the parking facility where the parking passes provide access (including 

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  any sticker or other identification system established by Landlord and the prohibition of vehicle repair and maintenance activities in the parking facilities), and Tenant shall cooperate in seeing that any Tenant Parties and Tenant visitors also comply with such rules and regulations. Tenant’s use of the parking passes for parking at the Project shall be at Tenant’s sole risk and Tenant acknowledges and agrees that Landlord shall have no liability whatsoever for damage to the vehicles of Tenant, its employees and/or visitors, or for other personal injury or property damage or theft relating to or connected with the parking rights granted herein or any of Tenant’s, its employees’ and/or visitors’ use of the parking facilities. Landlord shall have the right to assign its obligations under this Section 28 to an affiliate of Landlord or a third-party parking manager or operator, in which case Tenant shall make any payments due under this Section 28 directly to such other entity.

  28.2 Parking Pass Rates. Tenant shall pay to Landlord for Parking Passes on a monthly basis the monthly parking rate charged by Landlord, which monthly rate for Parking Passes (the “Parking Rate”) shall initially be equal to, and during the Lease Term shall not be less than, $345.00 per Parking Pass per month (the “Parking Rate Floor”). Subject to the Parking Rate Floor, the Parking Rate shall be adjusted annually to be consistent with the prevailing monthly parking rate for similar parking spaces then being charged by landlords in Mission Bay. In addition, Tenant shall be responsible for the full amount of any taxes imposed by any governmental authority in connection with the renting of such Parking Passes by Tenant for the use of the Parking Facilities by Tenant.

  28.3 Use of Parking Passes. Tenant shall cooperate with Landlord to ensure that its employees comply with all reasonable rules and regulations which are prescribed from time to time for the orderly operation and use of the Parking Facilities, including any sticker or other identification system established by Landlord. Landlord specifically reserves the right to change the size, configuration, design, layout and all other aspects of the Parking Facilities at any time and Tenant acknowledges and agrees that Landlord may, without incurring any liability to Tenant and without any abatement of Rent under this Lease, from time to time, temporarily close-off or restrict access to the Parking Facilities for purposes of permitting or facilitating any such construction, alteration or improvements; provided, however, that Landlord will use reasonable efforts to provide Tenant with reasonable advance notice of any such anticipated temporary close-off or restriction in access to the Parking Facilities. Landlord may delegate its responsibilities hereunder to a parking operator in which case such parking operator shall have all the rights of control attributed hereby to the Landlord. The Parking Passes rented by Tenant pursuant to this Article 28 are provided to Tenant solely for use by Tenant’s own personnel and such passes may not be transferred, assigned, subleased or otherwise alienated by Tenant, except in connection with a Transfer of the Premises pursuant to Article 14 of this Lease, without Landlord’s prior approval. Tenant may validate visitor parking by such method or methods as the Landlord may establish, at the validation rate from time to time generally applicable to visitor parking. Tenant’s use of the Parking Facilities are on a non-exclusive basis.

  28.4 Electrical Vehicle Charging. At least ten (10) electrical vehicle charging stations in the Parking Facilities shall be available for non-exclusive use by Tenant on a first-come, first-served basis.

  28.5 Public Parking Use. Landlord shall have the right to permit use (the “Public Parking Use”) of the Parking Facilities by the general public (or for any other use). Landlord may accommodate the Public Parking Use through valet parking, tandem or stack parking, or any other parking program using parking personnel and/or systems and equipment; provided, however, in connection with the Public Parking Use, Landlord shall cooperate with Tenant to minimize interference with Tenant’s use of the Parking Facilities, which may include developing a system to partially or totally segregate the areas designated for Public Parking Use in the Parking Facilities from the areas designated for use (the “Project Parking Use”) by Tenant, other tenants or occupants of the Project, visitors of the Project, transient parkers of the Project, and Landlord and its affiliates and service providers for the Project (collectively, the “Project Related Parkers”). To account for the shared use of the Parking Facilities for the Public Parking Use and Project Parking Use, Landlord and Tenant agree that any incremental increase in (i) parking and security personnel costs and (ii) costs for parking access control equipment, which is directly attributable to the Public Parking Use shall be excluded from Operating Expenses.

  28.6 Storage Use. [***].

  29. MISCELLANEOUS PROVISIONS

  29.1 Terms; Captions. The words “Landlord” and “Tenant” as used herein shall include the plural as well as the singular. The necessary grammatical changes required to make the provisions hereof apply either to corporations 

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  or partnerships or individuals, men or women, as the case may require, shall in all cases be assumed as though in each case fully expressed. The captions of Articles and Sections are for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of such Articles and Sections.

  29.2 Binding Effect. Subject to all other provisions of this Lease, each of the covenants, conditions and provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit not only of Landlord and of Tenant, but also of their respective heirs, personal representatives, successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of Article 14 of this Lease.

  29.3 No Air Rights. No rights to any view or to light or air over any property, whether belonging to Landlord or any other person, are granted to Tenant by this Lease. If at any time any windows of the Premises are temporarily darkened or the light or view therefrom is obstructed by reason of any repairs, improvements, maintenance or cleaning in or about the Project, the same shall be without liability to Landlord and without any reduction or diminution of Tenant’s obligations under this Lease.

  29.4 Modification of Lease. Should any current or prospective mortgagee or ground lessor for the Building or Project require a modification of this Lease, which modification will not cause an increased cost or expense to Tenant or in any other way materially and adversely change the rights and obligations of Tenant hereunder, then and in such event, Tenant agrees that this Lease may be so modified and agrees to execute whatever documents are reasonably required therefor and to deliver the same to Landlord within ten (10) business days following a request therefor.

  29.5 Transfer of Landlord’s Interest. Tenant acknowledges that Landlord has the right to transfer all or any portion of its interest in the Project or Building and in this Lease, and Tenant agrees that in the event of any such transfer, Landlord shall automatically be released from all liability under this Lease accruing from and after the date of such transfer, and Tenant agrees to look solely to such transferee for the performance of Landlord’s obligations hereunder after the date of transfer and such transferee shall be deemed to have fully assumed and be liable for all obligations of this Lease to be performed by Landlord and Tenant shall attorn to such transferee.

  29.6 Prohibition Against Recording. Neither this Lease, nor any memorandum thereof, affidavit or other writing with respect thereto, shall be recorded by Tenant or any one acting through, under or on behalf of Tenant.

  29.7 Landlord’s Title. Landlord’s title is and always shall be paramount to the title of Tenant. Nothing herein contained shall empower Tenant to do any act which can, shall or may encumber the title of Landlord.

  29.8 Relationship of Parties. Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venturer or any association between Landlord and Tenant.

  29.9 Application of Payments. Landlord shall have the right to apply payments received from Tenant pursuant to this Lease, regardless of Tenant’s designation of such payments, to satisfy any obligations of Tenant hereunder, in such order and amounts as Landlord, in its sole discretion, may elect.

  29.10 Time of Essence. Time is of the essence with respect to the performance of every provision of this Lease in which time of performance is a factor.

  29.11 Partial Invalidity. If any term, provision or condition contained in this Lease shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, provision or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this Lease shall be valid and enforceable to the fullest extent possible permitted by law.

  29.12 No Warranty. In executing and delivering this Lease, Tenant has not relied on any representations, including, but not limited to, any representation as to the amount of any item comprising Additional Rent or the amount of the Additional Rent in the aggregate or that Landlord is furnishing the same services to other tenants, at all, on the same level or on the same basis, or any warranty or any statement of Landlord which is not expressly set forth herein.

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  29.13 Landlord Exculpation. The liability of Landlord or the Landlord Parties to Tenant for any default by Landlord under this Lease or arising in connection herewith or with Landlord’s operation, management, leasing, repair, renovation, alteration or any other matter relating to the Project or the Premises shall be limited solely and exclusively to an amount which is equal to the interest of Landlord in the Project. Neither Landlord, nor any of the Landlord Parties shall have any personal liability therefor, and Tenant hereby expressly waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. The limitations of liability contained in this Section 29.13 shall inure to the benefit of Landlord’s and the Landlord Parties’ present and future partners, beneficiaries, officers, directors, trustees, shareholders, agents and employees, and their respective partners, heirs, successors and assigns. Under no circumstances shall any present or future partner of Landlord (if Landlord is a partnership), or trustee or beneficiary (if Landlord or any partner of Landlord is a trust), have any liability for the performance of Landlord’s obligations under this Lease. Notwithstanding any contrary provision herein, neither Landlord nor the Landlord Parties shall be liable under any circumstances for consequential or indirect damages, including without limitation injury or damage to, or interference with, Tenant’s business, loss of profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use, in each case, however occurring.

  29.14 Entire Agreement. It is understood and acknowledged that there are no oral agreements between the parties hereto affecting this Lease and this Lease constitutes the parties’ entire agreement with respect to the leasing of the Premises and supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements and understandings, if any, between the parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease. None of the terms, covenants, conditions or provisions of this Lease can be modified, deleted or added to except in writing signed by the parties hereto.

  29.15 REIT. Tenant acknowledges that the Company, an affiliate of Landlord, elects to be taxed as a real estate investment trust (a “REIT”) under the Code. Tenant hereby agrees to modifications of this Lease required to retain or clarify the Company’s status as a REIT, provided such modifications: (a) are reasonable, (b) do not adversely affect in a material manner Tenant’s use of the Premises as herein permitted, and (c) do not increase the Base Rent, Additional Rent and other sums to be paid by Tenant or Tenant’s other obligations pursuant to this Lease, or reduce any rights of Tenant under this Lease, then Landlord may submit to Tenant an amendment to this Lease incorporating such required modifications, and Tenant shall execute, acknowledge and deliver such amendment to Landlord within ten (10) days after Tenant’s receipt thereof.

  29.16 Right to Lease. Landlord reserves the absolute right to effect such other tenancies in the Project as Landlord in the exercise of its sole business judgment shall determine to best promote the interests of the Building or Project. Tenant does not rely on the fact, nor does Landlord represent, that any specific tenant or type or number of tenants shall, during the Lease Term, occupy any space in the Building or Project.

  29.17 Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, acts of war, terrorist acts, governmental action or inaction, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, fire or other casualty, and other causes beyond the reasonable control of the party obligated to perform, except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant pursuant to this Lease (collectively, a “Force Majeure”), notwithstanding anything to the contrary contained in this Lease, shall excuse the performance of such party for a period equal to any such prevention, delay or stoppage and, therefore, if this Lease specifies a time period for performance of an obligation of either party, that time period shall be extended by the period of any delay in such party’s performance caused by a Force Majeure.

  29.18 Notices. All notices, demands, statements, designations, approvals or other communications (collectively, “Notices”) given or required to be given by either party to the other hereunder or by law shall be in writing, shall be (A) sent by United States certified or registered mail, postage prepaid, return receipt requested (“Mail”), (B) delivered by a nationally recognized overnight courier, or (C) delivered personally. Any Notice shall be sent, transmitted, or delivered to Tenant or Landlord, as applicable, at the appropriate addresses set forth in Sections 12 and 13 of the Summary, or to such other address for either party as that party may designate in a Notice to the other. Any Notice will be deemed given (i) three (3) business days after the date it is posted if sent by Mail, (ii) the date the overnight courier delivery is made, or (iii) the date personal delivery is made (unless such delivery takes place after hours or on a holiday or weekend, in which event the Notice shall be deemed give on the next succeeding business 

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  day. The party delivering Notice shall use commercially reasonable efforts to provide a courtesy copy of each such Notice to the receiving party via electronic mail.

  29.19 Waiver of Redemption by Tenant. Tenant hereby waives, for Tenant and for all those claiming under Tenant, any and all rights now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ, Tenant’s right of occupancy of the Premises after any termination of this Lease.

  29.20 Joint and Several. If there is more than one Tenant, the obligations imposed upon Tenant under this Lease shall be joint and several.

  29.21 Authority. If Tenant is a corporation, trust or partnership, Tenant hereby represents and warrants that Tenant (a) is a duly formed and existing entity qualified to do business in the State of Delaware and is qualified as a foreign entity authorized to do business in the State of California and (b) has full right and authority to execute and deliver this Lease, and (c) each person signing on behalf of Tenant is authorized to do so.

  29.22 Attorneys’ Fees. In the event that either Landlord or Tenant should bring suit for the possession of the Premises, for the recovery of any sum due under this Lease, or because of the breach of any provision of this Lease or for any other relief against the other, then all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party therein shall be paid by the other party, which obligation on the part of the other party shall be deemed to have accrued on the date of the commencement of such action and shall be enforceable whether or not the action is prosecuted to judgment.

  29.23 Governing Law; WAIVER OF TRIAL BY JURY. This Lease shall be construed and enforced in accordance with the laws of the State of California. Landlord and Tenant agree that any disputes arising in connection with this Lease (including but not limited to a determination of any and all of the issues in such dispute, whether of fact or of law) shall be resolved (and a decision shall be rendered) by way of a general reference as provided for in Part 2, Title 8, Chapter 6 (§§ 638 et. seq.) of the California Code of Civil Procedure, or any successor California statute governing resolution of disputes by a court appointed referee. Nothing within this Section 29.23 shall apply to an unlawful detainer action. LANDLORD AND TENANT EACH ACKNOWLEDGES THAT IT IS AWARE OF AND HAS HAD THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT TO ITS RIGHT TO TRIAL BY JURY, AND, TO THE EXTENT PERMITTED BY LAW, EACH PARTY DOES HEREBY EXPRESSLY AND KNOWINGLY WAIVE AND RELEASE ALL SUCH RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE. The waiver of trial by jury in the immediately preceding Section 29.23 is voluntary and intentionally made by Landlord and Tenant.

  29.24 Submission of Lease. Submission of this instrument for examination or signature by Tenant does not constitute a reservation of, option for or option to lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord and Tenant.

  29.25 Brokers. Landlord and Tenant hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Lease, excepting only the real estate brokers or agents specified in Section 13 of the Summary (the “Brokers”), and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Lease. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses (including without limitation reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of any dealings with any real estate broker or agent, other than the Brokers, occurring by, through, or under the indemnifying party. The terms of this Section 29.24 shall survive the expiration or earlier termination of the Lease Term. Landlord shall pay a commission to the Brokers pursuant to a separate written agreement between Landlord and the Brokers.

  29.26 Independent Covenants. This Lease shall be construed as though the covenants herein between Landlord and Tenant are independent and not dependent and Tenant hereby expressly waives the benefit of any statute to the contrary; and, except as otherwise expressly provided for herein, Tenant agrees that if Landlord fails to perform its obligations set forth herein, Tenant shall not be entitled to make any repairs or perform any acts hereunder at Landlord’s expense or to any setoff of the Rent or other amounts owing hereunder against Landlord.

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  29.27 Project or Building Name, Address and Signage. Landlord shall have the right at any time to change the name and/or address of the Project or Building and to install, affix and maintain any and all signs on the exterior and on the interior of the Project or Building as Landlord may, in Landlord’s sole discretion, desire. Tenant shall not use the name of the Project or Building or use pictures or illustrations of the Project or Building in advertising or other publicity or for any purpose other than as the address of the business to be conducted by Tenant in the Premises, without the prior written consent of Landlord.

  29.28 Counterparts. This Lease may be executed in counterparts with the same effect as if both parties hereto had executed the same document. Both counterparts shall be construed together and shall constitute a single lease. Delivery by fax or by electronic mail file attachment of any executed counterpart to this Lease will be deemed the equivalent of the delivery of the original executed instrument. This Lease may be executed in so-called “pdf” format and each party has the right to rely upon a pdf counterpart of this Sublease signed by the other party to the same extent as if such party had received an original counterpart. Counterparts may also be delivered via electronic signature complying with the U.S. federal ESIGN Act of 2000, (e.g., www.docusign.com or echosign, etc.) and any counterpart so delivered shall be deemed to have been duly and validly delivered, valid and effective for all purposes and binding upon the parties hereto.

  29.29 Confidentiality. Tenant acknowledges that the content of this Lease and any related documents are confidential information. Tenant shall keep such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other than Tenant’s financial, legal, and space planning consultants, or its directors, officers, employees, attorneys, accountants, prospective lenders, prospective purchasers, brokers, underwriters, and current and potential partners or investors, or to the extent that disclosure is mandated by Applicable Laws, the Securities Exchange Commission, the rules of any public exchange upon which Tenant’s shares are from time to time traded, or in connection with a stock or debt offering. Additionally, Tenant shall have the right to deliver a copy of this Lease to any proposed subtenant or assignee (with, in the case of a subtenant, economic terms redacted), provided such subtenant or assignee agrees to keep the contents hereof confidential. Notwithstanding the foregoing, the parties acknowledge that Landlord may use the name of Tenant without Tenant’s consent (i) on the Building directory, and (ii) to the extent that Tenant is only referenced by name as a customer or tenant of Landlord, in investor presentations and earnings calls or earnings related releases, and in connection with the marketing efforts of Landlord or any real estate broker or agent on Landlord’s behalf with respect to the proposed leasing, financing, sale or other conveyance of the Building, or any portion thereof. This provision shall survive the expiration or earlier termination of this Lease for one (1) year.

  29.30 Renovations. It is specifically understood and agreed that Landlord has made no representation or warranty to Tenant and has no obligation and has made no promises to alter, remodel, improve, renovate, repair or decorate the Premises, Buildings, Project, or any part thereof and that no representations respecting the condition of the Premises, the Buildings, or Project have been made by Landlord to Tenant except as specifically set forth herein or in the Work Letter. However, Landlord may during the Lease Term renovate, improve, alter, or modify (collectively, the “Renovations”) the Project and/or the Buildings, including without limitation, the Parking Facilities, Common Areas, Building Systems and/or Building Structure, which Renovations may include, without limitation, (i) modifying the Common Areas and tenant spaces to comply with Applicable Laws, including regulations relating to the physically disabled, seismic conditions, and Project safety and security, and (ii) installing new floor covering, lighting, and wall coverings in the Building Common Areas, and in connection with any Renovations, Landlord may, among other things, erect scaffolding or other necessary structures in the Project, limit or eliminate access to portions of the Project, including portions of the Common Areas, or perform work in the Project, which work may create noise, dust or leave debris in the Buildings. Landlord shall use commercially reasonable efforts to undertake and complete any Renovations in a manner which does not materially, adversely affect Tenant’s use of or access to the Premises. Notwithstanding the foregoing, Tenant hereby agrees that such Renovations and Landlord’s actions in connection with such Renovations shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant’s business arising from the Renovations, nor shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant’s personal property or improvements resulting from the Renovations or Landlord’s actions in connection with such Renovations, or for any inconvenience or annoyance occasioned by such Renovations or Landlord’s actions, provided that the foregoing shall not limit Landlord’s liability, if any, pursuant to Applicable Law for personal injury and property damage to the extent caused by the gross negligence or willful misconduct of Landlord, its agents, employees or contractors.

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  29.31 No Violation. Tenant hereby warrants and represents that neither its execution of nor performance under this Lease shall cause Tenant to be in violation of any agreement, instrument, contract, law, rule or regulation by which Tenant is bound, and Tenant shall protect, defend, indemnify and hold Landlord harmless against any claims, demands, losses, damages, liabilities, costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, arising from Tenant’s breach of this warranty and representation.

  29.32 Communications and Computer Lines. Tenant may install, maintain, replace, remove or use any communications or computer wires and cables serving the Premises (collectively, the “Lines”) at the Building, provided that (i) Tenant shall obtain Landlord’s prior written consent to the installation of any such Lines (such consent not to be unreasonably withheld), use an experienced and qualified contractor approved in writing by Landlord (such approval not to be unreasonably withheld), and comply with all of the other provisions of Articles 7 and 8 of this Lease, (ii) an acceptable amount of space for additional Lines shall be maintained for future occupants of the Project, as determined in Landlord’s reasonable opinion, (iii) the Lines (including riser cables) shall be appropriately insulated to prevent excessive electromagnetic fields or radiation, and shall be surrounded by a protective conduit reasonably acceptable to Landlord, (iv) any Lines servicing the Premises shall comply with all Applicable Laws, (v) as a condition to permitting the installation of new Lines, Landlord may require that Tenant remove existing Lines located in or serving the Premises that will no longer be used by Tenant and repair any damage in connection with such removal, and (vi) Tenant shall pay all costs in connection therewith. Landlord reserves the right to require that Tenant remove any Lines located in or serving the Premises which are installed in violation of these provisions, or which are at any time in violation of any Applicable Laws or represent a dangerous or potentially dangerous condition. Upon the expiration of the Lease Term, or immediately following any earlier termination of this Lease, Tenant shall, at Tenant’s sole cost and expense, remove all Lines installed by Tenant, and repair any damage caused by such removal.

  29.33 Transportation Management. Tenant shall fully comply with all present or future programs intended to manage parking, transportation or traffic in and around the Project and/or the Building, and in connection therewith, Tenant shall take responsible action for the transportation planning and management of all employees located at the Premises by working directly with Landlord, any governmental transportation management organization or any other transportation-related committees or entities. Such programs may include, without limitation: (i) restrictions on the number of peak-hour vehicle trips generated by Tenant; (ii) increased vehicle occupancy; (iii) implementation of an in-house ridesharing program and an employee transportation coordinator; (iv) working with employees and any Project, Building or area-wide ridesharing program manager; (v) instituting employer-sponsored incentives (financial or in-kind) to encourage employees to rideshare; and (vi) utilizing flexible work shifts for employees.

  29.34 Office and Communications Services.

  29.34.1 The Provider. Tenant shall be permitted to contract with an office and communications services concessionaire (the “Provider”) selected by Tenant and subject to Landlord’s reasonable approval (which may include, without limitation, cable or satellite television service).

  29.34.2 Other Terms. Tenant acknowledges and agrees that: (i) Landlord has made no warranty or representation to Tenant with respect to the availability of any such services, or the quality, reliability or suitability thereof; (ii) Landlord shall have no responsibility or liability for the installation, alteration, repair, maintenance, furnishing, operation, adjustment or removal of any such services, equipment or facilities; and (iii) any contract or other agreement between Tenant and Provider shall be independent of this Lease, the obligations of Tenant hereunder, and the rights of Landlord hereunder, and, without limiting the foregoing, no default or failure of Provider with respect to any such services, equipment or facilities, or under any contract or agreement relating thereto, shall have any effect on this Lease or give to Tenant any offset or defense to the full and timely performance of its obligations hereunder, or entitle Tenant to any abatement of rent or additional rent or any other payment required to be made by Tenant hereunder, or constitute any accrual or constructive eviction of Tenant, or otherwise give rise to any other claim of any nature against Landlord.

  29.35 Development of the Project.

  29.35.1 Subdivision. Landlord reserves the right to further subdivide all or a portion of the Project. Tenant agrees to execute and deliver, upon demand by Landlord and in the form requested by Landlord, any additional documents needed to conform this Lease to the circumstances resulting from such subdivision.

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  29.35.2 The Other Improvements. If portions of the Project or property adjacent to the Project (collectively, the “Other Improvements”) are owned by an entity other than Landlord, Landlord, at its option, may enter into an agreement with the owner or owners of any or all of the Other Improvements to provide (i) for reciprocal rights of access and/or use of the Project and the Other Improvements, (ii) for the common management, operation, maintenance, improvement and/or repair of all or any portion of the Project and the Other Improvements, (iii) for the allocation of a portion of the Direct Expenses to the Other Improvements and the operating expenses and taxes for the Other Improvements to the Project, and (iv) for the use or improvement of the Other Improvements and/or the Project in connection with the improvement, construction, and/or excavation of the Other Improvements and/or the Project. Nothing contained herein shall be deemed or construed to limit or otherwise affect Landlord’s right to convey all or any portion of the Project or any other of Landlord’s rights described in this Lease.

  29.36 Water Sensors. In connection with any Tenant Improvements or Alterations to be installed in the Premises where water is utilized (such as sinks, pipes, faucets, water heaters, autoclaves, coffee machines, ice machines, water dispensers and water fountains), Tenant acknowledges and agrees that Landlord and Tenant will consider, as part of the Landlord approval process for the plans and specifications of any such Tenant Improvements or Alterations, whether to install “Water Sensors” in locations that may be reasonably expected to detect a leak occurring in the Premises. As used herein, “Water Sensors” are either web-enabled wireless water leak sensor devices designed to alert the Tenant on a twenty-four (24) hour seven (7) day per week basis if a water leak is occurring in the Premises (which water sensor device(s) located in the Premises shall be referred to herein as “Web-Enabled Water Sensors”) or non web-enabled water leak sensor devices of a model and specifications to be approved by Landlord (“Non Web-Enabled Water Sensors”). To the extent Landlord and Tenant agree that Tenant will install such Water Sensors, Tenant shall, at Tenant’s sole cost and expense, be responsible for installing the Water Sensors. If Tenant installs Non Web-Enabled Water Sensors that are determined by virtue of their performance to be deficient (i.e., fail to detect a water leak with the same or similar speed as the web enabled Water Sensors, or in any way fails to detect a water leak), then Tenant shall, upon Landlord’s written demand, at Tenant’s sole cost and expense, remove the Non Web-Enabled Water Sensors and install Web-Enabled Water Sensors in accordance with this Section 29.36. With respect to the installation of any such Water Sensors, Tenant shall use an experienced and qualified contractor reasonably approved by Landlord and comply with all of the other provisions of Article 8 of this Lease. Tenant shall, at Tenant’s sole cost and expense, pursuant to Article 7 of this Lease keep any Water Sensors located in the Premises in good working order, repair and condition at all times during the Lease Term and comply with all of the other provisions of Article 7 of this Lease. Notwithstanding any provision to the contrary contained herein, Landlord has neither an obligation to monitor, repair or otherwise maintain the Water Sensors, nor an obligation to respond to any alerts it may receive from the Water Sensors or which may be generated from the Water Sensors. Upon the expiration of the Lease Term, or immediately following any earlier termination of this Lease, Tenant shall leave the Water Sensors in place together with all necessary user information such that the same may be used by a future occupant of the Premises (e.g., the Water Sensors shall be unblocked and ready for use by a third-party).

  29.37 Utility Billing Information. In the event that Landlord permits Tenant to contract directly for the provision of electricity, gas and/or water services to the Premises with the third-party provider thereof, Tenant shall provide Landlord with a copy of each invoice received from the applicable utility provider promptly following Tenant’s receipt thereof. Landlord may be required to disclose information concerning Tenant’s energy usage at the Project to certain third parties, including, without limitation, prospective purchasers, lenders and tenants of the Project (the “Tenant Energy Use Disclosure”). Tenant hereby consents to all such Tenant Energy Use Disclosures, and Landlord shall use commercially reasonable efforts to notify Tenant of any Tenant Energy Use Disclosures made by Landlord. Further, Tenant hereby releases Landlord from any and all losses, costs, damages, expenses and liabilities relating to, arising out of and/or resulting from any Tenant Energy Use Disclosure. The terms of this Section 29.37 shall survive the expiration or earlier termination of this Lease.

  29.38 Green Cleaning/Recycling Program. Tenant shall cooperate if and to the extent Landlord implements a green cleaning program and/or recycling or waste management program for the Project, and Tenant hereby agrees that the reasonable costs associated with any such green cleaning and/or recycling program shall be included in Operating Expenses.

  29.39 LEED Certification. Landlord may, in Landlord’s sole and absolute discretion, elect to apply to obtain or maintain a LEED certification for the Project (or portion thereof), or other applicable certification in connection with Landlord’s sustainability practices for the Project (as such sustainability practices are to be determined by 

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  Landlord, in its sole and absolute discretion, from time to time). In the event that Landlord elects to maintain the existing LEED certification for the Project, Tenant shall, at Tenant’s sole cost and expense, promptly cooperate with the Landlord’s efforts in connection therewith and provide Landlord with any documentation it may need in order to maintain the aforementioned certification (which cooperation may include, but shall not be limited to, Tenant complying with certain standards pertaining to the purchase of materials used in connection with any Alterations or improvements undertaken by the Tenant in the Project (other than with respect to laboratory areas), the sharing of documentation pertaining to any Alterations or improvements undertaken by Tenant in the Project with Landlord, and the sharing of Tenant’s billing information pertaining to trash removal and recycling related to Tenant’s operations in the Project).

  29.40 Approvals. Whenever this Lease requires an approval, consent, determination, selection or judgment by either Landlord or Tenant, unless another standard is expressly set forth, such approval, consent, determination, selection or judgment and any conditions imposed thereby shall be reasonable and shall not be unreasonably withheld or delayed.

  29.41 Prohibited Persons; Foreign Corrupt Practices Act and Anti-Money Laundering. Neither (i) Tenant nor any of its officers, directors or managers, or (ii) to Tenant’s knowledge, any of Tenant’s affiliates, nor any of their respective members, partners, other equity holders (excluding any holders of any publicly traded stock or other equity interests of Tenant, if any), officers, directors or managers is, nor prior to or during the Lease Term, will they become a person or entity with whom U.S. persons or entities are restricted from doing business under (a) the Patriot Act (as defined below), (b) any other requirements contained in the rules and regulations of the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) (including any “blocked” person or entity listed in the Annex to Executive Order Nos. 12947, 13099 and 13224 and any modifications thereto or thereof or any other person or entity named on OFAC’s Specially Designated Blocked Persons List) or (c) any other U.S. statute, Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism) or other governmental action (collectively, “Prohibited Persons”). Tenant is not entering into this Lease, directly or indirectly, in violation of any laws relating to drug trafficking, money laundering or predicate crimes to money laundering. As used herein, “Patriot Act” shall mean the USA Patriot Act of 2001, 107 Public Law 56 (October 26, 2001) and all other statutes, orders, rules and regulations of the U.S. government and its various executive departments, agencies and offices interpreting and implementing the Patriot Act.

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  IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be executed the day and date first above written as a sealed California instrument.

   

  								
	LANDLORD:
	 
	TENANT:
	 

	 
	 
	 
	 
	 
	 
	 
	 

	KRE EXCHANGE OWNER LLC,
a Delaware limited liability company
	 
	VIR BIOTECHNOLGY, INC.,
a Delaware corporation

	 
	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Daniel Rudin
	 
	By:
	 /s/ Howard Horn

	 
	 
	Name:
	Daniel Rudin
	 
	 
	Name:
	Howard Horn

	 
	 
	Its: 
	Authorized Signatory
	 
	 
	Its:
	CFO

	 
	 
	 
	 
	 
	By:
	/s/ George Scangos

	 
	 
	 
	 
	 
	 
	Name:
	George Scangos

	 
	 
	 
	 
	 
	 
	Its:
	CEO

   

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  EXHIBIT 1.1.1-1

PREMISES

  Floors 8, 9, 10, 11 and 12 of the North Tower comprising 133,896 rentable square feet.

  EXHIBIT 1.1.1-1

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  EXHIBIT 1.1.1-2 

TENANT WORK LETTER

  THIS TENANT WORK LETTER (this “Work Letter”) is attached to and made a part of that certain Lease (the “Lease”) between KRE EXCHANGE OWNER LLC, a Delaware limited liability company (“Landlord”), and VIR BIOTECHNOLOGY, INC., a Delaware corporation (“Tenant”). All capitalized terms used but not defined herein shall have the respective meanings given such terms in the Lease. This Work Letter sets forth the terms and conditions relating to the construction of Tenant’s Improvements (defined below) in the Premises.

  SECTION 2

BASE BUILDING

  Subject to the terms and conditions of this Work Letter, Tenant hereby accepts the base, shell and core (i) of the Premises and (ii) of the floor(s) of the Building on which the Premises are located (collectively, the “Base Building”), in its current “AS IS” condition existing as of the date of the Lease and the Lease Commencement Date. Tenant shall be entitled to an improvement allowance in the maximum aggregate amount of Two Million Three Hundred Forty-Three Thousand, One Hundred Eighty Dollars ($2,343,180.00) (i.e., $17.50 per rentable square foot of the Premises) (the “Base Building Improvement Allowance”) to be used by Tenant solely to pay for the construction of certain improvements to the Base Building as are more particularly identified in Attachment 1 to this Work Letter (which required improvements are referred to here as the “Base Building Improvement Additions”) . Subject to Landlord’s obligation to pay to Tenant the Base Building Improvement Allowance in accordance with the terms and conditions of this Work Letter, Tenant shall be solely liable for all soft and hard costs associated with the Base Building Improvement Additions. Except for the Base Building Improvement Allowance and the Tenant Improvement Allowance set forth below, Landlord shall not be obligated to make or pay for any alterations or improvements to the Premises or the Building.

  For the sake of clarity, the base building condition of the Base Building to be delivered by Landlord to Tenant on the Lease Commencement Date is identified in the matrix (outlining existing base building conditions of the Base Building, including, inter alia, power, emergency power, lab exhaust, lab air supply and office air supply) attached hereto as Attachment 2 to this Work Letter (the “Base Building Delivery Condition”). Tenant acknowledges and agrees that Attachment 1 identifies conditions that are the Tenant’s responsibility to install (and, as such, are expressly not included in Attachment 2 as being included in the Base Building Delivery Condition), subject to reimbursement to the extent of the Base Building Improvement Allowance.

  Landlord acknowledges that certain of Tenant’s laboratory improvements to a portion of the Premises require additional emergency power, and Landlord commits to work cooperatively with Tenant and its consultants to identify one or more solutions for Tenant’s additional power needs; provided, however, the cost of designing and installing the Base Building infrastructure (in excess of the portion of the Base Building Improvement Allowance attributable to Tenant’s additional power needs) to achieve the availability of additional power capacity to the Premises shall be borne solely by Tenant (i.e., the cost of all upgrades, alterations and/or additions beyond those described in the Base Building Delivery Condition shall be paid solely by Tenant).

  SECTION 3

ALLOWANCE; TENANT IMPROVEMENTS

  3.1 Allowance. In addition to the Base Building Improvement Allowance, Tenant shall be entitled to a one-time allowance in an amount not to exceed $36,151,920.00 with respect to the Premises in the aggregate (the “Tenant Improvement Allowance” and together with the Base Building Improvement Allowance, the “Allowance”), for the costs relating to the design, permitting and construction of the Improvements to be constructed by Tenant that are to be permanently affixed in the Premises (as applicable, the “Tenant Improvements”). In clarification of the foregoing, Tenant acknowledges and agrees that the Tenant Improvement Allowance will be used to pay for the cost of Tenant Improvements to the tenth (10th), eleventh (11th) and twelfth (12th) floors (i.e., which floors are the lab floors), and in no event will Landlord be obligated to make disbursements pursuant to this Work Letter for an applicable portion of 

  EXHIBIT 1.1.1-2

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  the Premises in an amount that exceeds the amount of the Tenant Improvement Allowance applicable to such portion of the Premises; provided, however, Tenant may use up to $1,000,000.00 of the Tenant Improvement Allowance for improvements to the non-lab floors. Notwithstanding anything to the contrary set forth herein, no portion of the Allowance shall be disbursed by Landlord after twenty-four (24) months after the Lease Commencement Date; and any portion, if any, of the Allowance that is not disbursed by Landlord on or before such date shall revert to Landlord and Tenant shall have no rights thereto.

  3.2 Disbursement of the Allowance.

  (a) Allowance Items. Except as otherwise set forth in this Work Letter, the Allowance shall be disbursed by Landlord only for the following items and costs (collectively the “Allowance Items”):

  (i) Payment of the fees of the Architect, Contractor, Tenant Agents and the Building Consultants (as those terms are defined below);

  (ii) The payment of plan check, permit and license fees relating to the construction of the Tenant Improvements;

  (iii) The cost of construction of the Tenant Improvements, including, without limitation, after hours charges, testing and inspection costs, trash removal costs, and contractors’ fees and general conditions;

  (iv) The cost of any changes to the Building, any portion of the Premises or any building systems serving any portion of the Premises when such changes are required by the Construction Drawings, such cost to include all architectural and/or engineering fees and expenses incurred in connection therewith;

  (v) The cost of any changes to the Construction Drawings or Tenant Improvements required by applicable building codes (collectively, the “Code”);

  (vi) The fees of Tenant’s project manager (if any) up to a maximum sum of $250,000.00;

  (vii) The costs of Landlord’s charges and fees (Section 2.6) and Landlord’s Management Fee (defined below); and

  (viii) Sales and use taxes and Title 24 fees.

  For the sake of clarity, Tenant acknowledges and agrees that Tenant and Tenant’s Agents will accept sole responsibility for ADA and building code compliance for all improvements designed by Tenant’s Agents; provided, however, Landlord accepts responsibility for ADA and building code compliance for the Base Building of the Building and exterior areas (including path of travel from the public street to the entry of the Premises) limited to the existing conditions. If Tenant’s use of the Premises or any Base Building Improvement Additions triggers a change in path of travel, Tenant shall be responsible for any ADA and building code compliance triggered by such change in path of travel.

  (b) Disbursement of Allowance. During the construction of the applicable portion of the Base Building Improvement Additions and the Tenant Improvements, Landlord shall make monthly disbursements of the Base Building Improvement Allowance and the Tenant Improvement Allowance, as applicable, to reimburse Tenant for Allowance Items with respect to such Tenant Improvements and shall authorize the release of funds as follows, and otherwise in accordance with such disbursement procedures as Landlord shall reasonably require from time to time.

  (i) Progress Payment Disbursements.

  (A) On or before the fifth (5th) day of each calendar month during the construction of the Tenant Improvements in the applicable portion of the Premises (or such other date as Landlord may designate), Tenant shall deliver to Landlord with respect to such Tenant Improvements: (A) a request for payment from Contractor (defined below) approved by Tenant, in the form of an AIA G702/G703 application for payment (or comparable forms 

  EXHIBIT 1.1.1-2

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  reasonably approved by Landlord), showing the schedule, by trade, of percentage of completion of the applicable Tenant Improvements, detailing the portion of the work completed and the portion not completed (each, a “Payment Request”); (B) invoices from all of Tenant’s Agents (defined below) for labor rendered and materials delivered to the Premises; (C) executed conditional mechanic’s lien releases from all of Tenant’s Agents who have lien rights with respect to the subject Payment Request (along with unconditional mechanics’ lien releases with respect to payments made pursuant to Tenant’s prior submission hereunder) in compliance with all applicable laws as reasonably determined by Landlord, including without limitation all applicable provisions of California Civil Code Sections 8132 - 8138; (D) a copy of the check(s) or online banking records which Tenant issued to pay the requested sums to Tenant’s Agents; and (E) all other information reasonably requested by Landlord (collectively, the “Payment Request Supporting Documentation”).

  (B) Within forty-five (45) days after Tenant’s delivery to Landlord of all Payment Request Supporting Documentation, Landlord shall deliver a check to Tenant made payable to Tenant (or, at Landlord’s election, by wire transfer of immediately available funds) in payment of the lesser of: (x) the amount so requested by Tenant in its Payment Request, less a ten percent (10%) retention (the aggregate amount of such retentions to be known as the “Final Retention”), and (y) the balance of any remaining available portion of the applicable Allowance (not including the Final Retention), provided that if Landlord, in good faith, disputes any item in a Payment Request based on non-compliance of any work with the Approved Working Drawings (defined below) or due to any substandard work or for any other reason, and delivers a written objection to such item setting forth with reasonable particularity Landlord’s reasons for its dispute (a “Draw Dispute Notice”), Landlord may deduct the amount of such disputed item from the payment. Landlord and Tenant shall, in good faith, endeavor to diligently resolve any such dispute. Landlord’s payment of such amounts shall not be deemed Landlord’s approval or acceptance of the work furnished or materials supplied as set forth in Tenant’s Payment Request. Disbursements of soft costs and costs not to be paid through the Contractor shall be made based upon submittal by Tenant of satisfactory documentation for the same concurrently with Tenant’s submittal of its Payment Request, and payment shall be made no later than forty-five (45) days after submittal of such documentation, provided that in no event will Landlord be obligated to pay any amounts in excess of the applicable Allowance.

  (ii) Final Disbursement. Subject to the provisions of this Work Letter, following the final completion of construction of the Tenant Improvements in the applicable portion of the Premises, Landlord shall deliver to Tenant a check made payable to Tenant (or, at Landlord’s election, by wire transfer of immediately available funds) in the amount of the Final Retention for such portion of the Premises, provided that (A) Tenant delivers to Landlord for the entirety of the Tenant Improvements in such portion of the Premises properly executed unconditional mechanics’ lien releases from all of Tenant’s Agents in compliance with all applicable laws, as reasonably determined by Landlord, including without limitation compliance with all applicable provisions of California Civil Code Sections 8132 - 8138; (B) Landlord has determined that no substandard work exists which adversely affects the mechanical, electrical, plumbing, heating, ventilating and air conditioning, life-safety or other systems of the Building or any portion of the Premises), the curtain wall of the Building or the structure or exterior appearance of the Building; (C) Architect delivers to Landlord a certificate, in a form reasonably acceptable to Landlord, certifying that the construction of such Tenant Improvements has been substantially completed in accordance with the Approved Working Drawings; (D) Tenant supplies Landlord with evidence that all governmental approvals required for Tenant to legally occupy such portion of the Premises have been obtained; and (E) Tenant has fulfilled its Completion Obligations (defined below) and has otherwise complied with Landlord’s standard “close-out” requirements regarding city approvals, closeout tasks, closeout documentation regarding the general contractor, financial close-out matters, and Tenant’s vendors, and as set forth in the tenant improvement guidelines (the “Tenant Improvement Guidelines”) to be provided to Tenant by Landlord. Disbursements of soft costs and costs not to be paid through Contractor shall be made based upon submittal by Tenant of satisfactory documentation for the same, and payment shall be made concurrently with payment of the Final Retention, provided that in no event will Landlord be obligated to pay any amounts in excess of the applicable Allowance.

  (c) Standard Tenant Improvement Package. Landlord has established specifications for the Building standard components to be used in the construction of the Tenant Improvements in the Premises (collectively, the “Building Standards”), which Building Standards have been provided to Tenant by Landlord. The quality of the Tenant Improvements shall be equal to or of greater quality than the quality of the Building Standards.

  EXHIBIT 1.1.1-2

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  (b) Exhaust Shaft Reopening. The parties acknowledge that in connection with the initial construction of the Building, Dropbox caused an exhaust shaft that ran between the 11th floor and the roof of the North Tower to be filled and taken out of service. Landlord has agreed to allow Tenant’s Contractor (defined below) to undertake the work of restoring that shaft to a useable condition (as part of the Base Building Improvement Allowance, specifically # 9 in Attachment 1). Tenant has provided Landlord with the plans and specifications for such work and the Contractor’s estimate of the cost thereof, and Landlord has previously approved the same. Tenant shall include the cost of such work in the Payment Request submitted to Landlord following the completion of such work.

  (c) Mechanical Shaft Space. Landlord desires to install mechanical shaft space between the 8th, 9th and 10th floors of the North Tower in the two (2) locations depicted in Attachment 3 attached hereto (the “Mechanical Shafts”). Tenant will allow Landlord to install and pay for such Mechanical Shafts per a mutually agreed upon work schedule plan established between Landlord and Tenant. Landlord, at its sole cost and expense (in addition to and not as part of the Allowance), will relocate the existing conference rooms on floors 8, 9 and 10 to a mutually agreeable location to facilitate the installation of the Mechanical Shafts, which location has been designated pursuant to plans previously approved by Landlord and Tenant. If the installation of the Mechanical Shafts is not completed by Tenant’s occupancy of such floors, then Landlord will use commercially reasonably efforts to complete the work during Tenant’s nonregular business hours in order to minimize impacts to the conduct of Tenant’s business operations within the Premises.

  (d) Standby Power. Tenant acknowledges and accepts that Landlord will provide to it an allocation of 570 kVA of standby electrical power for the Premises. Tenant’s use of such standby power must not exceed its allocated share of such standby power. If Tenant’s consumption of the standby power regularly exceeds 98% of its allocated share (i.e., such 98% threshold being 558.6 kVA) for the Premises, then Tenant shall, at its sole expense, shed load on the standby power system to ensure that its usage will remain below such allocated capacity. As used herein, “shedding load” may consist of disconnecting equipment from the standby system, timing the use of equipment for non-peak hours, recircuiting to a power system with available capacity and other appropriate actions to reduce peak usage of standby electrical power. Tenant acknowledges and agrees that it shall be solely responsible for monitoring and managing at all times its consumption level of standby power; Landlord shall have no liability whatsoever for Tenant’s excess use of standby power (including, without limitation, any shortfall or lack of available standby power in excess of Tenant’s allocated share). Actual electrical consumption is metered and monitored through Landlord’s building automation system (BAS), and Landlord will allow Tenant read-only access to Tenant’s actual electrical usage data in order to facilitate Tenant’s monitoring and managing of its consumption levels of standby power.

  (e) Emergency Power. Tenant acknowledges and accepts that Landlord will provide to it an allocation of 35 kVA of emergency electrical power for the Premises. Tenant’s use of emergency power shall be limited to Life Safety code-related functions. Tenant acknowledges and agrees that it shall be solely responsible for monitoring and managing at all times its connected load to such emergency power system; Landlord shall have no liability whatsoever for Tenant’s excess use of emergency power (including, without limitation, any shortfall or lack of available emergency power in excess of Tenant’s allocated share). If Tenant’s connected load to such emergency power exceeds its allocated share for the Premises, then Tenant shall, at its sole expense, shed load on the emergency power system to ensure that its usage will be below such allocated capacity.

  SECTION 4

CONSTRUCTION DRAWINGS

  4.1 Selection of Architect; Construction Drawings. Tenant has retained DGA (the “Architect”), in connection with the Tenant Improvements. Tenant has retained the engineering consultants listed below (the 

  EXHIBIT 1.1.1-2

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  “Building Consultants”) to prepare all plans and engineering working drawings and perform all work relating to mechanical, electrical and plumbing (“MEP”), HVAC/Air Balancing, life-safety, structural, sprinkler, and riser work:

  		
	Structural:
	Forell Elsesser Engineers

	MEP:
	Affiliated Engineers, Inc. (AEI)

	Life Safety:
	Seimens

	Sprinkler:
	BHP

	Air Balancing:
	Southland Industries 

	Riser Management:
	Sasco/LANlogic

	Life Safety
	Siemens

	Riser Management
	Metro Electric

   

  If Tenant desires to changes any of the Building Consultants, Tenant shall obtain Landlord’s prior approval. not to be unreasonably withheld, conditioned or delayed. The Space Plan and the Working Drawings (as defined below) to be prepared by Architect and the Building Consultants hereunder shall be known collectively as the “Construction Drawings.” All Construction Drawings shall comply with the drawing format and specifications as set forth in the Tenant Improvement Guidelines and shall be subject to Landlord’s approval (as approved pursuant to Sections 3.2 and 3.3 below, the “Approved Working Drawings”). All MEP drawings must be fully engineered and cannot be prepared on a “design-build” basis. Tenant and Architect shall verify, in the field, the dimensions and conditions as shown on the relevant portions of the base building plans, and Tenant and Architect will be solely responsible for the same, and Landlord shall have no responsibility in connection therewith. Landlord’s review of the Construction Drawings shall be for its sole purpose and shall not obligate Landlord to review the same, for quality, design, Code compliance or other like matters. Accordingly, notwithstanding that any Construction Drawings are reviewed by Landlord or its space planner, architect, engineers and consultants, and notwithstanding any advice or assistance that may be rendered to Tenant by Landlord or Landlord’s space planner, architect, engineers, and consultants, Landlord shall have no liability whatsoever in connection therewith and shall not be responsible for any omissions or errors contained in the Construction Drawings or the Approved Working Drawings, and Tenant’s waiver and indemnity set forth in the Lease shall specifically apply to the Construction Drawings and the Approved Working Drawings.

  4.2 Space Plan. Tenant shall supply Landlord for Landlord’s (and Landlord’s) review and approval four (4) hard copies and one (1) electronic copy of its space plan for the applicable portion of the Premises signed by Tenant (the “Space Plan”) before any architectural working drawings or engineering drawings therefor have been commenced. The Space Plan shall include a layout and designation of all offices, rooms and other partitioning, laboratory improvements, if applicable, the intended use thereof, and equipment to be contained therein. Landlord may request clarification or more specific drawings for special use items not included in the Space Plan. Landlord shall advise Tenant within ten (10) business days after Landlord’s receipt of the Space Plan (or, if applicable, such additional information requested by Landlord pursuant to the provisions of the immediately preceding sentence) if the same is approved or is unsatisfactory or incomplete in any respect. If Tenant is so advised, Tenant shall promptly cause the Space Plan to be revised to correct any deficiencies or other matters Landlord may reasonably require. If Landlord fails to respond within such ten (10) Business Day period, Tenant shall deliver Landlord an additional notice requesting approval and if Landlord thereafter fails to respond within three (3) business days of receipt of such additional notice, Landlord will be deemed to have approved such Space Plan.

  4.3 Working Drawings. After the Space Plan has been approved (or deemed approved) by Landlord (and Tenant), Tenant shall supply the Architect and the Building Consultants with a complete listing of standard and non-standard equipment and specifications, including, without limitation, B.T.U. calculations, electrical requirements and special electrical receptacle requirements for the applicable portion of the Premises, to enable the Architect and the Building Consultants to complete the Working Drawings (as defined below). Tenant shall cause the Architect and the 

  EXHIBIT 1.1.1-2

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  Building Consultants to promptly complete the architectural and engineering drawings for such portion of the Premises, and Architect shall compile a fully coordinated set of architectural, structural, mechanical, electrical and plumbing working drawings in a form which is complete (i.e., fully supported with calculations and other back up as requested by Landlord and sufficient to allow subcontractors to bid on the work and to submit to the City and County of San Francisco Department of Building Inspection to obtain all applicable permits) (collectively, the “Working Drawings”) and shall submit four (4) hard copies and one (1) electronic copy signed by Tenant to Landlord for Landlord’s (and Landlord’s) review and approval. Landlord shall advise Tenant within ten (10) business days after Landlord’s receipt of the Working Drawings if Landlord, in good faith, determines that the same are approved or are unsatisfactory or incomplete. If Tenant is advised that the Working Drawings are unsatisfactory or are incomplete, Tenant shall promptly revise the Working Drawings to correct any deficiencies or other matters Landlord may reasonably require. The ten (10) Business Day period shall only commence when the Working Drawings are complete and fully supported with calculations and other back up as requested by Landlord. If Landlord fails to respond within such ten (10) Business Day period, Tenant shall deliver Landlord an additional notice requesting approval and if Landlord thereafter fails to respond within five (5) business days of receipt of such additional notice, Landlord will be deemed to have approved such Working Drawings. After approval (or deemed approval) by Landlord of the Working Drawings, Tenant shall submit the same to the appropriate municipal authorities for all applicable building permits. Tenant hereby agrees that neither Landlord nor Landlord’s consultants shall be responsible for obtaining any building permit or for obtaining interim or final signoffs on such permits and that obtaining the same shall be Tenant’s responsibility; provided that Landlord shall cooperate with Tenant in executing permit applications and other ministerial acts reasonably necessary to enable Tenant to obtain any such permit or sign-off. In no event shall Tenant commence any construction work in any portion the Premises prior to Landlord’s written approval of the Construction Drawings therefor and prior to the date that all required governmental permits are obtained and copies of all such permits are provided to Landlord.

  4.4 Change Orders. Once approved by Landlord, no material change in the Working Drawings may be made without the prior written approval of Landlord; provided however, if the proposed change does not materially affect the Building Structure, Building Systems or equipment or otherwise materially affect the Base Building and the cost implications of any such change will be borne one hundred percent (100%) by Tenant, Landlord agrees that it will not unreasonably withhold consent to such change. In the event Tenant desires to make any such change, Tenant shall deliver notice of the same to Landlord, setting forth in detail the change Tenant desires to make to such Working Drawings. Landlord shall, within seven (7) business days of receipt of such notice, either (i) approve the proposed change, or (ii) disapprove the proposed change and deliver a notice to Tenant specifying in reasonably sufficient detail the reasons for Landlord’s disapproval.

  4.5 Landlord’s Approval. Landlord’s approval of any matter under this Work Letter may be withheld if Landlord determines that the same would violate any provision of the Lease or this Work Letter or would adversely affect the mechanical, electrical, plumbing, heating, ventilating and air conditioning, life-safety or other systems of the Building or any portion of the Building (including the Premises, the curtain wall of the Building or the structure or exterior appearance of the Building). Landlord and Tenant acknowledge and agree that, prior to their mutual execution and delivery of the Lease, Tenant has been working with Dropbox and Landlord, as master landlord, to process plans for the construction of alterations to the subleased premises to accomplish a build out of the subleased premises, and in connection with that process, Landlord has thus far provided to Tenant the approvals identified on Attachment 4 attached hereto (collectively, the “Existing Approvals”). Other than the Existing Approvals, Tenant acknowledges and agrees that it must comply with the process described in this Work Letter in connection with obtaining future approvals.

  4.6 Landlord’s Costs. Tenant shall be responsible for payment of the reasonable out-of-pocket fees incurred by, and the reasonable out-of-pocket cost of documents and materials supplied by, Landlord and Landlord’s consultants in connection with the preparation and review of the Construction Drawings and otherwise relating to the construction of the Tenant Improvements, not to exceed $15,000.00.

  EXHIBIT 1.1.1-2

  -6-

  

   

  SECTION 5

CONSTRUCTION OF THE TENANT IMPROVEMENTS

  5.1 Tenant’s Selection of Contractors.

  (a) The Contractor. A general contractor selected by Tenant and approved in writing by Landlord shall be retained by Tenant to construct the Tenant Improvements (“Contractor”). Tenant has selected, and Landlord has approved, XL Construction

  (b) Tenant’s Agents. All subcontractors, laborers, materialmen, and suppliers used by Tenant (such subcontractors, laborers, materialmen, and suppliers, and the Contractor to be known collectively as “Tenant’s Agents”) must be approved in writing by Landlord, such approval not to be unreasonably withheld, conditioned or delayed (Landlord will approve or disapprove Tenant’s Agents within ten (10) business days following Tenant’s written request, and failure to respond within this period shall be deemed approval of the same), provided that Landlord will require Tenant to retain the Building Consultants. All of Tenant’s Agents shall be licensed in the State of California, capable of being bonded and shall use only union labor.

  5.2 Construction of Tenant Improvements by Tenant’s Agents.

  (a) Construction Contract; Cost Budget; Over-Allowance Payments. Landlord acknowledges that prior to the date of this Lease it has received and approved a copy of Tenant’s executed construction contract and general conditions with Contractor (the “Contract”). Prior to the commencement of the construction of any portion of the Tenant Improvements, Tenant shall provide Landlord with a schedule of values consisting of a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, in connection with the design and construction of such Tenant Improvements, which costs form the basis for the amount of the Contract (the “Anticipated Costs”). Landlord and Tenant shall determine the amount equal to the difference between (i) the amount of such Anticipated Costs, and (ii) the amount of the Allowance applicable to such portion of the Premises (less any portion thereof already disbursed by Landlord, or in the process of being disbursed by Landlord, on or before the commencement of construction of such portion of the Tenant Improvements) (such difference, if any, being the “Anticipated Over-Allowance Amount”). As of the date of this Lease, the Anticipated Over-Allowance Amount is projected to be $	. Tenant shall pay a percentage of each amount requested by the Contractor or otherwise to be disbursed under this Work Letter, which percentage (the “Percentage”) shall be equal to the Anticipated Over- Allowance Amount divided by the amount of the applicable Allowance, and such payments by Tenant (the “Over- Allowance Payments”) shall be a condition to Landlord’s obligation to pay any amounts from the Allowance (the “Improvement Allowance Payments”). Tenant shall advise Landlord from time to time as such Anticipated Costs are further refined or determined or the costs relating to the design and construction of the applicable Tenant Improvements otherwise change, and the Anticipated Over-Allowance Amount and Over-Allowance Payments shall be adjusted such that the applicable Improvement Allowance Payments by Landlord and applicable the Over- Allowance Payments by Tenant shall accurately reflect the then-current amount of the Anticipated Costs for the applicable Tenant Improvements.

  (b) Construction Requirements.

  (i) Landlord’s General Conditions for Tenant’s Agents and Tenant Initial Improvement Work. Construction of the Tenant Improvements shall comply with the following: (A) the Tenant Improvements shall be constructed in strict accordance with the Approved Working Drawings and Landlord’s (and Landlord’s) construction guidelines; (B) Tenant’s Agents shall submit schedules of all work relating to the Tenant Improvements to Landlord and Landlord shall, within five (5) business days of receipt thereof, inform Tenant’s Agents of any changes which are necessary thereto, and Tenant’s Agents shall adhere to such corrected schedule; and (C) Tenant shall abide by Landlord’s construction rules for the Project and all other rules reasonably made by Landlord and Landlord’s Building manager with respect to the use of freight, loading dock and service elevators, any required shutdown of utilities (including life safety systems), storage of materials, coordination with other contractors working in any portion of the Building, and any other matter in connection with this Work Letter, including, without limitation, the construction of the Tenant Improvements. Tenant shall pay to Landlord a fee for Landlord’s design review, processing of Payment Requests, coordination of the Tenant Improvements with Landlord, and general oversight (the “Management Fee”) with respect to the Tenant Improvements in an amount equal to Nine Hundred Sixty-Two 

  EXHIBIT 1.1.1-2

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  Thousand Three Hundred Seventy Seven and 50/100 Dollars ($962,377.50) (i.e., 2.5% of the Tenant Improvement Allowance and the Base Building Improvement Allowance); the Management Fee shall be deducted from the applicable portion of the Allowance on a pro rata basis with each disbursement of such portion of the Allowance.

  (ii) Indemnity. Tenant’s indemnity of Landlord as set forth in the Lease shall also apply with respect to any and all costs, losses, damages, injuries and liabilities related in any way to any act or omission of Tenant or Tenant’s Agents, or anyone directly or indirectly employed by any of them, or in connection with Tenant’s nonpayment of any amount arising out of the Tenant Improvements and/or Landlord’s disapproval of all or any portion of any request for payment. Such indemnity by Tenant, as set forth in the Lease, shall also apply with respect to any and all costs, losses, damages, injuries and liabilities related in any way to Landlord’s performance of any ministerial acts reasonably necessary (A) to permit Tenant to complete the Tenant Improvements, and (B) to enable Tenant to obtain any building permit or certificate of occupancy for any portion of the Premises. The foregoing indemnity shall not apply to claims caused by the gross negligence or willful misconduct of Landlord, Landlord or its or their members, partners, shareholders, officers, directors, agents, employees and/or contractors, or to the failure of Landlord to disburse the Allowance as and when required hereunder.

  (iii) Requirements of Tenant’s Agents. Each of Tenant’s Agents shall warrant that the portion of the Tenant Improvements for which it is responsible shall be free from any defects in workmanship and materials, that the materials and equipment used will be new and of good quality (unless expressly specified otherwise in the contract documents), and that the work will conform to the requirements of the contract documents. The foregoing warranties are in addition to any other warranties with respect to the work that may be required by the contract documents. Further, and without limiting the foregoing warranties, each of Tenant’s Agents shall agree to be responsible for the replacement or repair, without additional charge, of all defects in the work performed or furnished under its contract that become apparent during the one (1) year period following substantial completion of the Tenant Improvements. The correction of such work shall include, without additional charge, all additional expenses and damages incurred in connection with the removal or replacement of all or any part of the Tenant Improvements, and/or the Building and/or common areas that are damaged or disturbed as a result of the defective work or any replacement or repair work. All of the warranties and agreements described herein shall be contained in the Contract and each subcontract and shall be written such that they inure to the benefit of Landlord, Landlord and Tenant, as their respective interests may appear, and can be directly enforced by either. Tenant covenants to give to Landlord and/or Landlord any assignment or other assurances as may be necessary to affect such right of direct enforcement.

  (c) Insurance Requirements.

  (i) General Coverages. All of Tenant’s Agents shall carry worker’s compensation insurance covering all of their respective employees, and shall also carry public liability insurance, including property damage, all with limits, in form and with companies as are required to be carried by Landlord as set forth in the Lease (provided that the limits of liability to be carried by Tenant’s Agents and Contractor shall be in amounts as may be required by Landlord).

  (ii) Special Coverages. During construction of any portion of the Tenant Improvements, Tenant shall carry “Builder’s All Risk” insurance in an amount approved by Landlord covering the construction of the Tenant Improvements (at Tenant’s option, Tenant shall cause Contractor to carry such Builder’s All Risk insurance), and such other insurance as Landlord or Landlord may reasonably require, it being understood and agreed that the Tenant Improvements shall be insured by Tenant pursuant to the Lease immediately upon completion thereof. Such insurance shall be in amounts and shall include such customary extended coverage endorsements as may be reasonably required by Landlord and/or Landlord, and shall be in form and with companies as are required to be carried by Tenant as set forth in the Lease. During construction of any portion of the Tenant Improvements, Tenant shall cause any architect and engineer to carry professional liability insurance with limits of not less than $2,000,000 per claim and in the annual aggregate covering professional services performed by the respective party, and such coverage must be maintained for the greatest period under which a claim may be properly asserted under the applicable statute of limitations or repose.

  (iii) General Terms. Certificates for all insurance carried pursuant to this Section 3.2(c) shall be delivered to Landlord before the commencement of construction of the Tenant Improvements and before the Contractor’s equipment is moved onto the site. Tenant shall immediately notify Landlord in the event any policy of insurance carried by Tenant is cancelled or the coverage materially changed. Tenant’s Contractor and subcontractors 

  EXHIBIT 1.1.1-2

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  shall maintain all of the foregoing insurance coverage in force until the Tenant Improvements are fully completed and accepted by Landlord, except for any Products and Completed Operation Coverage insurance required by Landlord, which is to be maintained for ten (10) years following completion of the work and acceptance by Landlord and Tenant, where applicable. All policies carried under this Section 3.2(c) (other than Workers’ Compensation coverage) shall insure Landlord, Landlord and Tenant, as their interests may appear. All insurance, except Workers’ Compensation, maintained by Tenant’s Agents shall preclude subrogation claims by the insurer against anyone insured thereunder, as evidenced by an endorsement or policy excerpt. Such insurance shall provide that it is primary insurance with respect to the Tenant Improvements and that any other insurance maintained by Landlord or Landlord is excess and noncontributing with the insurance required hereunder. The requirements for the foregoing insurance shall not derogate from the provisions for indemnification of Landlord by Tenant under the Lease or this Work Letter.

  (d) Governmental Compliance. The Tenant Improvements shall comply in all respects with the following: (i) the Code and other federal, state, city and/or quasigovernmental laws, codes, ordinances and regulations, as each may apply according to the rulings of the controlling public official, agent or other person or entity; (ii) applicable standards of the American Insurance Association (formerly, the National Board of Fire Underwriters) and the National Electrical Code; and (iii) building material manufacturer’s specifications.

  (e) Inspection by Landlord. Landlord shall have the right to inspect the Tenant Improvements at all times, provided however, that Landlord’s failure to inspect the Tenant Improvements shall in no event constitute a waiver of any of Landlord’s rights hereunder nor shall Landlord’s inspection of the Tenant Improvements constitute Landlord’s approval of the same. Should Landlord disapprove any portion of the Tenant Improvements, Landlord shall notify Tenant in writing of such disapproval and shall specify the items disapproved. Any defects or deviations in, and/or disapproval by Landlord of, the Tenant Improvements shall be rectified by Tenant at no expense to Landlord, provided however, that in the event Landlord determines that a defect or deviation exists or disapproves of any matter in connection with any portion of the Tenant Improvements and such defect, deviation or matter might adversely affect the mechanical, electrical, plumbing, heating, ventilating and air conditioning or life-safety systems of the Building or any portion of the Premises or the structure or exterior appearance of the Building, Landlord may take such action as Landlord deems necessary, at Tenant’s expense and without incurring any liability on Landlord’s part, to correct any such defect, deviation and/or matter, including, without limitation, causing the cessation of performance of the construction of the Tenant Improvements until such time as the defect, deviation and/or matter is corrected to Landlord’s satisfaction.

  (f) Meetings. Tenant shall hold periodic meetings at a reasonable time with the Architect and the Contractor regarding the progress of the preparation of the Construction Drawings and the construction of the Tenant Improvements, and Landlord shall receive prior written notice of, and Landlord and/or its agents (and Landlord and/or its agents) shall have the right to attend, all such meetings, and, upon Landlord’s request, certain of Tenant’s Agents shall attend such meetings. In addition, minutes shall be taken at all such meetings, and Landlord and Landlord will be included in the distribution list for such minutes. One such meeting each month shall include the review of Contractor’s current request for payment.

  5.2 Notice of Completion; Copy of Record Set of Plans. Within thirty (30) days after completion of construction of any portion of the Tenant Improvements, Tenant shall cause a Notice of Completion to be recorded in the office of the Recorder of San Francisco County in accordance with Section 8182 of the California Civil Code or any successor statute, shall furnish a copy thereof to Landlord upon such recordation, and shall timely give all notices required pursuant to Section 8188 or 8190 of the California Civil Code or any successor statutes. If Tenant fails to do so, Landlord may execute and file such Notice of Completion and give such notices on behalf of Tenant as Tenant’s agent for such purpose, at Tenant’s sole cost and expense. Within thirty (30) days following the completion of construction of any portion of the Tenant Improvements, (i) Tenant shall cause the Architect and Contractor (A) to update the Approved Working Drawings as necessary to reflect all changes made to the Approved Working Drawings during the course of construction, (B) to certify to the best of their knowledge that the updated drawings are true and correct, which certification shall survive the expiration or termination of the Lease, and (C) to deliver to Landlord such updated drawings in accordance with Landlord’s then-current CAD Format Requirements, and (ii) Tenant shall deliver to Landlord a copy of all warranties, guaranties, and operating manuals and information relating to the improvements, equipment, and systems in the Premises as Landlord may require.

  EXHIBIT 1.1.1-2

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  SECTION 6

MISCELLANEOUS

  (a) Tenant’s Representative. Tenant has designated Larry Matarazzi (larry@vir.bio) as its sole representative with respect to the matters set forth in this Work Letter, until further notice to Landlord, who shall have full authority and responsibility to act on behalf of Tenant as required in this Work Letter.

  (b) Landlord’s Representative. Landlord has designated Eric Giles (egiles@lfrep.com) its sole representative with respect to the matters set forth in this Work Letter, who, until further notice to Tenant, shall have full authority and responsibility to act on behalf of Landlord as required in this Work Letter.

  (c) Tenant’s Default. Notwithstanding any provision to the contrary contained in the Lease, if a Default by Tenant under the Lease (including, without limitation, this Work Letter) has occurred at any time on or before the substantial completion of the Tenant Improvements, then (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to withhold payment of all or any portion of the Allowance, and (ii) all other obligations of Landlord under the terms of this Work Letter shall be forgiven until such time as such default is cured pursuant to the terms of the Lease.

  EXHIBIT 1.1.1-2

  -10-

  

   

  Attachment 1

  Base Building Improvement Additions

   

   

  EXHIBIT 1.1.1-1

  11

  

   

  Attachment 2

  Base Building Delivery Condition

   

   

   

  EXHIBIT 1.1.1-2

  12

  

   

   

   

  EXHIBIT 1.1.1-2

  13

  

   

   

   

  EXHIBIT 1.1.1-2

  14

  

   

   

   

  EXHIBIT 1.1.1-2

  15

  

   

   

   

  EXHIBIT 1.1.1-2

  16

  

   

   

   

   

  EXHIBIT 1.1.1-2

  17

  

   

  Attachment 3

  Mechanical Shaft Depiction 

   

   

   

   

   

   

  EXHIBIT 1.1.2

  -18-

  

   

  Attachment 4

  Existing Approvals 

  		
	Date
	Landlord Approval Letters

	May 18, 2021
	VIR Logistics Plan 1a & Safe-off Plan for floors 10, 11, and 12 in Sector 1

	June 1, 2021
	VIR Demo Work for floors 10, 11, and 12 in Sector 1

	June 4, 2021
	Elevator C&D Separation

	June 17, 2021
	VIR Phase 2 Rev. 2 Logistics Plan for floors 10, 11, and 12 in Sector 1

	July 11, 2021
	VIR Elevator D-FASE Protection and Use Plan in Sector 1

	September 1, 2021
	VIR 7/23/2021 Permit Drawings and 8/3/2021 MEPF BOD in Sector 1 (Review comments and partial approval)

	September 15, 2021
	VIR Shaft Structural Demolition Work for floors 10, 11 and 12 in Sector 1

	November 3, 2021
	VIR 7/23/2021 Permit Drawings and 8/3/2021 MEPF BOD in Sector 1

   

   

  EXHIBIT 1.1.2

  -19-

  

   

  EXHIBIT 1.3

FIRST REFUSAL SPACE

  Note: Seventh (7th) floor of the North Tower contains 26,657 RSF. 

   

  EXHIBIT 1.3

  -1-

  

   

  EXHIBIT 2.1

FORM OF NOTICE OF LEASE TERM DATES

  		
	To:
	 

	 
	 

	 
	 

   

  Re:	Lease dated _______________, 20__ between _______________________, a ______________________ (“Landlord”), and ____________________________, a ____________________________ (“Tenant”) concerning Suite ________ on floor(s) ________________ of the building located at [INSERT BUILDING ADDRESS].

  Gentlemen:

  In accordance with the Lease (the “Lease”), we wish to advise you and/or confirm as follows:

  
   1.
   
    The Lease Term shall commence on or has commenced on _________________ for a term of __________________ ending on ____________________.
   

  

  
   2.
   
    The Rent Commencement Date occurred on	, subject to the Base Rent abatement set forth in Section 3 of the Lease.
   

  

  
   3.
   
    Your rent checks should be made payable to _____________________ at ______________.
   

  

  
   4.
   
    Tenant’s Share of Direct Expenses with respect to the North Tower is __________________, subject to any Retail Space Cost Pool.
   

  

  
   5.
   
    Capitalized terms used here that are defined in the Lease shall have the same meaning when used herein.
   

  

  If the provisions of this letter correctly set forth our understanding, please acknowledge by signing at the place provided below on the enclosed copy of the letter and returning the same to Landlord.

   

  			
	 
	“Landlord”:

	 
	 

	 
	KRE EXCHANGE OWNER LLC, 
a Delaware limited liability company

	 
	 
	 

	 
	By:
	 

	 
	Its: 
	 

	 
	 
	 

   

  Agreed to and Accepted as 

  of _________________, 20___

  			
	“Tenant”:

	 

	a
	 
	 

	By:
	 
	 

	Its:
	 
	 

   

  EXHIBIT 2.1

  -1-

  

   

  EXHIBIT 4.4.3

  THE EXCHANGE 

  MISSION BAY REQUIREMENTS

  1.	Environmental Covenant. The Project may contain hazardous materials in soils and in the ground water under the Project, and is subject to a deed restriction (Covenant and Environmental Restriction on Property) dated as of February 23, 2000, and recorded in the Official Records of the City and County of San Francisco, California (the “Official Records”) on March 21, 2000, as Document No. 2000-G748552 (the “Environmental Covenant”), which Environmental Covenant imposes certain covenants, conditions, and restrictions on usage of the Project. The foregoing statement is required by the Environmental Covenant and is not a declaration that a hazard exists. As required by Section 3.3 of the Environmental Covenant, Landlord hereby states as follows: “The land described herein may contain hazardous materials in soils and in the ground water under the property, and is subject to a deed restriction (Covenant and Restriction) dated as of February 23, 2000, and recorded on March 21, 2000, in the Official Records of San Francisco County, California, as Document No. G748552, which Covenant and Restriction imposes certain covenants, conditions, and restrictions on usage of the property described herein. This statement is not a declaration that a hazard exists.” The Environmental Covenant references and requires compliance with the provisions of the Risk Management Plan, Mission Bay Area, San Francisco, California, dated May 11, 1999 (as may be amended from time to time, the “RMP”). Tenant hereby acknowledges receipt of a copy of the original RMP, and hereby covenants (i) to comply with the RMP (to the extent the RMP applies to Tenant’s activities), (ii) to obligate other entities with which Tenant contracts for construction, property maintenance, or other activities that may disturb soil or groundwater to comply with the applicable provisions of the RMP, and (iii) to refrain (and to cause the entities with which it so contracts to refrain) from interfering with Landlord’s or other Occupant’s (with “Occupant” having the meaning ascribed in the Environmental Covenant) compliance with the RMP. Additionally, in all future leases, licenses, permits, or other agreements between Tenant and another entity which authorizes such entity to undertake or to engage in activities that are subject to one or more requirements set forth in the RMP, Tenant will provide a copy of the RMP or its relevant provisions prior to execution of such agreements and ensure that such agreements contain covenants that (i) such entity will comply with the RMP (to the extent the RMP applies to the entity’s activities); (ii) such entity will obligate other entities with which it contracts for construction, property maintenance or other activities which may disturb soil or groundwater to comply with the applicable provisions of the RMP; and (iii) such entity (and the entities with which it so contracts) will refrain from interfering with Landlord’s, Tenant’s, or other Occupants’ compliance with the RMP.

  2.	Special Tax Acknowledgment. In accordance with Section 53341.5 of the California Government Code, Tenant previously has delivered to Landlord acknowledgments, duly executed by Tenant, confirming that Tenant has been advised of the terms and conditions of the “CFDs” (as defined below), including that the Project is subject to the “CFD Assessments” (as defined below). As used herein, (a) “CFDs” shall mean, collectively, (i) the Redevelopment Agency Community Facilities District No. 5 (Mission Bay Maintenance) (the “Maintenance CFD”) (established to pay a portion of the costs of ongoing maintenance of open space parcels in Mission Bay), (ii) the Redevelopment Agency Community Facilities District No. 6 (Mission Bay South Public Improvements) (the “Infrastructure CFD”) (established to pay a portion of the costs of constructing and installing public infrastructure in Mission Bay), and (iii) the San Francisco Unified School District of the City and County of San Francisco Community Facilities District No. 90-1 (Public School Facilities) (the “Public School CFD”) (established to pay a portion of the costs of acquiring and/or constructing public school facilities), and (b) “CFD Assessments” shall mean the special taxes (i) to be levied on the Project and other property in Mission Bay in accordance with the terms and conditions of the “Rate and Method of Apportionment of Special Tax” applicable to the Infrastructure CFD and the Maintenance CFD, respectively, and (ii) to be levied on the Project and other property in accordance with the terms and conditions applicable to the Public School CFD. Tenant acknowledges that, pursuant to the CFDs, CFD Assessments may be levied on the Project and that, without limiting the generality of any other provision contained in this Lease, Direct Expenses shall include all such CFD Assessments.

  3.	Project Labor Agreement. Tenant has been informed by Landlord of the following: (a) Perini Corporation, CDC and its parent, subsidiaries and successor developers in which it holds a majority interest (collectively, “CDC Parties”), the San Francisco Building and Construction Trades Council, AFL-CIO (“Council”), and certain affiliated local unions originally entered into a certain Mission Bay Project Agreement (the “Original Project Labor Agreement”) for the Mission Bay project on October 8, 1990, pursuant to which (i) CDC Parties 

  EXHIBIT 4.4.3

  -1-

  

   

  agreed, to the fullest extent possible, to award all construction contracts in Mission Bay for “Covered Work” (as defined in the Original Project Labor Agreement) to unionized construction firms; and (b) CDC and the individual members of the Council entered into an Addendum to Agreement (“Addendum”) that amended certain terms of the Original Project Labor Agreement (the Original Project Labor Agreement, as amended by the Addendum, shall be referred to as the “Project Labor Agreement”), pursuant to which CDC agreed that CDC would require, as a condition of any sale, conveyance, ground lease, or donation of real property covered by the Project Labor Agreement (“Covered Property”), that any and all successors in interest and/or assignees, buyers, ground lessees, or donees (any of the foregoing, a “Covered Successor”) of Covered Property shall require any contractors to which the Covered Successor contracts work that is covered by the Project Labor Agreement to sign and become a party to a successor project labor agreement (a “Successor Project Labor Agreement”, the form of which is attached hereto as Schedule 1 to this Exhibit 4.4.3). Tenant acknowledges that the Project is Covered Property, that Landlord is a Covered Successor, and that Landlord has agreed to require any contractors to which Landlord contracts work which is Covered Work to sign and become a party to a Successor Project Labor Agreement. Accordingly, Tenant hereby agrees that Tenant shall require any contractors to which Tenant or any of its contractors contract work which is Covered Work to execute and deliver a Successor Project Labor Agreement. If Tenant acts as a contractor, Tenant shall be required to sign a Successor Project Labor Agreement as project contractor. Tenant will cause its general contractor to execute a Successor Project Labor Agreement prior to the commencement of any construction work on the Project and shall deliver an executed original of each Successor Project Labor Agreement to Landlord. Following Landlord’s receipt of such executed original of the Successor Project Labor Agreement, Landlord shall use commercially reasonable efforts to obtain full execution of the Successor Project Labor Agreement by the union signatories, but Tenant acknowledges that Landlord shall have no liability whatsoever if full execution of the Successor Project Labor Agreement is not obtained.

  4.	First Source Hiring Program. Tenant has been informed by Landlord that there is a City-wide “First Source Hiring Program” (“FSHP”) (adopted by the City and County of San Francisco on August 10, 1998, Ordinance No. 264-98). Tenant hereby acknowledges that its activities with respect to the Project are or may be subject to the FSHP. Accordingly, Tenant shall comply with any provisions of the FSHP that are applicable to the Premises or any construction in, or use or development of, the Premises by Tenant.

  5.	Non-Discrimination. Without limiting the generality of any other provision of this Lease, there shall be no discrimination against, or segregation of, any person or group of persons or any employee or applicant for employment on account of race, color, creed, religion, sex, marital or domestic partner status, familial status, national origin, ancestry, lawful source of income (as defined in Section 3304 of the San Francisco Police Code), gender identity, sexual orientation, age, or disability (including, without limitation, HIV/AIDS status) in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of any part of the Project, nor shall Tenant or any person claiming under or through Tenant, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in any part of the Project. All deeds, leases, subleases, or contracts concerning the Project shall contain the non-discrimination and non-segregation clauses specified for each type of document in Section 33436 of the California Health and Safety Code.

  6.	Tax Exempt Entities. Tenant acknowledges that it has received and reviewed that certain Grant Deed dated May 19, 2014, executed and acknowledged on behalf of FOCIL-MB, LLC, and Landlord, recorded in the Official Records on May 23, 2014, as Document No. 2014-J886903-00 (the “Grant Deed”), and further that this Lease and Tenant are subject and subordinate to, and Tenant shall not violate, the covenants contained in such Grant Deed. Such Grant Deed contains certain covenants by Landlord regarding payments of taxes (or payments in lieu of taxes) if (a) there is any sale, assignment, conveyance, lease, sublease, or other alienation of any portion of the Project to an entity that is or could be exempt from property taxation (a “Tax Exempt Entity”), or (b) there is a grant to a Tax Exempt Entity of occupancy rights (such as under a space lease) where, as the result of such grant, all or any portion of any improvements on all or any portion of the Project would or could be exempt from property taxation. Accordingly, Tenant shall not Transfer the Premises, or any portion thereof, or sublease space in, or otherwise grant any occupancy rights, in the Premises to any Tax Exempt Entity without first: (a) obtaining from such Tax Exempt Entity a binding contractual commitment, in form and substance reasonably satisfactory to, and for the benefit of, the Successor Agency to the Redevelopment Agency (the “Successor Agency”) and the City and County of San Francisco (collectively, “City and County”), obligating such entity to make a payment in lieu of taxes (“PILOT Agreement”) equal to the full amount of the property taxes that would have been assessed against the Premises notwithstanding 

  EXHIBIT 4.4.3

  -2-

  

   

  such occupancy by a Tax Exempt Entity; or (b) entering into a binding PILOT Agreement, in form and substance reasonably satisfactory to, and for the benefit of, the Successor Agency and the City and County, requiring the full payment of property taxes (or a payment in lieu thereof in an amount equal to the property taxes) that would have been assessed against the Premises notwithstanding such occupancy by such Tax Exempt Entity, or (c) obtaining the written consent of the Successor Agency and the City and County, in their respective sole discretion. Tenant hereby agrees not to request that Landlord request an adjustment to the “Base Year Value” (as defined below) for the “South Plan Area” (as defined in the OPA), or any portion thereof, as a result of any Transfer permitted under this Lease to a Tax Exempt Entity. For purposes hereof, (i) the term “Base Year Value” means the aggregate assessed value of property within the South Plan Area on the assessment roll last equalized prior to the effective date of the ordinance adopting the Redevelopment Plan, and (ii) the term “last equalized” has the meaning set forth in Section 2052 of the California Revenue and Tax Code.

  7.	Mitigation Measures. Tenant has been informed by Landlord that the Project (along with other property) is subject to the Mitigation Monitoring and Reporting Program for the Mission Bay South Plan Area (including, but not limited to, the Mission Bay South CEQA Mitigation Measures described in Attachment L to the Mission Bay South Owner Participation Agreement between the Redevelopment Agency and CDC dated November 16, 1998, and recorded in the Official Records on December 3, 1998, as Document No. 98-G477258). Tenant shall comply with the following mitigation measures (and with any other mitigation measures that Landlord reasonably determines are applicable to Tenant’s operations in the Premises):

  
   (a)
   
    Mitigation Measure L01 (Biohazardous Materials Handling Guidelines): Require businesses that handle biohazardous materials and do not receive federal funding to certify that they follow the guidelines published by the National Research Council and the U.S. Department of Health and Human Services Public Health Service, National Institutes of Health, and Centers for Disease Control as set forth in Biosafety in Microbiological and Biomedical Laboratories, Guidelines for Research Involving Recombinant DNA Molecules (NIH Guidelines), and Guide for the Care and Use of Laboratory Animals, or their successors, as applicable.
   

  

  
   (b)
   
    Mitigation Measure L02 (Use of HEPA Filters): Require businesses handling biohazardous materials to certify that they use high efficiency particulate air (HEPA) filters or substantially equivalent devices on all exhaust from Biosafety Level 3 laboratories unless they demonstrate that exhaust from the Biosafety Level 3 laboratories would not pose a substantial health and safety hazards to the public or the environment. Require such businesses to certify that they inspect or monitor the filters regularly to ensure proper functioning.
   

  

  
   (c)
   
    Mitigation Measure L03 (Handling of Biohazardous Materials): Require businesses handling biohazardous materials to certify that they do not handle or use biohazardous materials requiring Biosafety Level 4 containment (i.e., dangerous or exotic materials that pose high risks of life-threatening diseases or aerosol-transmitted infections, or unknown risks of transmitting in the Project Area).
   

  

  8.	Declaration of Tax Appeal Waiver Agreement. Tenant acknowledges that it has received and reviewed a certain Declaration of Tax Appeal Waiver Agreement dated May 23, 2014, executed and acknowledged on behalf of FOCIL-MB, LLC, and Landlord, recorded in the Official Records on May 23, 2014, as Document No. 14-J886906 (“Declaration of Tax Appeal Waiver Agreement”), and further that this Lease and Tenant are subject and subordinate to, and Tenant shall not violate, the covenants contained in such Declaration of Tax Appeal Waiver Agreement. Such Declaration of Tax Appeal Waiver Agreement contains certain covenants by Landlord to not (and waivers of any rights to) take any action or seek to take any action (including filing any appeal, contest, commencing any legal action or otherwise challenging or disputing in any way) that would result in a reduction of the assessed value of the Project for property tax purposes below a “Minimum Amount” (as defined in the Declaration of Tax Appeal Waiver Agreement as the sum of (i) $95,000,000.00 plus (ii) the actual construction costs for the Project, provided, however, that the Minimum Amount shall increase on the anniversary of the Completion of Construction (as defined therein) and annually thereafter by 2%). In connection with the foregoing, and notwithstanding the terms and conditions of Article 4 of this Lease, (a) Tenant shall not have the right to require Landlord to seek any reduction in Tax Expenses below the Minimum Amount, and (b) notwithstanding anything to the contrary set forth in this Lease, only Landlord may institute proceedings to reduce Tax Expenses and the filing of any such proceeding by Tenant without Landlord’s consent shall constitute an Event of Default by Tenant under this Lease.

  EXHIBIT 4.4.3

  -3-

  

   

  SCHEDULE 1 TO EXHIBIT 4.4.3

THE EXCHANGE

SUCCESSOR PROJECT LABOR AGREEMENT

  [ATTACHED]

   

   

   

   

   

  EXHIBIT 4.4.3

  -4-

  

   

  MISSION BAY

PROJECT AGREEMENT

   

   

   

  Exhibit A – 2

   

  EXHIBIT 4.4.3

  -5-

  

   

  MISSION BAY

PROJECT AGREEMENT

  This Project Agreement (“Agreement”) is entered into this ______ day of _____________, 200_ by and among _________________________________ (hereinafter referred to as the “Project Contractor”), and the San Francisco Building and Construction Trades Council, AFL-CIO; and affiliated Local Unions whose names are subscribed hereto and who have, through their duly authorized officers, executed this Agreement (hereinafter collectively referred to as the “Union” or the “Unions”). The term Contractor as used in this Agreement includes all contractors and subcontractors of whatever tier. Contractor agrees to comply with the collective bargaining agreements listed in Schedule A for the purposes of the Covered Work only, and any obligation incurred under Schedule A agreements shall expire with the termination of this Agreement. Where specific reference to ________________ only is intended, the term Project Contractor is used. This project is being constructed pursuant to an Owner’s Participation Agreement (“Owner OPA”) for Mission Bay _______________ originally between the Redevelopment Agency of the City and County of San Francisco and Catellus Development Corporation (“Catellus”) and subsequently transferred in part to _____________________ (the “Owner”). The project area is generally bound by ________________________________________________________.

  Catellus and the Unions entered into the Mission Bay Project Agreement (“Original PLA”) for the entire Mission Bay project on October 8, 1990. The Original PLA was amended by an Addendum to Agreement effective __________________ 2003 (“Addendum”), which among other things, requires the execution of this Agreement by the Project Contractor when Catellus sells, conveys, ground leases or donates to a third party any real property covered by the Original PLA, subject to the terms and conditions of the Addendum.

  Exhibit A – 3

   

  EXHIBIT 4.4.3

  -6-

  

   

  ARTICLE I.	PURPOSE

  The construction at the Owner’s project will require substantial numbers of employees from construction and other supporting crafts. The orderly and uninterrupted construction of the work at the Mission Bay project and the Owner’s project are of significant interest to the parties to this Agreement.

  It is the purpose of this Agreement to ensure that all work covered by this Agreement proceeds efficiently, economically, and with due consideration for the protection of labor standards, wages, and working conditions.

  Consistent with the implementation of the programs described in the Mission Bay Affirmative Action and Economic Development Plan (“MBAAWEDP”), Project Contractor will, to the fullest extent possible, award all construction contracts to unionized construction firms. Project Contractor further commits that all construction work under its jurisdiction shall be at prevailing wages, fringes and conditions for all trades and crafts pursuant to the appropriate contract identified on Schedule A. Project Contractor will use good-faith efforts to maximize MBE, WBE and LBE contracts with union firms. Should it be determined that Minority Business Enterprise/Women Owned Business Enterprise; (MBE/WBE) goals for .this project are not being reached a a result of this Agreement, the affected crafts, San Francisco Building Trades Council and Project Contractor will meet and confer to arrive at a resolution which allows for MBE/WBE goal attainment.

  The parties to this Agreement have agreed and do establish and put into practice effective and binding methods for the settlement of all misunderstandings, disputes, or grievances that may arise between or among the parties to this Agreement. To accomplish the purpose that the Contractor be assured of complete continuity of operation and that labor-management peace be maintained, the Unions agree not to engage in any strike, picketing, work stoppage, slowdown, sympathy action or any other disruptive activities directed to or in connection with Covered Work, and the Contractors agree not to engage in any lockout.

  Exhibit A – 4

   

  EXHIBIT 4.4.3

  -7-

  

   

  ARTICLE II.	EFFECT OF OTHER AGREEMENTS

  The provisions of this Agreement, including the local collective bargaining agreements listed on Schedule A, shall apply to Project Contractor’s construction and the Owner’s project, notwithstanding the provisions of local and/or national union agreements which may conflict or differ with the terms of this Agreement.  Where a subject is covered by the provisions of this Agreement is also covered by a collective bargaining agreement which is listed on Schedule A, the provisions of this Agreement shall prevail. Where a subject is covered by the provisions of a collective bargaining agreement identified in Schedule A and not covered by this Agreement, the provisions of the appropriate collective bargaining agreement identified on Schedule A shall prevail. Further, the parties are bound by the MBAAEDP which is incorporated in its entirety in this document as though set forth herein. This Agreement is not a collateral agreement within the meaning of Section 56.3(c) and 56.11 of the San Francisco Administrative Code.

  ARTICLE III.	SCOPE OF THE AGREEMENT

  This Agreement shall apply to all demolition, new construction including exterior landscaping and tenant work, including but not limited to mill cabinet work and built-in furniture work performed on the Owner’s project by or otherwise at the control and direction of Project Contractor excluding uses existing at the time of execution of this Agreement (referred to herein as “Covered Work”).

  ARTICLE IV. 	UNION RECOGNITION

  The Contractor recognizes the Unions signatory hereto as the collective bargaining agents for its employees covered by the terms of this Agreement.

  This Agreement does not apply to general superintendents, superintendents, assistant superintendents, (unless covered in a collective bargaining agreement listed in Schedule A), office and clerical employees, guards or other professional or supervisory employees as defined in the National Labor Relations Act.

  Exhibit A – 5

   

  EXHIBIT 4.4.3

  -8-

  

   

  ARTICLE V. 	MANAGEMENT'S RIGHTS

  The Contractors retain full and exclusive authority for the management of its operations. Except as expressly limited by other provisions of this Agreement and the appropriate collective bargaining agreement listed on Schedule A, the Contractor retains the right to direct the working force, including the hiring, promotion, transfer, discipline or discharge of employees; the selection of foremen; the assignment and scheduling of work; and, the requirement of overtime work and the determination of when it shall be worked. No rules, customs, or practices which limit or restrict productivity, efficiency or the individual and/or joint working efforts of employees shall be permitted or observed. The Contractor may utilize any methods or techniques of construction.

  Except as otherwise stated in the appropriate collective bargaining agreement listed on Schedule A, there shall be no limitation or restriction upon the Contractor’s choice of materials or design, nor, regardless of source or location, upon the full use and installation of equipment, machinery, package units, precast, prefabricated, prefinished or preassembled materials, tools, or other labor saving devices.  The Contractor may without restriction install or otherwise use materials, supplies or equipment regardless of their source.  The on-site installation of application of such items shall be performed by the craft customarily having jurisdiction over such work under the applicable collective bargaining agreement listed on Schedule A; provided, however, it is recognized that other personnel having special talents or qualifications may participate in the installation, checkout or testing of specialized or unusual equipment or facilities.

  Exhibit A – 6

   

  EXHIBIT 4.4.3

  -9-

  

   

  Except as otherwise stated in the appropriate collective bargaining agreement listed on Schedule A, it is recognized that the use of new technology, equipment, machinery, tools and/or labor savings devices and methods of performing work will be initiated by the Contractor from time to time during the project.  The Union agrees that it will not in any way restrict the implementation of such new devices or work methods.  If there is any disagreement between the Contractor and the Union concerning the manner or implementation of such device or method of work, the implementation shall proceed as directed by the Contractor, and the Union shall have the right to arbitrate the dispute as set forth in Article VIII of this Agreement.

  The failure of the Contractor to exercise rights herein reserved to it or the exercise of those rights in a particular way shall not be deemed a waiver of said rights or of the Contractor’s right to exercise said rights in some other manner not in conflict with the terms of this Agreement.

  ARTICLE VI.	UNION REPRESENTATION

  Authorized representatives of the Union shall have access to the Covered Work provided they do not interfere with the work of employees and further provided that such representatives fully comply with the posted visitor and security and safety rules of the Covered Work.

  The Union shall have the right to designate working journey workers as stewards. The Union shall, in writing, notify the Contractor as to the identity of the designated steward prior to the assumption of his/her duties as a steward. In addition to his/her work as an employee, the steward shall have the right to receive, but not solicit, complaints or grievances and to discuss and assist in the adjustment of the same with the employee’s appropriate supervisor. The Contractor will not discriminate against a steward in the proper performance of his/her Union duties provided that such duties do not interfere with his/her regular work or with the work of other employees. Stewards shall receive the regular rate of pay for their respective craft. There will be no non-working stewards. The steward shall not have the right to determine when overtime shall be worked or who shall work overtime, or to interfere with any of the supervisory functions of the Contractor.

  Exhibit A – 7

   

  EXHIBIT 4.4.3

  -10-

  

   

  The Contractor agrees to notify the appropriate Union twenty-four (24) hours prior to the layoff of a steward, except in the case of discipline or discharge for a cause.  If a steward is protected against such layoff by the provision of any of the collective bargaining agreements listed on Schedule A, such protection shall be recognized to the extent that the steward possesses the necessary qualifications to perform the work remaining.  In any case in which a steward is discharged or disciplined for cause the appropriate Union shall be notified immediately by the Contractor.  For the purpose of this provision, “cause” for discharge shall mean incompetence, unexcused absenteeism, disobedience of orders, unsatisfactory performance of duties and violation of posted project work rules.

  On work where Catellus’ or Owner’s personnel may be working in close proximity of the construction activities, the Union agrees that its representatives, stewards and individual workers will not interfere with Catellus’ or Owner’s personnel or with the work which is being performed by Catellus’ or Owner’s personnel. This is not to be construed to mean that Catellus’ or Owner’s personnel may perform work covered by the collective bargaining agreements listed on Schedule A.

  ARTICLE VII	WORK STOPPAGES AND LOCKOUTS

  During the term of this Agreement, there shall be no strikes, picketing, work stoppages, slowdowns, sympathy actions or any other disruptive activities directed at or in connection with Covered Work for any reason by the Union or by any employee, and there shall be no lockout by the Contractor.

  Exhibit A – 8

   

  EXHIBIT 4.4.3

  -11-

  

   

  Failure of any Union or employee to cross any picket line established at the site of Covered Work is a violation of this Article.

  The Union shall not sanction, aid or abet, encourage or continue any work stoppage, slowdown, sympathy action, strike, picketing or other disruptive activity at the site of Covered Work and shall undertake all possible means to prevent or to terminate any such activity. No employee shall engage in activities which violate this Article.  Any employee who participates in or encourages any activities which interfere with the normal operations of the Covered Work shall be subject to disciplinary action, including discharge.  The Union shall not be liable for acts of employees for which it has no responsibility.

  In lieu of or in addition to any other action at law or equity, any party, including the Project Contractor, who the parties agree is a beneficiary of this Agreement and specifically this Article with full right of participation in any action under this Article, may institute the following procedure when a breach of paragraphs 1, 2, and/or 3 of this Article is alleged:

  (a)	The party invoking this procedure shall notify Gerald Mckay or John Kagel who the parties agree shall be the permanent Arbitrator under this procedure. In the event that the permanent Arbitrator is unavailable at any time, he shall appoint his alternate. Notice to the Arbitrator shall be by the most expeditious means available, with notice by telegram to the party alleged to be in violation and the involved International Union President.

  (b)	Upon receipt of said notice, the Arbitrator named above or his alternate shall set and hold a hearing within twenty-four (24) hours if it is contended that the violation still exists.

  Exhibit A – 9

   

  EXHIBIT 4.4.3

  -12-

  

   

  (c)	The Arbitrator shall notify the parties by telegram of the place and time he has chosen for this hearing. Said hearing shall be completed in one session.  A failure of any party to parties to attend said hearing shall not delay the hearing of evidence or issuance of an award by the Arbitrator.

  (d)	The sole issue at the hearing shall be whether or not a violation of paragraphs 1, 2 and/or 3 of this Article has, in fact, occurred and the Arbitrator shall have no authority to consider any matter in justification, explanation or mitigation of such violation or to award damages. Any issue concerning damages is reserved for court proceedings, if any.  The award shall be issued in writing within three (3) hours after the close of the hearing and may be issued without an opinion.  If any party desires an opinion, one shall be issued within fifteen (15) days, but its issuance shall not delay compliance with, or enforcement of the Award.  The Arbitrator may order cessation of the violation of this Article and other appropriate relief, and such Award shall be served on all parties by hand or registered mail upon issuance.

  (e)	Such Award may be enforced by any court of competent jurisdiction upon the filing of this Agreement and all other relevant documents referred to hereinabove in the following manner.  Telegraphic notice of the filing of such enforcement proceedings shall be given to the other party.  In the proceeding to obtain an temporary order enforcing the Arbitrator’s Award as issued under paragraph 4(d) of this Article, all parties waive the right to a hearing and agree that such proceedings may be ex parte.  Such Agreement does not waive any party’s right to participate in a hearing for a final order of enforcement.  The court’s order or orders enforcing the Arbitrator’s Award shall be served on all parties by hand or by delivery to their last known address or by registered mail.

  Exhibit A – 10

   

  EXHIBIT 4.4.3

  -13-

  

   

  (f)	Any rights created by statute or law governing arbitration proceedings inconsistent with the above procedure or which interfere with compliance therewith are hereby waived by the parties to whom they accrue.

  (g)	The fees and expenses of the Arbitrator shall be divided equally between the moving parties and the party or parties respondent.

  ARTICLE VIII 	PROJECT COORDINATION COMMITTEE

  The parties agree to form a committee comprised of representatives for the Building Trades Council, affected local union and Project Contractor, to meet and discuss issues which may arise from time to time regarding the interpretation, application and enforcement of this Agreement.

  In the event a dispute arises between or among the parties thereto which cannot be resolved by the committee described in the preceding paragraph, then the dispute shall be referred to arbitration as described in Article VII with mutually agreed-upon extensions to time limits set forth therein, as may be required.

  ARTICLE IX	WORK ASSIGNMENTS AND JURISDICTION DISPUTES

  Work shall be assigned by the Contractor.  There shall be no strikes, picketing, work stoppage, sympathy actions, slowdowns or other disruptive activity arising out of any jurisdictional dispute directed at or in connection with Covered Work during the term of this Agreement.

  Except as provided below, all jurisdictional disputes will be settled in accordance with the procedural roles and decisions of the Plan for Settlement of Jurisdictional Disputes in the Construction Industry and shall be binding upon the Contractor and the Unions.

  Exhibit A – 11

   

  EXHIBIT 4.4.3

  -14-

  

   

  Where a jurisdictional dispute involves any Union not a party to the Plan for Settlement of Jurisdictional Disputes in the Construction Industry and is not resolved among the Unions and the site representative of the affected Contractor, it shall be referred for resolution to the International Unions with which the disputed Unions are affiliated.  The International Unions shall hereafter meet with the representative of the affected Contractor to reach a joint resolution of the disputes.  For purposes of all disputes referred to the International Unions shall hereafter meet with the representative of the affected Contractor to reach a joint resolution of the disputes.  For purposes of all disputes referred to the International Unions, the Project Contractor shall be a party in interest. The resolution of the dispute shall be reduced to writing, signed by representatives of the Local and/or International Unions and a copy furnished to the Contractor.  (The Local and/or International Unions and the Contractor, in making their determination, shall have no authority to assign work to a double crew, that is, to more employees than the minimum required to perform the work involved, or to assign the work to employees who are not qualified to perform the work involved.)  This does not prohibit establishment of composite crews following jurisdictional guidelines where more than one employee is needed for the job.  The work shall proceed as assigned by the Contractor until such resolution by the parties has been confirmed in the manner indicated by the disputing Unions to the Contractors.  Any such resolution shall be final and binding on the Contractor and the Unions.

  ARTICLE X	WAGES, HOURS, WORKING CONDITIONS AND FRINGE BENEFITS

  With the exception of black Friday which shall not be observed on construction covered by this Agreement. wages, hours, fringe benefits and other working conditions shall be determined by the appropriate collective bargaining agreements listed on Schedule A.  Make-up days as provided in certain collective bargaining agreements listed on Schedule A shall apply to work covered by this Agreement.

  Exhibit A – 12

   

  EXHIBIT 4.4.3

  -15-

  

   

  ARTICLE XI	NO DISCRIMINATION

  The Contractor and the Unions agree that they will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin or age in any manner prohibited by law.

  ARTICLE XII	APPRENTICES

  In order to meet and fulfill minority and woman apprentices and journey-level goals, to ensure those inducted into apprenticeship programs through Mission Bay Affirmative Action reach status, a continuity of work is required.  All work covered by this Agreement will have an appropriate apprenticeship program equal to or better than those established by the appropriate collective bargaining agreements listed on Schedule A or their respective equivalent.  The work will be done under the wages, hours, conditions, benefits of the appropriate collective bargaining agreement identified on Schedule A.  The recruitment, selection, employment and training of apprentices shall be without discrimination because of age, race, color, religion, national origin, or sex.  This provision shall be applied in manner consistent with the MBAAEDP and the appropriate JATC, except where superseded by the provisions of the Amended Consent Decree in Civil Case No. C-71-1277RFP, as modified, or as may be subsequently modified during the term of this Agreement.

  ARTICLE XIII 	SAFETY AND HEALTH

  The Contractor, the Unions and the employees shall comply with all applicable provisions of local, state, and federal laws and regulations relating to the job safety and safe work practices.

  Exhibit A – 13

   

  EXHIBIT 4.4.3

  -16-

  

   

  ARTICLE XIV 	SAVINGS AND SEPARABILITY

  It is not the intention of either the Contractor or the Union parties hereto to violate any laws governing the subject matter of this Agreement. The parties hereto agree that in the event any provisions of this Agreement are finally held or determined to be illegal or void as being in contravention of any applicable law, the remainder of this Agreement shall remain in full force and effect unless the part or parts so found to be void are wholly inseparable from the remaining portions of this Agreement.  Further, Contractor and Union agree that if and when any or all provisions of this Agreement are finally held or determined to be illegal or void by a court of competent jurisdiction, an effort will be made to then promptly enter into negotiations concerning the substance affected by such decision for the purpose of achieving conformity with the requirements of any applicable law and the intent of the parties hereto.

  This Article shall not be construed to waive the prohibitions of Article VII, and if the parties arc unable to resolve their differences, the matter shall be referred to the procedure of Article VIII for resolution.

  ARTICLE XV	ENTIRE UNDERSTANDING

  The parties agree that the total results of their bargaining are embodied in this Agreement, and any attached exhibits and schedules, and no party signatory hereto is required to render any performance not set forth in the wording of this Agreement.  This Agreement may be amended only by written agreement signed by the parties hereto.  In the event that modification to this Agreement is required, the parties agree to promptly convene the Project Coordination Committee to discuss and negotiate the necessary modification.

  Exhibit A – 14

   

  EXHIBIT 4.4.3

  -17-

  

   

  ARTICLE XVI 	DURATION OF THE AGREEMENT

  This Agreement shall become effective immediately upon Project Contractor’s commencement of any demolition or construction activities at the Owner’s project within the scope of the Owner’s OPA and this Agreement and shall continue in effect for the duration Owner’s construction activities on the Owner’s project as described in Article III above.  Construction of any phase, portion, section or segment of Owner’s project shall be deemed completed when such phase, portion, section or segment has been turned over to the Owner and has received the final acceptance from the Owner’s representative.

  The collective bargaining agreements identified on Schedule A attached to this Agreement shall continue in full force and effect until the contractor and union parties to those collective bargaining agreements notify the Project Contractor of the mutually agreed upon changes in such agreements.  The parties agree that any provisions negotiated into said collective bargaining agreements will not apply to work on the Owner’s project if such provisions are less favorable to the Contractor than those uniformly required of contractors for construction work covered by those agreements.  Such provisions, negotiated, shall not be recognized or applied on Owner’s project if they may be construed to apply exclusively or predominantly to work covered by this Agreement.

  Exhibit A – 15

   

  EXHIBIT 4.4.3

  -18-

  

   

  The Unions agree that there will be no strikes, work stoppages, sympathy actions, picketing, slowdowns or other disruptive activities affecting the Covered Work by the Unions involved in the negotiation of the collective bargaining agreements listed on Schedule A, nor shall there by any lockout on Covered Work affecting the Unions during the course of such negotiations. Any disagreement between the parties over the incorporation into a collective bargaining agreement listed on Schedule A of such provision agreed upon in the negotiation of the collective bargaining agreement shall be subject to the grievance and arbitration procedures of Article VIII.

  This Agreement shall be effective until ___________, ______ 200_ and shall renew automatically for additional terms of seven years (7) each unless not less than ninety (90) days prior to the termination date of the initial or any subsequent term either Project Contractor or the San Francisco Building Trades Council give written notice to the other requesting modification or termination of the Owner’s OPA.  Notwithstanding, this Agreement shall terminate upon the termination of the Owner’s OPA.  Should this Agreement terminate due to the termination of the Owner’s OPA, it will be automatically reinstated if the Owner’s OPA or a substitute agreement thereto is reinstated within three (3) years of its termination.  If reinstatement of the Owner’s OPA or a substitute agreement thereto occurs more than three (3) years after its termination, the parties will negotiate a new project agreement.  Reinstatement of this Agreement is subject to the seven (7) year terms and notice provision stated above.

  Exhibit A – 16

   

  EXHIBIT 4.4.3

  -19-

  

   

  IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and effective as of the day and year above written.

  PROJECT CONTRACTOR

  		
	 
	 

  SAN FRANCISCO BUILDING AND

  CONSTRUCTION TRADES COUNCIL, AFL-CIO

  		
	 
	 

	 
	 

  UNIONS (See Schedule A Attached)

   

  Exhibit A – 17

   

  EXHIBIT 4.4.3

  -20-

  

   

  SCHEDULE A

   

  					
	Insulators & Asbestos Workers Local 16
	 
	Boilermakers Local 549

	 
	 
	 

	Dated:
	 
	 
	Dated:
	 

	Bricklayers & Allied Crafts Local 3
	 
	Carpenters Local 22

	 
	 
	 

	Dated:
	 
	 
	Dated:
	 

	Carpenters Local 2236
	 
	Carpet & Linoleum Layers Local 12

	 
	 
	 

	Dated:
	 
	 
	Dated:
	 

	Cement Masons Local 300, Area 580
	 
	Electrical Workers Local 6

	 
	 
	 

	Dated:
	 
	 
	Dated:
	 

	Elevator Constructors Local 8
	 
	Glaziers & Glassworkers Local 718

	 
	 
	 

	Dated:
	 
	 
	Dated:
	 

   

  Exhibit A – 18

   

  EXHIBIT 4.4.3

  -21-

  

   

   

  			
	Hod Carriers Local 36
	 
	Iron Workers Local 377

	 
	 
	 

	Dated:
 
	 
	Dated:
 

	Laborers Local 67
	 
	Laborers Local 261

	 
	 
	 

	Dated:
 
	 
	Dated:
 

	Lathers Local 68-L
	 
	Laborers Local 102

	 
	 
	 

	Dated:
 
	 
	Dated:
 

	Operating Engineers Local 3
	 
	Painters Local 4

	 
	 
	 

	Dated:
 
	 
	Dated:
 

	Piledrivers Local 34
	 
	Operative Plasterers Local 66

	 
	 
	 

	Dated:
 
	 
	Dated:
 

   

  Exhibit A – 19

   

  EXHIBIT 4.4.3

  -22-

  

   

   

  			
	Plumbers & Steamfitters Local 38
	 
	Roofers & Waterproofers Local 40

	 
	 
	 

	Dated:
 
	 
	Dated:
 

	Sheet Metal Workers Local 104
	 
	Sign & Display Local 510

	 
	 
	 

	Dated:
 
	 
	Dated:
 

	Sprinkler Fitters Local 483
	 
	Teamsters Local 853

	 
	 
	 

	Dated:
 
	 
	Dated:
 

	Professional & Technical Engineers Local 21
	 
	Iron Workers Shop Local 790

	 
	 
	 

	Dated:
 
	 
	Dated:
 

	United Steelworkers of America Machinists Local 1304
	 
	Window Cleaners Local 44

	 
	 
	 

	Dated:
 
	 
	Dated:
 

   

  Exhibit A – 20

   

  EXHIBIT 4.4.3

  -23-

  

   

  EXHIBIT 5.2

RULES AND REGULATIONS

  Tenant shall faithfully observe and comply with the following Rules and Regulations. Landlord shall not be responsible to Tenant for the nonperformance of any of said Rules and Regulations by or otherwise with respect to the acts or omissions of any other tenants or occupants of the Project. In the event of any conflict between the Rules and Regulations and the other provisions of this Lease, the latter shall control. 

  1.	Tenant shall not alter any lock or install any new or additional locks or bolts on any doors or windows of the Premises without obtaining Landlord’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed. If Tenant shall affix additional locks on doors then Tenant shall furnish Landlord with copies of keys or pass cards or similar devices for said locks. Tenant shall bear the cost of any lock changes or repairs required by Tenant. Two keys will be furnished by Landlord for the Premises, and any additional keys required by Tenant must be obtained from Landlord at a reasonable cost to be established by Landlord. Upon the termination of this Lease, Tenant shall restore to Landlord all keys of stores, offices, and toilet rooms, either furnished to, or otherwise procured by, Tenant and in the event of the loss of keys so furnished, Tenant shall pay to Landlord the cost of replacing same or of changing the lock or locks opened by such lost key if Landlord shall deem it necessary to make such changes. Notwithstanding anything to the contrary contained in the foregoing, Tenant may control entry to Tenant designated laboratory facilities within its Premises.

  2.	All doors opening to public corridors shall be kept closed at all times except for normal ingress and egress to the Premises.

  3.	Landlord reserves the right to close and keep locked all entrance and exit doors of the Building during such hours as are customary for the Comparable Buildings. Tenant, its employees and agents must be sure that the doors to the Building are securely closed and locked when leaving the Premises if it is after the normal hours of business for the Building. Any tenant, its employees, agents or any other persons entering or leaving the Building at any time when it is so locked, or any time when it is considered to be after normal business hours for the Building, may be required to sign the Building register. Access to the Building may be refused unless the person seeking access has proper identification or has a previously arranged pass for access to the Building. Landlord will furnish passes to persons for whom Tenant requests same in writing. Tenant shall be responsible for all persons for whom Tenant requests passes and shall be liable to Landlord for all acts of such persons. Landlord and its agents shall in no case be liable for damages for any error with regard to the admission to or exclusion from the Building of any person. In case of invasion, mob, riot, public excitement, or other commotion, Landlord reserves the right to prevent access to the Building or the Project during the continuance thereof by any means it deems appropriate for the safety and protection of life and property.

  4.	No furniture, freight or equipment of any kind (other than inconspicuous freight or equipment) shall be brought into the Building without prior notice to Landlord. All moving activity into or out of the Building shall be scheduled with Landlord and done only at such time and in such manner as Landlord designates. Landlord shall have the right to prescribe the weight, size and position of all safes and other heavy property brought into the Building and also the times and manner of moving the same in and out of the Building. Safes and other heavy objects shall, if considered necessary by Landlord, stand on supports of such thickness as is necessary to properly distribute the weight. Landlord will not be responsible for loss of or damage to any such safe or property in any case. Any damage to any part of the Building, its contents, occupants or visitors by moving or maintaining any such safe or other property shall be the sole responsibility and expense of Tenant.

  5.	No furniture, packages, supplies, equipment or merchandise will be received in the Building or carried up or down in the elevators, except between such hours, in such specific elevator and by such personnel as shall be designated by Landlord.

  6.	The requirements of Tenant will be attended to only upon application at the management office for the Project or at such office location designated by Landlord. Employees of Landlord shall not perform any work or do anything outside their regular duties unless under special instructions from Landlord. 

  EXHIBIT 5.2

  -1-

  

   

  7.	No sign, advertisement, notice or handbill shall be exhibited, distributed, painted or affixed by Tenant on any part of the Premises or the Building without the prior written consent of Landlord. Tenant shall not disturb, solicit, peddle, or canvass any occupant of the Project and shall cooperate with Landlord and its agents of Landlord to prevent same.

  8.	The toilet rooms, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed, and no foreign substance of any kind whatsoever shall be thrown therein. The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the tenant who, or whose servants, employees, agents, visitors or licensees shall have caused same.

  9.	Discharge of industrial sewage to the Building plumbing system shall only be permitted if Tenant, at its sole expense, shall have obtained all necessary permits and licenses therefor, including without limitation permits from state and local authorities having jurisdiction thereof.

  10.	Tenant shall not overload the floor of the Premises, nor mark, drive nails or screws, or drill into the partitions, woodwork or drywall or in any way deface the Premises or any part thereof without Landlord’s prior written consent; provided, however, that Landlord’s prior written consent shall not be required for the hanging of normal and customary office artwork and personal items. Landlord reserves the right to have Landlord’s structural engineer review Tenant’s floor loads on the Building at Landlord’s expense, unless such study reveals that Tenant has exceeded the floor loads, in which case Tenant shall pay the cost of such survey.

  11.	Except for vending machines intended for the sole use of Tenant’s employees and invitees, no vending machine or other heat generating machines (other than fractional horsepower office machines and laboratory equipment as contemplated by the Permitted Use) shall be installed, maintained or operated upon the Premises without the written consent of Landlord.

  12.	Tenant shall not use or keep in or on the Premises, the Building, or the Project any kerosene, gasoline, explosive material, corrosive material, or other inflammable or combustible fluid, chemical, substance or material, except as permitted by the Lease. Tenant shall provide material safety data sheets for any Hazardous Substances used or kept on the Premises.

  13.	Tenant shall not without the prior written consent of Landlord use any method of heating or air conditioning other than that supplied by Landlord.

  14.	Tenant shall not use, keep or permit to be used or kept, any foul or noxious gas or substance in or on the Premises except as permitted by the Lease, or permit or allow the Premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the Project by reason of noise, odors, or vibrations, or interfere with other tenants or those having business therein, whether by the use of any musical instrument, radio, phonograph, or in any other way. Tenant shall not throw anything out of doors, windows or skylights or down passageways.

  15.	Tenant shall not bring into or keep within the Project, the Building or the Premises any animals (except service animals), birds, aquariums, or, except in areas designated by Landlord, bicycles or other vehicles.

  16.	No cooking shall be done or permitted on the Premises, nor shall the Premises be used for the storage of merchandise, for lodging or for any improper, objectionable or immoral purposes. Notwithstanding the foregoing, Underwriters’ laboratory-approved equipment and microwave ovens may be used in the Premises for heating food and brewing coffee, tea, hot chocolate and similar beverages for employees and visitors, provided that such use is in accordance with all applicable federal, state, county and city laws, codes, ordinances, rules and regulations.

  17.	The Premises shall not be used for manufacturing or for the storage of merchandise except as such storage may be incidental to the use of the Premises provided for in the Summary. Tenant shall not occupy or permit any portion of the Premises to be occupied as an office for a messenger-type operation or dispatch office, public stenographer or typist, or for the manufacture or sale of liquor, narcotics, or tobacco in any form, or as a medical office, or as a barber or manicure shop, or as an employment bureau without the express prior written consent of Landlord. Tenant shall not engage or pay any employees on the Premises except those actually working for such tenant on the Premises nor advertise for laborers giving an address at the Premises.

  EXHIBIT 5.2

  -2-

  

   

  18.	Landlord reserves the right to exclude or expel from the Project any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or who shall in any manner do any act in violation of any of these Rules and Regulations.

  19.	Tenant, its employees and agents shall not loiter in or on the entrances, corridors, sidewalks, lobbies, courts, halls, stairways, elevators, vestibules or any Common Areas for the purpose of smoking tobacco products or for any other purpose, nor in any way obstruct such areas, and shall use them only as a means of ingress and egress for the Premises.

  20.	Tenant shall not waste electricity, water or air conditioning and agrees to cooperate fully with Landlord to ensure the most effective operation of the Building’s heating and air conditioning system, and shall refrain from attempting to adjust any controls.

  21.	Tenant shall store all its trash and garbage within the interior of the Premises. No material shall be placed in the trash boxes or receptacles if such material is of such nature that it may not be disposed of in the ordinary and customary manner of removing and disposing of trash and garbage in San Francisco, California without violation of any law or ordinance governing such disposal. All trash, garbage and refuse disposal shall be made only through entryways and elevators provided for such purposes at such times as Landlord shall designate.

  22.	Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governmental agency.

  23.	Any persons employed by Tenant to do janitorial work shall be subject to the prior written approval of Landlord, and while in the Building and outside of the Premises, shall be subject to and under the control and direction of the Building manager (but not as an agent or servant of such manager or of Landlord), and Tenant shall be responsible for all acts of such persons.

  24.	No awnings or other projection shall be attached to the outside walls of the Building without the prior written consent of Landlord, and no curtains, blinds, shades or screens shall be attached to or hung in, or used in connection with, any window or door of the Premises other than Landlord standard drapes. All electrical ceiling fixtures hung in the Premises or spaces along the perimeter of the Building must be fluorescent and/or of a quality, type, design and a warm white bulb color approved in advance in writing by Landlord. Neither the interior nor exterior of any windows shall be coated or otherwise sunscreened without the prior written consent of Landlord. Tenant shall abide by Landlord’s regulations concerning the opening and closing of window coverings which are attached to the windows in the Premises, if any, which have a view of any interior portion of the Building or Building Common Areas.

  25.	The sashes, sash doors, skylights, windows, and doors that reflect or admit light and air into the halls, passageways or other public places in the Building shall not be covered or obstructed by Tenant, nor shall any bottles, parcels or other articles be placed on the windowsills.

  26.	Tenant must comply with requests by Landlord concerning the informing of their employees of items of importance to Landlord.

  27.	No smoking is permitted in the Building or on the Project. Tenant must comply with the State of California “No-Smoking” law set forth in California Labor Code Section 6404.5, and any local “No-Smoking” ordinance which may be in effect from time to time and which is not superseded by such state law.

  28.	Tenant hereby acknowledges that Landlord shall have no obligation to provide guard service or other security measures for the benefit of the Premises, the Building or the Project. Tenant hereby assumes all responsibility for the protection of Tenant and its agents, employees, contractors, invitees and guests, and the property thereof, from acts of third parties, including keeping doors locked and other means of entry to the Premises closed, whether or not Landlord, at its option, elects to provide security protection for the Project or any portion thereof. Tenant further assumes the risk that any safety and security devices, services and programs which Landlord elects, in its sole discretion, to provide may not be effective, or may malfunction or be circumvented by an unauthorized third party, and Tenant shall, in addition to its other insurance obligations under this Lease, obtain its own insurance coverage to 

  EXHIBIT 5.2

  -3-

  

   

  the extent Tenant desires protection against losses related to such occurrences. Tenant shall cooperate in any reasonable safety or security program developed by Landlord or required by law.

  29.	All large electrical or mechanical office or laboratory equipment shall be placed by Tenant in the Premises in settings approved by Landlord, to absorb or prevent any vibration, noise and annoyance.

  30.	Tenant shall not use in any space or in the public halls of the Building, any hand trucks except those equipped with rubber tires and rubber side guards.

  31.	No auction, liquidation, fire sale, going-out-of-business or bankruptcy sale shall be conducted in the Premises without the prior written consent of Landlord.

  32.	No tenant shall use or permit the use of any portion of the Premises for living quarters, sleeping apartments or lodging rooms.

  33.	Tenant shall install and maintain, at Tenant’s sole cost and expense, an adequate, visibly marked and properly operational fire extinguisher next to any duplicating or photocopying machines or similar heat producing equipment, which may or may not contain combustible material, in the Premises.

  Landlord reserves the right at any time to change or rescind any one or more of these Rules and Regulations, or to make such other and further reasonable Rules and Regulations as in Landlord’s reasonable judgment may from time to time be necessary for the management, safety, care and cleanliness of the Premises, Building, the Common Areas and the Project, and for the preservation of good order therein, as well as for the convenience of other occupants and tenants therein. Landlord may waive any one or more of these Rules and Regulations for the benefit of any particular tenants, but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any other tenant, nor prevent Landlord from thereafter enforcing any such Rules or Regulations against any or all tenants of the Project. Tenant shall be deemed to have read these Rules and Regulations and to have agreed to abide by them as a condition of its occupancy of the Premises.

  EXHIBIT 5.2

  -4-

  

   

  EXHIBIT 5.5.1.1 

THE EXCHANGE

  ENVIRONMENTAL QUESTIONNAIRE

  ENVIRONMENTAL QUESTIONNAIRE

  FOR COMMERCIAL AND INDUSTRIAL PROPERTIES

  		
	Property Name:
	 

	Property Address:
	 

   

  Instructions: The following questionnaire is to be completed by the Lessee representative with knowledge of the planned operations for the specified building/location. Please print clearly and attach additional sheets as necessary.

  1.0	PROCESS INFORMATION

  Describe planned use, and include brief description of manufacturing processes employed.

  	
	 

	 

	 

   

  2.0	HAZARDOUS MATERIALS

  Are hazardous materials used or stored? If so, continue with the next question. If not, go to Section 3.0.

  			
	2.1
	Are any of the following materials handled on the Property?
	Yes  No

   

  (A material is handled if it is used, generated, processed, produced, packaged, treated, stored, emitted, discharged, or disposed.)  If so, complete this section.  If this question is not applicable, skip this section and go on to Section 5.0.

  			
	Explosives
	Fuels
	Oils

	Solvents
	Oxidizers
	Organics/Inorganics

	Acids
	Bases
	Pesticides

	Gases
	PCBs
	Radioactive Materials

	Other (please specify)
	 
	 

  2-2.	If any of the groups of materials checked in Section 2.1, please list the specific material(s), use(s), and quantity of each chemical used or stored on the site in the Table below. If convenient, you may substitute a chemical inventory and list the uses of each of the chemicals in each category separately.

  						
	Material
	Physical State (Solid, Liquid, or Gas)
	Usage
	Container Size
	Number of Containers
	Total Quantity

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

   

  EXHIBIT 5.1.1.1

  -1-

  

   

  2-3.	Describe the planned storage area location(s) for these materials. Please include site maps and drawings as appropriate.

  	
	 

	 

	 

   

  3.0	HAZARDOUS WASTES

  Are hazardous wastes generated?	Yes  No

  If yes, continue with the next question. If not, skip this section and go to Section 4.0.

  3.1	Are any of the following wastes generated, handled, or disposed of (where applicable) on the Property?

  		
	Hazardous wastes
	Industrial Wastewater

	Waste oils
	PCBs

	Air emissions
	Sludges

	Regulated Wastes
	Other (please specify)

  3-2.	List and quantify the materials identified in Question 3-1 of this section.

  						
	WASTE GENERATED
	RCRA listed Waste?
	SOURCE
	APPROXIMATE MONTHLY QUANTITY
	WASTE CHARACTERIZATION
	DISPOSITION

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

  3-3.	Please include name, location, and permit number (e.g. EPA ID No.) for transporter and disposal facility, if applicable). Attach separate pages as necessary.

  				
	Transporter/Disposal Facility Name
	Facility Location
	Transporter (T) or Disposal (D) Facility
	Permit Number

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

  3-4.	Are pollution controls or monitoring employed in the process to prevent or minimize the release of wastes into the environment?	Yes  No

  3-5.	If so, please describe.

  	
	 

	 

	 

   

  4.0	USTS/ASTS

  4.1	Are underground storage tanks (USTs), aboveground storage tanks (ASTs), or associated pipelines used for the storage of petroleum products, chemicals, or liquid wastes present on site (lease renewals) or required for planned operations (new tenants)?        Yes___   No___

If not, continue with Section 5.0. If yes, please describe capacity, contents, age, type of the USTs or ASTs, as well any associated leak detection/spill prevention measures. Please attach additional pages if necessary.

  EXHIBIT 5.1.1.1

  -2-

  

   

  					
	Capacity
	Contents
	Year Installed
	Type (Steel, Fiberglass, etc.)
	Associated Leak Detection / Spill 
Prevention Measures*

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

   

  *Note:	The following are examples of leak detection / spill prevention measures:

  			
	Integrity testing
	Inventory reconciliation
	Leak detection system

	Overfill spill protection
	Secondary containment
	Cathodic protection

  4-2.	Please provide copies of written tank integrity test results and/or monitoring documentation, if available.

  4-3.	Is the UST/AST registered and permitted with the appropriate regulatory agencies?	Yes  No
If so, please attach a copy of the required permits.

  4-4.	If this Questionnaire is being completed for a lease renewal, and if any of the USTs/ASTs have leaked, please state the substance released, the media(s) impacted (e.g., soil, water, asphalt, etc.), the actions taken, and all remedial responses to the incident.

  	
	 

	 

	 

  4-5.	If this Questionnaire is being completed for a lease renewal, have USTs/ASTs been removed from the Property?	Yes  No

If yes, please provide any official closure letters or reports and supporting documentation (e.g., analytical test results, remediation report results, etc.).

  4-6.	For Lease renewals, are there any above or below ground pipelines on site used to transfer chemicals or wastes?	Yes  No

For new tenants, are installations of this type required for the planned operations?
	Yes  No

  If yes to either question, please describe.

  	
	 

	 

	 

   

  5.0	ASBESTOS CONTAINING BUILDING MATERIALS

  Please be advised that an asbestos survey may have been performed at the Property. If provided, please review the information that identifies the locations of known asbestos containing material or presumed asbestos containing material. All personnel and appropriate subcontractors should be notified of the presence of these materials, and informed not to disturb these materials. Any activity that involves the disturbance or removal of these materials must be done by an appropriately trained individual/contractor.

  6.0	REGULATORY	

  6-1.	Does the operation have or require a National Pollutant Discharge Elimination System (NPDES) or equivalent permit?	Yes  No
If so, please attach a copy of this permit.

  EXHIBIT 5.1.1.1

  -3-

  

   

  6-2.	Has a Hazardous Materials Business Plan been developed for the site?	Yes  No
If so, please attach a copy.

  CERTIFICATION

  I am familiar with the real property described in this questionnaire. By signing below, I represent and warrant that the answers to the above questions are complete and accurate to the best of my knowledge. I also understand that Lessor will rely on the completeness and accuracy of my answers in assessing any environmental liability risks associated with the property.

   

  			
	 
	Signature:
	 

	 
	Name:
	 

	 
	Title:
	 

	 
	Date:
	 

	 
	Telephone:
	 

   

  EXHIBIT 5.1.1.1

  -4-

  

   

  EXHIBIT 7.3 

THE EXCHANGE

TENANT/LANDLORD MAINTENANCE RESPONSIBILITY MATRIX3

   

    

   

   

   

   

   

   

   

  3 Exhibit 7.3 will be revised to reflect that gas is not metered or sub metered at the Premises. Further, Tenant has requested that Landlord provide certain services which Tenant is responsible for providing and Landlord may agree to do so at Tenant’s cost.

  EXHIBIT 7.3

  -1-

  

   

  EXHIBIT 17 

THE EXCHANGE

FORM OF TENANT’S ESTOPPEL CERTIFICATE

  The undersigned as Tenant under that certain Lease (the “Lease”) made and entered into as of ____________, 20 ___  by and between _______________ as Landlord, and the undersigned as Tenant, for Premises on the ____________ floor(s) of the office building located at [INSERT BUILDING ADDRESS], San Diego, California, certifies as follows:

  
   1.
   
    Attached hereto as Exhibit A is a true and correct copy of the Lease and all amendments and modifications thereto. The documents contained in Exhibit A represent the entire agreement between the parties as to the Premises.
   

  

  
   2.
   
    The undersigned currently occupies the Premises described in the Lease, the Lease Term commenced on __________, and the Lease Term expires on __________, and the undersigned has no option to terminate or cancel the Lease or to purchase all or any part of the Premises, the Building and/or the Project.
   

  

  
   3.
   
    Base Rent became payable on __________, subject to the Base Rent abatement set forth in the Lease.
   

  

  
   4.
   
    The Lease is in full force and effect and has not been modified, supplemented or amended in any way except as provided in Exhibit A.
   

  

  
   5.
   
    Tenant has not transferred, assigned, or sublet any portion of the Premises nor entered into any license or concession agreements with respect thereto except as follows:
   

  

  
   6.
   
    Intentionally Omitted.
   

  

  
   7.
   
    All monthly installments of Base Rent, all Additional Rent and all monthly installments of estimated Additional Rent have been paid when due through __________. The current monthly installment of Base Rent is $__________.
   

  

  
   8.
   
    All conditions of the Lease to be performed by Landlord necessary to the enforceability of the Lease have been satisfied and Landlord is not in default thereunder. In addition, the undersigned has not delivered any notice to Landlord regarding a default by Landlord thereunder. The Lease does not require Landlord to provide any rental concessions or to pay any leasing brokerage commissions.
   

  

  
   9.
   
    No rental has been paid more than thirty (30) days in advance and no security has been deposited with Landlord except as provided in the Lease.
   

  

  
   10.
   
    As of the date hereof, there are no existing defenses or offsets, or, to the undersigned’s knowledge, claims or any basis for a claim, that the undersigned has against Landlord.
   

  

  
   11.
   
    If Tenant is a corporation or partnership, each individual executing this Estoppel Certificate on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in California and that Tenant has full right and authority to execute and deliver this Estoppel Certificate and that each person signing on behalf of Tenant is authorized to do so.
   

  

  
   12.
   
    There are no actions pending against the undersigned under the bankruptcy or similar laws of the United States or any state.
   

  

  
   13.
   
    To the best of Tenant’s knowledge, Tenant is in full compliance with all federal, state and local laws, ordinances, rules and regulations affecting its use of the Premises, including, but not limited to, those laws, ordinances, rules or regulations relating to hazardous or toxic materials. Tenant has never permitted or suffered, nor does Tenant have any knowledge of, the generation, manufacture, treatment, use, storage, disposal or discharge of any hazardous, toxic or dangerous waste, substance or material in, on, under or about the Project or the Premises or any adjacent premises or property in violation of any federal, state or local law, ordinance, rule or regulation.
   

  

  EXHIBIT 17

  -1-

  

   

  
   14.
   
    To the undersigned’s knowledge, all tenant improvement work to be performed by Landlord under the Lease has been completed in accordance with the Lease and has been accepted by the undersigned and all reimbursements and allowances due to the undersigned under the Lease in connection with any tenant improvement work have been paid in full. All work (if any) in the common areas required by the Lease to be completed by Landlord has been completed and all parking spaces required by the Lease have been furnished and/or all parking ratios required by the Lease have been met.
   

  

  The undersigned acknowledges that this Estoppel Certificate may be delivered to Landlord or to a prospective mortgagee or prospective purchaser, and acknowledges that said prospective mortgagee or prospective purchaser will be relying upon the statements contained herein in making the loan or acquiring the property of which the Premises are a part and that receipt by it of this certificate is a condition of making such loan or acquiring such property.

  Executed at __________________ on the _____ day of ____________, 20__.

   

  						
	 
	“Tenant”:
	 

	 
	 
	 

	 
	 
	,

	 
	a
	 

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	 
	Its:
	 

	 
	 
	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Its:
	 

   

  EXHIBIT 17

  -2-

  

   

  EXHIBIT 21

FORM LETTER OF CREDIT

  IRREVOCABLE STANDBY LETTER OF CREDIT NO. __________

  DATE:___________, 20___

  		
	BENEFICIARY:
	 

	 
	 

	 
	 

	 
	 

	 
	 

	APPLICANT:
	 

	 
	 

	 
	 

	 
	 

  AMOUNT: US$__________ ($__________ and 00/100 U.S. DOLLARS)

  EXPIRATION DATE:_______________, 20___

  LOCATION: AT OUR COUNTERS IN _______________________________

  DEAR SIR/MADAM:

  WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. ___________ IN YOUR FAVOR AVAILABLE BY YOUR DRAFT IN THE FORM OF “ANNEX 1” ATTACHED DRAWN ON US AT SIGHT AND ACCOMPANIED BY THE FOLLOWING DOCUMENTS:

  A DATED STATEMENT SIGNED BY AN AUTHORIZED OFFICER OF THE BENEFICIARY READING AS FOLLOWS:

  (A)	WE ARE ENTITLED TO DRAW ON THE LETTER OF CREDIT PURSUANT TO THE TERMS OF THAT CERTAIN LEASE BY AND BETWEEN_______________, AS LANDLORD, AND _______________, AS TENANT

  OR

  (B)	_______________  HEREBY CERTIFIES THAT IT HAS RECEIVED NOTICE FROM _______________ THAT THE LETTER OF CREDIT NO.__________ WILL NOT BE RENEWED, AND THAT IT HAS NOT RECEIVED A REPLACEMENT OF THIS LETTER OF CREDIT FROM _________________ SATISFACTORY TO _________________ AT LEAST FORTY-FIVE (45) DAYS PRIOR TO THE EXPIRATION DATE OF THIS LETTER OF CREDIT.

  EXHIBIT 21

  -1-

  

   

  THE LEASE MENTIONED IN THIS LETTER OF CREDIT IS FOR IDENTIFICATION PURPOSES ONLY AND IT IS NOT INTENDED THAT SAID AGREEMENT BE INCORPORATED HEREIN OR FORM PART OF THIS LETTER OF CREDIT.

  DRAFT(S) AND DOCUMENTS MUST INDICATE THE NUMBER AND DATE OF THIS LETTER OF CREDIT. PARTIAL DRAWINGS ARE PERMITTED.

  THIS LETTER OF CREDIT SHALL BE AUTOMATICALLY EXTENDED FOR AN ADDITIONAL PERIOD OF ONE YEAR, WITHOUT AMENDMENT OR CONDITION, FROM THE PRESENT OR EACH FUTURE EXPIRATION DATE UNLESS AT LEAST FORTY-FIVE (45) DAYS PRIOR TO THE THEN CURRENT EXPIRATION DATE WE NOTIFY YOU AND THE APPLICANT BY REGISTERED MAIL/OVERNIGHT COURIER SERVICE AT THE ABOVE ADDRESSES THAT THIS LETTER OF CREDIT WILL NOT BE EXTENDED BEYOND THE CURRENT EXPIRATION DATE.

  THIS LETTER OF CREDIT MAY BE TRANSFERRED (AND THE PROCEEDS HEREOF ASSIGNED), AT THE EXPENSE OF THE APPLICANT (WHICH PAYMENT SHALL NOT BE A CONDITION TO ANY TRANSFER), ONE OR MORE TIMES BUT IN EACH INSTANCE ONLY IN THE FULL AMOUNT AVAILABLE TO BE DRAWN UNDER THE LETTER OF CREDIT.

  ALL DEMANDS FOR PAYMENT SHALL BE MADE BY PRESENTATION OF THE DATED CERTIFICATION PRIOR TO ________ A.M. ______________ TIME, ON A BUSINESS DAY AT OUR OFFICE (THE “BANK’S OFFICE”) AT: ___________________________, ATTENTION: STANDBY LETTER OF CREDIT SECTION OR BY FACSIMILE TRANSMISSION AT: (___)_____________; AND SIMULTANEOUSLY UNDER TELEPHONE ADVICE TO: (___)_______________, ATTENTION: STANDBY LETTER OF CREDIT NEGOTIATION SECTION WITH ORIGINALS TO FOLLOW BY OVERNIGHT COURIER SERVICE.

  PAYMENT AGAINST CONFORMING PRESENTATIONS HEREUNDER SHALL BE MADE BY BANK IN IMMEDIATELY AVAILABLE U.S. FUNDS DURING NORMAL BUSINESS HOURS OF THE BANK’S OFFICE WITHIN TWO (2) BUSINESS DAYS AFTER PRESENTATION NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE UNIFORM CUSTOMS AND PRACTICES FOR DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 500, OR THE “INTERNATIONAL STANDBY PRACTICES” (ISP 98), INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 590.

  WE HEREBY CERTIFY THAT THIS IS AN UNCONDITIONAL AND IRREVOCABLE CREDIT AND AGREE WITH THE DRAWERS, ENDORSERS AND BONAFIDE HOLDERS THAT THE DRAFTS DRAWN UNDER AND IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT SHALL BE DULY HONORED UPON PRESENTATION TO THE DRAWEE, IF NEGOTIATED ON OR BEFORE THE EXPIRATION DATE OF THIS CREDIT.

  EXCEPT TO THE EXTENT INCONSISTENT WITH THE EXPRESS TERMS HEREOF, THIS LETTER OF CREDIT IS SUBJECT TO THE “INTERNATIONAL STANDBY PRACTICES” (ISP 98), INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 590.

  			 

  			
	 
	 
	 

	AUTHORIZED SIGNATURE
	 
	AUTHORIZED SIGNATURE

   

  EXHIBIT 21

  -2-

  

   

  ANNEX 1

   

   

  EXHIBIT 21

  -3-

  

   

  EXHIBIT “A”

  DATE:

  						
	TO:
	 
	 
	RE:
	STANDBY LETTER OF CREDIT

	 
	 
	 
	NO. 
	 

	 
	 
	 
	 
	ISSUED BY
	 

   

   

  LADIES AND GENTLEMEN:

  FOR VALUE RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS TO:

  		
	(NAME OF TRANSFEREE)
	 

	(ADDRESS)
	 

	 
	 

   

  ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF CREDIT UP TO ITS AVAILABLE AMOUNT AS SHOWN ABOVE AS OF THE DATE OF THIS TRANSFER.

  BY THIS TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF CREDIT ARE TRANSFERRED TO THE TRANSFEREE. TRANSFEREE SHALL HAVE THE SOLE RIGHTS AS BENEFICIARY THEREOF, INCLUDING SOLE RIGHTS RELATING TO ANY AMENDMENTS, WHETHER INCREASES OR EXTENSIONS OR OTHER AMENDMENTS, AND WHETHER NOW EXISTING OR HEREAFTER MADE. ALL AMENDMENTS ARE TO BE ADVISED DIRECT TO THE TRANSFEREE WITHOUT NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED BENEFICIARY.

  THE ORIGINAL OF SUCH LETTER OF CREDIT IS RETURNED HEREWITH, AND WE ASK YOU TO ENDORSE THE TRANSFER ON THE REVERSE THEREOF, AND

  FORWARD IT DIRECTLY TO THE TRANSFEREE WITH YOUR CUSTOMARY NOTICE OF TRANSFER.

  			
	SINCERELY,
	 
	SIGNATURE AUTHENTICATED

	 
	 
	 

	(BENEFICIARY’S NAME)
	 
	(Name of Bank)

	 
	 
	 

	SIGNATURE OF BENEFICIARY
	 
	(authorized signature)

   

  EXHIBIT 21

  -4-

  

   

  EXHIBIT 24.4

THE EXCHANGE
RECOGNITION OF COVENANTS, CONDITIONS, AND RESTRICTIONS

  FORM OF RECOGNITION OF COVENANTS, CONDITIONS, AND RESTRICTIONS

  RECORDING REQUESTED BY

  AND WHEN RECORDED RETURN TO:

  KRE Exchange Owner LLC

  c/o Longfellow Property Management Services CA, Inc.

  1800 Owens Street, Suite 350

  San Francisco, CA 94158

  Attention: Property Management

  RECOGNITION OF COVENANTS,
CONDITIONS, AND RESTRICTIONS

  This Recognition of Covenants, Conditions, and Restrictions (this “Agreement”) is entered into as of the _____ day of __________________, 20___, by and between _______________________________ (“Landlord”), and _______________________________ (“Tenant”), with reference to the following facts:

  A.	Landlord and Tenant entered into that certain Lease dated _____________, 20___ (the “Lease”). Pursuant to the Lease, Landlord leased to Tenant and Tenant leased from Landlord space (the “Premises”) located in certain buildings on certain real property described in Exhibit A attached hereto and incorporated herein by this reference (the “Property”).

  B.	The Premises is located in a project located on real property which is part of an area owned by Landlord containing approximately ______(__) acres of real property located in the City of ____________, California (the “Project”), as more particularly described in Exhibit B attached hereto and incorporated herein by this reference.

  C.	Landlord, as declarant, has previously recorded, or proposes to record concurrently with the recordation of this Agreement, a Declaration of Covenants, Conditions, and Restrictions (the “Declaration”), dated __________, 20___, in connection with the Project.

  D.	Tenant is agreeing to recognize and be bound by the terms of the Declaration, and the parties hereto desire to set forth their agreements concerning the same.

  NOW, THEREFORE, in consideration of (a) the foregoing recitals and the mutual agreements hereinafter set forth, and (b) for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows,

  1.	Tenant’s Recognition of Declaration. Notwithstanding that the Lease has been executed prior to the recordation of the Declaration, Tenant agrees to recognize and by bound by all of the terms and conditions of the Declaration.

  2.	Miscellaneous.

  2.1	This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, estates, personal representatives, successors, and assigns.

  2.2	This Agreement is made in, and shall be governed, enforced and construed under the laws of, the State of California.

  EXHIBIT 24.4

  -1-

  

   

  2.3	This Agreement constitutes the entire understanding and agreements of the parties with respect to the subject matter hereof and shall supersede and replace all prior understandings and agreements, whether verbal or in writing. The parties confirm and acknowledge that there are no other promises, covenants, understandings, agreements, representations, or warranties with respect to the subject matter of this Agreement except as expressly set forth herein.

  2.4	This Agreement is not to be modified, terminated, or amended in any respect, except pursuant to any instrument in writing duly executed by both of the parties hereto.

  2.5	In the event that either party hereto shall bring any legal action or other proceeding with respect to the breach, interpretation, or enforcement of this Agreement, or with respect to any dispute relating to any transaction covered by this Agreement, the losing party in such action or proceeding shall reimburse the prevailing party therein for all reasonable costs of litigation, including reasonable attorneys’ fees, in such amount as may be determined by the court or other tribunal having jurisdiction, including matters on appeal.

  2.6	All captions and heading herein are for convenience and ease of reference only, and shall not be used or referred to in any way in connection with the interpretation or enforcement of this Agreement.

  2.7	If any provision of this Agreement, as applied to any party or to any circumstance, shall be adjudged by a court of competent jurisdictions to be void or unenforceable for any reason, the same shall not affect any other provision of this Agreement, the application of such provision under circumstances different from those adjudged by the court, or the validity or enforceability of this Agreement as a whole.

  2.8	Time is of the essence of this Agreement.

  2.9	The Parties agree to execute any further documents, and take any further actions, as may be reasonable and appropriate in order to carry out the purpose and intent of this Agreement.

  2.10	As used herein, the masculine, feminine or neuter gender, and the singular and plural numbers, shall each be deemed to include the others whenever and whatever the context so indicates.

  EXHIBIT 24.4

  -2-

  

   

  SIGNATURE PAGE OF RECOGNITION OF

COVENANTS, CONDITIONS AND RESTRICTIONS

  IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

  						
	 
	“Landlord”:
	 

	 
	 
	,

	 
	a
	 
	 

	 
	By:
	 
	 

	 
	 
	Its:
	 
	 

   

  						
	 
	“Tenant”:
	 

	 
	 
	,

	 
	a
	 
	 

	 
	By:
	 
	 

	 
	 
	Its:
	 
	 

	 
	By:
	 
	 

	 
	 
	Its:
	 
	 

   

  EXHIBIT 24.4

  -3-

  

   

  EXHIBIT 28.6

STORAGE AREA

   

  EXHIBIT 28.6

  -1-Exhibit 4.(a).2

  

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  State of Israel

   

  Ministry of Communications

   

  

  

  General License

   

  

  For Partner Communications Company Ltd.

  

  

  

  For the Provision of Mobile Radio Telephone Services

  Using the Cellular Method (MRT) in Israel

   

  Jerusalem

   

  April 7, 1998

   

  
    Integrated Version – last updated January 2022 (amendment#123)

  

  
     

    

    
      
        

    

     

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  State of Israel

  Ministry of Communications

   

  General License

   

  

  For Partner Communications Company Ltd.

   

  

  Award of The License

   

  By virtue of my authority pursuant to The Telecommunication Law, 1982, The Wireless Telegraphy Ordinance (New Version), 1972, and all my other authorities pursuant to all law, I
    award a License to Partner Communications Company Ltd. for the establishment of a Mobile Radio Telephone System using the cellular method, its subsistence, maintenance and operation, and for the provision of
    Mobile Radio Telephone services to the public in Israel through it, as set out in this License.

  

  

  The License is issued for the period set out in the License and is subject to the following conditions:

  

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  Table of Contents

  

  

  Award of The License

  Chapter A - General

  Section A - Definitions and Interpretation

  1. Definitions

  2. Paragraph Headings

  3. The “Blue Pencil” Principle

  Section B - Legal and Administrative Provisions

  4. Observation of Laws and Provisions

  5. The Obligation of Permit according to all other Laws

  6. Contradiction between the License Provisions

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

  Section A - The Scope of the License and the License Period

  7. The Scope of the License

  8. Exclusivity

  9. The License Period

  10. Extending the License Period

  11. Renewing the License

  12. Termination of the License Period

  Section B - Changing the Conditions of the License, its Enforcement and

  Revocation

  13. Changing the Conditions of the License

  14. Revocation of the License

  15. Other Remedies

  Chapter C: Ownership, Assets and Means of Control

  Section A: Limitations in Respect of the Transfer of the License and its Assets

  16. Prohibition on the Transfer of the License

  17. Ownership of the MRT System

  18. Limits on the Transfer of License Assets

  19. Agreement with another

  Section B: Means of Control - Changes and Limitations

  20. Deleted

  21. Transfer of Means of Control

  22. Placing a Charge on Means of Control

  Section C: Cross-Ownership and Conflict of Interests

  23. Prohibition of Cross-Ownership

  24. Prohibition of Conflict of interests

  

  

  
    
      

  

  
    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Chapter D: Establishment of the MRT System and its Operation

  Section A: Establishment of the System

  25. Definition

  26. Establishment according to the Engineering Plan

  27. Implementation Stages and Timetable

  28. Change of Plans during the Establishment

  29. Use of Infrastructures and their Construction

  30. Connection to other Telecommunications Systems

  31. Report on Establishment Work

  32. Submission of Information and Documents

  33.  Supervision of Establishment Work

  34. Repair of Faults and Defects

  35. Safety and Security Precautions and Prevention of Hazards

  36. Cancelled.

  37. Crossing Electricity Lines and Telecommunication Systems

  38. Discovery of Antiquities and Preservation of Sites

  39. Powers pertaining to Real Estate

  Section B: Equipment Tests and Installation Approvals

  40. Compatibility Tests

  41. Responsibility for Compatibility

  42. Performance Testing Program, and its Approval

  43. Notice of Establishment Completion

  44. Fitness and Operation Conditions

  Section C: Use of Frequencies

  45. Frequency Allocation

  46. Constraint on the Use of Frequencies

  47. Safety in Using Frequencies, and the Prevention of Interference

  48. MRT Operation at Times of Emergency

  Section D: Testing

  49. Definitions

  50. Periodic Tests and Special Tests

  51. Routine Tests

  52. Test, Fault and Maintenance Log

  53. Repair of Faults and Defects

  54. Maintenance System

  

  

  
    
      

  

  
    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Chapter E - Provision of MRT Services to Subscribers

  Section A - Agreement with Subscribers

  55. Definition of Subscriber Agreement

  56. The Subscriber Agreement and its Approval

  57. Changes to the Subscriber Agreement

  58. Agreement with a Subscriber

  59. The Obligation to Connect Applicants and the Prohibition of Conditional Agreement

  Section B - Grade of Service for Subscribers

  60. Obligation of Maintaining Service

  61. Service Offices and Complaints Officer

  62. Obligation of Maintenance

  63.  Call Center1

  64.  Terminal Equipment

  65.  Public Emergency Services

  66.  Protection of Subscriber Privacy and Cooperation with the Security Forces

  67. Subscribers’ Bills, Directory Services and Roaming Services

  Section C - Delay or Limitation of Service

  68. Definitions

  69. Prohibition of Termination or Disconnection of Service

  70. Disconnection of Service at the Subscriber’s Request

  71. Termination of Service at the Subscriber’s Request

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

  73. Disconnection of Service due to Maintenance Procedures

  Chapter F - Payment for Services

  Section A - General

  74. Types of  Payments

  75. Setting the Tariffs and their Rates

  76. Tariff Publication

  77. Provision in the Subscriber Agreement

  77a. Prevention of Acts of Fraud

  Section B - Tariff Changes

  78. Change in Tariffs

  79. Commencement of Increase or Reduction of tariff

  80. Linkage to the Index

  81. Delay in Payment

  Section C - Connection Fees

  82. One-Time Payment of Connection Fee

  83. Collection of Connection Fee in Installments

  

    

  

  

  1 Amendment No.
    91

  

  

  
    
      

  

  
    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  Chapter G - Payments from the Licensee, Liability, Insurance and Guarantee

  Section A - Royalties and Payments

  84. Royalties

  85. Arrears in Royalty Payment

  86. Method of Payment

  87. Other Obligatory Payments

  Section B - Liability and Insurance

  88. Definition of the Scope of Liability

  89. Liability of the Licensee

  90. Immunity from Liability

  91. Drawing Up an Insurance Contract

  92. Conditions in the Insurance Contract

  93. Remedy for Breach of Insurance Conditions

  Section C - Guarantee for Fulfilling the Conditions of the License

  94. The Guarantee and its Objective

  95. Foreclosing the Guarantee

  96. Method of Foreclosure

  97. The Period of Validity of the Guarantee

  98. Preservation of Remedies

  Chapter H - Supervision

  Section A - Supervision of the Licensee’s Activities

  99. Authority for Supervision

  100. Confidentiality

  101. Entering Premises and Inspection of Documents

  102. Cooperation

  	

        	Section B - Fault Repair and preservation of documents and recordings	
          

          

        

  103. Deleted

  104. Types of Report

  105. Notice of Fault

  106. Reporting to the Minister

  Chapter I - Miscellaneous

  107. The License as an Exhaustive Document

  108. Holding the License Documents and their Return

  109. Deferment of Date

  110. Responsibility

  111. Dispatch of Notice

  112. Operation in the Civil Administration Territories of Judea, Samaria and Gaza

  

  

  
    
      

  

  
    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  Annexes

  First Annex - List of Services and Criteria for Quality of Service

  	1.	
          Indices of Quality and Grade of Service

        

  	2.	
          List and Description of MRT Services

        

  Second Annex - Appendices

  Appendix A – Deleted

  

  

  Appendix B - Engineering Plan

  

  

  Appendix C - Maintenance Organization

  

  

  Appendix D - Standard Agreement

  

  

  Appendix E - Minimum Requirements and Grade of Service to Subscribers

  	1.	
          System Performance

        

  	2.	
          Quality of Service for the Provision of Information to Customers and Subscribers

        

  	3.	
          Countrywide Deployment of Sites for Providing Information and Handling Subscriber Queries

        

  

  

  Appendix F - Tariff Table

  

  

  Appendix G - Insurance Contract

  

  

  Appendix H - Bank Guarantee

  

  

  Appendix I - Written Undertakings

  

  

  Signature of the Minister

   

  
    
      

  

  

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  Chapter A - General

   

  

  Section A - Definitions and Interpretation

   

  	1.	
          Definitions

        

   

  	1.1	
          In this License, the following words and expressions will have the meaning appended to them, unless another meaning is implicit in the text or its context.

        

   

  	
          "5 Generation Service Area"2

        	
          -

        	
          A geographical area in which a general licensee must, according to its license, establish, maintain or operate a public telecommunication network and provide through it 5 Generation service to
            the general public, as specified in Appendix E, section 1.3(d) (1).

        
	
          “Type approval”

        	
          -

        	
          Approval given by the Ministry in accordance with the Law and Ordinance for a model of MRT Terminal Equipment.

        
	
          “Means of Control”

        	
          -

        	
          In a corporation, each of the following:

          (1)          Voting rights in the corporation’s general meeting or in an equivalent body in another corporation;

          (2)          The right to appoint a director or managing director;

          (3)          The right to participate in the corporation’s profits;

          (4)          The right to share in the corporation’s remaining assets after payment of debts when the corporation is wound-up;

        
	
          ”Telecommunications”-

        	
          -

        	
          Broadcasting, transmission or reception of signs, signals, text, visual forms, voices or information through wire, wireless, an optic system or other electromagnetic systems;

        
	
          3“Franchisee”

        	
          -

        	
          As defined in section 6L(1) of the Law;

        
	
          “Interested Party”

        	
          -

        	
          Whoever holds, either directly or indirectly, 5% of a specific type of Means of Control;  for the purpose of this definition, “holding”, includes holding as an agent;

        
	
          “The Licensee”

        	
          -

        	
          Partner Communications Company Ltd., which was awarded this License;

        
	
          “A Licensee”

        	
          -

        	
          The body to which the Minister has awarded, in accordance with the Law, a general or special License;

        

  

  

  

    

    2 Amendment No.
      107

    3 Amendment No.
      14

    

  

  
    
      

  

  
    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          4"General Licensee"

        	
          -

        	
          A person who has received a general license to effect telecommunications activities and to provide telecommunications services:

        
	
          5"Broadcast Licensee"

        	
          -

        	
          as defined in the Law;

        
	
          6Roaming Licensee"-

        	
          -

        	
          A person who has won tender 12/2010- a combined license for the provision of cellular mobile radio telephone (MRT) services in Israel –an expansion of the existing license and the grant of a
            new license;

        
	
          "7Cellular Licensee

           Infrastructure Licensee"

        	
          -

        	
          Whoever receives a license for establishment,

          existence and operation of a radio infrastructure for an MRT operator;

        
	
          "The Competent Body according to the Ordinance"8

        	
          -

        	
          The director as defined in the Ordinance or to whom he has delegated his authority as the case may be.

        
	
          "92nd Generation"

        	
          -

        	
          A network which allows mainly the provision of voice and message services, using basic MRT technology of GSM  or CDMA and all of their updates, such as GPRS, EDGE, etc.;

           

        
	
          "103rd Generation"

        	
          -

        	
          A network, which in addition to 2nd Generation services, allows for the provision of data services at a medium
            pace (a few dozen megabits per second) using basic MRT technology of UMTS and CDMA2000 and all of their updates, such as HSPA, HSPA+, etc.;

           

        
	
          "114th Generation"

        	
          -

        	
          A network, which in addition to 3rd Generation services, allows for the transfer of date at a high pace
            (approximately 100 megabits per seconds) using basic MRT technology in accordance with the 3GPP TS 36.104 last release standard, for supplying all of the Licensee's services under its license, such as LTE technology;

           

        
	
          “Access Fee”

        	
          -

        	
          Payment for use of other telecommunication systems, including payment for connection, transmission and collection;

           

        

  

  

  
    
 

  
    4Amendment No. 14

    5 Amendment No.
      14

    6 Amendment No.
      59

    7 Amendment No.
      83

    8 Amendment No.
      107

    9 Amendment No.
      83

    10 Amendment No.
      83

    11 Amendment No.
      83

    

  

  
    
      

  

  
    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          "5 Generation License Fee"12

        	
          -

        	
          The payment which the tender winner is required to pay for the license as notified to him by the tender committee in accordance with the 5 Generation tender.

        
	
          “Technical Requirements

          and Grade of Service”

        	
          -

        	
          Standards of availability and grade of service, standards for Telecommunication Installations and installation instructions, operation and maintenance, all in accordance with the Engineering
            Plan and the Annexes to this License, and as the Director will order from time to time regarding the Licensee’s services;

           

        
	
          13"Subscriber Agreement"

        	
          -

        	
          a contract that serves as an agreement between the Licensee and a subscriber, for the provision of all or part of the Licensee's services;

           

        
	
          “The Bid”

        	
          -

        	
          The Licensee’s bid in the Tender;

        
	
          “The Bezeq Corporation”

        	
          -

        	
          Bezeq, Israel Telecommunication Corporation Ltd.

           

        
	
          14“Bill” or "Telephone Bill"

        	
          -

        	
          A bill that the Licensee submits to a subscriber for services that it itself provided to the subscriber or for Goods that it sold or rented to the subscriber;

           

        
	
          “The Law”

        	
          -

        	
          The 15Communications (Telecommunication and Broadcasts) Law, 5742-1982;

           

        
	
          16“Goods”

        	
          -

        	
          As defined in section 3 of the Interpretation Law, 5741  – 1981;

        
	
          6"Old Technologies"

        	-	
          2nd Generation and 3rd Generation Technologies.

        
	
          7"Advanced Technologies"

        	- 

        	
          4th Generation and 5th Generation Technologies and NB-IOT, LTE-M Technologies.

        
	
          17“Holding”

        	
          -

        	
          for the purposes of Means of Control, directly or indirectly, whether alone or jointly , including by way of  another, and  including by way of a trustee or agent, or by a right granted under
            any agreement, including an option to hold which does not arise from convertible securities, or  any other means;

        
	
          18“Transfer”

        	
          -

        	
          for the purposes of Means of Control, directly or indirectly, for valuable consideration or otherwise, in perpetuity or for a fixed period, at once or in portions;

           

        

  

  

  
    
 

  
    6 Amendment No. 115
      
        7 Amendment No. 115

      

    

    12 Amendment
      No.107

    13 Amendment No.
      41

    14 Amendment No.
      87

    15 Amendment No.
      14

    16 Amendment No.
      87

    17 Amendment No.
      14

    18 Amendment No.
      14

    

  

  
    
      

  

  
    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          19“Jointly with Others”

        	
          -

        	
          cooperation on a permanent basis; and the following shall be deemed to be in cooperation on a permanent basis: in respect of an individual – the individual, a person related to him, and a
            corporation that either of them controls;  and in respect of a corporation – the corporation, the person who controls it and a person controlled by either of them;”

           

        
	
          “The Security Forces”

        	
          -

        	
          The Israel Defense Forces, The Israel Police, the General Security Force and the Institution of  Intelligence and Special Operations;

           

        
	
          20“Applicant”

        	
          -

        	
          whoever asks to engage in an engagement agreement or a purchase agreement with the Licensee;

        
	
          “The Index”

        	
          -

        	
          The Consumer Price Index that is published by the Central Bureau of Statistics, from time to time, or any other index which will be substituted for it;

        
	
          “Cellular Radio Base”

        	
          -

        	
          A wireless installation operating on the operating frequencies of the MRT System and used for establishing radio contact between subscribers’ MRT Terminal Equipment units in its area of
            coverage and the MRT exchange;

           

        
	
          “Interface”

        	
          -

        	
          The physical connection, including optic or wireless, meeting between various operational telecommunications installations;21

           

        
	
          “Telecommunication

          Installation”

        	
          -

        	
          An installation or device which is primarily designated for telecommunications purposes, including Terminal Equipment;22

        
	
          "234th
            Generation Tender"

           

        	
          -

        	
          Tender No. 2014/021 – a combined license for the provision of mobile radio telephony communications by way of the cellular method in Israel (MRT): expansion of an existing license or granting a
            new license;

           

        

  
    

    

    

    

    19 Amendment No.
      14

    20 Amendment No.
      87

    21 Amendment No.
      14

    22 Amendment No.
      14

    23 Amendment No.
      83

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

      

    

  

  	
          "5th Generation Tender"24

        	
          -

        	
          Tender No. 015/2019 – a combined license for the provision of mobile radio telephony communications by way of the cellular method in Israel (MRT): expansion of an existing license or granting a
            new special license for MRT services on advanced bandwidths;

        
	
          25“Tender No. 1/01

        	
          -

        	
          The tender published by the Ministry on 4 Nissan 5761 (28 March 2001), including clarifications given by the Ministry during the tender, and following which this License has been amended;

           

        
	
          “The Tender”

        	
          -

        	
          Tender No. 7/97, published by the Ministry on July 15, 1997, including clarifications provided by the Ministry during the course of the Tender, following which this License has been awarded;

           

        
	
          ”The Director”

        	
          -

        	
          The Director General of the Ministry of Communications or his appointee in the matter of this License, wholly or partly;

           

        
	
          “Subscriber”

        	
          -

        	
          Whoever has signed a subscriber agreement with the Licensee for obtaining MRT services as a terminal user.26 ;

           

        
	
          "Business Subscriber"27

        	
          -

        	
          a Subscriber that is one of the following:

          a corporation, as defined in the Interpretations Law, 1981;

          government offices and other quasi-governmental offices;

          a licensed dealer except for an exempt dealer;

          a body that was incorporated in a law or by-law.

           

        
	
          28“Split Business Subscriber”

        	
          -

        	
          a user of the Terminal Equipment, when his Telephone Bill is split between himself and a Business Subscriber or when he is charged for the entire Telephone Bill;

        
	
          29"Non-Business Subscriber"

        	
          -

        	
          a Subscriber that is not a Business Subscriber and that is not a Split Business Subscriber;

           

        

  

  

  
    
 

  
    24 Amendment
      No. 107

    25 Amendment No.
      14

    26 Amendment No.
      41

    27 Amendment No.
      45

    28 Amendment No.
      87

    29 Amendment No.
      87

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	
          "Dormant Subscriber"30

        	
          -

        	
          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

           

          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

           

          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

           

          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

           

          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

           

          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

           

        

  

  

  
    
 

  
    30 Amendment No.
      46

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

      

    

  

  	 	 	
          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

           

          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

           

          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

           

          a subscriber that fulfills all of the following conditions:

          Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

          Does not pay the Licensee any fixed tariffs;

          Does not have an agreement with the Licensee for a fixed period program.

        
	
          ”International

          Communication System”

        	
          -

        	
           a telecommunications installations system , connected or intended to be connected to a Public Telecommunications Network through an International Network Termination Point (NTP), which serves
            or intends  to serve for the transmission of telecommunications messages between an international switch located in Israel and a Telecommunications Installation  located outside of Israel, including a satellite ground station and other
            Telecommunications Installations (hereinafter: “Components of the System”), and including transmission facilities between Components of the System;31

        

  
    

    

    
      
 

    
      31 Amendment
        No. 14

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	
          "5 Generation System"

        	
          -

        	
          The MRT system, whether it is part of a 2G, 3G or 4G of the Licensee or whether it is separate from them, physically or logically, which enables data transfer fFor the purpose of providing
            RELEASE 15 3  starting from GPP in RTN technology in accordance with the standard 5G service.

          Whether it enables the provision of 5G service in the 5G service area or whether it enables the provision of service in other geographical areas;

           

          

        
	
          "One-time Transaction"

           

        	
          -

        	
          A transaction that is not a Continuous Transaction;

        
	
          "Continuous Transaction"

           

        	
          -

        	
          An engagement agreement to purchase Licensee services continuously and ongoing, including any change to the agreement or addition to it that do not constitute a new transaction, and all whether
            the engagement agreement is for a set period or whether not for a set period;

           

        
	
          “The MRT System”

        	
          -

        	
          The MRT through which the Licensee provides its services;

           

        
	
          32“DO (Domestic Operator)”

        	
          -

        	
          a holder of a general license for the provision of wireless domestic telecommunications services;

           

        
	
          Mobile Radio

          Telephone System (MRT)”

        	
          -

        	
          A wireless installation system built according to the cellular method and other installations, through which Mobile Radio Telephone Services are provided to the public, including an MRT
            exchange, Cellular Radio Bases and wireless or physical transmission channels which connect Cellular Radio Bases, Cellular Radio Bases and an MRT exchange, and between MRT exchanges;

           

        
	
          “International Operator”

        	
          -

        	
          An operator which provides International Communication Services to the public in Israel in accordance with a general License awarded by the Minister;

           

        
	
          33“MRT Operator”

        	
          -

        	
          A holder of a general license for the provision of mobile radio telephone services;

           

        

  

  

  
    
 

  
    32 Amendment No.
      14

    33 Amendment No.
      14

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	
          34“MRT Operator on Another Network”

        	
          -

        	
          a Licensee for the Provision of MRT Services that involves the use of all or a portion of an MRT System of an MRT Operator and at least of the Access Network of the said MRT System;

        
	
          35“Competing MRT

          Operator”

        	
          -

        	
          An MRT Operator that is not the Licensee;

        
	
          “Domestic Operator”

        	
          -

        	
          An operator who provides communication services (infrastructure, transmission and telephony) to the public in Israel in accordance with a general license from the Minister.

           

        
	
          “Exchange”

        	
          -

        	
          A Telecommunication Installation in which switching and transmission means are operated, which allows the establishment of contact between various Terminal Equipment units connected to it, and
            transmission of telecommunication messages between them, including control and monitoring installations and other installations which enable provision of various services to the Licensee’s subscribers or to the subscribers of another Licensee.

           

        
	
          “The Ministry”

        	
          -

        	
          The Ministry of Communications;

           

        
	
          36“Transfer Switch”

        	
          -

        	
          A Telecommunications Installation  which contains and operates switching, routing and transmission devices  which enable  the creation of a connection between various switching centers 
            connected thereto , and the transmission of telecommunications messages between them , including  monitoring and routing installations;

           

        
	
          37”National Roaming" (NR)"

        	
          -

        	
          The expansion of the services of another MRT Operator (hereinafter-"another operator") to coverage areas of the Licensee through the Licensee's MRT system, as detailed in section 67E.

           

        
	
          “Officer”

        	
          -

        	
          38a person serving  as a director, general manager, chief executive officer, deputy general manager, vice
            general manager, or a person acting as a replacement of one of the above in a company even under a different title  as well as any other manager directly subordinate to the general manager of the company;

        

  

  

  
    
 

  
    34 Amendment No.
      87

    35 Amendment No.
      14

    36 Amendment No.
      14

    37 Amendment No.
      59

    38 Amendment No.
      14

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	
          “Appendices”

        	
          -

        	
          39The First Annex and the Appendices set out in the Second Annex to the License;;

           

        
	
          NTP -

          (Network Termination

           Point)”

        	
          -

        	
          An interface to one end of which a Public Telecommunication Network is connected, and to the other, Terminal Equipment, a private network, a mobile telephone network or another Public
            Telecommunications Network, as the case may be;

           

        
	
          “International NTP”

        	
          -

        	
          An interface to one end of which a Public Telecommunication Network is connected, and to the other, an International Communication Network;

           

        
	
          3"One-Time Transaction"

        	-

        	
          A transaction that is not continuous;

        
	
          4"Continuous Transaction"

        	-

        	
          An engagement agreement to purchase services from the Licensee continuously and ongoing, including any change or addition to the agreement that does not constitute a new transaction, and all
            whether if the engagement agreement is for a set period of time or whether it is for an indefinite period of time;

        
	
          “Telecommunication

          Activity”

        	
          -

        	
          Operation of a Telecommunication Installation, its installation, construction or its subsistence, all with the objective of telecommunication;

           

        
	
          “The Ordinance”

        	
          -

        	
          The Wireless Telegraphy Ordinance (New Version) 1972;

           

        
	
          Terminal Equipment”

        	
          -

        	
          Telecommunication equipment connected or designated to be connected to the Public Telecommunication Network, through an NTP or a private network, including telephones, modems, facsimile
            machines or private exchanges;

           

          

        
	
          MRT Terminal

          Equipment”

        	
          -

        	
          Hand-held, mobile Terminal Equipment, or Terminal Equipment designated for permanent installation in motor vehicles or ships, designated to be connected to the MRT System by radio communication
            through Cellular Radio Bases.

           

        
	
          1"M2M Equipment"

        	 	
          Machine to Machine for example: home alarms, electronic gates, vehicle trackers.

        
	
          “PTP Line

           (Point to Point)”

        	
          -

        	
          A line which serves for telecommunications, both ends of which are located on an NTP which is not in a public telecommunication network, in which a call or other form of communication which
            initiates at one end may terminate only in the other end.

           

        
	
          40“Interconnection”

        	
          -

        	
          a physical or logical connection between the Public Telecommunications Network of one licensee and the Public Telecommunications Network of another licensee, enabling the transfer of
            telecommunications messages between the subscribers of both licensees or the provision of services by one licensee to the subscribers of another licensee;

           

        

  

  

  
    
 

  
    1 Amendment No. 115

    3 Amendment No. 84
      
        4 Amendment No. 84

      

    

    39 Amendment No.
      14

    40 Amendment No.
      14

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	
          “Relative”

        	
          -

        	
          A spouse, parent, son, daughter, brother or sister and their spouses;

           

        
	
          “The License”

        	
          -

        	
          This License and all its Appendices as well as any document or condition which has been determined in the License as constituting an integral part of the License or of its conditions;

           

          

        
	
          “the Network”

        	
          -

        	
          The Licensee’s MRT system;

           

        
	
          “Public

          Telecommunication

          Network”

        	
          -

        	
          a system of Telecommunications Installations serving or designated  to serve as a provider  of Telecommunications Services to the entire public around the country, or at least in an area of
            service that includes exchanges and transmission switches, transmission equipment and an access network including an MRT system and an International Telecommunications System, and with the exception of a private network, Terminal Equipment and
            MRT Terminal Equipment;

           

        
	
          “Wireline Public

          Telecommunications

          Network”

        	
          -

        	
          A public domestic telecommunications network, with the exception of an MRT system and an International Telecommunications System;

           

        
	
          “Access Network”

        	
          -

        	
          Components of a Public Telecommunications Network used to connect a switching center  and a network termination point (NTP) using wireline infrastructure, wireless infrastructure or a
            combination of the two;”

           

        
	
          “The Bezeq Corporation

          Network”

        	
          -

        	
          The Public Telecommunication Network which serves The Bezeq Corporation for provision of services in accordance with the general License which it was awarded, as well as other Telecommunication
            Services provided, in accordance with the Law, either by The Bezeq Corporation or by another body;

           

        
	
          “Use”

        	
          -

        	
          Access to a Telecommunications Installation  of the Licensee, including to its Public Telecommunications Network or Access Network, in whole or in part, and the ability to use such ,  for the
            implementation of Telecommunications Activity  and to provide Telecommunications Services thereby, including the installation of a Telecommunications  Installation of another licensee on the Licensee’s telecommunications facility or premises;

           

        

  

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	
          “Telecommunication

          Service”

        	
          -

        	
          Operation of telecommunication activities for the public;

           

        
	
          “International

          Communication

          Service”

        	
          -

        	
          Telecommunication Service provided for the public in Israel, in accordance with a License granted by the Minister, through an international communications system of an International Operator;

           

        
	
          “5G Service”41

        	
          -

        	
          service provided in a 5G System that is at least one of the following services:

          a.          Data Communications Using a Broad Frequency Band;

          b.          Massive Internet of Things (IoT) – data communications service enabling the transfer of telecommunications messages to a large number of End-Devices in a particular area, with
            characteristics to be defined in the agreement between a Subscriber and the Licensee;

          c.          Mission Critical – Data Communications service with very high reliability and very low latency, as shall be defined in the agreement between a Subscriber and the Licensee and
            according to the standards under which a 5G System operates”;

        
	
          “Basic Telephone Service”

        	
          -

        	
          Switched or routed bi-directional transmission , including via modem, speech or speech-like telecommunications messages, such as facsimile signals;

           

        
	
          “Telephony Service”

        	
          -

        	
          Basic Telephone Service and Accompanying Services to such service;

           

        
	
          “42International Roaming Service”

        	
          -

        	
           An MRT Service provided overseas and in the territories under the Civil Administration of the Palestinian Council via the MRT system of a foreign MRT operator (hereinafter: a “Foreign Operator”), whereby the Subscriber pays the Licensee for the service;  and similarly – an MRT Service provided in Israel via the Licensee’s MRT system, whereby the Licensee provides a service to a
            Foreign Operator for the subscribers of such operator;  for this purpose, the “Palestinian Council” – as defined in  the Law for Implementation of the Interim Agreement regarding the West Bank and Gaza
            Strip Law (Jurisdictional Powers and Other Provisions) ( (Legislative Amendments), 5756-1998 [sic]

           

        

  

  

  
    
 

  
    41 Amendment
      NO. 105

    42 Amendment No.
      64

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	
          “Accompanying Service”

        	
          -

        	
           A service as set out in the First Annex  to the License, provided on the basis of a Basic Telephone Service, which by its nature  can only be provided  by the provider  of the basic service;

           

        
	
          “Added Value Service”-

        	
          -

        	
           A service provided  based on a Basic Telephone Service, which by its nature  can also be granted by another licensee who is not the supplier of the basic service;  for the purposes of the
            services of the Licensee, such service as set out in the First Annex  of the License;

           

        
	
          “Infrastructure Service”

        	
          -

        	
          an Interconnection or the ability of  Use  given to another licensee, a Franchisee or to a broadcast licensee;”

           

        
	
          “Wireline Domestic

          Telecommunications

          Services”

           

        	
          -

        	
          Infrastructure Service, transmission, data communications and telephony services

        
	
          “The Licensee’s Services”

        	
          -

        	
           MRT Services, Telecommunications Services and other services that the Licensee is entitled to provide  to its subscribers, to other licensees, to broadcast licensees, to Franchisees and to the
            Security Forces  under this License;

           

        
	
          “MRT Services”

        	
          -

        	
          Telecommunication Services provided through the MRT Terminal Equipment and through the MRT System;

           

        

  

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	
          Control”

        	
          -

        	
          The ability to direct the activity of a corporation, either alone or jointly with others, either directly or indirectly, including the ability that derives from the Articles of the corporation,
            by virtue of an agreement, either written or oral, by virtue of holding the Means of Control in the corporation or in another corporation or which derives from another source, and excluding the ability deriving solely from holding the office of
            director or any other office in the company; any person controlling a subsidiary company or another corporation held directly by him/her, will be deemed as controlling another corporation, controlled by the corporation which is held directly,
            as aforesaid; it should be presumed that an individual or corporation shall control the corporation if one of the following conditions exist:

          A.          If he or it holds, either directly or indirectly, fifty percent (50%) or more of any Means of Control in the corporation;

          B.          If he or it holds, either directly or indirectly, a percentage of any Means of Control in the corporation which is the greatest part in relation to the holdings
            of the other Interested Parties in the corporation.

          C.          If he or it has the ability to prevent taking business decisions in the corporation, with the exception of decisions in the matter of issuance of means of control
            in a corporation or 43decisions in the matters of sale or liquidation of most businesses of the corporation, or fundamental change of these businesses;

           

        
	
          “The Minister”

        	
          -

        	
          The Minister of Communication, including a person to whom the Minister has delegated his authority in the matter of this License, either in whole or in part;

           

        
	
          “The Engineering Plan”

        	
          -

        	
          The Engineering Plan, including the Maintenance Organization and Grade of Services for the Subscribers, attached in the Appendices of the Second Annex to the License;

           

        
	
          “Numbering Plan”

        	
          -

        	
          As defined in section 5A(b) of the Law;

           

        
	
          "Billing Period"

           

        	
          -

        	
          A cyclical time period, with a set period, at the end of which a bill is presented to the subscriber for payment for the Licensee's services and for content services that were provided to the
            subscriber during that period.

           

        
	
          " Data Communications”

        	
          -

        	
          transfer of information and software between End-Devices, including computers;

          “Data Communications Using a Broad Frequency Band” – service enabling a Subscriber to use Data Communications through a 5G System, provided that
            frequency bands are used at an aggregate bandwidth of not less than 60 MHz, including as an aggregate bandwidth between different frequency ranges”;

        

  

  

  
    
 

  
    43 Amendment No,
      52

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	
          "Radio Infrastructure"

        	
          -

        	
          Radio centers by way of the cellular method, monitoring units thereof, if any, and transmission connecting them to the core of the public telecommunications network of the Licensee.

           

        
	
          "44Post- paid"

        	
          -

        	
          Payment for services that is collected from the subscriber after the Bill Period;

           

        
	
          "45Pre-paid"

        	
          -

        	
          Payment for services that is collected from the subscriber before or at the beginning of the provision of the services;

           

        
	
          46

        	 	 

  

  

  	1.2	
          Words and expressions in the License that are not defined in Paragraph 1.1, will be interpreted as in the Law, Ordinance and Regulations which have been enacted in accordance with them, The Law of Interpretations, 1981, or as specified in
            appropriate paragraphs in the License, unless a different meaning is implicit in the text or in its context.

        

  

  

  	2.	
          Paragraph Headings

        

   

  The paragraph headings in this License are provided for ease of reading only, and they must not be used for purposes of interpretation or explanation of the
    content of one or all of the Terms of the License.

    

  	3.	
          The “Blue Pencil” Principle

        

   

  Revocation or a decision in the matter of the nullification of a condition of this License or a part thereof will only apply to that condition or the part
    thereof, as the case may be, and they themselves will not prejudice the binding validity of the License or any other condition it contains.

  

  

  
    
 

  44 Amendment No. 84

  45 Amendment No. 84

  46 Amendment No. 83

   

  

  
    
      

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  Section B - Legal and Administrative Provisions

   

  

  	4.	
          Observation of Laws and Provisions

        

   

  	4.1	
          In all matters pertaining to the establishment of the MRT network, its subsistence, operation and maintenance and also for the provision of MRT services through it, the Licensee will act in accordance with the instructions of any law, and
            without derogating from the generality of the above, will strictly observe the following:

        

   

  	

        	1)	
          The instructions of the Telecommunication Law and the regulations pursuant thereto;

        

   

  	

        	2)	
          The Wireless Telegraphy Ordinance and the regulations pursuant thereto;

        

   

  	

        	3)	
          Administrative instructions;

        

   

  	

        	4)	
          International conventions to which Israel is a signatory, in the matter of telecommunications and radio;

        

   

  	

        	5)	
          Any other law or convention applicable to telecommunication and radio, even though they have become valid after the award of the License.

        

   

  

  	4.2	
          The Licensee will act in accordance with the laws and provisions as set out in Paragraph 4.1 according to their validity from time to time during the License Period, including the remedies for breaching them, and they will be deemed to be an
            integral part of the Terms of the License.

        

   

  

  	5.	
          The Obligation of Permit according to all other Laws

        

   

  The award of this License does not exempt the Licensee from the obligation to obtain, for execution of the License, any License, permit, approval or consent according to all other
    laws.

   

  

  	6.	
          Contradiction between the License Provisions

        

   

  In any case of apparent contradiction between the provisions of the License, the Minister will decide on the interpretation of the provisions, or how to settle the contradiction
    between them, after the Licensee has been given an opportunity to voice its arguments.

   

  
    
      

  

  

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

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

     

  Section A - The Scope of the License and the License Period

     

  	7.	
          The Scope of the License

        

   

  	7.1	
          The Licensee is permitted, according to this License and subject to all its instructions and conditions, to establish, sustain, maintain and operate an MRT System, and through it provide MRT services; for this purpose, the Licensee is
            permitted to do the following:

        

   

  	

        	a)	
          To establish, sustain, maintain and operate Cellular Radio Bases and connect them to MRT exchanges, and also to connect between MRT exchanges through wireless or physical transmission channels;

        

   

  	

        	b)	
          To connect the MRT System to another Public Telecommunication system in Israel;

        

   

  	

        	c)	
          To enter an agreement with subscribers for the provision of MRT Services;

        

   

  	

        	d)	
          To supply MRT Terminal Equipment to subscribers;

        

   

  	

        	e)	
          To supply its customers with MRT services as set forth in the First Annex to the License;

        

   

  	

        	f)	
          To supply its customers with services that were approved to the Licensee in accordance with Article 67C of the License.47

        

  

  

  	7.1a	
          The Licensee’s services to its subscribers will be provided solely through MRT terminal equipment.

        

   

  	7.2	
          The Licensee in not permitted to provide any MRT or other Telecommunication Service that it is not explicitly permitted to provide within the framework of this License or another License awarded it by the Minister.

        

  

  

  	8.	
          48No Exclusivity

        

   

  	8.1	
          The Licensee shall not have any form of exclusivity whatsoever in the provision of its services.

        

  

  

  	8.2	
          The Minister may at any time grant a license for the provision of MRT Services to additional operators.

        

  

  

  	8.3	
           Should  the Minister publish a tender for the provision of MRT Services, the Licensee may submit a bid in the tender, however, the Minister may determine , as part of the conditions of such tender, that if the Licensee wins the tender, the
            receipt of a license shall be conditional upon the Licensee transferring its MRT System to another as the Minister may order, and on such conditions as he may prescribe, and that the Licensee shall cease to provide MRT Services.

        

  

  

  

    

    47 Amendment No,
      64

    48 Amendment No.
      14

    

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	9.	
          The License Period

        

  

  

  	9.1	
          The validity of this License is for a period of ten (10) years, that will begin on the day the License is awarded (hereinafter “The License Period”).

        

  

  

  	9.2	
          Cancelled.49

        

  

  

  	9.3	
          This License may be renewed for one or more additional periods of ten (10) years, beyond the License Period according to that stated in the clause (hereinafter – the Additional Period).50

        

  

  

  	9.4	
          The License shall be subject to the Minister’s authority pursuant to sections 13 to 15 on the matter of amending, restricting, suspending or terminating a License, as well as the authorities pursuant to section 4.G. of the Ordinance,
            throughout the entire License Period or the Additional Periods.51

        

  

  

  
    	9.5	
            52Notwithstanding the above 53in the context of extension of the License, following the winning by the Licensee of Tender No. 1/01, in which the License was extended for a period of twenty (20) years that will begin
              on 19 Shvat 5762 (1 February 2002), and following the Licensee's request dated 24/08/2020 to renew its License for an additional period of 10 years, this License will be in effect until February 1, 20326.

          

    

  

  	10.	
          Renewing the License54

        

  

  

  	10.1	
          The Minister and the Authorized Party pursuant to the Ordinance may, at the Licensee’s request, renew the License for additional periods of ten (10) additional years after having considered all of the considerations specified in section 4(b)
            of the Law and the Ordinance, as the case may be, including all of the following55:

        

   

  	

        	(A)	
          The Licensee has observed the provisions of the Law, the Ordinance, the regulations therein and the provisions of the License;

        

   

  	

        	(B)	
          The Licensee has acted to constantly improve the MRT Services, their scope, availability and quality and also the technological updating of the MRT System, and there was no act or omission in the Licensee’s activity that harmed or limited
            competition in the MRT branch;

        

   

  	

        	(C)	
          The Licensee is able to continue to provide MRT Services of a high standard and is able to implement the required investments in the technological updating of the MRT System for improving the scope of the MRT Services, their availability and
            quality;

        

   

  

  
    

  6 Amendment No. 121

  49 Amendment No. 107 
    

    50 Amendment
      No. 107

    

    51 Amendment
      No. 107

    52 Amendment No.
      13

    53 Amendment No.
      14

    

    54 Amendment
      No. 107

    

    55 Amendment
      No. 107

    

    

  

  
    
      

  

  
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        	(D)	
          The Licensee has efficiently used the frequency bands allocated to it, compared to alternative applications;

        

   

  	10.2	
          The Licensee will submit its request to renew56 the License in the course of the forty-five (45) days that precede the period of the eighteen (18) months prior
            to the termination date of the License Period.

        

  

  

  	10.3	
          The Licensee will append the following to its request:

        

   

  	

        	(A)	
          A report summarizing all the annual reports submitted by the Licensee according to this License between the commencement date of the License or the renewal of the validity of the last License57 and the submission date of its request;

        

   

  	

        	(B)	
          A comparison of the data in the report with regard to each year with the data of the preceding year, and also explanations of extraordinary variations in the data;

        

   

  	

        	(C)	
          A review of the means, actions and investments undertaken or implemented by the Licensee for the improvement of the quality of the MRT Services, their scope and availability, for the development and technological updating of the MRT System.

        

  

  

  	10.4	
          The Concluding Report in accordance with Paragraph 10.3 will contain precise up-to-date details and will be drafted in the form of an affidavit.

        

   

  	10.5	
          For the purpose of examining the Licensee’s request to renew the License, and without derogating from the Minister’s authorities to request information pursuant to any law, the Minister and the Authorized Party pursuant to the Ordinance may
            demand that the Licensee appear before them and present an Engineering Plan to them that describes its plans for the technological updating of the MRT System during the Additional Period.58

        

  

  

  	10.6	
          59Should the Licensee be required to appear before the Minister, either the chairman of the board of the company holding the License, the General Manager of the
            company, or a person authorized in writing for this purpose, will appear.

        

   

  	10.7	
          60If the Licensee's does not comply with the request as set forth in section 10.5 and 10.6, at least twice, the Minister may reject its request to renew the
            License61.

        

   

  
    
 

  
    56 Amendment
      No. 107

    

    57 Amendment
      No. 107

    

    58 Amendment
      No. 107

    

    59 Amendment
      No. 98

    

    60 Amendment
      No. 98

    

    61 Amendment
      No. 107

    

    

  

  
    
      

  

  
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  	10.8	
          The Minister and the Authorized Party pursuant to the Ordinance shall notify the Licensee of their decision regarding the License renewal application by no later than one year prior to the expiration of the Period of the License.62

        

   

  	10.9	
          The conditions of this License will apply to the Additional Periods63, including and changes in them.

        

  

  

  	10.10	
          The instructions of Paragraph 100 in the matter of confidentiality will apply, with the required modifications, to information provided by the Licensee in accordance with the instructions of this paragraph, to the Minister to the Authorized
            Party pursuant to the Ordinance, or any party on their behalf64.

        

  

  

  	11.	
          Cancelled65

        

  

  

  	12.	
          Termination of the License Period

        

  

  

  	12.1	
          If the License Period in accordance with Clause 9.5 or the Additional Period in accordance with Clause 10.1 has ended, and the License has not been renewed66,
            the Minister may instruct the Licensee to continue operating the MRT System for a  fixed period  (hereinafter “the Service Termination Period”) until a License is awarded to another by law for the provision of the services which are the subject
            of this License (hereinafter “the Alternative Licensee”), and the proceeding have been completed for transfer of the system according to it, or until a License is awarded to another by law for alternative services; the Service Termination
            Period will, in any event, be no greater than two years from the date of expiry of the License.

        

  

  

  	12.2	
          During the Service Termination Period, and no later than ten (10) months from the day on which a License was awarded to an Alternative Licensee, the Licensee and the Alternative Licensee will enter negotiations for the acquisition of the MRT
            System at its economic worth and the assignment of rights and obligations of the subscribers to the Alternative Licensee; should the said Licensees not reach complete agreement within ten (10) months as stated above, the price will be
            determined by an arbitrator appointed by the Chairman of the Chartered Accountants Association, whose decision will be final.

        

  

  

  
    
 

  62 Amendment No.
    107

  

  63 Amendment No.
    107

  

  64 Amendment No.
    107

  

  65 Amendment No.
    107

  

  66 Amendment No.
    107

  

  

  
    
      

  

   
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  Section B - Changing the Conditions of the License, its Enforcement and Revocation

   

  	13.	
          Changing the Conditions of the License

        

  

  

  	13.1	
          The Minister and the authorized party pursuant to the Ordinance may change the conditions of the License, add to them or detract from them, in accordance with the provisions of section 4 of the Law and the provisions of sections 4.C and 4.F
            of the Ordinance and in this regard, they will take into account inter alia67:

        

   

  	

        	(A)	
          A change has occurred in the suitability of the Licensee to implement the actions and services that are the subject of the License;

        

   

  	

        	(B)	
           Cancelled68

        

   

  	

        	(C)	
           A change in the License is required in order to ensure the Grade of Service provided in accordance with it;

        

   

  	

        	(D)	
           Changes in Telecommunication technology justify modifying the License;

        

   

  	

        	(E)	
           Changes have occurred in the electromagnetic spectrum needs that justify, in the Minister’s opinion, changes in the License;

        

   

  	

        	(F)	
          Considerations of public interest justify modifying the License;

        

   

  	

        	(G)	
          A change in government policy in the telecommunications sector demands a modification of the License;

        

   

  	

        	(H)	
          A change is required in the License by reason of its breach by the Licensee, as set out in Paragraph 15.

        

   

  

  	13.2	
          The Minister will act in accordance with his authority, as set out in Paragraph 13.1, after giving the Licensee a reasonable opportunity to voice its claims.

        

   

  

  	13.3	
          The Minister and the authorized Party pursuant to the Ordinance shall take action pursuant to their authority as stated in clauses 13.1 and 13.2 after the Licensee has been given a reasonable opportunity to voice its arguments.

        

  

  

  	14.	
          Revocation of the License

        

  

  

  	14.1	
          The Minister and the authorized party pursuant to the Ordinance69 may revoke the License before the end of its validity if one or more of the causes set out in
            Paragraph 6 of the Law or section 4.G of the Ordinance exists, including in any one of the following cases:

        

   

  	

        	(A)	
          The Licensee did not disclose required information to the Tender Committee or gave it incorrect information;

        

   

  

    

    67 Amendment
      No. 107

    68 Amendment
      No. 107

    69 Amendment
      No. 107

    

  

  
    
      

  

  
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        	(B)	
          The Licensee was required and refused to give the Minister or his appointee or to the Authorized Party pursuant to the Ordinance70 required information that is
            in its possession, and which it had to divulge by virtue of the provisions of this License or by law,  or the Licensee gave false information to the Minister or his appointee;

        

   

  	

        	(C)	
          The Licensee has not observed the instructions of the Law, the Ordinance or the regulations therein;

        

   

  	

        	(D)	
          The Licensee has committed a substantial breach of the License conditions and without derogating from the generality of the above, including the following:

        

   

  	

        	(1)	
          The Licensee demanded payments for its services that exceed the maximum tariffs 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;71

        

   

  	

        	(E)	
          The Licensee has not commenced provision of services in accordance with the stipulations of this License or has illegally ceased, limited or delayed any one of its services;

        

   

  	

        	(F)	
          The Licensee has not invested the required sums in the establishment and operation of the MRT System at the coverage and quality standards determined by the Ministry in accordance with the written undertaking (Appendix I);

        

   

  	

        	(G)	
          Should one or more of the attributes that made the Licensee fit for participation in the Tender for MRT services or to be a Licensee, cease to exist, including the following:

        

   

  	

        	(1)	
          The Licensee has ceased to be a company registered in Israel;

        

   

  	

        	(2)	
          Cancelled72

        

   

  	

        	(3)	
          The majority of the directors of the company that is the Licensee are not Citizens or Residents of Israel;

        

   

  	

        	(4)	
          The General Manager of the company that is the Licensee or a director therein, has been convicted of an infamous offense and continues to serve in office;

        

   

  	

        	(5)	
          The General Manager of the company that is the Licensee is not a Citizen or Resident of Israel ;

        

   

  	

        	(6)	
          Prior to the expiry of five (5) years from the date of the award of the License, the voting rights of the MRT Operator or of a Controlling Corporation in an MRT Operator (hereinafter, with regard to this clause - “Controlling Corporation”), 
            at the general meeting or the right to appoint a director or general manger in the company that is the Licensee, decreased to less than twenty-five percent (25%); the rate of holdings of an MRT Operator or of a Controlling Corporation will be
            calculated according to the provisions of Paragraph 23.6; However, the holdings of an MRT Operator or a Controlling Corporation that has direct or indirect holdings in the Licensee will be taken into account, with regard to this clause, only if
            all of the following exist:

        

   

  	

        	(1)	
          Each body in the chain of holdings is controlling the body held by it as aforesaid, down to the body that directly holds the Licensee;

        

   

  
    
 

  
    70 Amendment
      No. 107

    71 Amendment
      No. 107

    72Amendment No. 31

    

  

  
    
      

  

  
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        	(2)	
          The rate of holding in the Licensee of the MRT Operator or a Controlling Corporation, either directly or indirectly, will not be less than twenty-five percent (25%);

        

   

  	

        	(3)	
          The MRT Operator undertook to the Licensee to put at its disposal all the information in its possession that is required for the establishment and operation of the MRT System, for the provision of MRT Services, their marketing and sale.

        

   

  	

        	(7)	
          Subject to what is set out in Clause 9, one of the following exists in the Licensee:

        

   

  	

        	-	
          The Licensee, an Office Holder or Interested Party in the company that is the Licensee or an Office Holder in an Interested Party thereof is an Interested Party in a Competing MRT Operator without obtaining permission to do so from the
            Minister as set out in Paragraph 23.8, or has not fulfilled one of the conditions included in the permit it obtained from the Minister as stated above;

        

   

  	

        	-	
          An Office Holder, Interested Party or an Office Holder in an Interested Party  in the company that is the Licensee is an Office Holder in a Competing MRT Operator or in an Interested Party in a Competing MRT Operator, without having obtained
            permission to do so from the Minister; as stated in Paragraph 23.2, or has not fulfilled one of the conditions included in the permit it obtained from the Minister as stated above;

        

   

  	

        	(8)	
          If one of the following exists in an Interested Party in the company that is the Licensee, that is a trust fund, an insurance company, an investment company or a pension fund:

        

   

  	

        	-	
          It holds, either directly or indirectly, more than five percent (5%) of any Means of Control in a Competing MRT Operator, without having obtained permission to do so from the Minister;

        

   

  	

        	-	
          It holds, either directly or indirectly, more than five percent (5%) of any Means of Control in a Competing MRT Operator in accordance with a permit from the Minister, and in addition it has a representative or appointee who is an Office
            Holder in a Competing MRT Operator, unless it has been legally required to do so;

        

   

  	

        	-	
          It holds, either directly or indirectly, more than ten percent (10%) of any Means of Control in a Competing MRT Operator, even if it has received permission to hold up to ten percent (10%) of the said Means of Control;

        

   

  
    
      

  

  
    Translation from Hebrew

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        	(8a)	
          If one of the following exists in an Interested Party in a Competing MRT Operator, that is a trust fund, an insurance company, an investment company or a pension fund:

        

   

  	

        	-	
          It holds, either directly or indirectly, more than five percent (5%) of any Means of Control in the Licensee, without having obtained permission to do so from the Minister;

        

   

  	

        	-	
          It holds, either directly or indirectly, more than five percent (5%) of any Means of Control in the Licensee in accordance with a permit from the Minister, and in addition it has a representative or appointee who is an Office Holder in the
            Licensee, unless it has been legally required to do so;

        

   

  	

        	-	
          It holds, either directly or indirectly, more than ten percent (10%) of any Means of Control in the Licensee, even if it has received permission to hold up to ten percent (10%) of the said Means of Control;

        

   

  	

        	(9)	
          The Licensee, an Office Holder or an Interested Party in the Licensee, or an Office Holder in an Interested Party in the Licensee, controls a Competing MRT Operator, is controlled by a Competing MRT Operator, by an Office Holder or an
            Interested Party in a Competing MRT Operator, by an Office Holder in an Interested Party in a Competing MRT Operator, or by a person or corporation that controls a Competing MRT Operator;

        

   

  	

        	(H)	
          The Means of Control in the Licensee or control of it have been transferred in contravention of Paragraph 21;

        

   

  Notwithstanding  the above-mentioned, a transfer or purchase of a percentage of the Means of Control in the Licensee, either directly or indirectly, that requires consent in
    accordance with Articles 21.1 or 21.3 (other than a transfer or purchase that results in a transfer of control), without first receiving the Minister's prior written consent as required according to these articles, shall not constitute a cause to
    revoke the License if the Minister's consent was given in writing in advance for a public offering of the Tradable Means of Control or for registration for trading of the Tradable Means of Control, on the securities exchange in Israel or overseas, 
    under which the Means of Control in the Licensee may be transferred in a percentage that requires consent in accordance with Articles 21.1 or 21.3 (other than a transfer or purchase that results in a transfer of control), and it shall all be subject to
    the conditions to be set by the Minister when he gives his consent. The contents of this article are in addition to and do not derogate from the provisions of Article 21.8 of the License. For the purpose of this Article, "Tradable Means of Control"- as
    defined in Article 21.5 of the License.73

   

  	

        	(I)	
          There was an act or omission in the Licensee’s activity that harmed or limited competition in the MRT branch;

        

   

  	

        	(J)	
          A receiver or temporary liquidator was appointed for the company that is the Licensee, an order was issued for its winding-up or it decided to be voluntarily wound-up;

        

   

  
    
 

  
    73 Amendment No.
      25

    

  

  
    
      

  

  
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        	(K)	
          Cancelled;

        

   

  	

        	(L)	
          The Licensee requested revocation of the License.

        

   

  	

        	(M)	
          The Licensee breached on of the provisions in Article 22A.74

        

   

  	14.1	A.

        	
          With regard to sub-clause 14.1 (e75), limitation of service due to technological circumstances that is implemented after an advance
            written and reasoned notice was sent to the Director and after its approval by the Director, will not be viewed as an illegal limitation of service.

        

   

  

  	14.1	B.

        	
          With regard to sub-clause 14.1 (G) (6), “MRT Operator” is an operator of an MRT system abroad, through which MRT services are provided to at least five hundred thousand (500,000) subscribers.

        

  

   

   

   

  	14.2	
          Should the Minister consider that the cause of revocation, under the circumstances of the matter, does not require revocation of the License, the Minister will give the Licensee a fair opportunity to correct the act or omission that
            constitute a cause for revocation.

        

  

  

  	14.3	
          The Minister will give prior notice to the Licensee regarding his intention of revoking the License, and in the notice will note the cause and enable the Licensee, within a period determined in the notice, to voice its claims regarding the
            cause of revocation, either in writing or orally, according to circumstances.

        

  

  

  	14.4	
          The Minister may invite the Licensee to appear before him and he is permitted to require the Licensee to answer questions, present documents or to provide him with information and documents insofar as this is required for the purpose of
            clarifying the cause of revocation.

        

  

  

  	14.5	
          Should the Licensee be required or invited as stated above, it will fulfill the requirement or respond to the invitation on the set date.

        

  

  

  	14.6	
          Should the Licensee not respond, at least twice, to the Minister’s requirement or invitation within the period determined by the Minister in the requirement or invitation, the Minster may revoke the License through a notice sent to the
            Licensee (hereinafter “Notice of Revocation”).

        

  

  

  	14.7	
          In the Notice of Revocation the Minister will determine the date on which revocation of the License will take effect, and he may instruct the Licensee to continue to provide the services in accordance with this License until a License is
            awarded to another, or until the appointment of a trustee, or until the appointment of a receiver by law for management and operation of the MRT System, as the case may be.

        

  

  

  	14.8	
          The Licensee will continue to provide the services up to the date set by the Minister in his notice and will observe the instructions of this License and every instruction given to it by the Minister in this matter.

        

   

  
    
 

  
    74 Amendment No.
      31

    75Amendment No. 4

    

    

  

  
    
      

  

  
    Translation from Hebrew

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  	15.	
          Other Remedies

        

   

  In addition to his authority to revoke the License as set out in Paragraph 14, the Minister may, if the causes set out in Paragraph 14.1 exist, limit or suspend the License, or
    change its conditions or foreclose the guarantees given by the Licensee to ensure the fulfillment of the License conditions, wholly or in part; the detailed proceedings in the matter of revocation of the License will be applied, with the necessary
    changes, to limitation of the License, its suspension, and the foreclosure of the guarantees.

  

  

  	15A.	
          Temporary Order76

        

   

  Notwithstanding the provisions of the License, the Licensee shall act in accordance with the time-limited instructions set forth in Annex Q of the License.

  

  

  
    
 

  76 Amendment No.
    106

  
     

    

    
      
        

    

     

    

    Translation from Hebrew

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  Chapter C: Ownership, Assets and Means of Control

   

  Section A: Limitations in Respect of the Transfer of the License and its Assets

  

  

  	16.	
          Deleted77.

        

  

  

  	17.	
          Ownership of the MRT System

        

  

  

  	17.1	
          The Licensee shall be the owner and operator of the MRT System.

        

  

  

  	17.2	
          Notwithstanding  Article 17.1, the Licensee may make use of:

        

  

  

  	

        	(a)	
          physical or wireless transmission lines of another licensee;

        

  

  

  	

        	(b)	
          the radio infrastructure, that is functioning and operating by way of a Cellular Radio Infrastructure Licensee, in the framework of a usage agreement, as defined in Clause 19.3C, and after receiving the prior written agreement of the
            Director and the Authorized Party pursuant to the Ordinance, and in accordance with the conditions they prescribed78.

        

  

  

  79

  

  

  	18.	
          Limits on the Transfer of License Assets

        

  

  

  	18.1	
          The Licensee is not allowed to sell, lease or mortgage any of the assets that serve for the implementation of the License (hereinafter: “the License Assets”), unless given the Minister’s prior written consent, in accordance with the terms
            set by the Minister.

        

  

  

  	18.2	
          Without derogating from the generality of what is set out in Paragraph80 18.1, the Minister will give his approval to give title to rights in the License assets
            to a third party, if he is satisfied that the Licensee has ensured that in any event, the realization of the rights by the third party will not cause any damage to the provision of services according to this License, as long as the Licensee
            must provide these services according to the provisions of this License.

        

  

  

  	18.3	
          Despite what is stated in Paragraph 18.1, the Licensee may mortgage any of the License’s assets in favor of a banking corporation that is legally active in Israel, for the purpose of obtaining bank credit, on condition that advance notice of
            the intended mortgage was given to the Director, and in the mortgage agreement there is a clause that ensures that realization of the rights by the banking corporation will not cause any damage to the provision of services in accordance with
            this License;  with regard to this clause, “Banking Corporation” - as defined in the Banking Law (Licensing) 1981, with the exception of “External Corporation” as defined in the same Law.

        

   

    

    

    

    77 Amendment No.
      64

    78 Amendment No.
      107

    79 Amendment No.
      83

    80 Amendment No.
      64

    

  

  
    
      

  

  
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  	18.4	
          The provisions of Paragraph 18.1 will not apply to the sale of items of equipment during an upgrading process, including the sale of equipment, as aforesaid, as part of a trade-in.

        

  

  

  	8118.4A	
          For purposes of sale, lease, mortgage or transfer of the license assets to a Cellular Radio Infrastructure Licensee, whom the Licensee is his client, the provisions of this Article shall not apply.

        

  

  

  	19.	
          Agreement with another

        

  

  

  	19.1	
          In the event that the Licensee wishes to provide any of the services in accordance with the License, wholly or partly, through another party on its behalf, it will request the Director’s approval; the Licensee will append to its request the
            agreement82 between it and the other party; the provision of this Paragraph will not apply to an agreement between the Licensee and a distributor of MRT Terminal
            Equipment or whoever acts on behalf of the Licensee for the marketing of its services.

        

  

  

  	19.2	
          The Director may approve the request, reject it or make his approval contingent on conditions that must be fulfilled, including the amendment of the agreement; the Director will consider, inter alia,
            to what extent the terms of the agreement with the other party ensure maintaining a fair competition, the grade of service for the public, the fulfillment of the License provisions and the Licensee’s obligations in accordance with it; the
            Director will not approve an agreement with another party that contradicts the Licensee’s obligations in accordance with this License.

        

  

  

  	19.3	
          The agreement with another party will not detract from the Licensee’s obligations and its responsibility for the implementation of any of the services which are the subject of this License, wholly or partly, according to the provisions of
            the License, and will not detract from the powers of the Minister, Director, or anyone on their behalf.

        

  

  

  
    
 

  
    81 Amendment No.
      83

    82 Amendment No.
      41

    

  

  
    
      

  

  
    Translation from Hebrew

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  Section A1- Mutual Relations with a Cellular Radio Infrastructure Licensee

  

  

  	19A	
          Definitions

        

  

  

  	19A.1	
          In this section:

        

  

  

  	
          19A.1

        	
          "Confidential Commercial Information"

        	
          -

        	
          Data regarding the Licensee that is not public, and that relates to one of the following:

          (1) Amount and volume of telecommunication messages transferred through the network, the kinds thereof and their destinations;

          (2) Number of subscribers, their classification and characteristics;

          (3) Network structure, its layout and the technology according to which it operates;

          (4) Plans for the expansion of the network, changes therein and operation of new services therewith;

          (5) Marketing or other technological plans or activities, the information regarding them was transferred to the Licensee by the MRT licensee, or other business activity, the information
            regarding which was classified by the MRT licensee as confidential commercial information;

          (6) Any other information which cannot be legally easily discovered by others, whose confidentiality grants its owners a business advantage over its competitors.

           

        
	 	
          "Passive Component"

        	
          -

        	
          The passive elements in the cellular radio center's website, including pole, structure, electricity and air conditioning;

           

        
	 	
          "Active cooperation of an antenna"

        	
          -

        	
          Passive cooperation and in addition, cooperation of the antenna or cable feed to the antenna;

           

        
	 	
          "Active Cooperation of a frequency" (MOCN83)

        	
          -

        	
          Active cooperation of an antenna, including sharing of radio equipment and frequency that were allotted for use of the MRT licensee;

           

        
	 	
          "Passive Cooperation"

        	
          -

        	
          Whole or partial cooperation of a Passive Component in a significant number of cellular radio center's websites between two or more of the MRT licensee;

           

        

  

  

  	19B.	
          Cooperation with another mobile telephony communications license owner

        

  

  

  	19B.1	
          The Licensee may enter into an agreement with another MRT licensee (hereinafter in this section: "Other Licensee") for the purpose of cooperation ("Cooperation Agreement") in any one of the following options only:

        

  

  

  	

        	(a)	
          Passive Cooperation Agreement;

        

  	

        	(b)	
          Active Cooperation of an Antenna Agreement;

        

  	

        	(c)	
          Active Cooperation of a Frequency Agreement (MOCN);

        

  

  

  	19B.2	
          Without derogating from the aforementioned in Article 19.3B:

        

  

  

  	

        	(a)	
          The Licensee may enter into an agreement with other MRT licensee in various cooperation agreements in each of the 2nd, 3rd, 4th and 5th84 Generation networks. Despite the aforementioned:

        

  

  

  	

        	1)	
          Active Cooperation of a Frequency (MOCN) shall not be approved between two operators.

        

  
     

      

     

      

                                                     

    83 Multi Operator Core Network

    84 Amendment
      No.107

    

  

  
    
      

  

   

    Translation from Hebrew

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        	2)	
          Active Cooperation of a Frequency (MOCN) in 2nd or 3rd Generation shall be approved only if both cooperating licensee were allocated 4th Generation frequencies
            and if the cooperating licensee who is not an operator has an Active Cooperation of a Frequency (MOCN) in 4th Generation.

        

  

  

  For the purpose of this sub-clause, "Operator" – a licensee  who has completely laid out access network in 3rd Generation: Pelephone Communications Ltd., Cellcom Israel Ltd., Partner Communications Company Ltd.;

   

  

  	

        	(b)	
           Cancelled.

        

  

  

  	19B.3	
          If the Licensee and the Other Licensee  reach a cooperation agreement of the types specified in Article 19.1B, the Licensee shall submit a written request to the Director General no later than thirty days from the date of signature of the
            Cooperation Agreement (hereinafter in this clause – the "Request"), and shall request his approval of the Cooperation Agreement, and the Request shall include, at least, all of the following:

        

  

  

  	

        	(a)	
          Details of the Licensee and the Other Licensee;

        

  	

        	(b)	
          Type of Cooperation Agreement as stated in Article 19.1B;

        

  	

        	(c)	
          Executive summary of the main points of the Cooperation Agreement;

        

  	

        	(d)	
          A copy of the Agreement with all of its attachments and appendices, together with an affidavit of an office holder of the Licensee that except for these documents, no agreement exists, in writing or orally, in connection with the Agreement;

        

  	

        	(e)	
          An opinion according to which the Agreement meets the most recent "Broadband Access Cooperation of a License Owner for the Provision of MRT Services" policy and the terms of Section A1. The opinion shall include an analysis of the influence
            of the Cooperation Agreement on the competition in the telecommunications and broadcasting area;

        

  	

        	(f)	
          The date scheduled for the commencement of the implementation of the Agreement and its expiration;

        

  

  

  	19B.4	
          The Director General may approve the Request, deny it or condition its approval, including amending the Agreement.

        

  

  

  	19B.5	
          The Licensee may commence the implementation of the Cooperation Agreement only after the Director General approved the Request of the Licensee and the Other Licensee in writing.

        

  

  

  	19C	
          Cooperation Agreement and Use Agreement

        

  

  

  	19C.1	
          If the Licensee files a request for an Active Cooperation of a Frequency Agreement (MOCN), the Director General shall consider the request, taking into account, inter alia, the existing competition
            level of MRT services and the potential harm to competition, the existing and expected frequency inventories and the efficiency of use of the frequencies, the survivability and the redundancy of the networks from a national standpoint and
            ensuring the telecommunication service level over time.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	19C.2	
          The Active Cooperation of a Frequency Agreement (MOCN) shall include the following terms:

        

  

  

  	

        	(a)	
          Cooperating licensees shall establish a joint corporation, and shall have equal control thereof. The joint corporation shall be required to obtain a cellular radio infrastructure license;

        

  	

        	(b)	
          During the entire term of the Cooperation Agreement, the following provisions shall apply to each one of the cooperating licensees in regards to the Passive Component and the radio centers included in the joint access network:

        

  

  

  	

        	1)	
          In the cellular radio centers – all cooperating licenses shall hold equally;

        

  	

        	2)	
           In the Passive Component – each of the cooperating licensees shall have the right to make effective use of all Passive Components in the access network.

        

  

  

  In this regard – "Right to make effective use" – indefeasible right to use, during the relevant license period, the Passive Component,
    resulting from ownership or other source, which shall allow its owners to perform all actions connected to the establishment, existence and operation of cellular radio centers by way of or on the Passive Components.

  

  

  	

        	(c)	
          The Cooperation Agreement expiration mechanism, which ensures the ability of each of the cooperating licensee to continue providing MRT services to its subscribers after said expiration, in accordance with the provisions of its license. The
            framework of said expiration mechanism shall include provisions which shall arrange for the continued existence of the right to make effective use of the Passive Components in case of termination of the Cooperation Agreement in accordance with
            the provisions of sub-article (2) and the mutual requirement to allow for Passive Cooperation even after the termination.

        

  

  

  	19C.3	
          Without derogating from the aforementioned in Article 19.2C, the Licensee, the Other Licensee and the Cellular Radio Infrastructure Licensee shall enter into a usage agreement between them, which grants the Cellular Radio Infrastructure
            Licensee an indefeasible right of use (IRU) in the joint access network components, which are not owned by the Cellular Radio Infrastructure Licensee, which specifies the method of use that shall be made with the joint network (hereinafter: the
            "Usage Agreement").

        

  

  

  In this regard, the indefeasible right of use shall be provided for a period not to exceed 10 years, and shall refer to the relevant access network components for the generation
    which was agreed upon in the Cooperation Agreement.

  

  

  	19C.4	
           Any change in the Usage Agreement or in the Cooperation Agreement shall be presented to the Director General for approval no later than ten days from the date of signing the change; the Licensee shall forward to the Director General, upon
            request, a copy of the Usage Agreement or any change therein.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	19C.5	
          The Cooperation Agreement or Usage Agreement (hereinafter in this Article – the "Agreement") shall not limit, directly or indirectly, the Licensee and the Other Licensee from reaching an agreement with an additional licensee or an MRT
            licensee on another network or from signing another agreement with them, or from causing discrimination in regards to the terms of use of the cellular radio infrastructure.

        

  

  

  	19C.6	
          If the Licensee or the Other Licensee shall wish to make use of the radio infrastructure of the Cellular Radio Infrastructure Licensee, it shall contact the licensees who are parties to the agreement in order to formulate a Cooperation
            Agreement, and shall act as stated in Article 19B.

        

  

  

  	19C.7	
          Nothing in the contracting with the Cellular Radio Infrastructure Licensee may derogate from the duties of a licensee and from its responsibilities to supply to its customers any service of the services under this license, in whole or in
            part, under the provisions of this license.

        

  

  

  	19C.8	
          If the parties do not reach an agreement, each party may contact the Ministry in order to resolve the disputes between them in accordance with Section 5 of the Law.

        

  

  

  	19D	
          Obligation for Structural Separation

        

  

  

  	19D.1	
          The Licensee shall maintain structural separation between itself and the Cellular Radio Infrastructure Licensee, as specified below:

        

  

  

  	

        	(a)	
          Complete separation between its Management and the Management of the cellular radio infrastructure license owner; in this regard – "Management", with the exception of an office holder who is not a
            director of the Licensee, who is also a director of the Cellular Radio Infrastructure Licensee.

        

  

  

  	

        	(b)	
          Complete separation between its assets and the assets of the Cellular Radio Infrastructure Licensee, with the exception of the radio infrastructure of the Licensee;

        

  

  

  	

        	(c)	
          The Licensee shall not employ the employees of the Cellular Radio Infrastructure Licensee, and the Cellular Radio Infrastructure Licensee shall not employ employees of the Licensee;

        

  

  

  	

        	(d)	
          The Licensee shall not employ anyone who was a Management employee of the Cellular Radio Infrastructure Licensee for one year after the termination of his employment, without the approval of the Director General;

        

  

  

  	

        	(e)	
          The Licensee shall neither receive nor transfer to the Cellular Radio Infrastructure Licensee Confidential Commercial Information that is not required for the provision of the Cellular Radio Infrastructure Licensee's services to the
            Licensee.

        

  

  

  	19D.2	
          Regarding confidentiality of commercial information, the Licensee shall do as follows:

        

  

  

  	

        	a)	
          The Licensee shall refrain from transferring Confidential Commercial Information to the Cellular Radio Infrastructure Licensee, except for information required for the provision of the services of the Cellular Radio Infrastructure Licensee
            to the Licensee;

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	b)	
          The Licensee shall refrain from transferring Confidential Commercial Information to the Other Licensee, holding the same Cellular Radio Infrastructure Licensee or receives services therefrom;

        

  

  

  	

        	c)	
          The Licensee shall determine procedures and rules for maintaining Confidentiality of Commercial Information, and for the prevention of its transfer as stated in sub-articles (a) and (b). The procedures shall determine, inter alia, limitations regarding the distribution of the Confidential Commercial Information to the Licensee and the Cellular Radio Infrastructure Licensee, and the access to Confidential Commercial
            Information by employees who are not supposed to handle it in the framework of their positions.

        

  

  

  	19D.3	
          If the Minister becomes aware that there is a real concern to damage to competition in the telecommunications area or to the public interest, he may instruct that the provisions of this chapter, in whole or in part, shall apply to an
            affiliated company to the Licensee that has a license under the Communications Law.

        

  

  

  	19D.4	
          If the Minister becomes aware that in a certain incident, circumstances existed which permitted it, and after he was convinced that there would be no damage to competition in the telecommunications or broadcast area or to the public
            interest, he may, according to a written request from the Licensee, permit by way of a written approval, reservations to the structural separation obligation set forth in this section or according thereto, and he may determine conditions for
            it.

        

  

  

  
    
      
        

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  Section B: Means of Control - Changes and Limitations

   

  	20.	
          Deleted85

        

  

  

  	21.	
          Transfer of Means of Control

        

  

  

  	21.1	
          A holding of ten percent (10%) or more of any of the Means of Control in the Licensee will not be transferred,  either directly or indirectly, either all at once or in parts, unless given the Minister’s prior written consent.

        

  

  

  	21.2	
          Any of the said Means of Control, or a part of them, in the Licensee, may not be transferred in any way,  if as a result of the transfer, control in the Licensee will be transferred from one person to another, unless given the Minister’s
            prior written consent.

        

  

  

  	21.3	
          No control shall be acquired, either direct or indirect, in the Licensee, and no person, whether on his/her own or together with his/her relative or with those acting with him/her on a regular basis, shall acquire in it ten percent (10%) or
            more of any of the Means of Control in the Licensee, whether all at once or in parts, unless given the Minister’s prior written consent.

        

  

  

  	21.4	
          Deleted86

        

  

  

  	21.5	
          87Despite the provisions of sub-clauses 21.1 and 21.3 above, should there occur a transfer or purchase of a percentage of Tradable Means of Control in the
            Licensee requiring consent under clauses 21.1 and 21.3 (other than a transfer of purchase that results in a transfer of control), without the Minister’s consent having been sought, the Licensee shall report this to the Minister in writing, and
            shall make an application to the Minister to approve the said transfer or purchase of the Means of Control in the Licensee, within 21 days of the date on which the Licensee became aware of such.

        

  

  

  In this Clause 21, “Tradable Means of Control” – Means of Control, including Global or American Depository Shares (GDR’s or ADR’s), or
    similar certificates, registered for trading on the securities exchange in Israel or overseas, and offered to the public by prospectus, or held by the public in Israel or overseas.

  

  

  	21.6	
          Neither the entry into an underwriting agreement relating to the issue or sale of securities to the public, the registration for trading on the securities exchange in Israel or overseas, nor the deposit or registration of securities with a
            registration company or with a depository agent or a custodian for the purpose of registration of GDRs or ADRs or similar certificates relating to the issue or sale of securities to the public shall in and of themselves be considered as a
            transfer of Means of Control in the Licensee88.

        

  

  

  
    

    

    

    85 Amendment
      No. 98

    86 Amendment No.
      52

    87 Amendment No.
      3

    88 Amendment No.
      4

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	21.7       (a)	
          Irregular Holdings shall be noted in the Licensee’s members register (the list of shareholders) stating the fact that they are irregular, immediately upon the Licensee’s becoming aware of this, and a notice of theregistration shall be given
            by the Licensee to the holder of such Irregular Holding and to the Minister.

        

  

  

  	

        	(b)	
          Irregular Holdings, noted as aforesaid in clause 21.7(a), shall not provide the holder with any rights, and shall be “dormant shares” as defined in Section 308 of the Companies Law 5759-1999, expect in the case of the receipt of a dividend
            or any other distribution to shareholders (especially the right to participate in an allotment of rights calculated on the basis of holdings of Means of Control in the Licensee, although holdings accumulated as aforesaid shall also be
            considered as Irregular Holdings), and therefore no action or claim of the activation of a right by virtue of the Irregular Holdings shall have any force, except in the case of the receipt of a dividend or any other distribution as aforesaid.

        

  

  

  Without derogating form the generality of the above:

  

  

  	

        	(1)	
          A shareholder who takes part in a vote during a meeting of shareholders shall advise the Licensee prior to the vote, or in the case of documentary voting on the voting document, whether his holdings in the Licensee or his voting require
            consent under clauses 21 and 23 of the License or not; where a shareholder does not so advise, he may not vote and his vote shall not count.

        

  

  

  	

        	(2)	
          No director of the Licensee shall be appointed, elected or transferred from office by virtue of an Irregular Holding; should a director be appointed, elected or transferred from office as aforesaid, the said appointment, election or
            transfer, as the case may be, shall be of no effect.

        

  

  

  	

        	(3)	
          Irregular Holdings shall not provide voting rights in the general meeting;

        

  

  

  For the purposes of this clause:

  “Irregular Holdings” – the holding of Tradable Means of Control without the Minister’s consent as required under clause 23, and all holdings
    of a person holding Tradable Means of Control acting contrary to the provisions of clause 24; for so long as the Minister’s consent under clause 21 has been sought but not yet granted, or whilst there is a situation of breach of the provisions of
    clauses 23 or 24.

  

  

  	

        	(c)	
          The provisions of clause 21.7 shall be included in the Articles of Association of the Licensee, including the provisions of clause 21.9, mutatis mutandis.

        

  

  

  	21.8	
          For so long as the Articles of Association of the Licensee provide as set out in clause 21.7, and the Licensee acts in accordance with the provisions of clauses 21.5 and 21.7, and for so long as none of the holdings of 89Founding Shareholders or their Substitutes  reduces to less than  9091 2692% of all Means of Control in the Licensee immediately prior to the listing of
            the shares for trade, and for so long as the Articles of Association of the Licensee provide that a majority of the voting power in the general meeting of the Licensee may appoint all members of the Board of Directors of the Licensee, other
            than external directors required by any law and/or the relevant Exchange Rules, the Irregular Holdings shall not, in and of themselves, give rise to a cause for the cancellation of the Licensee.

        

  
     

      

     

      

                                                     

    89 Amendment No.
      25

    90 Amendment No.
      9

    91 Amendment No.
      28

    92Amendment No. 31

    

  

  
    
      

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

  

  'For the purpose of this article: "Founding Shareholders or their Substitutes"- Matbit Telecommunications Systems Ltd., Advent Investment Pte Limited, Matav Investments Ltd and
    Tapuz Cellular Systems limited Partnership as well as any other entity that one of them has transferred the Means of Control in the Licensee to, with the Minister's consent, before 4.7.2004 (each of the above entities shall be termed "Founding
    Shareholder"), as well as any other entity that a Founding Shareholder will transfer Means of Control in the Licensee to after 4.7.2004, provided that the Minister gave his written consent that the transferree be considered for this matter as the
    Founding Shareholder's substitute from the date to be determined by the Minister, including anyone that is an Israel Entity as defined in Article 22A.2, that purchased Means of Control from the Licensee and received the Minister's approval to be
    considered a founding shareholder or their substitute from the date set by the Minister93, unless an instruction was given to the Licensee in accordance with article 13 of
    the law, as set forth in section 22A.2(2)94. Such consent under this article does not exempt the Licensee from the obligation to receive the Minister's consent for every
    transfer of the Means of Control in the Licensee that requires the Minister's consent in accordance with any other article in the License.95

  

  

  	21.9	
          The provisions of clauses 21.5 through 21.8 shall not apply to the founding shareholders or their substitutes.96.

        

  

  

  	22.	
          Placing a Charge on Means of Control

        

  

  

  Any shareholder in the company that holds the License, or a shareholder in an Interested Party in the same company, is not allowed to encumber his/her shares, in a way that the
    realization of the charge would cause a change in the ownership in ten percent (10%) or more of any of the Means of Control in the Licensee, unless the charge agreement includes a constraint, according to which the charge cannot be realized without
    prior consent, in writing, by the Minister.

  

  

  	22A.	
          Israeli Requirement and Holdings of Founding Shareholders or their Substitutes97

        

  

  

  	22A.1	
          The total cumulative holdings of the "Founding Shareholders or their Substitutes", as defined in Article 21.8, (including anyone that is an “Israeli Entity” as defined in Article 22.2A below, that purchased Means of Control from the Licensee
            and received the Minister’s approval to be considered a founding shareholder or their substitute from the date set by the Minister), and are bound by an agreement for the fulfillment of the provisions of Article 22A of the License (in this
            Article they will all be considered “Founding Shareholders or their Substitutes”) shall not be reduced to less than 26% of each of the Means of Control in the Licensee.

        

  

  

  
    93 Amendment No.
      31

    94 Amendment
      No. 105

    95 Amendment No.
      25

    96 Amendment No.
      31

    97 Amendment No. 31-Amendment No. 31 will come into effect upon completion of all of the obligations set forth in article 22A and no later than 30 June 2005, in accordance with the Ministry of Communications document
      62/05-4031 dated 13 March 2005

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	22A.2	
          98(1) The total cumulative holdings of  "Israeli Entities", one or more, which are among the Founding Shareholders or their Substitutes, out of the total
            holdings of Founding Shareholders or their Substitutes as set forth in Article 22.1A above, shall be at a rate not less than five percent (5%) of the total issued share capital and from each of the Means of Control in the Licensee. For this
            matter, the issued share capital of the Licensee shall be calculated by deducting the number of “Dormant Shares” held by the Licensee.

        

  

  

  In this Article-

  

  

  Israeli Entity"- for an individual-an Israeli Citizen or Resident of Israel, for a corporation- a corporation that was
    incorporated in Israel and an individual that is an Israeli Citizen and a Resident of Israel, controls the corporation either directly or indirectly, as long as the indirect control shall be only through a corporation that was incorporated in Israel,
    one or more. However, for the matter of indirect holdings, the Prime Minister and the Minister of Communications may approve holdings through a corporation that has not been incorporated in Israel, as long as the corporation does not directly hold
    shares in the Licensee, and only if they are convinced that this will not derogate from the provisions of this article. For this matter, “Israeli Citizen”- as defined in the Nationality Law, 5712-1952; “Resident”-as defined in the Inhabitants Registry Law, 5725-1965; "Dormant Shares"- as defined in Article 308 of the Companies Law, 5759-1999.

  

  

  (2) Sub-section (1) shall not apply, if the corporation was given an instruction in accordance with Article 13 of the Law, as set forth in Article 22A.2(2).2

  

  

  	22A.3	
          At least one tenth (10%) of the members of the Board of Directors of the Licensee shall be appointed by the  Israeli Entities as set forth in Article 22A.2. Notwithstanding the above-mentioned, for this matter- if the Board of Directors of
            the Licensee shall consist of  up to 14 members – at least one director shall be appointed by the Israeli entities as set forth in Article 22.2A above, if the Board of Directors of the Licensee shall consist of between 15 and 24 members-at
            least 2 directors shall be appointed by the Israeli entities as set forth in Article 22.2A above and so on and so forth. 99This Article shall not apply if an
            instruction was given to the Licensee in accordance with Article 13 of the Law, as set forth in Article 22A.2(2).

        

  

  

  	22A.4	
          The Licensee's Board of Directors shall appoint from among its members that have security clearance and security compatibility  to be determined by the General Security Service  (hereinafter: “ Directors with Clearance”) a committee to be
            designated  "the  Committee for Security Matters", or CSM.

        

  

  

                                                  

  
    2 Amendment No. 122-"On 17.2.21 Partner Communications Company Ltd. was given a provision in accordance with section 13
      of the Telecommunications Law that includes alternative requirements for the Israeli requirement as set forth in Article 22.2A(2) of this License".

     

  
    98 Amendment
      No. 105

    99 Amendment
      No. 105

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  The CSM  shall consist of at least 4  Directors with Clearance  including at least one External Director. Security matters shall be discussed, subject to Article 22A.5, solely by
    the  CSM. A resolution that was adopted or an action that was taken by the CSM , shall have the same effect as a resolution that was adopted or an action that was taken by the Board of Directors and shall be discussed by the Board of Directors only if
    necessary in accordance with Article 22A.5 and subject to Article 22A.5.

  

  

  In this article-“security matters”-as defined in the Bezeq Order (Determination of Essential Service Provided by “Bezeq”, the Israeli Telecommunications Company Ltd), 5757-1997,
    as of March 9, 2005.

  

  

  	22A.5	
          Security matters that the Board of Directors or the Audit Committee of the Licensee shall be required to consider  in accordance with the mandatory  provisions of the Companies Law, 5759-1999, or in accordance with the mandatory  provisions
            of any other law that applies to the Licensee shall be discussed, if they need to be discussed by the Board of Directors or the Audit Committee, only in the presence of  Directors with Clearance. Directors that do not have security clearance
            shall not be allowed to participate in this Board of Directors or Audit Committee meeting and shall not be entitled to receive information or to review documents that relate to this matter. The legal quorum for such meetings shall include only
            Directors with Clearance.

        

   

  

  The Licensee may set out in its Articles of Association that an Office Holder, who in the capacity of his position or based on the provisions of the law or the Articles of
    Association, should have received information or participate in security matter meetings and this was denied him due to Article 22A.5, will be released  from any liability for any claim of breach of  duty of care towards the Licensee, if the breach of
    duty of care was  a result of his or her inability to participate in the meetings or receive  information.

  

  

  	22A.6	
          The shareholders at a general meeting shall not be entitled to assume, delegate, transfer or exercise any of the authorities  granted  to another organ in the company, regarding security matters

        

  

  

  	22A.7        (a)	
          The Minister shall appoint an observer for the Board of Directors and committee meetings, that has security clearance and security compatibility that will be determined by the General Security Services.

        

  

  

  	

        	(b)	
          The observer shall be a government employee,  qualified  to serve  as a director, in accordance with Chapter C of the Government Companies Law, 5735-1975.

        

  

  

  	

        	(c)	
          In addition, and without derogating from any duty imposed on him by any law, the observer shall be bound by confidentiality towards the Licensee, except as the matter may be required  to fulfill his  responsibilities as an observer. The
            observer shall not act as an observer or in any other capacity for any entity that deals with the provision of telecommunication services and directly competes  with the Licensee, and shall refrain from any conflict of interest between his
            position as an observer and between the Licensee, excluding conflicts of interest that result from his being a government employee that is fulfilling his responsibilities  as an observer with the Licensee. The observer shall undertake towards
            the Licensee not to serve as an observer or an office holder, and not to fulfill a position or be employed, directly or indirectly by any  entity that directly competes  with the Licensee or  has a conflict of interest with the Licensee,
            excluding a conflict of interest that results from his being a government employee that is fulfilling his responsibilities as an observer with the Licensee throughout the duration of his position as an observer with the Licensee and for
            eighteen months  after he completes this term.

        

   

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  In any case of a dispute regarding a conflict of interest of the observer, the matter shall be decided by the State Attorney General or a person on his behalf.

  

  

  	

        	(d)	
          Notices to Board of Director and committee meetings, including the CSM, shall be sent to the observer and he shall be entitled to participate as an observer in each such meeting.

        

  

  

  	

        	(e)	
          The observer's entitlement to receive information from the Licensee, shall be the same as a director. If the Licensee believes that certain information that is sensitive business information is not required by the observer in order to
            fulfill his duties, the Licensee may delay delivery  of such information to the observer and shall inform him accordingly. If the observer believes that he should receive such information, the matter shall be decided by the head of the General
            Security Services.

        

  

  

  	

        	(f)	
          If the observer believes  that the Licensee adopted or is about to adopt a resolution regarding security matters, contrary to the provisions of the License, contrary to Article 13 of the Law or contrary to the provisions of Article 11 of the
            General Security Services Law, 5762-2002, he shall immediately notify the Licensee in writing. Such a notice shall be sent to the chairman of the Board of Directors and to the chairman of the CSM  and adequate time shall be given, under the
            circumstances of the case, to remedy the breach or to change the resolution, if possible.

        

  

  

  	22A.8	
          The provisions of Article 22A of the License shall be adopted in the Articles of     Association of the Licensee.

        

  

  

  
    
      

  

   
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Section C: Cross-Ownership and Conflict of Interests

   

  	23.	
          Prohibition of Cross-Ownership

        

  

  

  	23.1	
          The Licensee, an Office Holder or an Interested Party in the Licensee, as well as an Office Holder in an Interested Party in the Licensee, shall not hold, either directly or indirectly, five percent (5%) or more of any Means of Control in a
            Competing MRT Operator, and shall not serve as an Office Holder in a Competing MRT Operator or in an Interested Party in a Competing MRT Operator; for this matter, “Holding” includes holding as an agent.

        

  

  

  	23.2	
          Notwithstanding the provisions of Paragraph 23.1, the Minister may, based upon written request, permit an Office Holder in the Licensee to serve as an Office Holder in an Interested Party in a Competing MRT Operator, or permit an Office
            Holder in an Interested Party in the Licensee to serve as an Office Holder in a Competing MRT Operator or in an Interested Party in a Competing MRT Operator, if he is satisfied, that this will not harm the competition in MRT Services;  the
            Minister may condition the granting of such permit on conditions that the Office Holder must fulfill for prevention of harm to the competition as aforesaid.

        

  

  

  	23.3	
          Notwithstanding the provisions of Paragraph 23.1, an Interested Party in the Licensee, which is a trust fund, an insurance company, an investment company or a pension fund, may hold up to ten percent (10%) of the Means of Control in a
            Competing MRT Operator, and an Interested Party in a Competing MRT Operator, which is a trust fund, an insurance company, an investment company or a pension fund, may hold up to ten percent (10%) of the Means of Control in the Licensee,
            provided it does not have a representative or an appointee on its behalf among the Office Holders of a Competing MRT Operator or of the Licensee, as the case may be, unless it is required to do so by law.

        

  

  

  	23.4	
          The Licensee, an Office Holder or an Interested Party in the Licensee, as well as an Office Holder in an Interested Party in the Licensee, will not control a Competing MRT Operator, and will not cause it, by any act or omission, to be
            controlled by a Competing MRT Operator or by an Office Holder or an Interested Party in a Competing MRT Operator, or by an Office Holder in an Interested Party in a Competing MRT Operator, or by a person or corporation that controls a Competing
            MRT Operator.

        

  

  

  	23.5	
          The rate of indirect holding in a corporation will be a product of the percentage of holdings  in each stage of the chain of ownership, subject to what is set out in Paragraph 23.6; for example:

        

   

  	

        	(A)	
          ‘A’ holds 40%  in Company ‘B’;

        

   

  	

        	(B)	
          Company ‘B’ holds 40%  in Company ‘C’;

        

   

  	

        	(C)	
          Company ‘C’ holds 25%  in Company ‘D’;

        

   

  	

        	(D)	
          Therefore, Company ‘A’ holds, indirectly, 4% of Company ‘D’.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	23.6	
          For the matter of this Paragraph and Paragraphs 14.1 (G) (6), (7), (8), (8a), (9) and 21.4, if a certain body (hereinafter: “the Controlling Body”) controls another body that has holdings, directly or indirectly, in the Licensee
            (hereinafter: “the Controlled Body”), the Controlling Body, and also any other body controlled by the Controlling Body, will be attributed with the rate of holdings in the Licensee that the Controlled Body has, directly or indirectly; according
            to the following examples:

        

   

  	

        	A.	
          Direct holdings:

        

   

  	

        	(1)	
          ‘A’ holds 50% in Company ‘B’, and controls it;

        

   

  	

        	(2)	
          Company ‘B’ holds 50% in Company ‘C’, and controls it;

        

   

  	

        	(3)	
          Company ‘C’ holds 10% in the Licensee and does not control it;

        

   

  	

        	(4)	
          Therefore, notwithstanding that ‘A’s’ holdings in the Licensee in accordance with the instructions of Paragraph 5.6 are 2.5%, ‘A’ and also any body controlled by ‘A’ will be deemed as an Interested Party holding 10% in the Licensee.

        

   

  	

        	B.	
          Indirect holdings:

        

   

  	

        	(1)	
          ‘A’ holds 50% of Company ‘B’ and controls it;

        

   

  	

        	(2)	
          Company ‘B’ holds 40% of Company ‘C’ and controls it;

        

   

  	

        	(3)	
          Company ‘C’ holds 40% of Company ‘D’ and does not control it;

        

   

  	

        	(4)	
          Company ‘D’ holds 40% of the Licensee and does not control it;

        

   

  	

        	(5)	
          Therefore, ‘A’ and any body controlled by ‘A’ will be regarded as having a holding in the Licensee at the rate of holdings of Company ‘C’ in the Licensee, which is holdings of 16% (according to the method set out in Paragraph 23.5 for the
            calculation of the rate of indirect holdings in the absence of control), and in this manner, ‘A’ and any body controlled by ‘A’ is an Interested Party in the Licensee.

        

  

  

  	23.7	
          If a certain body has indirect holding in the Licensee, through two or more Interested Parties, then for the purpose of its definition as an Interested Party, and for the purpose of determining the rate of holding with regard to this
            Paragraph, the greatest indirect rate of holding will be taken into account, and also any rate of holding that derives from the chain of holdings through which the said holding body is attributed with the holdings of corporations controlled by
            it in accordance with the provisions of Paragraph 23.6;  the rates of holdings that derive from two or more chains that will be taken into account as stated above, will be cumulative for the purpose of calculating the rate of holdings.

        

  

  

  	23.8	
          The Minister may, in response to a written request, permit an Interested Party in the Licensee to hold, either directly or indirectly, five percent (5%) or more in any of the Means of Control of a Competing MRT Operator, if the Minister is
            satisfied that this will not harm competition in the MRT field; 100the Minister may condition the granting of the said permit on a condition that the Interested
            Party in the Licensee or competing MRT Operator is an Interested Party merely by virtue of the provisions of Article 23.6 .

        

  

  

  
    

    100 Amendment No. 10

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	24.1	
          Prohibition of Conflict of interests

        

  

  

  The Licensee, any body in which the Licensee is an Interested Party, an Office Holder in the Licensee or an Interested Party in the company holding the License or an Office Holder
    in an Interested Party therein, will not be party to any agreement, arrangement or understanding with a Competing MRT Operator, or an Interested Party or an Office Holder in it, or an Office Holder in an Interested Party in a Competing MRT Operator, or
    any other body in which a Competing MRT Operator is an Interested Party, which are intended to or might reduce or harm competition in anything that pertains to MRT Services, MRT Terminal Equipment or any other Telecommunications Services.

  

  

  	24.2101	
          Without derogating from the aforementioned in Article 24.1, the Licensee may reach a Cooperation Agreement as set forth in Article 19.1B.

        

   

                                                   

  

  
    
      101 Amendment No. 83

    

    
      
        

    

     

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

    

  Chapter D: Establishment of the MRT System and its Operation

  

  

  Section A: Establishment of the System

  

  

  	25.	
          Definition

        

  

  

  In this part:

  “Milestones”- Stages in the establishment of the MRT System, according to the timetable specified in the Engineering Plan - Appendix B to the License.

  

  

  	26.	
          Establishment according to the Engineering Plan

        

  

  

  	26.1	
          In all matters pertaining to the establishment of the MRT System (in this Paragraph: “the System”) and its operation, including the technical quality of its various components, the structure of the System and manner of its establishment, the
            Licensee will fulfill what is set out in the Engineering Plan - Appendix B of the Second Annex to the License, in accordance with the instructions in the Annexes to this License; in case of contradiction between the provisions of the
            Engineering Plan and the provisions of the License and the Annexes to the License, the License provisions shall override the provisions of the Annexes to the License, and the provisions of the First Annex shall override the provisions of the
            Second Annex to the License.

        

  

  

  	26.2	
          The Licensee will follow all the specifications of the Ministry of Communications and the standards related to the System, which were set out by standardization organizations in Israel and abroad as well as by other international
            organizations, both in the field of telecommunications and wireless and in any other field related to the establishment and operation of the System.

        

  

  

  
    	26.3	
            The Licensee will cease to operate Old Technologies in the MRT system it owns, in accordance with the conditions set forth in Appendix S of the License.

          

  

  

  

  	26A102	
          Cancelled.103

        

  

  

  	26B104	
          Obligation to Provide Service105

        

  

  

  	26B.1	
          If the License has not begun providing 4th Generation Services within 12 months from the determining date, as stated in Article 2.1(b)(2)(a) to Appendix E, the
            frequencies allocation that it received for the provision of this service shall expire, and the license fees paid due to the award of the 4th Generation Tender
            shall not be returned.

        

  

  

  The expiration of the frequencies allocation as stated shall be considered a change of the Cooperation Agreement or change of the Usage Agreement, as applicable.

  

  

  	26B.2	
          If the Licensee has not begun providing 5G Service within 18 months of the Record Date, as stated in clauses 1.2(b)(3)((a)) and 1.2(b)(4)((a)) of Appendix E, the frequencies allocation that it received as a result of the 5G Tender shall be
            rescinded and the obligation to pay the 5G License Fee shall remain in effect;

        

   

    

    

    

    102 Amendment No.
      83

    103 Amendment
      No. 107

    104 Amendment No. 83

    105 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  The rescission of the frequencies allocation as stated shall be deemed a change in the Cooperation Agreement or a change in the Usage Agreement, as applicable.          106

  

  

  	26C107	
          Obligation to provide service using the frequencies allocation in the 5G Tender

        

  

  

  If the Licensee has not begun providing service at the frequencies of 700 MHz and 2,600 MHz within 12 months, and at the frequencies of 3,500-3,800 MHz within 18
    months of the frequencies allocation date, the allocation of the relevant frequency bands that it received within the framework of the 5G Tender and in which it did not begin providing the service shall be rescinded, and the obligation to pay the 5G
    License Fee shall remain in effect.

  

  

  	27.	
          Implementation Stages and Timetable

        

  

  

  	27.1	
          The rate of establishment of the MRT System, the milestones for its establishment and the date of the commencement of service provision in the various regions of the State, will be in accordance with the timetable set out in the Engineering
            Plan - Appendix B of the Second Annex to the License.

        

  

  

  	27.2	
          The Licensee may not deviate from the timetable unless permitted to do so by the Director, provided the Licensee requested the Director in writing to receive the latter’s permission immediately after the Licensee became aware that there are
            difficulties preventing it from complying with the original timetable; delay in signing agreements with a third party or in receiving a permit from the planning and construction authorities, will be deemed reasonable causes for receiving the
            Director’s permission to deviate from the timetable, only if the Director has been satisfied that the Licensee has taken every reasonable step in the prevailing circumstances, in order to reach an agreement with a third party or to receive
            permit from the planning and construction authorities.

        

  

  

  	27.3	
          The Director may approve the Licensee’s request to deviate from the timetable, wholly or partly, and to make his approval contingent on certain conditions; the Director may authorize a deviation with respect to a certain milestone, provided
            that the Licensee will undertake to make up the delay in the planned rate of establishment within the next milestone.

        

  

  

  	28.	
          Change of Plans during the Establishment

        

  

  

  	28.1	
          A Licensee may not deviate from the Engineering Plan unless permitted to do so by the Director according to the provisions of this Paragraph; however, locating a Cellular Radio Base at a site which is different from the site specified in the
            Engineering Plan will not be deemed as deviation if done within the Search Area; in this Paragraph, “Search Area” means an area defined in the Engineering Plan, at which the establishment of a Cellular Radio Base was planned, at a specific site
            in the area, and regarding which it was determined in the Engineering Plan that there might be a need to locate the base at another site in that area.

        

  

  

                                                  

  
    106Amendment No. 107

     
    107 Amendment No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	28.2	
          Should the Licensee realize, during the establishment of the MRT System, that there is a need to deviate from the Engineering Plan, the Licensee will approach the Director in writing in order to receive the latter’s approval to the change in
            the plan; in its approach, the Licensee will specify in detail the substance and nature of the requested change and the reasons for it; the Licensee will append to the request the revised plan that it proposes.

        

  

  

  	28.3	
          The Director may reject the request or approve it, wholly or partly. The Director also may make his approval contingent on certain conditions, as long as such conditions are necessary in order to maintain the quality of the System and its
            performance standard. The Director will decide on the request and advise the Licensee of his decision, all within a reasonable period of time.

        

   

  

  	29.	
          Use of Infrastructures and their Construction

        

  

  

  	29.1	
          The Licensee may, for the purpose of establishment of the MRT System and its operation, and subject to any law, establish, maintain and operate physical or wireless transmission links, provided the said transmission links will serve only for
            the following:

        

   

  	

        	(A)	
          Connection between the Cellular Radio Bases that comprise part of the Licensee’s MRT System;

        

   

  	

        	(B)	
          Connection between the Licensee’s Cellular Radio Bases and its MRT Exchanges;

        

   

  	

        	(C)	
          Connection between the MRT Exchanges themselves;

        

   

  		(D)	
          108 Connection between a component of the MRT system solely owned by the Licensee and a mutual component of the MRT system.

        

  

  

  	29.2	
          For the purpose of connection as specified in Paragraph 29.1, the Licensee also may make use of physical or wireless transmission links of the Bezeq Corporation or of another Licensee or franchise holder who was lawfully authorized to
            provide infrastructure services as aforesaid.

        

  

  

  	29.3	
          In order to remove all doubt, it is hereby made clear that the use of transmission links established by the Licensee is only for the purpose of operating an MRT System as set out in Paragraph 29.1, unless permitted by the Minister, by
            License, to make additional use of the same, and in accordance with the terms stipulated by the Minister.

        

  

  

  	29.4	
          The Minister will consider providing the Licensee with a permit to establish, by itself or by means of another party on its behalf, transmission links for connecting between the Licensee’s MRT exchanges and the Telecommunication Networks of
            other General License Holders, if he or she finds that one of the following has transpired:

        

  

  

  	

        	(A)	
          The Bezeq Corporation and other domestic operators have unreasonably delayed the installation of these facilities;

        

  

  

                                                  

  
    108 Amendment No. 83

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

        

      

    

  

  	

        	(B)	
          The Bezeq Corporation and other domestic operators have set out unreasonable or discriminatory conditions for the installation of these facilities;

        

  

  

  	

        	(C)	
          The Minister is of the opinion that the interest in promoting competition in Telecommunications Services obliges him to do so.

        

  

  

  	30.	
          Connection to other Telecommunications Systems

        

  

  

  	30.1	
          109 The Licensee shall act in order to effect the Interconnection of the Network with any other Public Telecommunications Network operating in the area in which
            the law, jurisdiction and administration of the State of Israel apply (including settlements, military sites and military installations in Judea, Samaria and the Gaza Strip), and including  to any Wireline Public Telecommunications Network,
            International Telecommunications System and the MRT System of another MRT operator.

        

  

  

  	30.2	
          The Interconnection between the Network and the Public Telecommunications Network of another licensee shall be effected in such a way as to enable the following:

        

  

  

  	

        	(a)	
          Transfer of telecommunications messages between Terminal Equipment connected to the Network and Terminal Equipment connected to the other Public Telecommunications Network;

        

  

  

  	

        	(b)	
          Proper and orderly provision of services by the Licensee to the subscribers of another licensee, and provision of services by the other licensee to subscribers of the Licensee.

        

  

  

  	30.3	
          Interconnection may be effected directly or indirectly, via the Public Telecommunications Network of another general licensee, provided that it allows for the provisions of clause 30.2.

        

  

  

  	30.4	
          In an Interconnection between the Network and a Wireline Public Telecommunications Network, the Licensee shall act to set up Interface points between the two Networks, for every type of service (infrastructure, transmission and data
            communications, telephony), with at least three main Transfer Switches;  unless the Director has determined otherwise based upon a written application from the Licensee; the setting up of the above Interface points shall be effected under an
            agreement between the Licensee and the Domestic Operator;  such an agreement shall contain, inter alia, the technical, operational and commercial particulars of the connection, and the number and
            location of connections.

        

  

  

  	30.5	
          In an Interconnection between the Network and an International Telecommunications System, the Licensee shall act in accordance with the provisions of Appendix J to the License.

        

  

  

  
    109 Amendment No. 14

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	30A.	
          Rules regarding Effecting of Interconnection

        

  

  

  The Licensee shall act to effect the Interconnection subject to all of the following:

  

  

  	

        	(a)	
          The Licensee shall ensure that the technical and operational standards of the Network match the requirements for connection to the Public Telecommunications Network of the Domestic Operators, the other MRT operators and the international
            operators (hereinafter: “an Other Operator”), that the operations of the Network be properly integrated with the operations of the Public Telecommunications Network of the Other Operator and that the
            Interconnection shall not harm the proper operation of these systems or proper service to their subscribers;

        

  

  

  	

        	(b)	
          The Licensee shall provide the Interconnection service on equal terms to every Other Operator and shall avoid any discrimination in effecting such Interconnection, including in respect of:

        

  

  

  	

        	(1)	
          The supply of infrastructure installations  and network connection services;

        

  	

        	(2)	
          the availability of connection facilities;

        

  	

        	(3)	
          methods, quality and durability of the connection;

        

  	

        	(4)	
          switching alterations and adjustments to installations , protocols and Network Interface points;

        

  	

        	(5)	
          payments for Iinterconnections;

        

  	

        	(6)	
           Billing and collection arrangements and transfer of information to Subscribers;

        

  	

        	(7)	
          commercial terms for effecting Interconnection;

        

  	

        	(8)	
          provision of information regarding the Network and changes therein which  relate to Interconnection;

        

  

  

  	

        	(c)	
          The Licensee shall make available to the Other Operator  any essential information that the Other Operator requires in order to provide  its services via the Licensee’s facilities;  such information shall be provided subject to any law
            regarding protection of privacy or commercial confidentiality;  where the parties do not reach an agreement as to the nature  and scope  of the essential information, the Minister shall rule on the matter;

        

  

  

  	

        	(d)	
          The Licensee shall provide the Other Operator with information on planned changes to its Network, which might affect  Interconnection with the Public Telecommunications Network of the Other Operator, or Interconnection between the Public
            Telecommunications Networks of the Other Operators; the Licensee shall supply the said information in such a manner as to allow the Other Operator to be reasonably prepared for the implementation of the said changes;

        

  

  

  	

        	(e)	
          For the purposes of sub-clauses (c) and (d), the Licensee may make the provision of information to the Other Operator conditional upon execution of a reasonable confidentiality agreement, intended to protect the rights of the Licensee under
            any law, including commercial secrets, intellectual property rights and the like, relevant to the information regarding the change in the Network that is to be delivered to the Other Operator;

        

  

  

  	

        	(f)	
          The conditions for Interconnection between the Network and the Public Telecommunications Network of an Other Operator shall be arranged by an agreement between the Licensee and the Other Operator;  where the parties fail to reach an
            agreement, the Minister shall rule on the matter;

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	

        	(g)       (1)	
          The Licensee shall allow its Subscribers to receive all of the services offered to them by the Other Operator, and may allow the subscribers of the Other Operator to receive all of the services from the Licensee, provided that receipt of
            such services is possible under any law.

        

  

  

  	

        	(2)	
          The Director may order the Licensee to allow subscribers of another licensee to receive the services given by the Licensee , provided that the receipt of such services as aforesaid is technically and legally possible.

        

  

  

  	

        	(3)	
          Notwithstanding the provisions of paragraph (1), the Director may, upon a written application from the Licensee, exempt the Licensee from the obligation of providing its Subscribers with the possibility of receiving services from the Other
            Operator for technical, economic or other justifiable reasons.

        

  

  

  	

        	(h)	
          The Licensee shall provide the Director with a signed copy of any agreement between the Licensee  and the Other Operator regarding Interconnection;

        

  

  

  	

        	(i)	
          The Licensee shall provide the Director, upon demand, with any information provided to the Other Operator pursuant to  sub-clauses (c) and (d), and a copy of any confidentiality agreement pursuant  sub-clause (e);

        

  

  

  	

        	(j)	
          The Licensee shall act in accordance with any other instructions that the Minister may prescribe.

        

  

  

  	30B.	
          Payment for Traffic Completion and Interconnection

        

  

  

  Where the Minister has not prescribed payment for Interconnection or payment deriving  from Interconnection, the Licensee may charge a reasonable and non-discriminatory sum for
    these.

  

  

  	30C.	
          Prohibition Against Delaying Interconnection

        

  

  

  The Minister shall give the Licensee a reasonable opportunity to make claims regarding the Minister’s intention to instruct the Licensee regarding the manner of effecting
    Interconnection and the scope thereof, activities, services and Accompanying Services  for effecting  Interconnection, and payment for Interconnection;  where the Minister has instructed the Licensee in respect of such matters, the Licensee shall not
    delay Interconnection to the Network in any manner, and shall fulfill its obligations in accordance with the instructions of the Minister, in good faith and properly, on the date prescribed for such and in full cooperation.

  

  

  	30D.	
          Provision of Possibility of Use

        

  

  

  	30D.1	
          The Minister may instruct the Licensee regarding the provision of the possibility of use of its Telecommunications Installation  in accordance with his powers under section 5 of the Law.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	30D.2	
          The Licensee shall allow another licensee, in accordance with the instructions of the Minister, to provide Value Added Services via the Network;  the Licensee shall ensure reasonable and equal conditions for any other licensee, in respect of
            the supply of Value Added Services by the other licensee  to the Licensee’s subscribers, including in respect of the matters set out in clause 30A, mutatis mutandis.

        

  

  

  	30D.3	
          For the purpose of provision of the possibility of Use, the provisions of clauses 30A through 30C shall apply, mutatis mutandis.

        

  

  

  	30E.	
          Infrastructure Services to an Affiliated Company

        

  

  

  	30E.1	
          The Licensee shall avoid giving preference to a licensee that is an Affiliated Company over any other licensee, in the provision of Infrastructure Services, in terms of either payment or service, in terms of the conditions or availability of
            the service, or in any other manner.

        

  

  

  	30E.2     (a)	
          Upon the written request of the Licensee, the Director may permit limitations for the Licensee on the provisions of clause 30E.1 in respect of another licensee or broadcast licensee  which is an Affiliated Company, provided that the
            following conditions apply:

        

  

  

  	

        	(1)	
          such other licensee or Franchisee is not a Substantial Operator;

        

  	

        	(2)	
          the Director is of the opinion that the giving of such approval shall not substantially harm competition in the field of telecommunications

        

  

  

  	

        	(b)	
          Limitations as aforesaid in sub-clause (a) might permit the Licensee to provide the Affiliated Company with Use of its Telecommunications Installations  under preferred conditions and may be limited by time or any other condition.

        

  

  

  	

        	(c)	
          In considering the permit under this clause, the Director shall take into account the existence of a valid agreement, executed prior to Amendment No. 14 of this License, between the Licensee and an Affiliated Company, as aforesaid, inter alia regarding limitation of the permit by time or other conditions.

        

  

  

  	30E.3	
          In this clause, “Affiliated Company”, “Subsidiary” and “Substantial Operator” – as defined in the Telecommunications Regulations,  (Proceedings and Conditions for Receipt of a General License for the
            Provision of Domestic Wireline Telecommunications Services) 5760-2000.

        

  

  

  	30F.	
          Numbering Plan

        

  

  

  	30F.1	
          The Licensee shall act in accordance with the Numbering Plan, and in accordance with the instructions of the Director regarding the activation and implementation of the Numbering Plan.

        

  

  

  	30F.2	
          Should the Director give instructions regarding number portability such that every subscriber of another MRT licensee shall be able to become a subscriber of the Licensee or receive services from the Licensee without altering his number, and
            vice versa, the Licensee shall integrate facilities in its Public Telecommunications Network that will allow for the implementation of such feature, on the date and in the manner to be prescribed by the Director.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	30G.110	
          Address Allocation in IPv6 Protocol

        

  

  

  	
          30.1G

        	
          The Licensee will adapt the network and its components, so that they will completely support the IPv6 Protocol and in a manner that will allow access for subscribers to
            the internet service in IPv6 Protocol from any terminal equipment that supports the IPv6 Protocol, and will act to train personnel as necessary to support the IPv6 Protocol, by 15111 months from the date of signature of this license amendment.

           

          

        
	
          30.2G

        	
          The Licensee will allocate IP addresses in the IPv6 Protocol for any new subscriber or existing subscriber that requests an address in the IPv6 Protocol, and own
            terminal equipment that supports the IPv6 Protocol.

           

          

        
	
          30.3G

        	
          The Licensee will transfer at its own initiative addresses in the IPv6 Protocol for new and existing subscribers that own terminal equipment that supports the IPv6
            Protocol. The transfer of new and existing subscribers to addresses in the IPv6 Protocol we be done in accordance with the following milestones:

           

          

        
	 	
          a.

        	
          Up to 24 months from the signature date of the license amendment, the Licensee will transfer at its own initiative 100% of the existing and new subscriber base to the
            IPv6 Protocol.112

           

            

        
	
          30.4G

        	
          The Licensee will update the director of technology inspection in the Ministry on the execution of each of the milestones set out in clause 30.3G above.

           

          

        
	
          30.5G

        	
          All terminal equipment that is supplied by the Licensee will support the IPv6 protocol.

           

          

        
	
          30.6G

        	
          The transition from IPv4 to IPv6 may be executed by the following methods:

           

          

        
	 	
          a.

        	
          Dual Stack

           

          

        
	 	
          b.

        	
          Tunneling

           

          

        
	 	
          c.

        	
          Translation

           

          

        
	 	
          d.

        	
          IPv6 Only

           

          

        
	
          30.7G

        	
          All data centers that subscribers have access to and through which service is provided to subscribers of the Licensee, including data centers for content sites must
            support protocol IPv6.

        

  

  

                                                  

  
    110 Amendment No. 96

     
    111 Amendment No. 103

     
    112 Except for subscribers that have private terminal
      equipment that does not support IPv6 Protocol and decided not to exchange it with equipment that supports the protocol. And only if the Licensee notifies them about the allocation of IPv6 addresses, explained to them the meaning of the decision not
      to exchange the equipment and signed them on a waiver of this allocation.

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          30.8G

        	
          The support of protocol IPv6 will be implemented in network components and the fixed-line and wireless systems of the Licensee regarding the provision of data services
            and all the applications and various services that the Licensee provides and will include at least the following operations/components:

           

          

        
	 	
          a.

        	
          Basic operations and definitions of the IP layer

            

          

        
	 	
          b.

        	
          Access privileges (RADIUS, AAA)

           

          

        
	 	
          c.

        	
          Address definitions according to IPv6 address architecture

           

          

        
	 	
          d

        	
          IPsec

           

          

        
	 	
          e.

        	
          Information security layers

           

          

        
	 	
          f.

        	
          All IT systems of the Licensee that relate to the provision of access services and internet applications

           

          

        
	 	
          g.

        	
          All the systems, servers, routers, switches etc. in the core networks, aggregations and the access, that relate to the provision of access services and internet
            applications

           

          

        
	 	
          h.

        	
          API, DHCP, DNS

           

          

        
	 	
          i.

        	
          Different routing protocols

           

          

        
	 	
          j.

        	
          Interconnections between different licensees over the internet

           

          

        
	 	
          k.

        	
          Interconnections that are used for international links

           

          

        
	 	
          l.

        	
          Multicasting

           

          

        
	 	
          m.

        	
          Mobility (Mobile IP)

           

          

        
	 	
          n.

        	
          Network protection (FW113,APFW114, IDS115,IPS116)

           

          

        
	
          30.9G

        	
          The Licensee shall update its subscribers regarding its support of the IPv6 protocol in all of the following manners:

           

          

        
	 	
          a.

        	
          By a written explanation of the company's website

            

          

        
	 	
          b.

        	
          Through direct mailing to subscribers that will be attached to the invoice that will be sent to the subscriber in the first month after the beginning of the IPv6
            protocol support begins.

        

  

  

                                                  

  
    113 Firewall

     
    114 Application Firewall

     
    115 Intrusion Detection System

     
    116 Intrusion Protection System

     
    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	31.	
          Report on Establishment Work

        

  

  

  	31.1	
          The Licensee will submit to the Director, during the entire establishment period of the MRT System, quarterly reports which will comprise the establishment work that was carried out during the period covered by each report, according to the
            Milestones and timetables in the Engineering Plan; for the matter of this Paragraph, “the Establishment Period” is the period of forty eight (48) months from the date of License award or until the date of completion of the Establishment of the
            System to its full deployment according to the Engineering Plan - the earlier of the two. 117During the erection period, this report shall be integrated into the
            outline engineering report, as set forth in Article 104.1(e).

        

  

  

  	31.2	
          The reports will include comparison of the actual implementation of the plans against planning, as of the date of each report, and explanations of any deviation or change in the implementation as compared to the design.

        

  

  

  	31.3	
          Each report will be submitted in three (3) copies in a format as instructed by the Director, bearing a date and signed by the Licensee or whoever was authorized by it particularly for this purpose.

        

  

  

  	31.4	
          The Director may require the Licensee to prepare special reports as well as redraft any report that was submitted to him, or complete it.

        

  

  

  	32.	
          Submission of Information and Documents

        

  

  

  	32.1	
          The Licensee will submit to the Director, on his request, any information and document on the implementation of the establishment work on the MRT System, at the date and in the format and manner as instructed by the Director.

        

  

  

  	32.2	
          For the matter of this Paragraph and Paragraph 33, “a document” includes any information stored in a computer or in an information database.

        

  

  

  	33.	
          Supervision of Establishment Work

        

  

  

  	33.1	
          The Director may supervise personally, or through another person acting on his behalf, the actions taken by the Licensee to carry out the establishment work. In order to carry out the supervision, the Director may enter, at any reasonable
            time, the work sites, facilities of the MRT System and the Licensee’s offices, in order to conduct measurement and tests and to examine any plan or document pertaining to the implementation of the establishment work.

        

  

  

  	33.2	
          The Licensee will cooperate with the Director in everything that pertains to the conducting of supervision of the establishment work, and without derogating from the generality of the above, will allow him to enter the work site and its
            installations, allow examination of any document, plan and specifications and provide him with any required information that the Director may request.

        

  

  

  
    117 Amendment No. 71

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	34.	
          Repair of Faults and Defects

        

  

  

  	34.1	
          The Director may advise the Licensee in writing of faults, defects and deviations that he found in the establishment work of the MRT System, on the basis of reports submitted by the Licensee, documents and information that it provided the
            Director, or on the basis of measurement and tests that he conducted.

        

  

  

  	34.2	
          Should the Licensee receive notification as set out in Paragraph 34.1, it will notify the Director, within fourteen (14) days from the date on which it was notified of the above, of its response to the notifications and the actions that it
            has taken or is about to take in order to remedy the faults, defects or deviations.

        

  

  

  	35.	
          Safety and Security Precautions and Prevention of Hazards

        

  

  

  	35.1	
          The Licensee will carry out the establishment works while taking adequate safety precautions in order to prevent accidents to people and damage to property. It will refrain from causing disturbances and hazards to the public in the work
            area, and if required to conduct excavation at the site, it will make every effort to prevent damages to underground Systems, including Telecommunication Networks. For this purpose, it will ensure that it obtains every permit required by any
            law, including permit for excavation works according to Section 53B of the Law.

        

  

  

  	35.2	
          On completion of the establishment work, the Licensee will make sure that the work site is clean and restored to its previous condition.

        

  

  

  	36.	
          Cancelled.

        

  

  

  	37.	
          Crossing Electricity Lines and Telecommunication Systems

        

  

  

  Where electricity lines or electric installations exist before the installation of the MRT System, the Licensee will be subject to the obligations according to the
    Telecommunication and Electricity Regulations (Proximity of and Crossing Between Telecommunication Lines and Electricity Lines), 1986.

  

  

  	38.	
          Discovery of Antiquities and Preservation of Sites

        

  

  

  	38.1	
          Antiquities as interpreted by the Antiquities Law, 1978, which will be uncovered at a site where establishment work is conducted, are State assets, and the Licensee will take adequate precautions in order to avoid causing damage to them.

        

  

  

  	38.2	
          The Licensee will advise the Director of the Antiquities Authority of the discovery of an antiquity within fifteen (15) days of the date of discovery of the antiquity, and will comply with all instructions by the Authority Director in all
            matters pertaining to the manner of handling the antiquity.

        

  

  

  	38.3	
          During the establishment work, the Licensee will refrain, as far as possible, from causing damage to sites of historic or national value, tourist sites and landscape.

        

  

  

  	38.4	
          The Licensee will refrain, as far as possible, from causing damage to structures and trees in the sites where the establishment works are conducted.

        

   

  

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	39.	
          Powers pertaining to Real Estate

        

  

  

  	39.1	
          The Minister may, upon request from the Licensee, grant it the powers set out in Chapter F of the Law, wholly or partly, subject to the provisions of Paragraph 39.2.

        

  

  

  	39.2	
          The Licensee will specify in its request the sites in which it requires powers as aforesaid, the scope of the required powers and the reasons for the request, including actions it has taken to find alternative sites without the need of
            powers in accordance with Chapter F of the Law.

        

  

  

  	39.3	
          If the Minister is satisfied that the Licensee should be granted powers in accordance with Chapter F of the Law, the Minister will publish his decision in “Reshumot”, the Official Gazette.

        

  

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

    

  Section B: Equipment Tests and Installation Approvals

  

  

  	40.	
          Cancelled118

        

  

  

  	41.	
          Cancelled119

        

  

  

  	42.	
          Performance Testing Program, and its Approval

        

  

  

  	42.1	
          The Licensee will provide the Director, no later than 30 days before notifying of its end of establishment according to Paragraph 43, with an up-to-date, detailed testing program, for conducting the performance tests, related to the part of
            the MRT System that it wishes to operate (hereinafter: “Detailed Testing Program”).

        

  

  

  	42.2	
          The Licensee will present to the Director the Detailed Testing Program; the Director may require the Licensee, within fifteen (15) days from the said presentation, to change the Detailed Testing Program or to complete it, if he deems it
            necessary for a full and accurate implementation of the performance testing, and the Licensee will carry out the tests as required by the Director.

        

  

  

  	43.	
          Notice of Establishment Completion

        

  

  

  When the Licensee completes the establishment of an exchange or a Cellular Radio Base in any area in a manner that allows to start providing MRT Services through it, the Licensee
    will advise the Director of the same in writing, in the format as instructed by the Director, complete with the results of the detailed tests that indicate the success of the establishment and operation.

  

  

  	44.	
          Fitness and Operation Conditions

        

  

  

  	44.1	
          The Licensee must meet the following requirements and conditions within six (6) months from the date of License award, prior to the operation of the system and the provision of service to subscribers in return for payment:

        

   

  	

        	(A)	
          Agreement with an equipment manufacturer - the Licensee has valid agreements with a manufacturer of MRT System equipment and MRT Terminal Equipment, including:

        

   

  	

        	(1)	
          A know-how agreement which ensures that all know-how required for the establishment, operation and maintenance of the equipment and system will be at its disposal;

        

   

    

  

  

  

  118 Amendment No.
    107

  

  119 Amendment No.
    107

  
     

    

    
      
        

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  	

        	(2)	
          An agreement providing for supply of spare parts for the System equipment for a period of at least seven (7) years;

        

   

  	

        	(3)	
          An agreement providing for technical support and software upgrades in the System components for a period of at least seven (7) years;

        

   

  	

        	(4)	
          An agreement ensuring the supply of technical literature and full documentation of the System equipment, including upgrades;

        

   

  	

        	(B)	
          Workshop and test equipment - the Licensee is operating an authorized workshop, or has a valid agreement with an authorized workshop, for conducting tests and repairs of the MRT Systems equipment; the
            workshop will include professional testing equipment for conducting the tests and repairs, including mobile testing equipment;

        

   

  	

        	(C)	
          Spare parts - the Licensee maintains and runs a spare part warehouse for the MRT Systems equipment according to the recommendations of the equipment manufacturers;

        

   

  	

        	(D)	
          Maintenance System - the Licensee maintains by itself or through another an efficient maintenance System, including maintenance personnel, vehicles and means of communication, which ensures an orderly
            on-going operation of the System and allows taking care of any fault within the response time required in this License, and also allows - in any event of a serious fault in the MRT System, causing radio interference or massive disconnection of
            subscribers, or constituting a safety hazard - to repair the fault within four (4) hours;

        

   

  	

        	(E)	
          Control System - the Licensee itself maintains and operates a System of remote control that allows it to gauge System performances and the load on its components, including interconnections with other
            Telecommunication Networks, and make sure that these operate properly;

        

   

  	

        	(F)	
          Means of communication - in the exchanges at the operations centers and in the service and maintenance centers, means of communication were installed, such as a wireless set, a telephone or a mobile
            telephone.

        

   

  	

        	(G)	
          Security - the Licensee has met the requirements of the Security System, in accordance with the provisions of Paragraph 66.2, to an operation standard that satisfies the Director.

        

  

  

  	44.2	
          The Licensee will provide the Director, within seven (7) days before the first activation of the System, with certificates and documents indicating that it meets the requirements and terms set out in Paragraph 44.1; if the Director does not
            respond within five (5) working days from the date of delivery of the said documents, the Licensee will activate the MRT System and connect subscribers to it; if the Director instructs the Licensee, according to the findings in the documents,
            to change or repair the System, the Licensee will carry out the required change or repair and provide the Director with a certificate of implementation, and if the Director does not respond within three (3) working days, the Licensee may
            activate the System as aforesaid.

        

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

    

  Section C: Use of Frequencies

  

  

  	45.	
          Frequency Allocation

        

  

  

  	45.1	
          The Licensee may operate the Cellular Radio Bases of the MRT System while using the frequency bands as specified below:

        

   

  	

        	(A)	
          Frequency bands that were exclusively allocated for the use of the Licensee in the territory of the State of Israel:

        

   

  902.2 MHz through to 910.2 MHz, and 947.2 MHz through to 955.2 MHz;

   

  	

        	 (B)	
          Frequency bands that were not exclusively allocated for the use of the Licensee, according to rules and limitations that will be determined by the authorized party pursuant to Chapter E of the Ordinance120:

        

   

  910.2 MHz through to 912.2 MHz, and 955.2 MHz through to 957.2 MHz

   

  	

        	121(B1)	
          Frequency bands that have been non-exclusively been allocated for its use as of February 25, 2010, in accordance with the rules and limitations that will be set by the authorized party pursuant to Chapter E of the Ordinance122: 912.6 MHz to 915 MHz and 957.6 MHz to 960 MHz123.

        

   

  	

        	124(C)	
          Frequency bands allocated exclusively for the Licensee’s use as specified below :

        

  

  

  	

        	(1)	
          From 1 February 2002 to 1 January 2004, the following bands shall be allocated:

        

  

  

  1732 to 1738.4 MHz, and the matching domain 1827 to 1833.4MHz;

  1937 to 1942 MHz, and the matching domain 2127 to 2132 MHz;

  

  

  	

        	(2)	
          As of 1 January 2004, the following bands shall be allocated:

        

  

  

  1730 to 1740 MHz and the matching domain 1825 to 1835 MHz;

  1940 to 1950 MHz and the matching domain 2130 to 2140 MHz;

  

  

  	

        	(3)	
          As of 1 January 2005, the frequency domain 1910 to 1915 MHz shall be allocated.

        

  

  

  	

        	(4)	
          Notwithstanding the aforesaid, if the Licensee requests to postpone the date of the beginning of use of the bands set out in sub-clauses (1) to (3) or part of them, to a later date, the authorized party pursuant to Chapter E of the Ordinance125 may suspend the band allocation until a date to be decided upon.

        

  
    
      

      

      

      120 Amendment
        No. 107

      121 Amendment
        No. 68

      122 Amendment
        No. 107

      123 These frequency bands have been used by the Licensee since 1999.

      124 Amendment
        No. 14

      125 Amendment
        No. 107

      

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	45.2	
          The Licensee may operate the cellular radio base stations of the MRT System while using additional frequency bands, if they are allocated to it by the Authorized Party pursuant to Chapter E of the Ordinance, in accordance with the rules and
            limitations that shall be prescribed.126

        

  

  

  	45.3	
          The Licensee may select a frequency band narrower than the one stated above, within the framework of the frequency bands specified in Paragraphs 45.1 and 45.2.

        

  

  

  	45.4	
          The Authorized Party pursuant to Chapter E of the Ordinance may, after four (4) years have elapsed since the frequency allocation, without compensation or consideration, reduce the frequency range in which the Licensee is permitted to
            operate its Cellular Radio Base The Authorized Party pursuant to Chapter E of the Ordinance may, after four (4) years have elapsed since the frequency allocation, without compensation or consideration, reduce the frequency range in which the
            Licensee is permitted to operate its Cellular Radio Base127.

        

  

  

  	45.5	
          The Authorized Party pursuant to Chapter E of the Ordinance may limit the Licensee to operating particular frequencies in limited geographic regions and/or to operating part of the frequencies parallel to additional service-operators and in
            coordination with them, according to the instructions of the Authorized Party pursuant to Chapter E of the Ordinance, all as it shall prescribe.128

        

  

  

  	46.	
          Constraint on the Use of Frequencies

        

  

  

  	46.1	
          The Licensee will make use of the frequencies allocated to it as stated in Paragraph 45 for the sole purpose of providing services in accordance with this License.

        

  

  

  	46.2	
          129Without derogating from the aforementioned in Articles 45 and 46.1, and in accordance with the terms of the allocation provided to the other MRT licensee,
            the Licensee may make use of the frequencies allocated to the other MRT licensee in addition to the aforementioned in Article 45, provided that the frequencies serve as cellular radio centers of the Licensee through the cellular radio
            infrastructure licensee that provides it with its services.

        

  

  

  	47.	
          Safety in Using Frequencies, and the Prevention of Interference

        

   

  	47.1	
          The Licensee will establish the MRT System and operate it in a manner that shall ensure that each of its components does not emit non-ionizing radiation in the direction of people and the environment at a power density exceeding that allowed
            pursuant to a permit issued pursuant to the Non-Ionizing Radiation Law of 2006 and the Regulations enacted pursuant thereto. The Licensee shall do everything necessary to obtain suitable construction and operating permits from the radiation
            supervisor in the Ministry of Environmental Protection (hereinafter – “the Supervisor”); in this regard, the Licensee shall act, inter alia, as follows:

        

  

  

  	

        	(a)	
          the Licensee shall act in compliance with the Supervisor’s instructions and shall carry out the Supervisor’s directives;

        

  

  

  
                                                    

    
      126 Amendment
        No. 107

      127 Amendment
        No. 107

      128 Amendment
        No. 107

      129 Amendment
        No. 83

      

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

      

    

  

  	

        	(b)	
          before constructing each site, the Licensee shall submit a report to the Supervisor of the assessment of the levels of exposure; the site shall be constructed only after a suitable permit has been received from the Supervisor; upon launching
            the site, the Licensee shall perform measurements in accordance with the Supervisor’s instructions; any site not complying with the Supervisor’s requirements shall not be operated;130

        

  

  

  	47.2	
          The Licensee shall coordinate the use of frequencies with the Authorized Party pursuant to Chapter E of the Ordinance, who shall base his directives, inter alia, on the plan deriving from the preparations for a national emergency.131

        

  

  

  	47.3	
          Further to the requirement of the Director and the Authorized Party pursuant to Chapter E of the Ordinance and according to the format to be defined, the Licensee shall submit a detailed up-to-date plan to the Director or to the Authorized
            Party, as the case may be, of the Cellular Radio Base stations, of the radio links and of the expected use of frequencies; further to the Director’s requirement and according to the format to be defined, the Licensee shall report on the actual
            implementation of the plan within seven (7) workdays of the date of the Director’s requirement; further to the Director’s requirement and according to the format to be defined, the Licensee shall submit an updated report to the Director on the
            operation and use as stated. Furthermore, the Director may require the Licensee, for reasons that shall be recorded, to submit an updated report to him, within four (4) workdays, on the operation of Cellular Radio Base stations, radio links and
            use of frequencies, as stated.132

        

  

  

  	47.4	
          The Licensee shall establish the MRT System and operate it in a manner that prevents interference with other lawfully operating telecommunication and wireless systems, including in a manner that complies with the restrictions and conditions
            regarding radio frequencies prescribed by the Authorized Party pursuant to Chapter E of the Ordinance or as he shall revise them from time to time, including those specified in Appendix R to the License; before operating any Cellular Base
            Station, the Licensee shall perform tests and measurements for the purpose of preventing electromagnetic interference; if potential electromagnetic interference is discovered, or if interference is discovered during operation, the Licensee
            shall take action to coordinate a solution that shall prevent this interference and prevent its recurrence; in the absence of a solution, the Licensee shall apply in writing to the Authorized Party pursuant to Chapter E of the Ordinance, or to
            the party appointed for this purpose, in order to find a reasonable solution for the problem; the Authorized Party pursuant to Chapter E of the Ordinance may require each of the parties to make changes in the operation of equipment or in the
            use of frequencies or to cease broadcasting on particular frequencies, throughout Israel or in a particular region.133

        

  

                                                    

    
      130 Amendment
        No. 107

      131 Amendment
        No. 107

      132 Amendment
        No. 107.

      
        133 Amendment No. 107

      

    

    

  

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

    

  

  	47.5.	
          The issuance of this License, including the approval of the Engineering Plan, in no way provides protection against harmonies from other radiating bodies, whether operating lawfully or unlawfully, or spurious radiation from other radiating
            bodies, whether operating lawfully or unlawfully, or protection against other radiating bodies operating outside the territory of the State or in a territory over which the State has no control; however, the Authorized Party pursuant to Chapter
            E of the Ordinance shall exert every reasonable effort to find a suitable solution for the required protection.134

        

  

  

  	48.	
          135Preparation to ensure the functional continuity during an emergency

        

  

  

  	
          48.1

        	
          The Licensee will appoint a functionary (including a first deputy and a second deputy) that will be responsible during an emergency for maintaining contact with the Ministry.136

           

            

        
	
          48.2

        	
          The Licensee will be prepared to ensure the functional continuity during an emergency, as set forth in Appendix D- " "Preparation to ensure the functional continuity during an
              emergency".

           

        
	
          48.3

        	
          The Licensee shall be prepared to manage cyber defense in conformity with the provisions of Appendix D.1 – “Preparations for cyber defense management".

        

   

  

  
                                                    

    
      134 Amendment
        No. 107

      135 Amendment
        No. 82

      136 Amendment
        No. 98

    

  

  
    
      
        

    

     

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

    

  Section D: Tests and Maintenance137

  

  

  	49.	
          Definitions

        

  

  

  In this part:

  

  

  	

        	“Periodic Test”-	
          Test of the network or any part of it, that is conducted in accordance with the License provisions, at fixed intervals and at least annually;

        

  

  

  	

        	“Special Test” -	
          Test of the network or any part of it, conducted due to a maintenance or repair activity, following an electromagnetic interference, a malfunction, complaint review technological change, modification of the Engineering  plan; etc.

        

  

  

  	

        	“Routine Test”-	
          Testing of the network or any part of it, conducted on a regular  basis.

        

  

  

  	50.	
          Execution of Tests

        

  

  

  	50.1	
          The licensee shall carry out periodic tests of the MRT system, and shall submit the results of the test upon the director’s request within 30 days from the day of the request.

        

  

  

  	50.2	
          The licensee shall establish and operate an inspection system for constant monitoring of the network’s performance and its intactness and shall conduct on a regular basis routine tests of the network or any part of it, as needed.

        

  

  

  	50.3	
          The licensee shall conduct routine tests regarding the quality of service as detailed in Annex E, and the relevent standards of the ITU-T, and shall provide the results of the tests upon the director’s request, within 30 days from the day of
            the request.

        

  

  

  	50.4	
          The director may instruct the licensee to conduct a special test; the licensee shall perform the said test in a manner and at a time to be advised by the director and shall submit the results to the director.

        

  

  

  	50.5	
          The director or anyone else authorized on his or her behalf shall be allowed to perform the test themselves, if in their opinion it is required, the licensee shall allow the director or anyone else authorized on his or her behalf, after
            prior coordination, access to installations and equipment and shall put at their disposal their testing equipment and professional manpower employed by the licensee.

        

  

  

  	51.	
          Test, Fault and Maintenance Log

        

  

  

  	51.1	
          The licensee shall maintain a test, fault and maintenance log (hereinafter – “maintenance log”), in which details of the faults, the steps taken to rectify them138 and tests of the network shall be recorded.

        

  

  

  
    

    

    

    137 Amendment No.
      41

    138 Amendment
      No. 91

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	51.2	
          The licensee shall keep the maintenance log, shall allow the director or anyone authorized on his or her behalf to see the log at any time, to check it, copy it in any manner and to pass it to the director upon his demand.

        

  

  

  	52.	
          Repair of Faults and Defects

        

  

  

  	52.1	
          The director may, after giving the licensee sufficent opportunity under the circumstances to present its arguments, notify the licensee in writing of faults and defects that he found and that harm the grade of service for subscribers, the
            level of survivability and back up of the network, damage to the level of security or interference with the other systems that operate properly, based on tracking the network’s performance, including through subscriber complaints, tests he
            carried out or based on test reports, documents and information provided to him by the licensee.

        

  

  

  	52.2	
          The director may instruct the licensee of the dates that the defects and malfunctions must be repaired.

        

  

  

  	52.3	
          If the licensee receives such notification, it must notify the director within the time set forth in the director’s notice of the repair of the defects and malfunctions, detailed as per the director’s request.

        

  

  

  	53.	
          deleted

        

  

  

  	54.	
          deleted

        

  

  

  
    
      

  

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  Chapter E - Provision of MRT Services to Subscribers

  

  

  Section A - Agreement with Subscribers

  

  

  	13955.	
          The subscriber agreement

        

  

  

  	55.1	
          The licensee shall prepare a format for a subscriber agreement that it intends to offer its subscribers, and shall submit it to the director upon his demand.

        

  

  

  	55.2	
          The terms of the subscriber agreement shall not contradict, explicitly or implicitly the provisions of any law or the license; the aforesaid is not meant to prevent changes to the provisions of the subscriber agreement, that benefit the
            subscriber as compared to the provisions of the law or the license.

        

  

  

  	55.3	
          The subscriber agreement shall be in writing and shall be in a clear and easy manner to read and understand, and shall state clearly any condition or restriction regarding the subscriber’s right to terminate the subscriber agreement or
            regarding the licensee’s duties towards the subscriber; any stipulation in the subscriber agreement shall be stated clearly and not only by reference.

        

   

  

  For this article- “writing”-including an electronic document that can be saved and reconstructed by the subscriber.

  

  

  	55.4	
          The subscriber agreement shall clearly include, among other things, the following:

        

  

  

  	

        	a)	
          The first part of the engagement agreement must clearly and precisely specify the principal details of the tariffs and services plan pursuant to the engagement agreement (hereinafter – “the Plan Basics”).
            If the engagement agreement includes one type of services, the Licensee shall be allowed to specify the Plan Basics on a maximum of two pages. If the agreement includes a number of types of services (fixed-line telephone, mobile telephone,
            international services, internet, etc.), then, subject to that stated above, the Licensee shall be able to add one page for each additional type of service. The Plan Basics document must be printed, without any handwritten alterations or
            additions, apart from that stated in clause (1), and all as specified hereunder:140

        

  
    

    

    

    139Amendment No. 41-shall become effective no later than
      30.4.2007

    140 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(1)	
          The name of the Licensee or its logo, the details of the Licensee's representative that executed the agreement, the date and mode of execution of the transaction,141
            the subscriber's details including his name, I.D. number, type of subscriber,142 address, e-mail address,143 telephone number that the agreement pertains to, an additional telephone number of the subscriber to where notices regarding the usage amount of a services144 plan as set forth in article 75D a change in tariffs as stated in article 78145 and regarding disconnection of a Dormant
            Subscriber, as stated in clause 72.a.,146 will be sent from the Licensee147 and a
            description of Goods,148 if included in the agreement; the Licensee shall not be able to complete the execution of the transaction as long as the said additional
            telephone number is not indicated in the engagement agreement; insofar as the engagement agreement is for only one telephone number that is not being added to an existing account that includes one or more telephone numbers, and a Subscriber is
            not interested in providing an additional telephone number, then the Licensee shall list the Subscriber’s telephone number in the engagement agreement as the additional telephone number149, notwithstanding the beginning of section (a) the aforementioned details in that sub-section , except for the Licensee's name or logo, can be handwritten;

        

  

  

  	

        	(2)	
          The commitment period, if one exists, and the termination date. For this sub-section, "commitment"-as defined in section 56.1A;

        

  

  

  	

        	(3)	
          150All of the tariffs according to which the Licensee bills the subscriber for the services that it asked to receive when executing the engagement, including
            video call services and multimedia messages, and the rate of any fixed payment or one-time payment, including a fixed payment or one-time payment that is other than within the scope of a telecommunications service, including connection fees, as
            this term is defined in clause 74.1(a), SIM card fees, as this term is defined in clause 74.1(a1) and plan switching fees.

        

   

  

  Insofar as the Licensee does not charge for interconnect fees or smart card fees or plan transfer fees, it shall be noted accordingly.

  

  

  	

        	(3A)	
          151Insofar as the engagement agreement includes international services, such as a minutes package or plan for calls abroad, the Licensee must act according to
            one of the following alternatives:

           

          

        

  	 	
          (1)

        	
          It must specify its rates, the quota of minutes allocated in it, the international access code that must be dialed, the countries included in it, the type of targets in those countries
            (fixed-line, mobile) and the tariffs for exceeding the quota in the package;

        

  

  

                                                  

  
    141 A transaction at a service station of the Licensee or through peddling, as this term is defined in the Consumer Protection Law, 5741 – 1981, or a transaction via telephone
        conversation or a transaction via the internet. Amendment No. 87.

    142 Business
      Subscriber or Split Business Subscriber or Non-Business Subscriber. Amendment No. 87

    143 Amendment No.
      87

    144 Amendment No.
      87

    145 Amendment
      No. 90

    146 Amendment No.
      87

    147 Amendment No.
      87

    148 Amendment No.
      87

    149 Amendment
      No. 90

    150 Amendment
      No. 87

    151 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	 	
          (2)

        	
          It must specify its rates, the quota of minutes allocated in it, the international access code that must be dialed, the countries included in it, the type of targets in those countries
            (fixed-line, mobile) and a link to or the address of the landing page of the website of the international operator of the international telecommunications system through which the calls abroad are being made, which must at all times be valid
            and up-to-date, which displays the call tariffs to destinations abroad by type of target (fixed-line, mobile) and by type of customer (Subscriber, incidental). The Licensee must state what type of customer shall be charged, according to its
            tariffs, in respect of exceeding the quota in the package;

           

          

        
	 	
          (3)

        	
          It must specify its rates, the quota of minutes allocated in it, the international access code that must be dialed, the type of targets in the destination countries (fixed-line, mobile) and a
            link to or the address of the landing page of the Licensee’s website that includes only the destination countries and the tariffs for exceeding the quota in the package.

        

  

  

  	

        	(3b)152	
          For cellular internet browsing packages as defined in section 75D-the unit tariff for the service not included in the package shall be displayed next to the chart in the same values as those in the chart;

        

  

  

  	

        	(3c)	
          The quota of service units set by the Licensee for the service or for the bundle of services (“Quota of Units”), and the maximum duration of a call, if any.

        

  

  

  	

        	(3d)	
          If the Licensee provides a service to subscribers that is given at a discount or for free for a defined period (“Benefit”), and subsequently, at full price, or if a credit is given to subscribers for
            terminal equipment that subscribers delivered to the Licensee, then the Licensee must specify the following in the Plan Basics:

        

   

  

  	

        	(1)	
          the monthly sum of the Benefit/credit;

        

  

  

  	

        	(2)	
          the duration of the period that the Benefit/credit is given;

        

  

  

  	

        	(3)	
          the type of date from which the period of the Benefit/credit shall begin to be counted;153

        

  

  

  	

        	(4)	
          the tariff for the service upon the expiration of the Benefit.

        

  

  

  That stated above shall also apply when at issue is a Benefit being given within the scope of the tariff plan, and not necessarily for a particular service included in a plan.

  
     

                                                     

    152 Amendment No.
      87

    153 For example:
      as of the date the plan comes into effect, as of the date that the subscriber activates the SIMcard.

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(3e)	
          If a subscriber switches from one tariff plan to another, and the Licensee issues the new Plan Basics to the subscriber, the Plan Basics must also include the effective date of the new plan.

        

  

  

  	

        	(3f)	
          Mode of provision of a cellular data service after the volume of the cellular data package has been fully utilized – suspension of the service or a slowdown of the speed, without any payment and without additional charge, until the end of
            the billing period or an allotment of additional paid packages, at the subscriber’s choice on the execution date of the engagement. If the Licensee chose to slow down the speed, the maximum data download speed must be specified in the Plan
            Basics.

        

  

  

  	

        	(3g)	
          Mode of provision of a voice and message service after the monthly Quota of Units for these services has been fully utilized – suspension of service until the end of the billing period or continuing to provide the services and charging the
            subscriber according to tariffs set by the Licensee in the Plan.154

        

  

  

  	

        	(3h)155	
          A Subscriber’s deadline for activating the SIM card, or the number of days after the execution of the engagement during which a Subscriber may activate the SIM card, insofar as this is relevant to the engagement agreement.

        

  

  

  	

        	(4)	
          A description of all Goods purchased or rented at the time of execution of the engagement and their inclusive price and, insofar as payment in installments for the Goods was agreed between the subscriber and the Licensee – the sum of each
            payment. Insofar as the Goods were given as a gift, this must be expressly stated;156

           

            

        

  	

        	(5)	
          Information about the cancellation of any Benefit due to a switch to another tariff plan;157

        

  

  

  	

        	(6)	
          The calculation method of the amount that the subscriber will be required to pay for breaching the agreement as defined in article 56.1A;

        

  

  

  	

        	(7)	
          For a business subscriber-information regarding the increase of tariffs during the commitment period, if such a possibility exists as part of the subscriber agreement conditions, including the date and amount of the tariff increase;

        

  

  

  	

        	(8)	
          Information regarding the balance of payment 158 for equipment purchased from the Licensee, in a previous agreement;

        

  

  

  	

        	(9)	
          The Licensee's commitment to pay to the subscriber of another MRT licensee that became its subscriber, the payment that the said subscriber will be required to pay to the other MRT licensee for breach of this commitment to the other MRT
            operator and the distribution manner of said payment.

        

  

  

                                                  

  
    154 Amendment No.
      87

    155 Amendment
      No. 90

    156 Amendment No.
      87

    157 Amendment No.
      87

    158 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  For this matter-"commitment"-as defined in article 56.1A;

  

  

  	

        	(10)	
          The subscriber’s declaration that it read the Plan Basics document and received it at the time of execution of the agreement. The details of the representative on behalf of the Licensee who executed the engagement must be specified in the
            body of the declaration and the subscriber’s original signature must appear at the end of the Plan Basics.159

        

  

  

  	

        	(11)	
           160With regard to sub-section (a) (1) to (10)- "subscriber"- whoever has signed a subscriber agreement with a Licensee for the receipt of MRT services for no
            more than twenty five telephone numbers except for Pre-Paid subscribers.

        

  

  

  	

        	(12)	
          The Licensee must send the Plan Basics to a Split Business Subscriber via text message, with a link attached.161

        

  

  

  	

        	(13)	
          The Licensee shall not include additional information or details in the Plan Basics beyond that specified in this clause, unless at issue are data in values of NIS or NIS per unit of consumption, which could have a direct impact on the
            height of the subscriber’s bill.

        

  

  

  	

        	(14)	
          The tariffs for all of the services and the payments, as specified in subclauses (3), (3b), (3c), (4) and (5) must be presented in a table with two columns – “description” and “tariffs.”162

        

   

  	

        	(15)	
          163The Licensee must attach a separate letter to the two Telephone Bills of every existing private Subscriber, subsequent to 28
              Sivan 5778 (June 11, 2018), bearing the Licensee’s name or logo, which shall provide an explanation regarding the nature of the additional telephone number, as specified in clause 55.4(a)(1), and furthermore, it must ask a Subscriber
            to indicate on the form to be attached to the said letter, which also bears the Licensee’s name or logo, his details, the additional telephone number and date and to sign it. On the said form, the Licensee must specify the address, facsimile
            number and electronic-mail address where the form may be sent after having been completed.

        

   

  The Licensee must also enable the additional telephone number to be selected by telephone call to the telephone call center. The Licensee must indicate this possibility in the
    said separate letter and indicate the telephone number that may be called for the purpose of selecting the additional telephone number.

    

  

                                                  
    159 Amendment No.
      87

    160 Amendment No,
      58

    161 Amendment
      No. 90

    162 Amendment
      No. 90

    163 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  If a Subscriber selects the additional number using the form or by telephone call as stated, the Licensee must report the matter of the selection in the next Bill or in the
    subsequent Bill, while indicating the additional telephone number that was selected, in the space for notices to Subscribers, as specified in clause 8(d) in Annex E1.

   

  Alternatively, the Licensee may indicate in the separate letter, in addition, that the selection of the additional telephone number may be done through the landing page on the
    Licensee’s website, while performing reliable identification of the Subscriber, in lieu of using a form as stated, and shall refer Subscribers to the said page. Upon completing the selection on the website, the Licensee must issue an automatic
    confirmation of a Subscriber’s selection, while indicating the additional telephone number that was selected.

   

  In this clause, “existing private Subscriber” – a private Subscriber who engaged with the Licensee by 28

      Sivan 5778 (June 11, 2018).

  

  

  	

        	(a1)164 (1)	
          a separate page, printed, upon which the subscriber will be required to mark his choice regarding the accessibility of each phone number that the agreement refers to, services, as detailed in annex E 2 (hereinafter-"service access form" or "form") 165and to sign at the bottom of the form . The form shall be attached to
            the Plan Basics;166

        

  

  

  	

        	(2)	
          A new subscriber that did not mark its choice with regard to a particular service, whether blocked or open, in the place designated for this in the form, shall be blocked from receiving that service. A new subscriber that did not sign at the
            bottom of the form shall be blocked from all services appearing on the form. In this clause, “new subscriber” – a subscriber that engaged with the Licensee after 15 Iyar
              5777 (May 11, 2017).167

        

  

  

  	

        	(3)	
          A subscriber may request from the Licensee at any time, in writing or orally as a human response only,168 to change its access169 to the services detailed in the form (hereinafter in this section-"subscriber's request"). A first change shall be done free of charge. The Licensee shall execute the subscriber's
            request only after he has identified the subscriber. The Licensee shall retain the request, as stated, in its possession and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the
            submission date of the request.170 The subscriber's request shall be executed within  171one
            working day 172 from the date of receipt of the request.

        

  

  

                                                  

  
    164 Amendment No.
      57-shall become effective on September 13, 2011

    165 Amendment No.
      58

    166 Amendment No.
      87

    167 Amendment No.
      87

    168 Amendment No.
      87

    169 Amendment No.
      87

    170 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(4)	
          The Licensee shall include in the Telephone Bill following the subscriber's request a notice regarding the execution of the request and the date of the execution. The Licensee shall retain the Telephone Bill, as stated, in its possession and
            make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the preparation date of the Bill;173

        

  

  

  	

        	(5)	
           174The Licensee shall include the form with the two (2) immediate Telephone Bills that will be sent after September 13, 2011, to a subscriber that is not a new
            subscriber.

        

  

  

  	

        	(6)      (a)175	
          176A subscriber that is not a new subscriber that did not submit his preferences regarding the form to the Licensee by Sept 13, 2011, shall be blocked from
            receiving the services detailed in section 3 of the form, within seven (7) working days from the said date;

        

  

  

  	

        	(b)177	
          178Notwithstanding, a subscriber who is not a new subscriber, that does not use the services set forth in section 3 of the form as of November 1, 2011 and did
            not relay his response to the licensee with respect to the form by December 1, 2011, the licensee may block the subscriber from receiving the said services as of December 1, 2011;

        

  

  

  	

        	(c)179	
          180a subscriber who is not a new subscriber, who relays his response to the licensee with respect to the form, shall be blocked or open for the receipt of the
            services in accordance with his request in the form, within one working day after receipt of the request;

        

  

  

   (d)181   a subscriber that relayed his preferences in the form to the
    Licensee and did not mark his choice and signed next to the service that appears on the form as set forth in sub-section (1), shall be blocked from receiving that service;

  

  

  	

        	(e)	
          The Licensee shall block the access to the services being provided pursuant to clause 2(e) in the service access form in relation to any existing subscriber that did not expressly choose, when completing the form, the option “open” to these
            services, and this, within seven (7) workdays of 15 Iyar 5777 (May 11, 2017).182

        

  

  

                                                  

  
    171 Amendment No.
      58

    172 Amendment No.
      61

    173 Amendment No.
      87

    174 Amendment No.
      58

    175 Amendment No.
      87

    176 Amendment No.
      58

    177 Amendment No.
      87

    178 Amendment No.
      62

    179 Amendment No.
      87

    180 Amendment No.
      61

    181 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  (6a)     The Licensee shall notify the subscriber about the blocking in the first Telephone Bill after the blocking. The Licensee shall retain the Telephone
    Bill, as stated, in its possession and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the preparation date of the Bill.183

  

  

  	

        	(6b)	
          If the subscriber marked its choice on the service access form, then the Licensee must act according to the subscriber’s choice immediately after the form has been delivered to it.

        

  

  

  	

        	(6c)	
          A subscriber shall be required to complete a new service access form with every switch from one tariff plan to another, only if its existing form is not in the format presented in Appendix E.2.184

        

  

  

  	

        	(7)	
          The Licensee shall publish the form on its internet site within seven (7) working days from 185September 13, 2011.

        

  

  

  	

        	(7a)	
          If the Director ordered an amendment to the version of the service access form, the Licensee must publish the updated service access form on its website within the timeframe specified by the Director on the signing date of the license
            amendment.186

        

  

  

  	

        	(8)187	
          For the purpose of sub-section (a1)(1) until (6)-"subscriber"-except for a subscriber in a pre-paid plan. Notwithstanding the mentioned, the Licensee shall block services in accordance with a pre-paid subscriber's request, if the request was
            received from the telephone number that the request pertains to or the said subscriber presented to the Licensee the handset using the number that the request pertains to, or in any other manner that satisfies the Licensee.

        

  

  

  	

        	(9)	
          Insofar as at issue is a Split Business Subscriber, the Licensee must send the service access form to it, as marked by the Business Subscriber, via text message with a link attached; a Split Business Subscriber is allowed at any time to
            amend the service access form and to send it to the Licensee for its handling accordingly.188

        

  

  

  
    
      	(a2)189	(1)          	
              a separate printed page, on which a Subscriber shall be required to mark his choice regarding the mode of receipt of the Bill and regarding the publication of his telephone number/s, which are billed in the
                Bill, on the internet and in the telephone directory, as specified in Annex E.3 (hereinafter – “Questionnaire”), to complete it as required and to sign at the bottom of the Questionnaire; the
                Questionnaire must be attached immediately behind the service access form.

            

    

  

  

  

                                                  

  
    182 Amendment No.
      87

    183 Amendment No.
      87

    184 Amendment No.
      87

    185 Amendment No.
      58

    186 Amendment No.
      87

    187 Amendment No.
      58

    188 Amendment
      No. 90

    189 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(2)	
          With regard to a Split Business Subscriber, solely a Business Subscriber is allowed to complete the Questionnaire. The Licensee must forward the Questionnaire to a Split Business Subscriber as completed by a Business Subscriber.

        

   

  

  

  	

        	(3)	
          The Licensee must attach the Questionnaire to the two (2) frequent Telephone Bills that shall be sent one day after [two months after the effective date of the License amendment that relates to the Questionnaire]
            to a Subscriber who is not a new Subscriber. The Licensee must specify in each of the two Bills as stated, in the space for notices to Subscribers as specified in clause 8(d) in Annex E.1, the nature of the Questionnaire. 

           

          

          Alternatively, the Licensee may, in addition, indicate in a notice as stated that the Questionnaire may be completed through the landing page on the Licensee’s website, while performing reliable identification of
            Subscribers, in lieu of attaching it to the Bill as stated, and shall refer Subscribers to the said page. Upon completing the selection on the website, the Licensee must issue an automatic confirmation of the Subscriber’s selection.

        

  

  In this clause, “new Subscriber” – a Subscriber who engaged with the Licensee after 28 Sivan 5778
    (June 11, 2018).

  

  

  	

        	(4)	
          Subscribers shall be required to complete a Questionnaire when switching from one tariff plan to another, only if he did not complete a Questionnaire for the plan from which he is switching.

        

  

  

  	

        	(5)	
          The Licensee must publish the Questionnaire on its website within seven (7) workdays of 28 Sivan 5778 (June 11, 2018).

        

  

  

  	(a3)190	

        

  	
          (1)

        	
          Solely for a business customer the engagement agreement will include a separate page, through which only a business customer may request from the Licensee to block a phone number(s) (included
            in the engagement agreement) for number portability as defined in the law ("Blocking Request for Portability"), as long as the numbering program for number portability ("Portability

              Plan") allows the blocking. The Blocking Request for Portability will appear after the questionnaire.

           

          

        
	
          (2)

        	
          Only a business customer may direct a Blocking Request for Portability to the Licensee, provided that the Portability Plan allows the said blocking, and this will be done by the Licensee
            immediately upon receipt of the request, during the hours of operation of the service centers, free of charge; the business customer may request in the Blocking Request for Portability to block for portability all of the telephone numbers
            included in the engagement agreement or in the telephone bill without noting the numbers.

        

  

                                                   

  

  
    190 Amendment
      No. 95

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          (3)

        	
          The Blocking Request for Portability will be directed to the Licensee in writing and will include the request date, telephone number(s) that should be blocked for portability and the name of
            the business customer; The Licensee will execute the blocking immediately, free of charge and will maintain such request in its possession and make it available for delivery or transfer to the Director upon his request within five (5) working
            days of the submission of the request.

           

          

        
	
          (4)

        	
          A business customer may request from the Licensee at any time to remove a portability blocking and this will be done by the Licensee immediately upon receipt of the request, during the hours of
            operation of the service centers, free of charge; the said request will be directed to the Licensee either orally or in writing by email without the need to fill out a designated form, and shall  include the request date, the telephone
            number(s) that should be opened for portability and the name of the business customer; the business customer may request in the request to remove portability blocking all of the telephone numbers that are included in the engagement agreement or
            in the telephone bill without noting the numbers.

        

  

  

  (a4)191 The service conditions for the subscriber, including gauges of
    quality of service to customers and subscribers as set forth in article 2 in Annex E;

  

  

  	

        	(b)	
          The conditions for diconnecting from the Licensee’s services or the conditions for complete disconnection;192

        

  

  

  	

        	(c)	
          The service tariffs of the licensee that the subsciber joined updated to the day of the agreement, including the date and conditions for the termination of the tariff plan;

        

  

  

  	

        	(d)	
          The limitation regarding the amount of interest for late payment,  linkage differentials and collection expenses as set forth in article 80.3;

        

  

  

  	

        	(e)	
          The conditions for changing the tariff of a service that the subscriber has joined, as set forth in article 78.1;

        

  

  

  	

        	(f)	
          The details set forth in articles 61 and 61A regarding the Ombudsman193;

        

   

  

                                                  

  
    191 Amendment No.
      57

    192 Amendment
      No. 90

    193 Amendment No.
      58

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(g)	
          A condition that states that in case of a contradiction between the provisions regarding the tariffs and the service packages that are detailed in the agreement and the provisions of the license regarding this matter, the provisions of the
            license shall prevail;

        

  

  

  	

        	(h)	
          A notice regarding the director’s authority to instruct the licensee to change the subscriber agreement, and clarification that the subscriber’s signing a subscriber agreement with the licensee constitutes agreement to said changes.194

        

  

  

  	55.5	
          195In an agreement in the presence of the Licensee's representative and the subscriber, the Licensee shall act as follows:

        

  

  

  	

        	(a)	
          The Licensee’s representative must perform a reliable identification of the Applicant pursuant to the procedure prescribed by the Licensee. The Licensee shall retain in its possession a copy of an identification certificate of the Applicant
            and a copy of an identification certificate of the payer of the Bill, which were issued to the Licensee’s representative at the time of execution of the engagement.196

        

  

  

  	

        	(a1)	
          197Before signing the agreement, the representative shall present the Applicant198
            with a printed copy of the subscriber agreement and shall allow him to review it;

        

  

  

  	

        	(b)	
          Upon signing the agreement, the applicant and Licensee representative shall sign the originally copy of the subscriber agreement that was presented for the applicant's review. After the said signature the Licensee representative shall give
            the subscriber a copy of the subscriber agreement upon which the Licensee representative's and applicant's original signatures appear;

        

  

  

  	

        	(c)	
          After execution of the aforesaid in sub-section (a) and (b), the Licensee representative may ask the subscriber to sign an additional copy of the subscriber agreement identical to the one originally signed, by using electronic means;

        

  

  

  	

        	(d)	
          The Licensee shall keep a signed copy of the subscriber agreement and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the date of the engagement.199

        

  

  

  	

        	(e)	
          If the subscriber requests to make changes to the agreement conditions, including a request, to receive additional services, to expand a service, 200 or to
            join a service package-the subscriber shall receive at the time of the change, a printed notice that bears the Licensee's name or logo, which shall specify the request submission date, the201 details of the change executed are listed, the date they become effective and the full name of the Licensee representative and the subscriber and their original signatures. That stated above shall also apply to
            a service other than a telecommunications service.202The Licensee is not permitted to make any change, as stated, without receiving the express consent of the
            subscriber as stated above.

        

  
     

        

      

    

                                                     

    194 Amendment No.
      58

    195 Amendment No.
      57-shall become effective September 13, 2011.

    196 Amendment No.
      87

    197 Amendment No.
      87

    198 Amendment No.
      87

    199 Amendment No.
      87

    200 Amendment No.
      87

    201 Amendment No.
      87

    202 Amendment
      No. 90

    

  

  
    
      

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

  

  The Licensee shall retain the signed notice, as stated, in its possession and make it available for delivery or forwarding to the Director, at his request, and this, within five
    (5) workdays of the submission date of the request.203

  

  

  	55.6	
          cancelled204

        

  

  

  	55.7	
          205Notwithstanding the afore-mentioned in Article 55.5, the Licensee may have a subscriber sign a subscriber agreement also by a computerized graphic signature,
            instead of an original signature, and for this matter the provisions of Appendix E shall apply instead of Article 55.5.

        

  

  

  For this matter, "computerized graphic signature"-a signature that is digitally maintained as a graphic file."

  

  

  	20655A	
          Remote Sale Transaction

        

  

  

  	55A.1	
          In a remote sale transaction, as this term is defined in section 14.C. of the Consumer Protection Law, 5741 – 1981, which is being transacted via a telephone conversation, the Licensee shall act as
            follows:

        

  

  

  	

        	(a)	
          The Licensee shall record the telephone conversation held between the Applicant and the Licensee’s representative.

        

  

  

  	

        	(b)	
          During the sale conversation, and before the Applicant expresses his consent to engage in an agreement with the Licensee, the Licensee’s representative must ask for the Applicant’s consent to send him the Plan Basics via electronic mail or
            SMS or facsimile, the service access form, the Questionnaire and the portability blocking request, insofar as there is one207, and must inform him that he must
            confirm expressly, as specified below, that he is accepting the terms of the engagement agreement as a precondition to it coming into effect. Insofar as the Applicant expressly states that he is not interested in receiving the said documents in
            one of the three said ways during the sale conversation, then the Licensee shall be released from having to send them to the Applicant when conducting the sale conversation, and these shall be sent to him, together with the rest of the
            provisions of the engagement terms document, on the transaction execution date. If the Applicant asked to receive the said documents via one of the ways specified above, the Licensee’s representative must send them to him in the manner
            requested during the sale conversation.

        

  

                                                   

  

  
    203 Amendment No.
      87

    204 Amendment No.
      87

    205 Amendment No.
      69

    206 Amendment No. 57-shall become
      effective September 13, 2011

    207 Amendment
      No. 95

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(c)	
          In a service access form sent via electronic mail or SMS, every service must be computer-marked as “blocked” or as “open,” as the Applicant chose during the said telephone conversation; the Questionnaire that was sent as stated must also be
            marked and completed as the Applicant requested during the said conversation.

        

  

  

  	

        	(d)	
          The electronic mail message or the SMS will ask the Applicant to confirm the execution of the transaction and the choices marked and the details in the service access form, in the Questionnaire and in the portability blocking request,
            insofar as there is one208. The Applicant must expressly confirm the terms of the transaction, without any stipulations or qualifications or changes in relation to
            the terms in the engagement terms document209.

        

  

  

  	

        	(d1)210	
          For the purpose of the Applicant’s confirmation of the transaction, the Licensee must include a link in the electronic-mail message or in the text message, so that clicking on it shall lead to a landing page that contains two tabs: “I
            confirm” and “I do not confirm”; after the Applicant clicks on one of the two tabs, the Licensee must immediately send an electronic-mail message or a text message to the Applicant, which shall refer to the Applicant’s full name, indicating the
            confirmation or non-confirmation of the terms of the engagement, as the case may be, and the date (date and time) that it was issued (“Confirmation Notice”).”

        

  

  

  	

        	(e)	
          211If the Applicant asked to receive the Plan Basics, the service access form and the Questionnaire via facsimile, the Licensee’s representative shall send the
            said documents via facsimile, according to number given to the Licensee’s representative during the conversation.

        

   

  

  The Applicant must expressly confirm the terms of the transaction, without any written stipulations or qualifications or changes in relation to the terms in the said documents, in
    his handwriting, his marking and his signature on the Plan Basics, on the service access form on the Questionnaire and on the portability blocking request, insofar as there is one,212 and he must send the three said documents via facsimile to the facsimile number given to him by the Licensee’s representative during the conversation between them.

   

  

  The Licensee shall send the rest of the provisions of the engagement terms document via regular post to the Applicant, on the transaction execution date.

  

  

  	

        	(f)	
          A remote sale transaction via telephone shall be completed and shall come into effect and the Licensee shall be allowed to charge the Applicant pursuant to its terms, only after the Licensee has received the reply notice from the Applicant
            via electronic mail or SMS confirming the signing of the engagement agreement and the said documents via facsimile, being duly marked and signed.

        

  

                                                   

  

  
    208 Amendment
      No. 95

    209 Amendment
      No. 90

    210Amendment No. 90

    211 Amendment No. 90

    212 Amendment
      No. 95

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

      

    

  

  	

        	(f1)213	
          Notwithstanding that stated above, if at issue is a transaction with a new Subscriber, in which the Licensee sends a SIM card to the Applicant, which the Applicant must activate via the Licensee’s website, then the Licensee must send the
            Plan Basics, the service access form, the Questionnaire and the portability blocking request, insofar as there is one214 to the Applicant, in the manner requested
            by the Applicant, immediately upon concluding the conversation between them, without him being asked to confirm the terms of the transaction. The Licensee must state in the Plan Basics that the transaction will come into effect only upon the
            activation of the SIM card.

        

  

  

  	

        	(g)	
          The Licensee shall retain the following in its possession:

        

  

  

  	

        	(1)	
          the recording of the telephone conversation between the Applicant and the Licensee’s representative;

        

  

  

  	

        	(2)215	
          the electronic mail message or the SMS that the Licensee sent to the Applicant, including the Plan Basics, the service access form the Questionnaire and the portability blocking request, insofar as there is one216 attached thereto;

        

  

  

  	

        	(3)217	
          the confirmation notice;

        

  

  

  	

        	(4)218	
          if the transaction was executed via facsimile, the Licensee shall retain the Plan Basics bearing the Applicant’s handwritten signature, the service access form, the Questionnaire and the portability blocking request, insofar as there is one219, bearing the Applicant’s markings, the details that he completed and his signature;

        

  

  

  	

        	(5)	
          the rest of the provisions of the engagement terms document, updated to the agreement signing date with the Applicant.

        

  

  

  	

        	(h)	
          The Licensee shall make the recordings and the documents specified in clause (g) available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the effective date of the transaction.

        

  

  

  	

        	(i)	
          The rules specified in this clause shall also apply when at issue is the execution of a change in an existing plan.

        

   

  

  For the purposes of this clause, “change” – the receipt of an additional service, the expansion of a service, subscribing to a service
    package.

   

  

  

                                                    

  
    213 Amendment
      No. 90

    214 Amendment
      No. 95

    215 Amendment
      No. 90

    216 Amendment
      No. 95

    217 Amendment
      No. 90

    218 Amendment
      No. 90

    219 Amendment
      No. 95

     

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

  

    The Licensee is not allowed to make any change, without receiving the subscriber’s express consent, in the manner specified in clause 60.6(b)220; that stated above also
    applies to a service other than a telecommunications service.221

  

  

  	

        	(j)222	
          Cancelled

        

  

  

  	55A.2	
          In a remote sale transaction, as this term is defined in section 14.C of the Consumer Protection Law, 5741 – 1981, via the internet, the Licensee shall act as follows:

        

  

  

  	

        	(a)	
          In its advertisement of a tariff plan on its website, the Licensee must clearly include all of the details specified in subclauses 55.4(a2) through 55.4(h), and the Plan Basics, the service access form, the Questionnaire223 and the portability blocking request, insofar as there is one224.

        

  

  

  	

        	(b)	
          During the registration process for a tariff plan, as stated, the Licensee must include a presentation of the Plan Basics to the Applicant and a box that the Applicant must mark before completing his registration, as stated, whereby marking
            that box shall constitute a declaration that he read the information included in the Plan Basics. Insofar as the Applicant shall not mark the box as stated, it must not be possible to complete registration.

        

  

  

  	

        	(c)	
          As part of the tariff plan registration process, as stated, the Licensee must include an online service access form that the Applicant can mark, and retrieve at any time, and change his choices on it as he wishes.”225

        

  

  

  	

        	(d)	
          The Licensee shall send a copy of the engagement terms document to the subscriber who executed a “remote sale” transaction via the internet, immediately after executing the transaction. A copy of the engagement agreement signed between the
            subscriber and the Licensee must be sent to the subscriber via electronic mail message, which shall include the engagement agreement as an attached file.

        

  

  

  	

        	(e)	
          The Licensee must retain the engagement terms document, as stated, in its possession, and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the transaction execution date by
            the subscriber.

        

  

  

  	

        	(f)	
          The rules specified in this clause shall also apply when at issue is the execution of a change in an existing plan or a replacement of an existing plan with a new plan.

        

   

  

  For the purposes of this clause, “change” – the receipt of an additional service, the expansion of a service, subscribing to a service
    package.

   

  

  

                                                    

  
    220 Amendment No.
      87

    221 Amendment
      No. 90

    222 Amendment No.
      87

    223 Amendment
      No. 90

    224 Amendment
      No. 95

    225 Amendment No.
      87

     

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  The Licensee is not allowed to make any change, including a replacement of an existing plan with a new plan, without receiving the subscriber’s express consent, in the manner
    specified in clause 60.6(b).226

  

  

  	56.	
          227If the Licensee publishes on its internet website a tariff plan, including tariff plans that include the purchase of MRT equipment, the said publication
            shall also include the subscriber agreement conditions regarding that tariff plan, including the details on the "main plan details page.

        

  

  

  	56A228.	
          The Commitment Period in the Subscriber Agreement

        

  

  

  	56A.1	
          If the Licensee signs a Subscriber Agreement with a Subscriber that is not a Business Subscriber, that includes a commitment, the commitment period shall not exceed eighteen (18) months; For this article, "commitment of a Subscriber to meet
            the conditions regarding the scope of consumption of services, payment amount or payment conditions during the defined period, for which not meeting those conditions during that period entails a payment, including the return of a benefit or an
            exit fee.

        

  

  

  	 56A.2	
          If the Licensee offers a Subscriber that is not a Business Subscriber, to sign a Subscriber Agreement that includes a commitment, the Licensee shall offer the Subscriber a subscriber agreement that does not include a commitment, that offers
            a reasonable alternative to the agreements that includes commitments. In this respect, a Subscriber Agreement that includes a "pre-paid plan" will not be considered a reasonable alternative to a Subscriber Agreement that includes a commitment.
            229The Licensee shall publish on its internet website the subscriber agreement that does not include a commitment, including "the main plan details page" of the
            said agreement.

        

  

  

  	56A.3	
          If the Director concludes that the Licensee has breached section 56A.2, he may instruct the Licensee to change the conditions of a Subscriber Agreement that does not include a commitment, without derogating from any other authority set forth
            in the License  or by law. In this respect, the Director will examine, among other issues, the number of subscribers of the Licensee that have signed agreements without commitments.

        

  

  

  	57.	
          Cancelled

        

  

  

  	58.	
          Cancelled

        

  

  

  	59.	
          The Obligation to Connect Applicants and the Prohibition of Conditional Agreement

        

  

  

  	59.1	
          Should the Licensee fulfill the conditions regarding the operation of the MRT System as stated in Paragraph 44.2, the Licensee will connect any applicant to the MRT System no later than the date determined in the Subscriber Agreement with
            the Subscriber unless the Director has given his approval to the Licensee not to connect an applicant for reason which he considers justifiable.

        

  

  

                                                  

  
    226 Amendment No.
      87

    227 Amendment No.
      57-shall become effective September 13, 2011

    228 Amendment No. 45

    229 Amendment No,
      57

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	59.2	
          Subject to the provisions of Paragraph 60.2, the Licensee may not condition the connection of an applicant, the provision of services or determining of tariffs, by unreasonable conditions that are discriminatory or unfair, and without
            derogating from the generality of the above:

        

   

  	

        	(A)	
          The Licensee is not permitted to obligate a Subscriber to purchase Terminal Equipment from it or from its agent.

        

   

  	

        	(B)	
          The Licensee is not permitted to obligate the Subscriber to receive from it maintenance service or insurance for the Terminal Equipment in his or her possession.

        

   

  	

        	(C)	
          The Licensee is not permitted to limit supply of spare parts for Terminal Equipment that was purchased from it or from its agent, to Subscribers or to another provider of maintenance services.

        

   

  
    	159.3	
            The Licensee will connect applicants and subscribers that own Old Technology Terminal Equipment in accordance with Appendix S.

          

    

    

    1 Amendment No. 115

  

  

    
      
        

    

     

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

    

  Section B - Grade of Service for Subscribers

  

  

  	60.	
          Obligation of Maintaining Service

        

  

  

  	60.1	
          The Licensee will offer its Subscribers the entire services detailed in the First Annex, in accordance with the conditions specified in the Annex, and will maintain its entire services throughout all days of the year during all the hours of
            the day and night, both in peacetime and in times of emergency, subject to Paragraph 48, in accordance with the technical requirements and the requirements regarding the quality of service, in an orderly and normal manner and of a quality that
            will not be inferior to the criteria of service quality specified in the First Annex to the License and in Appendix E of the Second Annex to the License; in case of contradiction between the First Annex and Appendix E of the Second Annex to the
            License, the provisions of Appendix E of the Second Annex will prevail.

        

  

  

  	60.2	
          230 Without derogating from the provisions of clause 75.3, the Licensee shall provide MRT Services and the  Services Package, as defined in clause 73A, to every
            person so requesting, on equal and non-discriminatory terms, and at a non-discriminatory tariff.

        

  

  

  	60.3	
           Should the Director find that the Services Package might harm competition or consumers, he shall give notice of such to the Licensee noting the date on which the Licensee is to cease offering the Services Package to its subscribers.

        

  

  

  	60.4	
          If the Licensee provides  any MRT Service to any person or body in return for payment, the service shall be available to every Subscriber in the entire coverage area of the system, while  meeting the minimum requirements regarding quality of
            service, without discrimination, within 24 months of the commencement of provision of the service in return for payment.

        

  

  

  	60.5	
          Upon written application from the Licensee, the Director may permit the Licensee limitations on the provisions of clause 60.4, after being convinced that there is a real difficulty in supplying the service to all who request it, and that
            certain characteristics of the service give special and extraordinary grounds and justification for such.

        

  

  

  	60.6	
          (a) The Licensee shall not provide and shall not expand, whether for a consideration or for no consideration, any of its services that the subscriber has not expressly asked to receive or expand, apart from a service being provided for free
            to all subscribers, and it shall not enable the provision or expansion of a service by a service-provider that the subscriber has not expressly asked to receive from the Licensee or to expand.

        

   

  

  For the purposes of this clause, “service-provider” – whoever provides a service through the network, and the payment in respect of the
    service is paid through the Telephone Bill.231

  

  

  	

        	232(b)	
          An express request shall be submitted in one of the following ways233:

        

  	

        	(1)	
          A signed document by the subscriber that is sent to the Licensee;

        

  	

        	(2)	
          An electronic mail sent by the subscriber to the Licensee;

        

  

  
    

    230 Amendment No.
      14

    231 Amendment No.
      87

    232 Amendment No.
      57-shall become effective September 13, 2011

    233 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(3)	
          A telephone call between the subscriber and the Licensee representative;

        

  	

        	(4)	
          An SMS sent by the subscriber to the Licensee;

        

  	

        	(5)	
           234Service order on the Licensee's website or content provider. A service order shall be done in accordance with the provisions of Annex F of the License;

        

  	

        	(6)	
          Internet chat calls with a representative of the Licensee;235

        

  	

        	(7)	
          236A telephone conversation from a telephone number on the Licensee’s network to IVR237
            according to the following alternatives:

        

  

  

  	

        	a)	
          At the beginning of the conversation, the caller shall be asked to indicate whether the service is being requested for the telephone number used to make the call or for another telephone number of the caller on the Licensee’s network, and if
            at issue is a service for another telephone number as stated, the caller must enter the other telephone number. At the end of the conversation, a text message containing the details of the service, or a text message with a link to the product
            page containing the details of the service, must be sent immediately from the Licensee’s system to the telephone number from which the call was made. The said text message must also include the telephone number to which the service shall be
            provided, in the event that the service is intended for a telephone number other than the telephone number from which the call was made. For a call in which the service is intended for another telephone number as stated, a text message must
            also be sent from the Licensee’s system to the other telephone number, during the conversation, which includes a random identification code that the caller shall have to enter in order to complete the submission of the request;

        

  

  

  	

        	b)	
          At the beginning of the conversation, the caller must be asked to indicate whether the service is being requested for the telephone number used to make the call or for another telephone number of the caller on the Licensee’s network, and if
            at issue is a service for another telephone number as stated, the caller must enter the other telephone number. The caller shall be identified by entering his ID number and the four last digits of his means of payment, and it shall be possible
            to continue the process only if the data entered is identical to the said data as existing in the Licensee’s system in relation to the telephone number for which the service is being requested. At the end of the conversation, a voice message
            shall be played indicating the name of the service, the price thereof and the telephone number to which the service shall be provided. The caller must be given an opportunity to choose to listen again to the said voice message. The caller must
            be asked to confirm the request to receive the service by clicking on a particular button.

        

  
    

    

                                                   

    234 Amendment No.
      60

    235 Amendment No.
      87

    236 Amendment No. 90

    237 Interactive Voice Response.

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(c)	
          The Licensee shall retain the documentation, as stated, in its possession and shall make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the date of the subscriber’s express
            request.238

        

  For this matter-"documentation"-

  For sub-section (b)(1)-a copy of the document;

  For sub-section (b)(2)-a copy of the electronic mail;

  For sub-section (b)(3)-a recording of the telephone call;

  For sub-section (b)(4)-a copy of the subscriber's telephone bill that lists under the "call details", the details of the SMS sent by the subscriber and a printout of its contents
    as received in the Licensee’s system;239

  

  

  For purposes of sub-section (b)(5)-240 a Log from the short message service center (SMSC)  of the
    Licensee in which the sending of the 2 SMS from the Licensee to the subscriber are documented, as part of the procedure of ordering a service. If the service was ordered on the Licensee's website or cellular portal by using a user code and password as
    set forth in section 1.3 of Appendix F of the License-the Log from the internet server that indicates the execution of the service order procedure and the Log In of typing the user code and password by the subscriber.

  

  

  For the purposes of clause (b)(6) – a printout of the calls via internet.241

  

  

  242For the purposes of clause (b)(7)((a)) – details of calls as specified in clause 11 in Annex
    E.1, which includes the call requesting the service, a recording of the contents of the call, which is played for anyone requesting the service, documentation in the Licensee’s system of the data entered by the Subscriber while listening to the text of
    the call, the contents of the text message sent to the Subscriber about the details of the service being requested and the contents of the additional text message sent to the Subscriber, insofar as the request was submitted from a different telephone
    line than the telephone line for which the service is being requested.

  

  

  For the purposes of clause (b)(7)((b)) – details of calls as specified in clause 11 in Annex E.1, which includes the call requesting the service, a recording of the contents of the
    call, which is played for anyone requesting the service, and documentation in the Licensee’s system of the data entered by the Subscriber while listening to the text of the call

  

  

  Notes taken by the Licensee representative in the Licensee's information systems does not constitute documentation.

   

  

                                                 
     

      

    238 Amendment No.
      87

    239 Amendment No.
      87

    240 Amendment No.
      60

    241 Amendment No.
      87

    242 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	60.7	
          243The Licensee is not allowed to collect payment from the subscriber for a service or an expansion thereof244 unless it has documentation regarding the subscriber's explicit request to receive the service or the expansion thereof.245

        

  

  

  	60.8	
          246If the subscriber is charged for a service or for an expansion of a service247
            and notifies the Licensee that he did not request the service or an expansion thereof,248 the Licensee shall refund him the entire sum of that was charged for the
            service or the expansion thereof,249 if the Licensee does not have the documentation regarding the subscriber's explicit request to receive the service or an
            expansion thereof.250 The manner of handling the subscriber's complaints granting the refund shall be executed in accordance with the provisions regarding
            "overcharging" detailed in article 83A of the license."

        

  

  

  	60.9	
          5G Service that is Massive IoT or Mission Critical service shall be offered to a Subscriber in conformity with Appendix P to the License and the provisions of clauses 60.1, 60.4 and 60.5 shall not apply to him.251

        

  

  

  
    
      	
              60.10

            	
              10The Licensee will cease to provide MRT services by Old Technologies, in accordance with the conditions set forth in Appendix S.

            

    

    

  

  	61.	
          Ombudsman

        

   

  

  	61.1	
          The Ombudsman shall be directly subordinate to the CEO of the Licensee or to the board of directors, including to one of the board committees.

        

  

  

  	61.2	
          Subject to the provisions of clause 61A, relating to the settlement of disputes, the roles and authorities of the Ombudsman shall be as follows:

        

  

  

  	

        	(a)	
          to clarify complaints of subscribers and Applicants concerning the Licensee’s services;

        

  

  

  	

        	(b)	
          to clarify complaints of subscribers concerning Bills that the Licensee submitted to them and to decide them;

        

  

  

  	

        	(c)	
          to clarify disagreements arising between the Licensee and a subscriber concerning the interpretation or execution of the engagement agreement and to decide them.

        

  

  

  	61.3	
          The Licensee must display a link called “Ombudsman” on its website’s home page, in a conspicuous way and location.252 Pressing on the said link must lead to a
            target page that specifies the roles and authorities of the Ombudsman, and details for four (4) options for sending a complaint to him as follows:

        

  

  

  	

        	(a)	
          ordinary post;

        

  

  

                                                  

  
    10 Amendment No. 115

    243 Amendment No,
      57

    244 Amendment No.
      87

    245 Amendment No.
      87

    246 Amendment No.
      57-shall become effective September 13, 2011

    247 Amendment No.
      87

    248 Amendment No.
      87

    249 Amendment No.
      87

    250 Amendment No.
      87

    251 Amendment
      No. 107

    252 A link
      entitled “contact us” shall not be deemed a substitute for the said link.

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(b)	
          electronic mail address;

        

  

  

  	

        	(c)	
          online form on the Licensee’s website, to which various types of files may be attached;

        

  

  

  	

        	(d)	
          facsimile.

        

  

  

  	61.4	
          The Licensee must specify the roles and authorities of the Ombudsman in every Bill that it submits to a subscriber, and the address, facsimile number and electronic mail address through which a subscriber can sent a written complaint to him.

        

  

  

  	61.5	
          The Licensee must specify on its website and in every Bill that it submits to a subscriber, the details that a subscriber must complete in a complaint that it intends to send with reference to each of the four (4) options specified above.

        

  

  

  	61.6	
          If a complaint is sent to the Ombudsman via electronic mail or using an online form, an automatic notice acknowledging its receipt must be sent to the subscriber, immediately after receiving the complaint. The acknowledgement notice must
            include the number assigned to the complaint in the Licensee’s system, the date of receipt of the complaint, the contents of the complaint as sent by the subscriber and the deadline by which a written response to the complaint shall be sent.

        

  

  

  	61.7	
          The Licensee must retain a copy of the complaint and of the written response sent to the subscriber in its possession, and make them available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of
            the date of receipt of the complaint and of the date the response was sent.253

        

  

  

  	61A.	
          Dispute Settlement

        

  

  

  	61A.1	
          The subscriber agreement shall state that all disagreements that arise between the Licensee and a subscriber, regarding the interpretation or implementation of the subscriber agreement, shall be assigned to arbitration to the Licensee's
            Ombudsman.254

        

  

  

  	61A.2.	
          The subscriber agreement shall state that an application to the Ombudsman255 in accordance with article 61.1A, shall not:

        

   

  	

        	(a)	
          prevent the subscriber from bringing the matter before the appropriate court;

        

   

  	

        	(b)	
          derogate from the authority of the Licensee to act in accordance with the provisions of article 72 regarding termination or termination of the engagement256 as
            a result of a breach of the subscriber agreement.

        

  

  

  	62.	
          Obligation of Maintenance

        

  

  

  	62.1	
          The Licensee is responsible for the maintenance of the MRT System.

        

  

  

                                                  

  
    253 Amendment No.
      87

    254 Amendment No.
      87

    255 Amendment No.
      87

    256 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	62.2	
          Should the Subscriber purchase MRT Terminal Equipment from the Licensee or its agents, and the purchase agreement should include maintenance services, the Licensee will be responsible for maintaining the above mentioned Terminal Equipment,
            however the Licensee will not be responsible for maintaining Terminal Equipment which was purchased, as stated, after the maintenance period undertaken by the manufacturer, unless otherwise agreed between it and the Subscriber; should the
            maintenance services include insurance services, the insurance service will be provided after receipt of the permits required by any law.

        

  

  

  	62.3	
          Should the Subscriber use, for the reception of MRT Service, MRT Terminal Equipment which was not purchased from the Licensee or its agents, the Licensee will not be obliged to maintain this Terminal Equipment, however the Licensee may enter
            into an agreement with the Subscriber for the provision of maintenance services for this said Equipment as well.

        

  

  

  	62.4	
          For the matter of maintenance obligation, as aforesaid, this should also mean the provision of spare parts and accessories for Terminal Equipment, including Terminal Equipment of the models offered to the public by the Licensee or its
            agents, even if the Licensee does not provide repair services for those models.

        

  

  

  	63.257	
          Telephone258 Call Center

        

  

  

  	63.1	
          The Licensee shall operate a staffed telephone call center to handle requests from its Subscribers, all as specified in Annex E.4259.

        

  

  

  	63.2	
          The Telephone260 Call Center will be staffed by a skilled and professional employee team, with the necessary qualifications to handle Subscriber calls. Should a
            call be received regarding a fault, the said team will act to locate the fault and will begin taking measures to immediately repair the fault.

        

  

  

  	63.3	
          The Licensee shall detail in the maintenance diary the details of the fault as set forth in Article 63.2 and the steps taken to rectify the fault, all as set forth in Article 51."

        

  

  

  	64.	
          Terminal Equipment

        

  

  

  	64.1	
          The Licensee will submit to the Director the specifications of the Terminal Equipment which are compatible with the MRT Network, and will assist, in accordance with the Director’s requirements, in converting them to Israeli standards or the
            Ministry’s standards, or to standards and specifications as aforesaid; the Director will present requirements which differ from those of European standards only for the purpose of adapting the specifications of the Licensee to Israeli
            standards, to the standards of the Ministry, in order to integrate the Hebrew language, to prevent interferences to other systems and interferences from other systems, and in order to achieve compatibility with the Telecommunication Networks in
            Israel.

        

   

  

  
                                                   

    257 Amendment No.
      55

    258 Amendment
      No. 91

    259 Amendment
      No. 91

    260 Amendment
      No. 91

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	64.2	
          The Licensee will carry out, free of charge, tests to verify that the Terminal Equipment meets the specifications of the MRT Network, in accordance with the Director’s requirements; testing of Terminal Equipment as aforesaid will be finished
            within fourteen (14) days from the date of the Director’s requirement.

        

  

  

  	64.3	
          The Licensee may sell or lease its Subscribers MRT Terminal Equipment for connection to the MRT Network, provided all the following are fulfilled:

        

   

  	

        	(a)	
          The Licensee has notified the Subscriber that he or she is entitled to purchase MRT Terminal Equipment both from any authorized dealer in Israel and from an overseas dealer, where the Equipment manufacturer confirmed that the Equipment is
            similar in its features and options to the Terminal Equipment marketed by the Licensee, and that the Subscriber is not obliged to purchase the Equipment from the Licensee in order to receive MRT Services;

        

   

  	

        	(b)	
          The Licensee will not make the provision of maintenance services for MRT Terminal Equipment conditional to obtaining MRT Services from it, and will inform the Subscriber that he or she may receive Maintenance Service for Terminal Equipment
            from any person, including Terminal Equipment purchased or leased from the Licensee.

        

  

  

  	

        	(c)	
          During a sale conversation through a telephone conversation for the purchase or rental of MRT Terminal Equipment, without a transaction being transacted with an Applicant for the purchase of MRT services (hereinafter – “Purchase Agreement”), and before the Applicant expresses his consent to engage in a Purchase Agreement with the Licensee, the Licensee’s representative must ask for the Applicant’s consent to send him a
            printed Purchase Agreement via electronic mail or SMS or facsimile, without any handwritten changes, and bearing the Licensee’s logo, which provides a detailed description of the Terminal Equipment and the inclusive price and, insofar as
            payment in instalments for the Terminal Equipment was agreed upon between the purchaser and the Licensee – the number of payments and the rate of each payment, and which includes the date of the execution of the sale conversation and the
            details of the purchaser and of the Licensee’s representative, who must inform the purchaser that he must confirm in writing that he is accepting the terms of the Purchase Agreement as a precondition to it coming into effect. Insofar as the
            Applicant expressly states that he is not interested in receiving the said document in one of the three said ways during the sale conversation, then the Licensee shall be released from having to send it to the Applicant when conducting the sale
            conversation, and it shall be sent to him on the transaction execution date. If the Applicant asked to receive the said document via one of the ways specified above, the Licensee’s representative must send it to him in the manner requested.

        

   

  The Licensee shall retain a copy of the Purchase Agreement in its possession, and shall make it available for delivery or forwarding to the Director, at his request, and this,
    within five (5) workdays of the transaction execution date.

   

  The Licensee shall record, in addition, the telephone conversation held with the Applicant, and shall make the recording available for delivery or forwarding to the Director, at
    his request, and this, within five (5) workdays of the transaction execution date.

   

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(d)	
          A notice shall be sent to the Applicant asking the Applicant to confirm the execution of the transaction. The Applicant must expressly confirm the terms of the transaction, without any handwritten stipulations or qualifications or changes in
            relation to the terms of the Purchase Agreement, either via return electronic mail message or return SMS or facsimile, which includes his full name and ID number.

        

   

  The Licensee shall retain a copy of the purchaser’s confirmation in its possession, and shall make it available for delivery or forwarding to the Director, at his request, and
    this, within five (5) workdays of the transaction execution date.

   

  	

        	(e)	
          Immediately after the Applicant sends his confirmation, as stated, the Licensee shall send him a document pursuant to the law261 in the mode by which the
            Purchase Agreement was sent to him.

        

   

  	

        	(f)	
          When executing a transaction for the purchase of MRT Terminal Equipment in the presence of both parties, without executing a transaction for the purchase of MRT Services, and before the Applicant expresses his consent to engage in a Purchase
            Agreement with the Licensee, the Licensee’s representative must submit a printed copy of the Purchase Agreement to the Applicant and enable him to peruse it.

        

   

  When executing the transaction, the Applicant and the Licensee’s representative must sign the Purchase Agreement submitted to the Applicant for his perusal by original signature.

   

  After signing, as stated, the Licensee’s representative must deliver the Purchase Agreement to the Applicant bearing the original signatures of the Licensee’s representative and
    the Applicant, as well as the document specified in subclause (e).

   

  After completing all that stated in this subclause, the Licensee’s representative may obtain the Applicant’s signature on a Purchase Agreement identical to the one signed with
    original signatures, while using electronic means.

   

  The Licensee shall retain a copy of the Purchase Agreement and the document specified in subclause (e) in its possession, and shall make them available for delivery or forwarding
    to the Director, at his request, and this, within five (5) workdays of the transaction execution date.

   

  The Licensee’s representative must perform a reliable identification of the Applicant pursuant to the procedure prescribed by the Licensee. The Licensee shall retain in its
    possession a copy of an identification certificate of the Applicant and a copy of an identification certificate of the payer of the Bill, which were issued to the Licensee’s representative at the time of execution of the engagement.

   

                                                  

  
    261 A receipt

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(g)	
          Insofar as the subscriber and the Licensee agreed on payment in instalments for Goods that the subscriber purchased or rented from it, and the subscriber breached the engagement agreement before paying all of the payments for the said Goods,
            but rectified the breach within forty-five (45) days of the date the Licensee notified the subscriber of the breach, then the Licensee is not allowed to collect the balance of the payments from the subscriber for the Goods in a single payment,
            and the payment in instalments shall continue as agreed upon between the subscriber and the Licensee ab initio.262

        

   

  	26364A	
          Cancelled.

        

   

  

  	26465.	
          Public Emergency Services

        

  

  

  	65.1	
          265The Licensee will enable, at any time and free of charge, all its Subscribers, who are receiving basic telephone service266, free and rapid access to public emergency services, such as: Magen David Adom, the Israel Police Force and the Fire Department..

        

  

  

  	26765.2	
          The Licensee shall enable the public emergency service centers268 to indentify the telephone number of a subscriber that  dials them269, free of charge and at any time, including a subscriber with an unlisted number, a subscriber that implemented barring a call and a subscriber that dials from a private switchboard,
            effective 5 April 2007 (hereinafter-"the commencement date");

        

  

  

  The Licensee may implement the aforesaid through a licensee that routes the call to the public emergency service center.

  

  

  No later than 2 days270 from the commencement date, the Licensee shall notify all its subscribers,
    in writing, and in a clear manner, that as of the commencement date, the subscriber's number will be identifiable by the public emergency service centers, and shall also notify in writing all subscribers that request an "unlisted number"-that the
    number will not be unlisted for calls made to the public emergency service centers.

  

  

  27165A.     Blocking Service for
        Harassing Subscribers

  

  

  	65A.1	
          Notwithstanding the above-mentioned in Article 65.1, the Licensee shall block access to public emergency services for Harassing Subscribers; if the access to public emergency services only is not technically possible, the Licensee shall
            block the Harassing Subscriber’s access to all MRT services. For this Article, “Harassing Subscriber”- a subscriber that calls a certain public emergency service, without a justified reason, more than 10 times during one day, through Terminal
            Equipment in his  possession.

        

  

  

                                                  

  
    262 Amendment 87

    264 Amendment No. 87

    265 Amendment No.
      19

    266 Amendment
      No. 107

    267 Amendment No.
      40

    268 Israel Police-100, Magen David Adom-101 and the Fire
      Department-102

    269 Excluding a subscriber whose terminal equipment
      allows him to dial emergency centers only, for example a handset without a SIM card on a GSM network.

    270 Amendment No.
      42

    271 Amendment No.
      19

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	65A.2	
          Notice regarding a Harassing Subscriber shall be given in writing to the Licensee by a senior employee of a public emergency service (“the Employee”), verified by an affidavit signed by the Employee (“the Complaint”). The Complaint shall
            include, among other details, the name of the Harassing Subscriber, his phone number, as far as these details are known to the complainant, as well as details of the times of the calls of the Harassing Subscriber and the content of the calls
            that indicates that the calls were made without a justifiable reason. If the Complaint does not include the Harassing Subscriber’s phone number, the Licensee shall act in a reasonable manner  to identify the Harassing Subscriber based on the
            details in the Complaint.

        

  

  

  	65A.3	
          The Licensee shall block the Harassing Subscriber’s access to the emergency services as set forth in Article 65A.1, after giving the Harassing Subscriber prior notice. The notice shall be given 3 working days before blocking the service, in
            one of the following manners:

        

  

  

  	

        	a.	
          A call from the Licensee’s service center to the Terminal Equipment of the subscriber;

        

  	

        	b.	
          Sending an SMS to the Terminal Equipment of the Subscriber;

        

  	

        	c.	
          Sending a registered letter to the Subscriber; except a Pre-Paid subscriber whose address is unknown.

        

  

  

  	65A.4	
          Blocking service, to a Harassing Subscriber that is a Pre-Paid subscriber whose address is unknown, shall be done no later than 24 hours from the receipt of the Complaint or identification as set forth in Article 65A.2.

        

  

  

  	65A.5	
          Notwithstanding the above-mentioned in Article 65A.1, the Licensee shall                     not block a subscriber’s access to the public emergency services, if the                     circumstances of the calls made, based on the
            explanation the subscriber provides to the Licensee show that. there was a justification for the calls and he should not be deemed a Harassing Subscriber; The Licensee shall provide the Director with the reasons for not blocking access for the
            Harassing Subscriber within 10 working days from receipt of the  Complaint or identification as set forth in Article 65A.2

        

  

  

  	65A.6	
          If the Licensee blocks the Harassing Subscriber’s access to the emergency                    calls as set out above, he may collect from the subscriber all charges and may also be entitled to collect from him payment to remove the blockage.

        

  

  

  	65A.7	
          The Licensee is permitted to remove the blockage after the Harassing Subscriber provides him with a written undertaking that he will not repeat the harassment in the future.

        

  

  

  	65A.8	
          The Licensee shall record the manner of identification of the Harassing Subscriber, manner of notifying the Harassing Subscriber or alternatively where notice was not given to the Harassing Subscriber, the reason for not giving notice; In
            addition, he shall record the manner in which the blockage was removed.

        

  

  

  	65A.9	
          Deleted272

        

  

  

                                                  

  
    272 Amendment
      No. 98

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	27365B.	
          Personal Message Service

        

  

  

  	65B.1	
          The Licensee shall provide a personal message service (in this section, the Service"), at all times and free of charge, to all its subscribers, including to the subscribers of another licensee, users
            of handsets that support the Service (thereinafter in this section the "Subscribers"), and in accordance with the "personal service" service file.

        

   

  

  In this section:

  

  

  "Another Licensee" – another MRT licensee that receives service through national roaming or an MVNO that receives service through a hosting agreement on a
    licensee's network;

  

  

  "Personal Message" – a message, warning and short explanation of the security forces that is sent immediately, selectively and focused to subscribers with MRT
    handsets that support the use of the cell broadcast ("CB") technology.

  

  

  "Security Forces" – representatives of the Ministry of Defense and Home Front Command that are responsible for personal message system;

  

  

  "Service File "Personal Message" – a service file approved by the Director, including amendments that will be executed
    in the service file;

   

  

  	65B.2	
          In order to execute the above mentioned in Article 65B.1, the licensee shall act as set forth in the First Appendix and in the service file regarding this service and as follows:

           

          

        

  	

        	a)	
          Adaption of the network and its components so that it will support the provision of the personal message service, excluding the network components that operate under the iDEN or CDMA technology;

        

  	

        	b)	
          Assistance and resource allocation to execute the access of the personal message service of the Security Forces to the network;

        

  	

        	c)	
          Operation and maintenance of the Service components in the network, in accordance with written directions that will be presented to the Security Forces; without derogating from the aforesaid, the Security Forces may instruct the Licensee to
            change the said instructions, however this will not derogate from the Licensee's responsibility to repair and access the network;

        

  	

        	d)	
          The execution of technical trials to examine the integration between the system and the network and the exercise of the network and system operation, in accordance with the instructions of the Office and the Security Forces.

        

  

  

  	65B.3	
          The Licensee shall report to the Security Forces any gap in the ability to supply the Service and will act to restore the ability as soon as possible, in accordance with the written operation instructions that it will formulate and present
            to the Security Forces.

        

   

  

  Without derogating from the aforesaid, the Security Forces may instruct the licensees to change the operation instructions if they find them to be lacking, however this provision does not limit the
    responsibility of the aforesaid licensee.

  

  

  	65B.4	
          The Licensee shall notify the Security Forces in advance of any change to the network that may affect availability for provision of the Service.

        

  

  

                                                  

  
    273 Amendment No.
      73

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	65B.5	
          The Licensee may not make commercial use of the CB characteristic without the Security Forces' prior knowledge of at least 30 days before operating the Service and the Security Forces may notify him in writing within 15 days of their
            objection to the provision of the service or conditions for providing the said Service. In this case, the Licensee will not operate the Service or will only be able to operate it in accordance with the conditions determined by the Security
            Forces, according to the merits.

        

   

  

  The aforesaid does not detract from the License's obligation to receive the Director's approval to the said service.

  

  

  	65B.6	
          The Licensee will assist in launching the Service for its subscribers in all of the following manners:

        

  

  

  	

        	a)	
          By written publicity on the company's website;

        

  	

        	b)	
          By direct mail to subscribers through the monthly bills upon launch of the Service;

        

  	

        	c)	
          274By providing a response to subscriber inquiries to choose the necessary specifications on his handset; for cellular handset models that were not marketed by
            the License, the License will make a reasonable effort to give its subscribers an answer;

        

  	

        	d)	
          The Licensee will allow the Security Forces to reasonably use its existing distribution channels in order to notify the subscribers of the Service.

        

  

  

  	66.	
          Protection of Subscriber Privacy 275

        

  

  

  	66.1	
          Without derogating from the provisions of the Law, the Secret Monitoring Law, 5739-1979, the Protection of Privacy Law, 5741-1981, or any other law regarding protection of the privacy of a person, the Licensee shall not be entitled to listen
            to the telephone or any other communication of a Subscriber without the Subscriber's written consent, other than for the purpose of  quality control of the service or the prevention of fraud.

        

  

  

  	66.2	
          Subject to the provisions of clause 66A, the Licensee, its employees, agents and any person acting on its behalf shall not be entitled to disclose lists or documents containing the name and address of a Subscriber or any other information
            regarding a Subscriber, including account details, call traffic, times and destinations to any person other than the Subscriber or a person authorized by the Subscriber for such.

        

  

  

  	66.3	
          Notwithstanding the provisions of clause 66.2, the Licensee may  do the following:

        

  

  

  	

        	(a)	
          provide details of the Subscriber to another licensee for the purpose of collection of monies owing from the Subscriber for services provided to it via the Network, provided that the details so provided are essential for the purpose of
            collecting money and accounting and that the other licensee has undertaken to maintain the privacy of  the Subscribers;

        

  

  

  	

        	(b)	
          provide the details of a Subscriber, to the extent that such details are in its possession, to another person under any power at law.

        

  

  

                                                  

  
    274 Amendment No.
      79

    275 Amendment No.
      14

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

      

    

  

  	66A	
           276Services to the Security Forces

        

   

  

  	66A.1	
          The Licensee shall supply special services to the Security Forces, as set out in the Security Appendix (Confidential) attached to this License as Appendix K.

        

  

  

  	66A.2	
          The Licensee shall allow the Security Forces, as identified by  the Director  in writing, to exercise, subject to any law, their powers in respect of any telecommunications operation under the License, and shall be responsible for ensuring
            the existence, proper operation  and technical adaptability  of the equipment and infrastructure required to enable such performance, all in  coordination with the Security Forces and as set out in Appendix K;  the Security Forces shall bear
            payment under the provisions of section 13 of the Law.

        

  

  

  	66A.3	
          The Licensee shall be exempt from the obligation to indemnify the State under the provisions of clause 91.2 of the License and/or under any law, for the provision of the special services to the Security Forces.

        

  

  

  	66B.	
          Security Provisions

        

  

  

  	66B.1	
          The Licensee shall appoint a security officer  in accordance with the provisions of the Security Arrangements in Public Bodies Law, 5758-1998, and shall strictly adhere to the security provisions set out in Annex L to the License.

        

   

  

  	66B.2	
          The Licensee shall set out appropriate provisions in its foundation documents and regulations and shall act so that  no person shall be appointed to  act in a position or role set out in Annex L to this License unless he meets the following
            conditions:

        

  

  

  	

        	(a)	
          he is an Israeli citizen, as defined in the Citizenship Law, 5712-1952, and a resident of Israel;

        

  	

        	(b)	
          he has been given a security clearance from the General Security Services, under which there is nothing to prevent his so acting.

        

  

  

  	66B.3	
          The Licensee shall act to keep the activities of the Security Services confidential and shall act in accordance with the security instructions of such Security Services, including with regard to the appropriate security classification for
            Officer and persons with roles at the Licensee and the classification of information regarding the activities relating to the Security Services.

        

  

  

  	66B.4	
          The Licensee shall take such steps as are required in order to protect the system, components of the system, and the databases serving for the provision of services, operation and control of the system against the activities of unauthorized
            persons, under the provisions set out in Annex L of this License.

        

  

  

  	67.	
          Subscribers’ Bills277

        

  

  

  	67.1	
          The bill the Licensee will present to the Subscriber will be clear, concise, legible and comprehensible;  the bill will include precise details of the components of the required payments in accordance with the types of payments and the rules
            detailed in Chapter F.

        

  

  

                                                  

  
    276 Amendment No.
      3

    277 Amendment No.
      14

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	67.2	
          278Cancelled

        

  

  

  	67.3	
          The Licensee is entitled to collect payments for its services from the Subscriber through another party, including through the Bezeq Corporation.

        

  

  

  	67.4      (a)	
          Without derogating from all other provisions of the License regarding the manner in which the Subscriber's bill shall be set out and the method of billing, the Licenseeshall act in accordance with the Israeli Standard 5262, that concerns the
            credibility of the charge and full disclosure in phone bills (hereinafter in this article – "theStandard").

        

  

  

  	

        	(b)	
          Cancelled.279

        

  

  

  	

        	(c)	
          Despite the aforesaid in sub-section (a)-

        

  

  

  	

        	(1)	
          With regard to the provisions of section 2.2.2 of the Standard, the rounding of numbers method shall beimplemented in accordance with the following:

        

  

  

  	

        	((a))	
          An amount in a bill will be rounded to the nearest number that ends with two digits after the decimal point of the Shekel, and an amount that ends with five tenths of an Agora (three digits after the decimal point), shall be rounded up.

        

  

  

  	

        	((b))	
          An amount for payment of a single call shall be rounded to the nearest amount that ends with two280 digits after the decimal point of the Shekel, and an amount
            that ends with five tenths281 of an Agora (three282 digits after the decimal
            point), shall be rounded up.

        

  

  

  	

        	(2)	
          Cancelled.283

        

  

  

  	

        	(3)	
          The price of a phone call (voice) that includes a Variable Tariff, shall be presented in a bill to a subscriber as the average price per minute, that shall be calculated in accordance with the amount for payment for that call, divided by the
            total sum of minutes of the call.

        

  

  

  In this section, "Variable Tariff"- a tariff that changes during the course of the call based on different parameters, for example, a tariff that is reduced based on the higher
    the usage or a variable tariff as a result of changing from "peak time" to "off peak time" during the course of the call or vice versa.

  

  

  

  

                                                  

  
    278 Amendment No.
      57

    279 Amendment 87

    280 Amendment 87

    281 Amendment 87

    282 Amendment 87

    283 Amendment 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(4)	
          In addition to the provisions at the end of section 2.2.4 of the Standard regarding the Basket of Services, the bill shall include a detailed list of the services that are included in the basket as well as the total tariff to be paid for the
            basket.

        

  

  

  In this section, "Basket of Services"-a number of services that are marketed to a subscriber as a package in exchange for an all inclusive tariff (and without detailing the
    payment for each individual service).

  

  

  	

        	(d)	
          (1) Chapter B of the Standard regarding full disclosure in phone bills shall become effective no later than Friday, 18 Tishrei, 5766 (14.10.2005).

        

  

  

  	

        	

        	
          (2) Chapter C of the Standard regarding the credibility of the charge shall become effective no later than Sunday, 15 Tevet 5766 (14.1.2006).284

        

  

  

  	28567.5	
          A bill that is sent to a Non-Business Subscriber shall be in the format set forth in Annex E1 (hereinafter for this Article- "Bill Format for a Non-Business Subscriber"286287).

        

  

  

  	28867.5A	
          A bill submitted to a business subscriber shall include the details set forth in sub-sections 9B (1) to 9B (4) in Appendix E1 of the License." In this section "business subscriber"-except for the subscribers detailed in sub-sections (b) and
            (d) of the definition of "business subscriber" in article 1 of the License.

        

  

  

  	67.6	
          A Business Subscriber may request that the Licensee send him a telephone bill in a Non-Business Subscriber Format (hereinafter in this Article-"Request"). If the subscriber makes such a request, the Licensee shall begin sending him bills in
            accordance with said format, no later than two bill periods from the date of the Request. The Licensee shall publish bi-annually, a notice in the telephone bill sent to Business Subscribers, that the Business Subscribers may request that the
            Licensee format their telephone bill in accordance with the Non-Business Subscriber Bill Format. 289In addition, a business subscriber may request from the
            Licensee details in writing regarding the calculation manner of a "one time charge". The Licensee shall submit to the business subscriber the said details in writing regarding a "one time charge", within thirty (30) days of the date that the
            subscriber requested the matter from customer services or from the Ombudsman.290

        

  

  

  	67.7	
          8(1) The subscriber shall receive the Bill, at its choice, via one of the following modes:

        

  

  

  	

        	(a)	
          regular post;

        

  

  

  
    	

          	(b)	
            electronic mail, that the subscriber provided, with an attached file;

          

  

  

  

  
    	

          	(c)	
            SMS with an attached file or link for immediate download of the file, to a phone number that the subscriber provided and that is not blocked for the receipt of SMSs and possesses terminal equipment that supports the receipt of a digital
              file;

          

  

  

  

                                                  

  
    8 Amendment No. 112

    284 Amendment No.
      33

    285 Amendment No.
      50

    286 Amendment 87

    287 Amendment
      No. 90

    288 Amendment No.
      57

    289 Amendment No.
      57

    290 Amendment 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(d)	
          the Licensee’s website;

        

  

  

  	

        	(e)	
          other electronic means at the choice of the Licensee.

        

  

  

  
    The Licensee must present the five (5) said modes for the subscriber’s choice in the Questionnaire as set forth in Article
      55.4(a2)(1), at the time of the transaction execution. In a remote sale transaction, the Licensee shall present the said modes in writing (for example, on the Company's website or as part of a link to a form) or orally. The Licensee shall not send
      the bill to an email, as set forth in sub-section (1)(b) or to a telephone number, as set forth in sub-seciton (1)(c), unless the subscriber provided the Licensee with the email address or the telephone number, as the case may be.

    

    

    	

          	(2)	
            If the subscriber does not select one of the said modes, for the subscriber's choice, as set forth in sub-section (1), the Licensee should send the Bill to the
              subscriber by one of the modes set forth in sub-sections 1(a)-1(c), and for a subscriber that is over 65 by regular post, as set forth in sub-section 1(a), and this without derogating from the provisions in Article 13b of the Consumer
              Protection Law, 1981.

          

    

    

    	

          	(3)	
            A Licensee that would like to change the mode for sending the Bill to a subscriber that did not choose a mode for receipt of the Bill, shall notify the said
              subscriber of the change of mode for sending the Bill by notice in a separate document that will be attached to the monthly Bill, and also by SMS. The Licensee will allow the subscriber to choose the mode for receipt of the Bill by reply to
              an SMS, fourteen (14) days before the change to the mode of sending the Bill; A subscriber that is blocked for receipt of SMSs will receive the notice by electronic mail, and the Licensee shall allow the subscriber to choose the mode of
              receipt of the Bill by replying to an electronic mail.

          

    

    

    	

          	(4)	
            The Licensee shall clearly state in the messages sent to the subscriber as set forth in sub-section (3) the mode in which the Bill will be sent after the change,
              including the cellular telephone number or email address to where the Bill will be sent.

          

    

    

    	

          	(5)	
            The Licensee shall document the subscriber’s request, and the notice regarding the change to the mode of sending the Bill to the subscriber, as the case may be, and
              make this documentation available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the submission of the request.

          

     

    

    	

          	(6)	
            The Licensee is not allowed to demand any payment from the subscriber for issuing the Bill, which includes “itemized calls” either regularly or on a one-time basis,
              and sending it to him, at his request, through electronic means. The Licensee may demand reasonable payment in respect of “itemized calls” from any particular date, which was sent to the subscriber at his request regularly or on a one-time
              basis, only in the event that the Bill was received by the subscriber as specified in subclause (1)(a).

          

    

    

    	

          	(7)	
            The Licensee may change at any time, orally or in writing, the mode for receipt of the Bill.

          

    

    

    	

          	(8)	
            The Licensee shall identify the age of the subscriber before changing the mode of sending the Bill to a subscriber that did not choose the mode of receipt of the
              Bill.

          

    

    

  

  	67.8	
          293If the payment detailed in the telephone bill is done by debit bank payment or credit card, the said payment shall not be done before 294ten (10)295 days have passed from the date that the telephone bill was sent to the
            subscriber.

        

  

  	67.9	
          deleted2

        

  

  

  
    	30067A.	
            Information Service for Telephone Number Enquiries301

          

    

    

    	67A.1	
            Without derogating from the aforesaid in Article 66, the Licensee shall provide, either by itself or through another on its behalf, an information service for the enquiry of telephone numbers of all subscribers of land line operators or 
              MRT operators, except for classified subscribers (hereinafter- "information service"), as follows:

          

    

    

    	

          	(a)	
            for the general public and cost free, through an internet site that will provide the service;

          

     

  

                                                  

  
    2 Amendment No. 112 

    293 Amendment No.
      57

    294 Amendment No.
      58

    295 Amendment No.
      87

    
      300 Amendment No, 14

      301 Amendment No. 38

    

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(b)	
          for its subscribers, at a reasonable cost, through a telephone center to which the the access will be provided by a network access code to be determined by the Director;

        

  	

        	(c)	
          the information service shall be provided by all of the above methods based on the same information features that the subscriber will provide when he requests the service.

        

  

  

  	67A.2	
          Cancelled.302

        

  

  

  	67A.3	
          In addition to the above-mentioned in clause 67A.1303, the Licensee may offer, at a reasonable price, either by itself or another on its behalf, an information
            service, through any other method, including a national access code or through a short message system service (SMS).

        

  

  

  	67A.4	
          For the execution of the aforesaid in Article 67A.1 and 67A.3:

        

  

  

  	

        	(a)	
          The Licensee may approach any database of a line operator or MRT operator (hereinafter in this article – "another licensee") with a question, or receive information from a database of another licensee
            through any other method and with the consent of the other licensee, all subject to the obligation regarding  protection of the subscriber's privacy;

        

  	

        	(b)	
          For the provision of the information service by another licensee in accordance with its general license, the Licensee shall allow any other licensee access to the Licensee's database;

        

  	

        	(c)	
          The Licensee shall reguarly update the database, so that every name, address or telephone number of a subscriber that has been added, changed or removed, shall be updated in the database within one working day after the implementation of the
            update in the Licensee's system for the provision of telephone services.

        

  

  

  For this Article-

  "database"- a pool of data that includes the name, address and telephone number of every subscriber that is not classified, including a
    subscriber that is a business.

  

  

  	67A.5        (a)	
          The Licensee shall obtain through the Questionnaire the consent of every new subscriber in order to include their details in the database; if the subscriber consents to the aforesaid, the Licensee shall take action to include304 the subscriber's details in the database.

        

  

  

   (a1)     A Split Business Subscriber may, at any time, whether orally or in writing, amend the Business Subscriber’s application as completed in the
    Questionnaire.

  

  

                                                  

  
    302 Amendment No.
      87

    303 Amendment No.
      87

    304 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(b)	
          The Licensee shall comply at no cost with every subscriber's initial request to remain classifed.

        

   

  

  In this Article, "new subscriber" –a subscriber that registered with the   Licensee after the commencement date as set forth in Article
    67A.7 below.

  

  

  	

        	(c)	
          The Licensee must take action to fulfill the Subscriber’s request within one workday after having received it. The Licensee must document how it acted as stated and must make this documentation available for delivery or forwarding to the
            Manager within five (5) workdays of receiving the request.

        

  

  

  
    
      	67A.6       (a) 

            	The conditions for the provision of information service to enquire about telephone numbers in accordance with Article 67A shall be determined by the Licensee, provided that they are fair and non
              discriminatory, including presentation of the data to those requesting the service; the service shall be provided twenty four (24) hours a day, every day of the year, except for Yom Kippur; in this Article, "presentation

                of the data"- if the answer to a question of a person requesting the service consists of a number of different data, the data shall be presented in a coincidental manner;

    

  

   

  

  		(b)	
          Cancelled.305

        

  

  

  	

        	(c)	
          Information service for telephone number enquiries as set forth in Article 67A.1 (b) and Information Service through a telephone center to which the access shall be provided by a national access code as set forth in Article 67A.3 shall meet
            the following service standards:

        

  

  

  	

        	(1)	
          at any time, except in cases of heavy traffic of calls requesting the service306,  the amount of callers that will receive service shall not be less than 90%;

        

  	

        	(2)	
          the average waiting period of a caller until the start of receiving service307 shall not exceed 30 seconds;

        

  	

        	(3)	
          the maximum waiting period of a caller until the start of receiving service shall not exceed 60 seconds.

        

  

  

  	67A.7	
          Article 67A shall become effective on 8 February 2007 excluding Article 67A.1 (a) that will become effective on 15 March 2007 ("commencement date") but excluding Article 67A.2.308

        

  

  

  	67A.8	
          The Licensee, either itself or through another, including together with another licensee, shall publish any information service for telephone number enquiries that is being provided by the Licensee at no cost (hereinafter - “free information service");309 the publication shall include at least the following:

        

  

  

  	

        	(a)	
          an internet site of the Licensee;

        

  
    

    

                                                   

    305 Amendment No.
      87

    306 Busy Hour Call Attempts

    307 Start of receiving service-an answer by a telephone operator or by the IVR system that requests the information from the caller in order to locate the requested telephone number etc.

    308 Amendment No.
      42

    309 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(b)	
          every Telephone Bill of the subscriber.310

        

  	

        	(c)	
          at least four (4) times during the first year after the commencement date, the Licensee shall publish large and prominent advertisements in at least 3 of the most common newspapers in Hebrew and the most common newspaper in Arabic, English
            and Russian as well as in the most common financial newspaper; these advertisments shall not include any other information. The first publication regarding cost free information services shall be in the above detailed newspapers, except for the
            financial newspaper, which shall be on the first Friday after the commencement date or the following one and in the financial newspaper on the first Tuesday after the commencement date of the following one.

        

  

  

  Without derogating from the above-mentioned, the Minister may instruct the Licensee regarding the manner and format for the publication of the information services.

  

  

  	67B.	
          Deleted311

        

  

  

  	67C.	
          Service File

        

  

  

  	31267C.1	
          If the licensee wishes to activate a service that is included in the list of services listed in the First Appendix and titled “future”, it shall notify the director in writing no later than thirty (30) days before the date it intends to
            begin supplying the service.

        

  

  

  	67C.2	
          If the licensee wishes to activate a new service that is not included in the list of services listed in the First Appendix that it intends to supply to any of their service receipiants, it shall notify the directorin writing no later than
            thirty (30) days before the the date it intends to begin supplying the new service.

        

  

  

  	67C.3	
          The director shall notify the licensee within thirty (30) days of receipt of the notice of the licensee as set forth in Articles 67C.1 and 67C.2, if it is allowed to begin supplying the service or if it needs to submit a service file for the
            director’s approval, as a condition for beginning the service.

        

  

  

  	67C.4	
          The licensee shall submit a service file for the director’s approval upon his demand; if the licensee shall not submit a service file uponthe director’s demand, or if the director does not approve the service file, the licensee shall not
            begin supplying the service.

        

  

  

  	67C.5	
          The director’s decision regarding the service file submitted to him shall be given within sixty (60) days from the day that the licensee submitted to the director all the required documents and information for the approval of the service
            file. In special cases, the director may extend the dates set forth in this article, in a written and detailed  notice to the licensee.

        

  

  

  	67C.6	
          The director may require the licensee to submit for his approval a service file for an existing service, that does not require a service file, and he may also require the licensee to submit for his approval a new service file for a service
            for which a service file has already been approved.

        

  

  

  

                                                   

  

  
    310 Amendment No.
      87

    311 Amendment No.
      41

    312 Amendment No.
      41

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	67C.7	
          The service file shall be submitted to the director in a format and at a time set forth by the director and shall include ,among other things, provisions regarding the following:the name of the service, a detailed description of the service
            and the supply method, the service tariff,an engineering description, and all in accordance with the First Appendix; the director may advise of additional details that should be included in the service file.

        

  

  

  	67C.8	
          If the service file is approved, the licensee shall supply the service in accordance with the conditions of the approved file and the approved service file shall be considered an integral part of the license.

        

  

  

  	67C.9	
          The licensee shall publish the approved service file, with the details and in a manner set forth by the director, and the director may publish it himself, as long as he does not do so until after the licensee begins supplying the service.
            The notice to the public shall not include information that are trade secrets, that have been noted by the licensee and attached as a separate annex marked as trade secrets to the service file.

        

  

  

  	67C.10	
          Each new service file that the licensee shall begin supplying in accordance with this article, will be considered part of the First Appendix; the director shall update the Appendix from time to time.

        

  

  

  	67.11C	
          The provisions of this article shall apply with the necessary changes for tests by means of the network of the licensee.

        

  

  

  	67D313	
          Adult Voice Services

        

  

  

  Adult Voice Services provided through the Network, shall be done in accordance with the provisions of Annex "M", in the Second Supplement .

  

  

  For the purpose of this Article-

  

  

  "Adult Voice Services"- as defined in Article 1 in Annex M, in the Second Supplement.

  

  

  	67D.1314	
          Premium Service

        

  

  

  	31567D1.1	
          The Licensee may provide Premium Services in one of the following manners:

        

  

  

  	

        	a)	
          Premium Service, for which the payment is charged according to the Premium Tariff and is collected through the Telephone Bill shall be provided in accordance with the provisions of Appendix N.

        

   

  

  
                                                   

    313 Amendment No. 22

    314 Amendment No. 75

    315 Amendment No.
      76, 80

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	b)	
          Premium Service, for which the payment is charged according to the Regular Tariff (hereinafter in this sub-section "the Service") will be provided as follows:

        

  

  

  	

        	1)	
          As an internal network service through a network access code316;

        

  

  

  	

        	2)	
          By dialing a Fixed-line telephone number to which the access will be possible for each subscriber of the subscriber of a General Licensee.

        

  

  

  For this article,

  

  

  "Fixed-line telephone number"- a number format of geographic numbers and national fixed line numbers or number format star 4 digits (*XXXX), in accordance with
    that defined in the numbering plan317.

  

  

  "Premium Service" and "Premium Tariff" as defined in Appendix N

  

  

  31867E       National Roaming

  

  

  	67E.1	
          The Licensee shall supply Domestic Roaming Service through its 2G and 3G network to a Roaming Licensee to the Roaming Operator’s subscribers to the network of the host operator, as specified below. Notwithstanding that stated above, the
            Licensee shall supply Domestic Roaming Service through its network to the Roaming Operator’s subscribers to the network of the host operator in the event of dissolution of a partnership as approved in the Sharing Agreement.319

        

  

  

  	67E2.	
          Preparation of the Licensee

        

   

  

  The Licensee shall prepare for the execution of National Roaming in accordance with the following:

  

  

  	

        	a)	
          The provisions of Appendix X in the Second Annex;

        

  	

        	b)	
          The provisions of the law and the license regarding enabling use of its network and particularly Articles 30 through 30C, with the necessary changes.

        

  

  

  	67E.3	
          Operational arrangement

        

  

  

  	

        	a)	
          If the Roaming Licensee shall notify the Licensee in writing, after notifying the Minister that it did not reach an agreement with any of the existing Licensees regarding the conditions for the provision of roaming services as set forth in
            Article 5B(b)(1) of the Law, that it has chosen that Licensee  for the receipt of National Roaming services (in this section "the notice"), the Licensee and the roaming operator shall provide the Minister
            with the engineering and operational details that they have agreed upon between themselves regarding the implementation of National Roaming ("operational arrangement"), within three months from the date
            the notice is sent. In addition, the said operators shall include the required engineering and operational details in order to maintain National Roaming that were not included in the operational arrangement, due to disagreements, if there are
            any;

        

   

  

  
                                                   

    316 "Network
      access code" as defined in the numbering plan.

    317 For example numbers in the format 03-XXXXXXX and 07Z-xxxxxxx or *XXXX

    318 Amendment No.
      59

    319 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	b)	
          Issues that are not agreed upon, as set forth in sub-section (a) above, if there are any, shall be decided by the Director. The directions of the Director for this matter shall form an integral part of the operational arrangement.

        

  

  

  	67E.4	
          Commencement date of National Roaming implementation

        

  

  

  The host Licensee shall begin providing National Roaming services in accordance with the operational arrangement no later than three months from the date that the Roaming Licensee
    presented to the host Licensee the Minister's confirmation as set forth in section 5B(b)(2) of the Law.

   

  

  

  	67F.	
          International Roaming Service through the Network of the MRT Operator in the Neighboring Country

        

  

  

  	67F.1	
          The Licensee shall act so that in an area in which there is reception that allows the initiation of a proper call, from the network as well as from the network of the MRT operator in the neighboring country, the subscriber shall receive MRT
            service through the network. The Licensee shall perform the action itself without requiring any action on behalf of the subscriber.

        

  

  

  	67F.2	
          The Licensee shall block the possibility of the subscriber to receive international roaming service through the network of the MRT operator in the neighboring country ("the Service"), unless the
            subscriber explicitly requested to receive the Service, and after it was explained to him that as part of receipt of the Service, the handset in his possession may roam in the area of the border with the neighboring country, involuntarily, onto
            the network of the neighboring country, and that he was advised of the tariffs for the Service; if the subscriber requests to receive the said Service-

        

  

  

  	

        	a)	
          The Licensee shall explain to him how he may manually select, through the handset in his possession, the MRT network from which he will receive service;

        

  

  

  	

        	b)	
          The Licensee shall allow the subscriber to select whether to block access for receipt of data communications service through the MRT network of the neighboring country.

        

  

  

  	67F.3	
          In this section, "neighboring country"-Jordan and Egypt;

        

  "Proper call"- a call that takes place in accordance with the minimal reception definitions set in the international standards according to
    which the network operates.

  

  

  	67G	
          Offensive sites and content320

        

  

  

  67G.1        The Licensee shall notify its subscribers with respect to offensive sites and content as defined in section 4i of the law, as set forth in
    section 4i(b)(1) of the law; said notification shall be done in the manner set forth in section 4i(c) of the law.

  

  

                                                  

  
    320 Amendment No.
      65

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	67G.2	
          The Licensee shall notify its subscribers with respect to the existence of internet content that is unsuitable for children and teenagers (for example pornographic sites), and will include a list of ways in which the access to such content
            by children and teenagers can be blocked; said notification shall be done in the manner set forth in section 4i(c) of the law.

        

  

  

  	67G.3	
          The Licensee shall offer its subscribers, in all of the ways set forth in section 4i(c) of the law, an effective service for filtering offensive sites and offensive content at no extra cost to the payment that he charges for the internet
            access service, and all as set forth in section 4i(d) of the law, as long as the said service shall be based on an analysis of the information and not a "black list" of only sites.

        

  

  

  	67G.4321	
          (a) In Addition, the Licensee will offer its subscribers when they join the internet access service, as well as subscribers who joined the internet access service however have not yet joined the filtering service described in the previous
            section ("the Filtering Service"), once every six (6) months by sending an SMS message ("the Message").

        

  

    (b) The Licensee shall send the Message to the number or telephone numbers for which the transaction was made and to the additional subscriber number set out in the contract agreement for the receipt of various notices from the Licensee.

  

  

  (c) The wording of the Message will be as follows:

  "You are eligible to receive an abusive internet content filtering service for free from [here comes the marketing name of the Licensee as known to the customer [. The
    service is especially recommended for mobile devices for children and youth. To join the service, reply with the mobile number for which the service is required. For each number for which the service is requested, a separate message must be sent. For
    inquiries you can dial [here comes the Licensee's call center number"].

  

  

  (d) The subscriber or anyone holding the terminal equipment can reply to the message by SMS and confirm that they would like to receive the Filtering Service. The
    subscriber may reply for all phone numbers for which he has an agreement.

  

  

  (e)  If a subscriber is not registered for the receipt of SMS service, contact will be done through the IVR to the subscriber according to a wording similar to the text of
    the message and the subscriber will be able to notify of his wish to join the service.

  

    (f) If the subscriber or the person that has the terminal equipment replies that they are interested in the service, the Licensee will provide them with the service as soon as possible and not later than one working day from the date of the request. At
    the time of connection to the service, the Licensee will send to the subscriber and to the phone number that joined the service (if not identical) a text message and update that they have been connected to the service. The Licensee shall also state
    that only the subscriber will be allowed to disconnect from the service at any time and will detail the methods to disconnect from the service.

  

  

  
    (g) If the Licensee is unable to remotely verify that the service was activated for a specific subscriber, the Licensee will reasonably verify with the subscriber within
      one working day from the date of the request that the subscriber is indeed able to connect to the service.

  

  

  

  
                                                    

  

  
    321 Amendment
      No. 99

  

  

  

  
    
      
        

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  Section C - Suspension or Disconnection of Service and Termination of an Engagement322

   

  	68.	
          Definitions

        

  

  

  	
          “Termination of Service”

        	
          -

        	
          permanent disconnection of any of the Licensee’s services to all of the subscribers;

        
	 	 	 
	
          “Suspension of Service”

        	
          -

        	
          temporary halting of any of the Licensee’s services or of all of the Licensee’s services, which are being provided to a subscriber;

        
	 	 	 
	
          “Disconnection of Service”

        	
          -

        	
          Permanent disconnection of any of the Licensee’s services, which are being provided to a subscriber;

        
	 	 	 
	
          “Termination of an Engagement”

        	
          -

        	
          Disconnection of all of the Licensee’s services being provided to a subscriber, and termination of the engagement agreement with him.323

        

  

  

  	69.	
          Prohibition of Suspension or Disconnection of Service

        

  

  

  The Licensee is not entitled to suspend or disconnect MRT Services and other services, which the Licensee is obliged to provide in accordance with this License, unless that which
    is stated in this part, or that stated in Paragraph 48 exists.

  

  

  	69A.	
          Prohibition of Termination of Service

        

  

  

  The Licensee is not allowed to terminate MRT Services and other services that the Licensee is obligated to provide pursuant to this License, unless that stated in this part or
    that stated in clause 48 have been fulfilled.

   

  

  

  322 Amendment No.
    87

  323 Amendment No.
    87

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	69B.	
          Suspension of Service at the Subscriber’s Request

        

  

  

  	69B.1	
          A subscriber may request from the Licensee to suspend service in respect of all of the Licensee’s services, once a year, for a period of between a minimum of thirty (30) days and a minimum of ninety (90) days324.

        

  

  

  	69B.2	
          A subscriber may submit a request to suspend a service in the following ways:

        

  

  

  	

        	(a)	
          in writing, including by way of ordinary post, facsimile, electronic mail or online form on the Licensee’s website, to which various types of files may be attached, and the Licensee may enable the submission of a request by way of internet
            chat calls;

        

  

  

  	

        	(b)	
          orally, during a call to the telephone call center or at a service station of the Licensee;

        

  

  

  	69B.3	
          The Licensee must document the subscriber’s request and make this documentation available for delivery or forwarding to the Director, upon his request, and this, within five (5) workdays of the submission date of the request.

        

  

  

  	69B.4	
          The Licensee shall carry out a suspension of service, disconnection of service or termination of engagement by no later than one workday after the day on which the request was submitted; if the subscriber indicated a future date in its
            request for executing the suspension of service, disconnection of service or termination of engagement, the Licensee shall carry out the request on the date specified by the subscriber.

        

  

  

  	69B.5	
          The Licensee must document in its information systems the date and time of the execution of the subscriber’s request.

        

  

  

  	69B.6	
          If a suspension of service was executed for a subscriber, the Licensee shall resume the provision of the service by no later than one workday after the day on which the subscriber’s request was submitted, unless the subscriber requested a
            later date for resuming the provision of the service.

        

  

  

  	69B.7	
          If the subscriber requested a suspension of service for all of the Licensee’s services, the Licensee shall save the subscriber’s telephone number for him throughout the entire period of the suspension, and shall not transfer it to another
            party.

        

  

  

  	69B.8	
          The Licensee is not allowed to collect payment from the subscriber for suspension of service, for resuming the provision thereof, and is not allowed to collect payment from the subscriber for the period of the suspension of all of its
            services.

        

  

  

  	69B.9	
          After the provision of the service was resumed for the subscriber, the Licensee shall charge the subscriber according to the plan tariffs and conditions, pursuant whereto the subscriber had been charged prior to the suspension of the
            service, unless the plan tariff and rates were changed for all subscribers to that plan during the period of the suspension of service.

        

   

    

    324 Amendment
      No. 90

    

  

  
    
      

  

  
    
      

        
          Translation from Hebrew

          The Binding version is the Hebrew version

        

      

       

      

      69B.101

      	

            	(a)	
              The Licensee shall not block a subscriber from calling national abbreviated telephone numbers with 3 or 4 digits and telephone numbers that have been allocated to
                the State and its institutions.

            

      

      

      		

            	
              If the Licensee becomes aware that a subscriber is blocked from calling telephone numbers that have been allocated to the State and its institutions, it shall act to remove the blockage within one work day, or
                within a shorter period of time, as instructed by the Director General.

            

      

      

      		

            	
              In this section, "the State and its institutions"-as defined in section 30a of the Law.

            

      

      

      	

            	(b)	
              In a tariff plan that includes call execution service, in which the call service is blocked to certain destinations, the Licensee will maintain documentation of the
                blockage details, for each number that is blocked for communication. The documentation should include at least the blocked phone number, subscriber name (if known), blockage date, blockage reason, name of the person who requested the
                blockage, for the entire blockage period and for one year after the blockage has been removed.

            

      

      

      	

            	(c)	
              The Licensee that blocked phone numbers for communication that are numbers registered to corporations, associations and endowments, in accordance with a request by
                a group of subscribers shall publish on its website the list of numbers that it blocked, the name of the blocking entity and the date of the blockage.

            

      

      

      	

            	(d)	
              A subscriber that was blocked as set forth in section (c) above, in accordance with a request of a group of subscribers, whether a subscriber of the Licensee or
                whether a subscriber of another licensee, may contact by phone the customer service of the Licensee in order to check whether he has been blocked and the reason for the blockage, and the Licensee must reply to the request with one working
                day from the request.

            

      

      

      	

            	(e)	
              The provisions of section (a) above shall become effective as of 17.8.2021.

            

      

      

      	

            	(f)	
              The provisions of section (b)-(d) above shall become effective as of 01.02.202223.

            

      

      

      1 Amendment No. 117

      2 Amendment No. 123

      3 Amendment No. 119

    

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	69C.	
          Disconnection of Service at the Subscriber’s Request

        

  

  

  	69C.1	
          A subscriber may request disconnection of service from the Licensee; the subscriber may submit its request in writing or orally, as stated in clause 69B.2.

        

  

  

  	69C.2	
          The provisions of the above clauses 69B.3 through 69B.5 shall apply to a disconnection at a subscriber’s request, and the Licensee is not allowed to collect payment from the subscriber for disconnection of the service.

        

  

  

  	69D.	
          Termination of an Engagement at the Subscriber’s Request

        

  

  

  	69D.1	
          A subscriber may notify the Licensee of termination of the engagement between them; the subscriber may deliver its notice in writing or orally, as stated in clause 69B.2.

        

  

  

  	69D.2	
          The provisions of the above clauses 69B.3 through 69B.5 shall apply to termination of an engagement at the subscriber’s request.

        

  

  

  	69D.3	
          The Licensee shall send notice to the subscriber about the termination of the engagement within two workdays of the date of the subscriber’s request to carry out the termination of the engagement. The notice must include, inter alia, the
            date of execution of the termination of the engagement and the deadline for sending the last final Bill, which relates to the last billing period of his being a subscriber of the Licensee (“Final Bill”).

        

  

  

  	69D.4	
          A subscriber who terminated the engagement with the Licensee must receive a Final Bill on the closest possible date, and by no later than two months after the termination date of the engagement.

        

   

  

  The Final Bill must specify the execution date of the termination of the engagement and it must bear the heading “Final Bill.”

  

  

  	69D.5	
          That stated in this clause in no way derogates from a termination of engagement by way of number portability, according to a numbering plan relating to number portability – consolidated version, of 22.8.2005, inclusive of amendments thereto.

        

  

  

  	69E.	
          Saving the Telephone Number upon Termination of an Engagement

        

  

  

  	69E.1	
          If a termination of an engagement between the Licensee and a subscriber was executed, whether at the initiative of the Licensee or at the subscriber’s initiative, the Licensee shall save the telephone number for the subscriber, at no charge
            and without any conditions or restrictions, and shall not deliver it to another party and shall not return it to the pool of numbers designated for allotment, either of the Licensee or of another licensee that had initially allotted it, and
            this, for a period of fourteen (14) days after the termination date of the engagement.

        

  

  

  	69E.2	
          If the subscriber asked to retrieve his telephone number within the said timeframe, the Licensee shall carry out the subscriber’s request immediately, and it is allowed to charge the subscriber for the timeframe between the termination of
            the engagement and its resumption with that same telephone number that was returned to him, according to the terms of the tariff plan he had subscribed to prior to the execution of the termination of the engagement, and to continue to charge
            him pursuant to the terms of the said tariff plan.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	69F.	
          Suspension or Disconnection of Service or Termination of an Engagement – General Provisions

        

  

  

  	69F.1	
          The Licensee must display a link called “Suspending/Disconnecting of Service”325 on the home page of its website, in a
            conspicuous manner and location, the pressing of which will redirect to the following three possibilities:

        

  

  

  	

        	(a)	
          suspension of service;

        

  

  

  	

        	(b)	
          disconnection of service;

        

  

  

  	

        	(c)	
          termination of an engagement.

        

  

  

  	69F.2	
          The Licensee shall display the following details in each of the three said possibilities:

        

  

  

  	

        	(a)	
          brief explanation of the selected possibility;

        

  

  

  	

        	(b)	
          the modes of communication for the purpose of submitting a request in each of the said possibilities, including the telephone number, address, facsimile number, electronic mail address, the online form and internet chat calls, insofar as the
            Licensee chose this possibility, through which a subscriber can submit such a request;

        

  

  

  	

        	(c)	
          the details that the subscriber must specify in his request, including the telephone number relevant to the request, the subscriber’s ID number, the last four (4) digits of the means of payment, electronic mail address, insofar as the
            subscriber uses electronic mail for the purpose of submitting his request, and the subscriber’s specified date for carrying out his request;

        

  

  

  	

        	(d)	
          the date of execution of the subscriber’s request, the termination date of the billing in the Telephone Bill and the deadline for sending a Final Bill to the subscriber in the instance of termination of an engagement.

        

  

  

  	69F.3	
          The Licensee shall publish on every Telephone Bill, the telephone number, address, facsimile number and electronic mail address through which the subscriber can submit requests as stated.

        

  

  

  	69F.4	
          If the subscriber submitted his request via electronic mail, the Licensee shall send, immediately upon receiving the request, a reply electronic mail notice acknowledging the receipt of the request. The notice shall include the number
            assigned to the subscriber’s request in the Licensee’s system, the receipt date of the request, and the contents of the request as sent by the subscriber.

        

  
    

    

    
 

  
    	325	
            A link called “contact us” shall not be deemed a substitute for the said link.

          

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	69F.5	
          If the subscriber submitted his request via online form, the Licensee shall display on the device screen through which the online form was sent (computer or compatible MRT Terminal Equipment) a notice acknowledging receipt of the request;
            the notice shall contain the details specified in clause 69F.4.

        

  

  

  	69F.6	
          If the subscriber’s request, which was submitted via online form, included one of the details specified in subclause 69F.2(c) and it is erroneous, the Licensee shall mark the erroneous detail on the online form and the subscriber shall be
            requested to resubmit his request with the correct detail.326

        

  

  

  	70.	
          Cancelled327

        

    

  	71.	
          Cancelled328

        

   

  	71A.329	
          Blocking of MRT Terminal Equipment and Services Due to Theft or Loss330

        

  

  

  	71A.1	
          The Licensee shall retain the IMEI – International Mobile Equipment Identity number in its MRT System that the subscriber is using, apart from MRT Terminal Equipment operating with iDen technology (hereinafter in this clause – “Terminal Equipment”).331

        

  

  

  	 71A.2	
          If the subscriber notified the Licensee that his Terminal Equipment has been stolen or lost, the Licensee shall perform the following:

        

  

  

  	

        	(a)	
          During the conversation with the subscriber when delivering his notice as stated, the Licensee shall take action to reliably identify the subscriber.

        

  

  

  	

        	(b)	
          The Licensee shall raise the possibility to the subscriber of immediately filing a complaint at a police station about the theft or loss of the Terminal Equipment.

        

  

  

  	

        	(c)	
          The Licensee shall request an alternate telephone number from the subscriber through which contact can be made with him.

        

  

  

  	

        	(d)	
          The Licensee shall immediately perform a “suspension of service” at no charge for all of the services being provided for consumption, including international services, by blocking the subscriber’s SIM card, apart from incoming calls, if the
            subscriber asked to not block these calls, immediately upon receiving the notice about the theft or loss of the Terminal Equipment, and shall notify the subscriber of this.

        

  

  

  	

        	(e)	
          Notwithstanding that stated, the Licensee shall perform a “suspension of service” at no charge for all of the MRT services being provided to the subscriber, including incoming calls, after three (3) days have elapsed since the receipt date
            of the notice regarding the theft or loss of the Terminal Equipment.

        

  

  

                                                  

  
    326 Amendment No.
      87

    327 Amendment No.
      87

    328 Amendment No.
      87

    329 Amendment No. 46

    330 Amendment No.
      87

    331 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(f)	
          If the subscriber notified of the theft or loss of the Terminal Equipment while he is located abroad and is receiving international roaming services, the Licensee shall immediately perform and at no charge “suspension of service” for all of
            the MRT services being provided to the subscriber, by blocking the subscriber’s SIMcard, including with regard to incoming calls, unless the subscriber asked to not block these calls.

        

  

  

  	

        	(g)	
          The Licensee shall block the Terminal Equipment at no charge, by blocking the IMEI number of the said equipment, as last received in the Licensee’s MRT System, and this, immediately after twelve (12) hours have elapsed since the time of the
            subscriber’s notice about the theft or loss of the Terminal Equipment. The Licensee shall advise the subscriber, when receiving his notice about the theft or loss of the Terminal Equipment, that the blocking of the Terminal Equipment by
            blocking his IMEI number, shall be carried out at the time as stated.

        

  

  

  	

        	(h)	
          The Licensee shall immediately remove and at no charge, the blocking from the Terminal Equipment, according to the request of an authorized party; “authorized party” for the purposes of this clause is
            a police officer who received authorization from a police officer at the rank of brigadier-general to contact the Licensee and to instruct him about removal of the blocking. The Licensee shall mark in its information system, using a special
            marketing, Terminal Equipment for which an “authorized party” requested removal of blocking, but shall not disclose any information about removal of the blocking, as stated.

        

  

  

  	

        	(i)	
          The Licensee shall again block the Terminal Equipment after authorized to do so by the “authorized party.”

        

  

  

  	

        	(j)	
          The Licensee shall resume the provision of all of the services to the subscriber immediately upon delivering a new SIM card to the subscriber.

        

  

  

  	

        	(k)	
          The Licensee shall specify in the subscriber’s Telephone Bill immediately after the date it received the subscriber’s notice about the theft or loss of the Terminal Equipment, or in the following Telephone Bill, the date and time of the
            subscriber’s report, the date and time of the suspension of the MRT Services to the said Terminal Equipment, as specified in clauses 71A.2.(d) through 71A.2.(f), and the date and time of the execution of the blocking of the Terminal Equipment,
            in the event that the equipment was not found. 332The Licensee may deliver the said information by letter or electronic-mail message or text message in lieu of in
            the Telephone Bill.

        

  

  

                                                  

  
    332 Amendment
      No.90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(l)	
          The Licensee must retain documentation of the Telephone Bill, which includes the said notices or the letter333, and make this documentation available for
            delivery or forwarding to the Director, upon his request, and this, within five (5) workdays of the production of the Bill.

        

  

  

  	

        	(m)	
          On a daily basis, the Licensee shall forward a computer file to all MRT Operators, including MRT Operators on another network, and to “the authorized party,” which includes information about any Terminal Equipment, the IMEI number of which
            it has blocked on that day, about any Terminal Equipment for which the blocking of the IMEI number has been removed on that day at the subscriber’s request, about any Terminal Equipment for which the blocking of the IMEI number has been removed
            on that day at the request of “the authorized party,” and about any Terminal Equipment, the IMEI number of which has been reblocked, with the approval of “the authorized party,” after the blocking thereof had been removed earlier at its
            request. The Licensee shall forward the said computer file daily, by 23:00, in relation to all Terminal Equipment that was blocked or unblocked as stated up until 23:00.

        

  

  

  	

        	(n)	
          On a daily basis and by 24:00, the Licensee shall update the list of Terminal Equipment in its information system that it blocked on that day and, by 24:00, shall update the list of Terminal Equipment that were blocked by other MRT Operators
            on that day, and for which a report about them were delivered to it by way of computer files sent to it by other MRT Operators. The list must include the following details in relation to each piece of Terminal Equipment:

        

  

  

  	

        	(1)	
          its IMEI number;

        

  

  

  	

        	(2)	
          name of the manufacturer;

        

  

  

  	

        	(3)	
          model of the Terminal Equipment;

        

  

  

  	

        	(4)	
          blocking date and time;

        

  

  

  	

        	(5)	
          name of the Licensee that ordered the blocking.

        

  

  

  	

        	(o)	
          The Licensee shall at all times enable the performance of a search on its website according to the IMEI number of the Terminal Equipment, when the IMEI number has been blocked due to a notice of theft or loss.

        

  

  

  	

        	(p)	
          The Licensee shall retain an updated list in its possession with the details as specified in subclause (n) of all Terminal Equipment that has been blocked, and deliver or forward it to the Director, upon his request. The said list must be
            identical at all of the MRT Operators.

        

  

  

                                                  

  
    333 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(q)	
          The Licensee shall publish the following information on its website:

        

  

  

  	

        	(1)	
          recommended actions that subscribers should take if their Terminal Equipment is stolen or lost, including:

        

  

  

  	

        	((a))	
          setting a password to prevent use of the Terminal Equipment by any unauthorized person;

        

  

  

  	

        	((b))	
          installing applications in the Terminal Equipment, insofar as at issue is a smartphone, which enables identifying the location of the Terminal Equipment, and enables remote blocking of access to information in it, or deletion thereof;

        

  

  

  	

        	((c))	
          performing backs up of vital information to a computer or through cloud services, such as: photos, videos, lists of contacts and e-mail messages.

        

  

  

  	

        	(2)	
          actions that subscribers should take once they realize that their Terminal Equipment has been stolen or is lost.334

        

  

  

  	71A.3	
          The Licensee shall provide the details of  terminal equipment it has blocked, to any other MRT licensee, no later than one working day after the execution set forth in Article 71A.2.

        

  

  

  	71A.4335    (a)	
          The Licensee is not allowed to supply MRT services to terminal equipment it or another MRT licensee has blocked.

        

  

  

  	

        	336(b)	
          Notwithstanding the above-mentioned in Article 71A.2 and sub-section (a), if the blocking of the identification number will cause termination of service for other terminal equipment with the same identification number, the Licensee may
            choose to not perform the said blocking.

        

  

  

  	71A.5	
          The Licensee shall cancel the blocking to the terminal equipment it has blocked, after receipt of a request 337from the subscriber; the cancellation of the
            blocking shall be done no later than one working day after the Licensee has verified the credibility of the request, unless the subscriber has specifically noted another later date. 338

        

  

  

  	71A.6	
          The Licensee shall publish its obligations to all its subscribers regarding the possibility of blocking MRT terminal equipment, the methods for recording the identification number of the terminal equipment with the Licensee and the
            application process for the blocking; the publication shall be done in one of the following manners:

        

  

  

  	

        	(a)	
          in the subscriber agreement;

        

  	

        	(b)	
          on the Licensee's website

        

  	

        	(c)	
          in a separate information page that will be attached to the monthly subscriber invoice, by30 January 2009339.

        

  

  

                                                  

  
    334 Amendment No.
      87

    335 Amendment No.
      47

    336 Amendment No.
      47

    337 Amendment No.
      48

    338 Amendment No.
      48

    339 Amendment No.
      48

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	71A.7	
          Deleted340

        

  

  

  	72.	
          Termination or Disconnection or Termination of an Engagement341 of Service Due to Breach of Agreement

        

  

  

  	72.1	
          The Licensee is entitled to terminate or disconnect service to a Subscriber or to terminate the engagement with him342 if one of following exists:

        

   

  	

        	(A)	
          The Subscriber did not pay a payment which he or she owes for the Service he or she has received, on the date determined for payment, in his or her Subscriber Agreement with the Licensee;

        

   

  	

        	(B)	
          The Subscriber breached a condition in the Subscriber Agreement between him or her and the Licensee, which has been determined a fundamental condition;

        

   

  	

        	(C)	
          The Subscriber has unlawfully used or has permitted another party to unlawfully use the Terminal Equipment in his or her possession.

        

  

  

  	72.2	
          343Service shall not be discontinued, service shall not be disconnected and no action shall be taken to terminate an engagement with a Subscriber in the
            instances specified in clause 72.1(a) and (b), until after the Licensee has issued prior written notice to the Subscriber of at least ten (10) days prior to the date of the discontinuance or disconnection or termination of the engagement; the
            notice must state that the Subscriber is being given an opportunity, within the timeframe to be specified in the notice, to rectify the act or omission due to which the Service shall be discontinued or the Service shall be disconnected or
            action shall be taken to terminate the engagement. The Licensee must document the notice issued to the Subscriber, retain the documentation in its possession and make it available for delivery or forwarding to the manager, at his request,
            within five (5) workdays of the execution date of the discontinuance of service or disconnection of service or termination of the engagement

        

  

  

  	72.3	
          Notwithstanding that stated in Paragraph 72.2, the Licensee is entitled to suspend344 or disconnect345 the Subscriber’s service or to terminate the engagement with him346 without notice should one of the following occur:

        

   

  	

        	(A)	
          The Subscriber did not pay his or her bill of payment he or she was billed for the third time during a period of twelve (12) months for MRT Services on the date determined in the payment notice;

        

   

  	

        	(B)	
          There is reasonable concern about an act of fraud through the Terminal Equipment of the Subscriber or though the features of the Terminal Equipment;

        

   

  	

        	(C)	
          Cancelled347.

        

  

  

                                                  

  
    340 Amendment
      No. 98

    341 Amendment
      No. 90

    342 Amendment
      No. 90

    343 Amendment
      No. 90

    344 Amendment 87

    345 Amendment
      No. 90

    346 Amendment
      No. 90

    347 Amendment 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	72.4	
          The Licensee may suspend348 Service of the Subscriber if it is evident that the Terminal Equipment in the possession of the Subscriber, through which the
            Subscriber attains MRT Services, causes interference in the provision of MRT Services to other Subscribers or interference to the activities of the MRT Network, provided the Licensee gave the Subscriber notice in writing no less than twenty one
            (21) days before the expected suspension349 date; in the notice, the cause of the expected suspension350 will be specified and the fact that the Subscriber is granted an opportunity, within the time framework that will be determined in the notice, to repair the Terminal Equipment in a manner which will prevent the
            said interference.

        

  

  

  	72.5	
          Insofar as the Licensee suspends service for all of its services, due to a subscriber’s breach of agreement, the Licensee shall stop collecting a monthly or other fixed periodic payment from the subscriber of the date of the suspension of
            service, as stated, and this, until the provision of all services is resumed; during the billing period in which the service was suspended as stated, the Licensee shall collect a fixed payment from the subscriber according to that specified in
            clause 74.3(c) or according to that specified in clause 74.3(d), as relevant.351

        

  

  

  	72A.352	
          Disconnection of Service353 to Dormant Subscribers

        

  

  

  	72A.1	
          The Licensee is allowed to disconnect service to a dormant subscriber.354 If the Licensee wishes to disconnect355 service to a dormant subscriber, it must give the dormant subscriber prior notice of this intention as set forth below (hereinafter, in this Article "notice"). The
            service disconnection356 date shall not be less than thirty (30) working days after the date the notice is sent.

        

  

  

  	72A.2	
          The Licensee shall specify in the notice, the telephone number to which it intends to disconnect357 from service.

        

  

  

  	72A.3	
          The notice to a dormant subscriber shall be done as follows:

        

  

  

  	

        	(a)	
          For a subscriber whose name and address are known to the Licensee, in any of the following ways-

        

  	

        	(1)	
          by a letter sent by regular mail;

        

  	

        	(2)	
          by 2 short messages (SMS) that should be sent to the dormant subscriber in intervals of at least two weeks between messages;

        

  

  

  	

        	(b)	
          For a subscriber whose name and address are unknown to the Licensee-by four SMSs that should be sent to the dormant subscriber in intervals of at least one week between messages;

        

  

  

                                                  

  
    348 Amendment 87

    349 Amendment 87

    350 Amendment 87

    351 Amendment 87

    352 Amendment No. 46

    353 Amendment 87

    354 Amendment 87

    355 Amendment 87

    356 Amendment 87

    357 Amendment 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(c)	
          Notwithstanding the above-mentioned in Article (a)(2) and (b), if the subscriber's terminal equipment does not support the receipt of SMSs, the Licensee shall send the subscriber voice messages instead of SMSs, if the subscriber's terminal
            equipment supports the receipt of voice messages.

        

  

  

  	

        	(d)	
          The Licensee shall retain documentation of the sending of the notice to a dormant subscriber as follows:

        

  

  

  	

        	(1)	
          a copy of the letter sent via ordinary post;

        

  

  

  	

        	(2)	
          a printout of the log from the short message service center (SMSC), as specified in clause 60.6(c).358

        

  

  

  	72A.4	
          The Licensee shall not disconnect359 service to a dormant subscriber to whom a message was sent if the dormant subscriber notified the Licensee that he does not
            wish to disconnect from 360 services. The subscriber may send such a message either by telephone or in writing including by facsimile or electronic e-mail;

        

   

  

  Notwithstanding the aforesaid, the Licensee may disconnect361 service to a dormant subscriber that
    notified the Licensee that he is not interested in disconnecting from362 services, after sending the subscriber at least two messages, as set forth in Article 72A.3 (a)
    and 72A.5 (a), and, in the second message, the Licensee notified the subscriber that if, within one year of the second message, the subscriber will not use the MRT service, service will be disconnected363 to the subscriber, and will not have to send another notification.

  

  

  	72A.5	
          The Licensee shall not be allowed to send a subscriber an additional notice regarding its request to disconnect364 service, except after one year of the date
            when the previous notice was sent to the subscriber.

        

  

  

  	72A.6	
          The Licensee shall save the telephone number of the dormant subscriber to whom service was disconnected365 for at least four (4)366 months free of charge,367 from the date of disconnection368 of service termination, before returning the number to the telephone number pool of the Licensee itself or be returned to another MRT licensee that originally allocated the telephone number to
            the dormant subscriber. If, during this period, a written request is received from the dormant subscriber to renew the service, the Licensee shall renew the service under identical conditions to those that applied before service was
            disconnected,369 free of charge.

        

  

  

                                                  

  
    358 Amendment 87

    359 Amendment 87

    360 Amendment 87

    361 Amendment 87

    362 Amendment 87

    363 Amendment 87

    364 Amendment 87

    365 Amendment 87

    366 Amendment 87

    367 Amendment 87

    368 Amendment 87

    369 Amendment 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	72A.7	
          In the event of disconnection370 of service to a dormant Prepaid subscriber, that has a remaining balance, the Licensee shall refund the dormant subscriber for
            the remaining balance within 30 days after receipt of a written request from the dormant subscriber that proves that he is the owner of the line to which service was disconnected,371 if the request is received by the Licensee no later than six months after the service disconnection372 date.

        

  

  

  	72B	
          Disconnection of a Service due to Recovery of the Network during a Malfunction373

        

  

  

  	72.1B	
          The Licensee may disconnect or temporarily limit services that it is obliged to provide, in order to allow a quick recovery of the network at the time of a significant malfunction.

        

  

  

  For this matter- "significant malfunction" – a malfunction that causes the disconnection of service to 10% of the subscribers or to at least 100,000 subscribers, the lower of the
    two.

  

  

  In this section, "subscriber" – including a subscriber of an MRT licensee in another network and a subscriber of a roaming licensee that use the network.

  

  

  	72.2B	
          The Licensee shall submit for the Director's approval, a procedure and a detailed engineering process for the recovery of the network in case of a significant malfunction ("the procedure") within  15
            days from the date of signature of this amendment.

        

  

  

  	72.3B	
          During a significant malfunction the Licensee shall act in accordance with the procedure that was submitted to the Director or approved by the Director, the later of the two.

        

  

  

  	72.4B	
          The procedure should include, inter alia, an initiated disconnection of services to subscribers that were not directly affected by the significant malfunction that shall begin no more than two hours after identification of the significant
            malfunction; this is in order to reduce the burden and the controlled reinstatement of regular and proper service.

        

  

  

  	72.5B	
          The procedure shall allow, as much as possible, preferability  for regular and proper services for the security forces, public emergency services and hospitals, as will be decided by the Director.

        

  

  

  	73.	
          Disconnection of Service due to Maintenance Procedures

        

  

  

  	73.1	
          The Licensee may temporarily disconnect or limit services which it is obliged to provide, if the requirement to execute vital actions of maintenance or if establishment of MRT Network obliges this (hereinafter “Disconnection due to
            Maintenance”), provided all the following exist:

        

  

  

  	

        	(A)	
          Duration of Disconnection due to Maintenance does not exceed twelve (12) consecutive hours;

        

  

  

                                                  

  
    370 Amendment 87

    371 Amendment 87

    372 Amendment 87

    373 Amendment No.
      66

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(B)	
          The number of Disconnections due to Maintenance does not exceed two (2) during one year;

        

  

  

  	

        	(C)	
          Cancelled374

        

  

  

  	73.2	
          The Director may require the Licensee to present a detailed explanation of the conditions which oblige Disconnection due to Maintenance, and the Director may require the Licensee to postpone the said Disconnection if he or she finds, after
            considering the Licensee’s arguments, that vital public interest obliges the said postponement.

        

  

  

  	73.3	
          Should it be required, due to the necessity to perform vital actions of maintenance or construction in the MRT System, to disconnect service for a duration of over twelve (12) hours, the Licensee will request a prior approval of the
            Director;  the request will specify the required maintenance actions and the actions taken by the Licensee in order to expedite these actions and to reduce as much as possible the duration of Disconnection of Service.

        

  

  

  	73.4	
          Cancelled.

        

  

  

  	73.5	
          Should Disconnection or limitation of service be required urgently for the purpose of vital and immediate activities, the Licensee will inform the Director immediately, including by telephone, telegram or facsimile message, about the urgent
            Disconnection or limitation;  the Licensee will inform its Subscribers about urgent Disconnection or limitation as stated above as early as possible, including through the MRT System public address service insofar as this is possible, and also
            through the public media.

        

  

  

  	73.6	
          Notwithstanding that stated in Paragraph 73.1, the Licensee is not obliged to notify the Director or its Subscribers as to Disconnection due to Maintenance if the following exist, and that the stated Disconnection  will not be counted in the
            count of Disconnections that is binding under Paragraph 73.1(b):

        

   

  	

        	(A)	
          The duration of the Disconnection due to Maintenance does not exceed half an hour;

        

   

  	

        	(B)	
          Disconnection due to Maintenance, as stated, occurs between 24.00 Saturday night and 0500 on the following Sunday morning.

        

   

  

  
                                                   

    374 Amendment No.
      5

    

    
      
        

    

     

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

    

  Chapter F - Payment for Services

  

  

  Section A - General

  

  

  	37573A.	
          Definitions

        

  

  

  In this Chapter:

  

  

  	“Air time” -	
          the time during which a Subscriber receives MRT services, whether the communication was initiated by the Subscriber or by another;

        

  

  

  	"Air time unit"376-	
          a time unit of no more than 12 seconds however as of 5 Tevet 5769 (1 January 2009) a time unit of 1 second.

        

   

  	“Basked of services” -	
          a number of services marketed to the Subscriber in a package, for which a tariff has been set as prescribed in clause 75.2;

        

   

  	“Public	
          shall include an International Communications System;

        

   

  Telecommunications

   

  Network”

   

  “Payment for Call Completion”

   

  a payment made by the initiator of a call, which commences at the Terminal Equipment connected to one Public Telecommunications Network and terminates at
    another Public Telecommunications Network or at Terminal Equipment connected to such a Public Telecommunications Network for the completion of the call on the other Public Telecommunications Network.

  

  

  	74.	
          Types of  Payments

        

  

  

  	74.1	
          377The Licensee shall be allowed to collect payments from its Subscribers for MRT Services, as follows:

        

   

  	

        	(a)	
          one-time installation fees for the connection of mobile or hand-held Terminal Equipment in the possession of the Subscriber, to the MRT Network, 378(hereinafter:

            “Connection Fees”);

        

   

  	

        	(a1)	
          SIM card fee – a one-time payment for a SIM card (SIM);379

        

   

  	

        	(b)	
          a fixed monthly380 payment;

        

   

  	

        	(c)	
          payment for Air Time as specified in clause 75.10;

        

   

  	

        	(d)	
          payment for Call Completion as specified in clause 75A;

        

   

  
    

    375 Amendment No. 5

    376 Amendment No.
      29

    377 Amendment No.
      56

    378 Amendment No.
      87

    379 Amendment No.
      87

    380 Amendment No.
      56

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(e)	
          Payment for Basic Services, Accompanying Services and Value Added Services, as specified in the First Annex to the License.

        

  

  

  	74.2381	
          The Licensee shall not be allowed to collect from a subscriber:

        

  	

        	(a)	
          Payment for initiating a call;

        

  	

        	(b)	
          Minimum payment for a call;

        

  	

        	(c)	
          382383

        

  

  

  	74.3384	
          The Licensee shall collect payments from a subscriber in accordance with the following:

        

  

  

  	

        	(a)	
          In a One-time Transaction the payment for the services that are to be provided shall be executed by Pre-paid; the Licensee shall be allowed to collect all of the payment for this type of transaction retroactively.

        

  

  

  	

        	(b)	
          In an Ongoing Transaction the payment for the services that were provided shall be executed by Post-paid, however the Licensee shall be allowed to collect Pre-paid payment in an Ongoing Transaction, if the subscriber requests this, provided
            that the payment shall be executed in cash using vouchers that will be issued to the subscriber by the Licensee.

        

  

  

  	

        	(c)	
          In a transaction as specified in subclause (b), in which a monthly or other fixed periodic payment is collected from the subscriber for a bundle of services, in respect of the billing period during which an engagement was terminated or all
            services were suspended at the subscriber’s request, including when porting a number, the Licensee shall charge the subscriber, as the fixed payment as stated, according to the higher of the following:

        

  

  

  	

        	(1)	
          The ratio between the number of days from the start of the billing period until the termination of the engagement or the suspension date, as stated, on the date defined by the subscriber in his request, or until a maximum of one workday
            after the submission date of his request to terminate an engagement or to suspend all of the Licensee’s services, insofar as the subscriber did not define a date for terminating the engagement or for the suspension, as stated, and the inclusive
            number of days in the billing period;

        

   

  	

        	(2)	
          The higher ratio between the services included in the bundle of services and the number of units of the service consumed since the beginning of the billing period up until the termination date of the engagement or the suspension date, as
            stated, on the date defined by the subscriber in his request, or until a maximum of one workday after the submission date of his request to terminate an engagement or to suspend all of the Licensee’s services, insofar as the subscriber did not
            define a date for terminating the engagement or for the suspension, as stated, and the number of units allocated for the billing period.

        

   

  

  
                                                   

    381 Amendment

      No. 56

    382 Amendment No.
      57

    383 Amendment
      No.84

    384 Amendment No. 84

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(d)	
          In a transaction as specified in subclause (b), in which a monthly or other fixed periodic payment is collected from the subscriber without a bundle of services, the Licensee shall charge the subscriber the fixed payment as stated, in
            respect of the billing period during which an engagement was terminated or all of its services were suspended at the subscriber’s request, including when porting a number, according to that specified in clause 74.3(c)(1).

        

  

  

  	

        	(e)	
          In a transaction as specified in subclause (b), in which a monthly or other fixed periodic payment is collected from the subscriber, the Licensee is not allowed to collect any payment from the subscriber for the timeframe before the
            activation of the SIMcard.

        

  

  

  	

        	(f)	
          In a transaction as specified in subclause (b), in which a monthly or other fixed periodic payment is collected from the subscriber, as a result of a subscriber’s switch from one tariff plan to another tariff plan, the Licensee shall charge
            the subscriber, as the fixed payment as stated, for the period as of the start of the billing period until the transaction execution date,385 according to the
            tariffs in the previous tariff plan, according to that specified in clause 74.3(c) or according to that specified in clause 74.3(d), as the case may be, while, for the period subsequent to the transaction execution date and until the end of the
            billing period, according to the ratio between the number of days from the day after the transaction execution date and until the end of the billing period, and the inclusive number of days in the billing period, according to the tariffs in the
            new tariff plan.

        

  

  

  	

        	(g)386	
          In a transaction as specified in subclause (b), in which a fixed monthly payment or other fixed periodic payment is collected from the Subscriber as a result of adding a service to an existing line when no quantity of units for consumption
            has been defined, the Licensee shall charge the Subscriber in the fixed payment as stated according to the ratio between the number of days since the date the service was added and the last day of the billing period. If a quantity of units for
            consumption has been defined, the Licensee must notify the Subscriber that this quantity shall be provided to him in its entirety and that he shall be charged in full in the fixed payment.

        

  

  

  	

        	(h)387	
          In a transaction as specified in subclause (b), in which a fixed monthly payment or other fixed periodic payment is collected from the Subscriber as a result of adding a line to an existing account when no quantity of units for consumption
            has been defined for it, the Licensee shall charge the Subscriber in the fixed payment as stated according to the ratio between the number of days since the date the line was added and the last day of the billing period. If a quantity of units
            for consumption on the line has been defined, the Licensee must notify the Subscriber that this quantity shall be provided to him in its entirety and that he shall be charged in full in the fixed payment.

        

  

  

  	

        	(i)388	
          The Licensee shall not allow a SIM card to be activated by a Subscriber after the deadline for activation as stated has passed.

        

  

  

                                                  

  
    385 Amendment No.
      87

    386 Amendment
      No. 90

    387 Amendment
      No. 90

    388 Amendment
      No. 90

  

  

  

  
    
      

  

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

  

  Section B - Tariff Changes

  

  

  	75.	
          Setting the Tariffs and their Rates

        

  

  

  	75.1	
          The Licensee shall set tariffs for every service and Basket of Services which it provides to its Subscribers, and may determine the manner in which tariffs are to be linked to the index. The Licensee shall notify the Director of the amount
            of each tariff prior to its coming into effect.

        

  

  

  	75.2	
           The Licensee may set Baskets Of Services according to the classes of services including in the Basket, periods of time, or any other method. The Licensee may set a separate tariff for each of the services included in the basket, or may set
            an all-inclusive tariff.

        

  

  

  	75.3	
          The Licensee  shall offer each Basket Of Services on equal terms and under a uniform tariff according to classes of Subscriber; for the purposes of this clause “class of Subscribers” – a group of Subscribers the characteristics of which give
            reasonable grounds to justify its being distinguished from another group .

        

  

  

  	75.4	
           The Licensee shall allow each Subscriber to change, without discrimination, from one Basket Of Services to another Basket Of Services which it is offered at that time. The Licensee shall include a provision to this effect in its service
            contract with the Subscribers. In the context of this provision, it may prescribe dates available for such change and may prescribe conditions, including payment, for effecting the change.

        

  

  

  	75.5	
          389If the Licensee enters into an agreement with a Subscriber regarding a service or basket of services that includes a commitment as defined in Article 56A.1
            (the "Commitment Period"), the following provisions shall apply, except for a Business Subscriber:

           

          

        

  	

        	(a)	
          The agreement conditions, except for the tariffs of the agreement, shall be final, known and set out in advance for the entire Commitment Period;

           

          

        

  	

        	(b)	
          The tariff for each service shall be set in the agreement, shall be constant and set out in New Shekels for the entire Commitment Period;

        

   

  

  For this article, "constant"-each tariff before V.A.T. that the Subscriber must pay as set out on the day of the agreement, shall not be raised during the Commitment Period.

   

  

  Notwithstanding the aforesaid, the Licensee may supply it services to Subscribers at lower tariffs than those set out beforehand in the subscriber agreement during a limited time
    period, to all it Subscribers or to a certain type of subscribers.

   

  

  	

        	(c)	
          The Licensee shall include provisions in accordance with the above-mentioned in the subscriber agreement.

        

  

  

  	75.6	
           The Licensee shall not make contracting with a Subscriber, or changing a subscriber from one Basked Of Services to another, conditional on the purchase of Added Value Services or Terminal Equipment from it.

        

  
    

    

    

    389 Amendment No.
      47

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	75.7	
          Cancelled.390

        

  

  

  	75.8       (a)	
          The Licensee may not collect any payment from a Subscriber for a call not initiated by the Subscriber (hereinafter: an “Uninitiated Call”).

        

  

  

  	

        	(b)	
          Notwithstanding the provisions of sub-clause (a), the Licensee may collect payment from the Subscriber for an Uninitiated Call in the following Cases:

        

  

  

  	

        	(1)	
          the call is transferred to the Subscriber via a roaming service;

        

  

  

  	

        	(2)	
          it is a collect call to which the Subscriber has agreed;

        

  

  

  	

        	(3)	
          a call made by dialing a number with a special access code for a free of charge service for the person initiating the call, that was allotted to the Subscriber in accordance with an agreement with him391;

        

  

  

  	

        	(4)	
          Deleted392

        

  

  

  	

        	393(c)	
          The Licensee may charge a Subscriber, that initiates a charged call for services or for the following access codes, a charge that does not exceed the tariff that the Licensee charges the Subscriber for a call to a fixed line network:

           

          

        

  	

        	1)	
          Partially toll free service calls394

        

  	

        	2)	
          Business speed dial service395

        

  

  

  	

        	(d)	
          396for a call to an international destination, the Licensee can only receive the payment imposed on the international operator that is set forth in the
            interconnect regulations.

        

  

  

  
    
      	39775.9

            	(a)

            	Deleted398

    

  

  

  

  	75.10	
          The manner of determining payments for Air Time shall be as follows:

        

  

  

  	

        	(a)	
          The payment for Air Time shall be determined according to Air time unit399 ; for the purpose of calculating the payment, part of a Unit Of Air Time shall be
            deemed to be a full Unit of Air Time.

        

  

  

                                                  

  

  
    390 Amendment No.
      87

    391 Amendment
      No.54

    392 Amendment No.
      49

    393 Amendment No.
      49

    394 In accordance
      with the service file "partially toll free calls" (1-700 service).

    395 In accordance
      with the Director's provisions "speed dial for businesses-star and four digits", dated 4 may 2008.

    396 Amendment No,
      53

    397 Amendment No.
      16

    Effect- Article 75.9 shall take effect as of 15.12.02

    398 Amendment No.
      54

    399 Amendment No.
      29

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(b)	
          The payment for any airtime unit, at least for the duration of the first minute of the call, shall be constant;400

        

  

  

  	

        	(c)	
          For the purpose of payment, the duration of the call shall be from the time of establishing the connection between the Subscriber initiating the call (hereinafter: the “Calling Subscriber”) and the Subscriber receiving the call, until the
            time of terminating the call, which is the time that an instruction given to end the communication is received from the Calling Subscriber or the Subscriber receiving the call; the period of time spent in establishing the connection, until the
            time in which the contact is in fact established, and the period of time in disconnecting, from the moment an instruction is received to terminate the communication up until actual disconnection, are not included in the calculation of the
            duration of the call.

        

  

  

  For the purpose of this sub-clause, a Subscriber receiving a call includes voicemail.

  

  

  401"Voice Mail"- a device or mechanism that is part of the
    MRT system, that is meant to allow the calling Subscriber to leave a voice message for the receiving Subscriber.

  

  

  	

        	(d)402	
          For a call that is transferred to Voice Mail, the Licensee shall play an introductory recorded message to the calling Subscriber, that is at least 2 seconds long (in this sub-section-"a message"), and
            will allow the calling Subscriber, in accordance with his choice, to disconnect the call without a charge, in the course of the Message, or within a reasonable amount of time that will not be less than 1 second after its termination ("reasonable time"). In this case, the timing of the execution of the call with the receiving Subscriber shall be as set forth in sub-section (c) above, as occuring after a reasonable time.

        

  

  

  The Message text shall be "the call is being transferred to voice mail" and it shall be played in a clear manner and a reasonable pace.

  

  

  In this sub-section, "a call that is transferred to voice mail"- except for a call that originated in the International Bezek system.

  

  

  	40375.11    (a)	
          In this article:

        

  

  

  "Limited Package"- a package of minutes that is limited to a number of minutes, in accordance with the subscriber's plan.

  

  

  "Unlimited Package"- an unlimited package of minutes for which the subscriber pays.

  

  

  "Free of Charge Number"- a phone number that is determined that a call to it from any network will not be charged to the initiator of the
    call;

  

  

                                                  

  
    400 Amendment No.
      56

    401 Amendment No.
      39

    402 Amendment No.
      39

    403 Amendment No.
      70

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  "A Special Telephone Number at a Composed Tariff"- a national or network telephone number in an unusual numbering plan, for which the call
    tariff to it is a composed tariff;

  

  

  "A Special Telephone Number at a Regular Tariff" – a national404
    or network405 telephone number in an unusual numbering plan, for which the call tariff to it does not exceed the normal tariff;

  

  

  "Unusual Numbering Plan"- a numbering plan that is not a regular numbering form;

  

  

  "Usual Numbering Plan"-a numbering plan of geographic numbers and national numbers in accordance with the definitions in the numbering plan406.

  

  

  "Composed Tariff"- a tariff composed of a regular tariff in addition to a tariff for service provided by the Licensee or someone on his
    behalf or a service provider;

  

  

  "A Regular Tariff"- a tariff per minute for a call to telephone numbers in a regular numbering plan, in accordance with the subscriber's
    tariff plan.

  

  

  	

        	(b)	
          The Licensee will not charge a subscriber that calls destinations with free of charge numbers and shall not count the minutes of the call to those destinations as part of a limited package.

        

  

  

  	

        	(c)	
          The Licensee may charge a subscriber that calls destinations with special telephone numbers at regular tariffs and shall count the minutes of the call to those destinations as part of a limited package or as part of an unlimited package. For
            the avoidance of doubt, the Licensee may not charge a subscriber for calling destinations with special telephone numbers at regular tariffs any additional payment beyond the payment that he pays for a package of minutes, as long as the
            subscriber has not exceeded his quota of plan minutes. If the subscriber exceeds his quota of plan minutes, the Licensee may charge him for calling the said destinations in accordance with a tariff that does not exceed the regular tariff. In
            addition to the aforesaid, the Licensee may not distinguish between the tariffs that he charges the subscriber for calling telephone numbers with regular numbering plans and for calling special telephone numbers at regular tariffs, including by
            determining separate minute packages.

        

  

  

  	

        	(d)	
          If the charge for calls to destinations with special telephone numbers is done in accordance with a composed tariff, the Licensee shall count the minutes of the calls to said destinations as part of a limited plan or as part of any unlimited
            plan, for which the subscriber pays.

        

  

  

  The Licensee may charge the subscriber for the services that are provided as part of calling telephone numbers that are charged according to a composed tariff, whether the charge
    is per minute of the call or whether the charge is a constant charge for a call, in addition to the regular payment for the package of minutes.

  

  

                                                  

  
    404 A telephone number that can be accessed from any
      network.

    405 A telephone number that can be accessed only from the
      Licensee's network.

    406 For example numbers in the 03-XXXXXXX, 05Y-XXXXXXX
      and 07Z-XXXXXXX

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	75A.	
          Completion of a Call in another Public Telecommunication Network407

        

  

  

  The payment which the Licensee shall collect for Call Completion shall not be greater than the interconnect tariff set forth in the Telecommunications Regulations (Payments for
    Interconnection) 57600-2000.

  

  

  	75B.	
          Completion of a Short Message Service (SMS) in another MRT Network408

        

  

  

  The Licensee may charge a Subscriber for transferring a Short Message Service, from Terminal Equipment connected to the Network to Terminal Equipment connected to an MRT system of
    another MRT licensee, payment that shall not exceed the payment the Licensee charges Subscribers for transferring a Short Message Service, from Terminal Equipment connected to the Network, to Terminal Equipment connected to the Network, in addition to
    a charge that shall not exceed the fee for transferring a Short Message Service as set forth in the Communication Regulations (Telecommunications and Broadcasting) (Payments for Interconnection), 2000.

            

  

  In this Article-

  “Short Message Service”- (SMS) -  A telecommunication message that includes writing, including letters or signs, that are transferred from Terminal Equipment  connected to the
    Network, to Terminal Equipment connected to the Network or connected to an MRT system of another MRT licensee.”

  

  

  	75C.	
           Temporary Provision409

        

  

  

  Notwithstanding the above-mentioned in Article 75B, for the period beginning 9 May 2004 until 9 February 2005410, the following provisions shall apply:

  

  

  	

        	(a)	
          The Licensee may charge a Subscriber for transferring a Short Message Service, to Terminal Equipment connected to an MRT system of another MRT licensee ("Message between Networks"), payment that shall not exceed the payment the Licensee
            charges Subscribers for transferring a Short Message Service, from Terminal Equipment connected to the Network to Terminal Equipment connected to the Network, in addition to a charge that shall not exceed the fee for transferring a Short
            Message Service as set forth in the Communications Regulations (Telecommunications and Broadcasting) (Payments for Interconnection), 2000 minus a reduction in the amount of 0.7%411.

        

  

  

  	

        	(b)	
          The Licensee may charge a Subscriber payment for a Short Message Service Between Networks as set forth in sub-section (a) even if the transfer to the receiving Subscriber has not been completed.

        

  

  

  

  

                                                  

  
    407 Amendment No.
      23

    408 Amendment No.
      23

    409 Amendment No.
      24

    410 Amendment No.
      27

    	411	
            The reduction in the amount of 0.7% is based on reports received from some of the MRT operators, regarding the rate of Short Message Services between Networks that did not reach their
              destination. Article 75C was set as a temporary provision, during which time the MRT operators shall carry out the necessary adjustments between their MRT networks and interconnection arrangements for the complete application of Article 75B
              of their license. For the avoidance of doubt, it should be clear that this temporary provision is set for a limited period of time only, due to the difficulties that MRT operators experienced regarding the possibility to receive information
              regarding the inability to complete a Short Message Service in another MRT network. However, it should not be inferred from this temporary arrangement to the matter of allowing collection of payment for a Short Message Service that did not
              reach it's destination, and it does not detract from the Ministry's basic position that as a rule, no payment shall be charged for a Telecommunication Service that was not completed.

          

    

    

  

  
    
      

  

   

     

      

     
    Translation from Hebrew

    The Binding version is the Hebrew version 

  

   

    

  Section B1 – Service Package in Israel412

  

  

  	41375D.	
          Notice of Utilization of Services414 in Israel415

        

  

  

  	75D.1	
          Cancelled.416

        

  

  

  	75D.2	
          Notices regarding utilization of a service package

        

  

  

  	

        	(a)	
          If a subscriber purchases a service or a package of services for which a unit quota has been set, the Licensee shall notify the subscriber by SMS of his utilization ratio of the Quota of Units, when the subscriber utilizes 75% and 100% of
            the Quota of Units in the service package or of each of the services included therein. The SMS shall be sent to the subscriber as close to the time that the subscriber reaches each of the said utilization ratios. The SMS shall be sent to the
            subscriber’s telephone number and to an additional telephone number, insofar as the subscriber defined one at the time of his engagement with the Licensee. The SMS shall be sent at no charge, and shall include the utilization ratio of the
            package or the service, the date when the subscriber reached the said utilization ratio, while specifying the date and time when the utilization ratio was determined, the tariff for exceeding the service package or each of the services included
            therein, insofar as a deviation is permitted, and the last day of the billing period. The said information shall be specified as relevant according to the following:

        

  

  

  	

        	(1)	
          call minutes;

        

  

  

  	

        	(2)	
          SMSs;

        

  

  

  	

        	(3)	
          cellular data (in MB);

        

  

  

  	

        	(4)	
          integrated call minutes and SMSs;

        

  

  

  	

        	(5)	
          integrated call minutes, SMSs and cellular data.

        

  

  

  In this regard, “service package” – a number of services being marketed to subscribers as a package at a fixed monthly payment, including
    domestic calls, an international call service, SMS service or cellular data service, when an inclusive Quota of Units is defined for the package,417 or if a particular
    Quota of Units has been defined for each of the services included therein,418 or if the subscriber set a consumption maximum for the package in order to control
    consumption.

  
    

    

    

    412 Amendment No.
      87

    413 Amendment No. 57

    414 Amendment No.
      87

    415 Amendment No.
      72

    416 Amendment No.
      87

    	417	
            For example: in a package including 100 units of call minutes, SMSs and cellular data (in MB) for NIS 15, the subscriber shall receive an SMS according to his consumption in relation to all of the aforesaid
              services. For example: an SMS shall be sent after 75 units have been utilized and an additional warning message after 100 units have been utilized.

          

    	418	
            For example: in a package including 100 call minutes, 100 SMSs and 50 MB of cellular data for NIS 20, the subscriber shall receive an SMS according to his consumption in relation to each of the aforesaid
              services. For example: an SMS shall be sent after 75 call minutes have been utilized and an additional warning message after 100 call minutes have been utilized.

          

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	

        	(b)	
          Insofar as at issue is a international call service, the Licensee shall send notices as stated to the subscriber via the international system through which the calls are directed abroad.

        

  

  

  	

        	(c)	
          Insofar as at issue is a telephone line blocked from receiving SMSs, then voice messages shall be sent to the subscriber instead of SMSs. After hearing the voice message for the first time, the subscriber shall be given an option to hear it
            again by pressing a particular key, and the message shall be replayed for the subscriber as many times as he wants.

        

  

  

  	

        	(d)	
          The Licensee shall enable every pre-paid subscriber to receive updates at any time, free of charge, of the balance available to him and the expiration date of the budget available to him, by dialing a designated telephone number, after which
            the subscriber shall receive the said information either by voice message or by SMS.

        

  

  

  	75D.3	
          Consumption of a cellular data service by a subscriber who purchased a cellular data service

        

  

  

  	

        	(a)	
          When the subscriber reaches 100% utilization of the quota defined for the cellular data service, the Licensee shall suspend the cellular data service or slow the surfing speed. The Licensee shall sent an SMS to the subscriber at no charge,
            advising him about the suspension or slowdown of the service. If the Licensee enables the subscriber to continue surfing at a slower surfing speed, then it is not allowed to charge the subscriber for any additional payment beyond the fixed
            monthly payment for the cellular data service.

        

  

  

  	

        	(b)	
          The Licensee may continue providing the cellular data service to a subscriber for an additional payment after he utilizes 100% of the quota defined for the cellular data service, provided that the subscriber requested this explicitly, as
            specified in clause 60.6, during the billing period when he utilized 100% of the quota defined for the cellular data service; the Licensee shall document the subscriber’s explicit request as stated, shall retain the documentation in its
            possession, and shall make it available for delivery or forwarding to the Manager, upon his request, within five (5) workdays of the submission of the request.

        

   

  

  When engaging in the engagement with the Licensee, the subscriber may refuse to continue receiving the cellular data service for an additional payment after he utilizes 100% of the
    quota defined for the cellular data service prior to the end of the billing period.

   

  

  This shall be conspicuously stated in the advertisements of the relevant plans on the Licensee’s website, insofar as they are advertised on the website, and by a representative of
    the Licensee when conducting a sale conversation.

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

      

    

  

  	

        	(c)	
          If a Subscriber purchases a package that includes cellular data, which is comprised of a basic cellular data package and of additional cellular data packages for utilization if he utilizes all of the basic cellular data package before the
            end of the billing period, for which a quantity of service units and a price has been defined, the Subscriber, including a Split Business Subscriber419 may
            completely cancel the purchase of the additional cellular data packages that it purchased at any time, in writing or orally, and the Licensee shall stop providing him the additional cellular data packages and shall no longer charge him in
            respect thereof as of the date of his request and thereafter.

        

   

  

  This shall be conspicuously stated in the advertisements of the relevant plans on the Licensee’s website, insofar as they are advertised on the website, and by a representative of
    the Licensee when conducting a sale conversation. 420Insofar as a Subscriber completely cancelled the additional cellular data packages, but began consuming an additional
    cellular data package, the charge in respect thereof shall be done according to that stated in clause 74.3(c).

  

  

  	

        	(d)	
          If a subscriber purchases a package that includes a basic cellular data package, the subscriber may ask the Licensee to block the access to the cellular data service at any time, in writing or orally, and the Licensee shall comply with his
            request.

        

  

  

  	75D.4	
          Consumption of a cellular data service by a subscriber who did not purchase a cellular data service

        

  

  

  	

        	(a)	
          The Licensee shall block cellular data surfing for a Non-Business Subscriber from who did not purchase a cellular data service with a surfing volume defined in an agreement between him and the Licensee. 421That stated in this subclause shall not apply to M2M Subscribers or to Pre-Paid Subscribers.

        

  

  

  	

        	(b)	
          If the Licensee blocks the cellular data service as stated in subclause (a), the subscriber may contact the Licensee via telephone call with a service representative for the purpose of reconnecting the cellular data service, and the Licensee
            shall charge the subscriber according to the surfing volume that he ordered or consumed. The Licensee’s representative must advise the subscriber of the cellular data tariff per 1 MB. The subscriber’s request and documentation thereof shall be
            done as stated in clause 60.6.422

        

  
    

    

                                                   
    419 Amendment
      No. 90

    420 Amendment
      No. 90

    421 Amendment
      No. 90

    	422	
            Amendment No. 87

          

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Section B2 – International Roaming Service Package423

  

  

  	42475E	
          Charges for International Roaming Services

        

  

  

  	75E.1	
          Definitions425 in this article:

        

  

  

  	
          "arrangement"-

        	
          -

        	
          a package or plan that includes cellular data or calls or SMSs;426

        
	
          “cellular data arrangement”

        	
          -

        	
          package or plan that includes cellular data;427

        
	
          “call or SMS arrangement”

        	
          -

        	
          package or plan that includes calls or SMSs;428

        
	
          "cellular data offer429"-

        	
          -

        	
          an offer of three packages or various plans that the Licensee may have that include data that have been offered to the Licensee's subscribers in the month preceding the month in which the package offers were sent
            to the subscriber;

        
	
          “call or SMS arrangement offer”

        	
          -

        	
          an offer of three packages or various plans including a call or SMS service, insofar as the Licensee offers them, which have been offered to the Licensee's subscribers in the month preceding the date on which the
            arrangement offers was sent to the subscriber.430

        
	
          "package"

        	
          -

        	
          a limited quantity of service units,  that can be used during a limited period through international roaming abroad, that are sold at a known and predetermined price and is valid for certain destinations

        
	
          "abroad or destination"

        	
          -

        	
          a country, including a vessel at sea and an aircraft;

        
	
          "Mb"

        	
          -

        	
          Mbyte

           

        
	
          “blocked subscriber”

        	
          -

        	
          subscriber who did not request constant access to cellular data services on the service access form;

        
	
          “open subscriber”

        	
          -

        	
          subscriber who requested constant access to cellular data services on the service access form;431

        
	
          cellular data or cellular data service"

        	
          -

        	
          cellular data service abroad

        
	
          "plan"

        	
          -

        	
          a tariff plan for a limited period of time or for a specific trip abroad432 for the use of services through international roaming
            abroad (for example: voice service, sending and receiving sms and cellular data) to destinations included in the plan and the payment for the services shall be made in accordance with the use; the service tariffs included in the plan are
            different from the tariffs for these services for a subscriber that did not enroll in the plan; the plan can determine a set payment that does not depend on usage

        
	
          “Full tariff”

        	
          -

        	
          tariff per call minute, for an SMS and for 1 MB other than within the scope of an arrangement;

        
	
          “Discount tariff”

        	
          -

        	
          tariff per call minute, for an SMS and for 1 MB within the scope of an arrangement.433

        

  
    

    

    

    423 Amendment

      No. 87

    424 Amendment No. 72

    425 Amendment

      No. 87

    426 Amendment

      No. 87

    427 Amendment

      No. 87

    428 Amendment

      No. 87

    429 Amendment

      No. 87

    430 Amendment

      No. 87

    431 Amendment

      No. 87

    432 Amendment No.
      73

    433 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	75E.2	
          Notices about utilization of an international roaming service package and about a full tariff for calls and SMSs

        

  

  

  	

        	(a)	
          An arrangement that a subscriber purchases shall come into effect on the date defined by the subscriber at the time of his purchase.

        

  

  

  	

        	(b)       (1)	
          The Licensee shall send test messages to a subscriber who purchases an arrangement, when the subscriber utilizes 75% and 100% of each of the following:

        

  

  

  	

        	((a))	
          the number of service units or the defined sum of money defined for payment in respect of consumption of the services;

        

  

  

  	

        	((b))	
          the period of validity of the arrangement.

        

  

  

  	

        	(2)	
          The test messages shall be sent at no charge, as close to the time that the subscriber reaches the said utilization ratio; the SMSs shall include notice to the subscriber that he reached the utilization ratios as stated, the number of
            service units remaining, the number of days remaining until the expiration of the validity of the arrangement, the calculation date of the utilization (date and time), the tariff for exceeding the arrangement, insofar as a deviation is
            permitted.

        

  

  

  	

        	(3)	
          In this clause, “service units” shall be according to the following:

        

  

  

  	

        	((a))	
          calls – call minutes;

        

  

  

  	

        	((b))	
          SMSs – the number of SMSs sent;

        

  

  

  	

        	((c))	
          cellular data – the cellular data volumes in MB or GB.

        

  

  

  	

        	(4)	
          In packages bundling call services, SMSs or cellular data, the utilization ratio of the package shall be calculated according to the said service units.

        

  

  

  	

        	(5)	
          The Licensee shall send an SMS to a subscriber who did not purchase a call or SMS arrangement, or if the arrangement that he purchased does not include the destination he contacted, at no charge, immediately upon the subscriber reaching any
            destination as stated, that shall state that outgoing calls, incoming calls and the sending of SMSs shall involve payment according to the Full Tariff. The SMS shall also include a call or SMS arrangement offer.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(6)	
          The Licensee shall document the SMSs referred to in this clause, as specified in clause 60.6(c), shall retain the documentation in its possession and shall make it available for delivery or forwarding to the Director, upon his request,
            within five (5) workdays of the day they were sent.

        

   

    

  434

  

  

  	

        	(c)	
          435Notwithstanding the aforesaid in article 75E.2 (a)-

        

  

  

  	

        	1)	
          The Licensee shall be exempt from sending an SMS to a subscriber regarding  the utilization of the package that he purchased, as set forth in article 75E.2(b)(1)436
            if the following apply:

        

  

  

  	

        	(a)	
          The subscriber purchased the package before March 31, 2014;

        

  	

        	(b)	
          The subscriber specifically agreed in writing to waive the receipt of an SMS as set forth in article 75E.2(b)(1)437;

        

  	

        	(c)	
          The Licensee proved to the satisfaction of the Director that a technological limitation that is not under its control prevents it from receiving an online indication or close to an online indication with respect to the execution of calls by
            direct dialing.

        

  

  

  	

        	2)	
          If a subscriber uses MRT equipment that does not support SMSs, including tablets with SIM cards and cellular modems, the Licensee will require the subscriber when he purchases the package an alternative means of communication (for example
            whatsapp, viber, skype applications, email or voice mail) ("alternative means"); if the subscriber provided alternative means, the Licensee will send the messages regarding said package utilization in
            article 75E.2(b)(1)438by alternative means.

        

  

  

  	75E.3	
          Blocking of cellular data service to a Non-Business Subscriber, to a Split Business Subscriber with cellular data via international roaming, to a blocked Business Subscriber and to a subscriber without a cellular
            data arrangement

        

  

  

  	

        	(a)	
          If a Non-Business Subscriber or a Split Business Subscriber that is charged in respect of cellular data service via international roaming (hereinafter – “Split Business Subscriber with Cellular Data Service
              via International Roaming”) or a blocked Business Subscriber purchases a package that includes cellular data, the Licensee shall block the access to the cellular data service after the full utilization of the package or upon the
            expiration of the validity of the package, whichever is earlier, at no charge, and the subscriber shall not be required to pay any payment whatsoever for the cellular data service beyond the payment known in advance for the package that it
            purchased. The Licensee shall send an SMS to the subscriber, at no charge, about the blocking as stated, shortly before the blocking date. The SMS shall include a cellular data arrangement offer.

        

  
     

    

                                                   
      434Amendment No. 87

    

    435 Amendment No.
      73

    436 Amendment No.
      87

    437 Amendment No.
      87

    438 Amendment No.
      87

  

  
    
      

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

  

  If a Non-Business Subscriber or a Split Business Subscriber with Cellular Data Service via International Roaming or a blocked Business Subscriber purchases a package that includes
    cellular data, which is comprised of a basic cellular data package and additional cellular data packages for utilization after the full utilization of the basic cellular data package, for which a number of service units and price has been defined for
    each of them, or which is comprised of a basic cellular data package, when after its full utilization or until it expires, the subscriber is charged according to a discount tariff, the subscriber may cancel the purchase of the additional cellular data
    packages that he purchased or the additional cellular data at a discount tariff that he purchased, at any time, in writing or orally, and the Licensee shall stop providing him the additional cellular data packages or the additional cellular data at a
    discount rate and shall no longer charge him in respect of cellular data as of the date of his request and thereafter.

    

  

  The Licensee shall document the subscriber’s explicit request as stated, as specified in clause 60.6(c), shall retain the documentation in its possession and shall make it
    available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the submission of the request.

    

  

  When engaging in the order of the service from the Licensee, a Non-Business Subscriber or a Split Business Subscriber with Cellular Data Service via International Roaming or a
    blocked Business Subscriber may refuse to continue receiving the cellular data service for an additional payment after he utilizes 100% of the basic package defined for the cellular data service, as specified in clause 75E.2(b)(1).

   

  

  This shall be conspicuously stated in the advertisements of the relevant plans on the Licensee’s website and by a representative of the Licensee when conducting a sale
    conversation.

  

  

  	

        	(b)	
          The Licensee shall block the access to cellular data service to any subscriber, at no charge, immediately upon his arrival abroad, unless the subscriber has fulfilled the conditions specified hereunder:

        

  

  

  	

        	(1)	
          the subscriber has a cellular data arrangement;

        

  

  

  	

        	(2)	
          the subscriber asked to be an open subscriber.439

        

  

  

  	

        	(c)	
          If a subscriber does not fulfill one of the conditions specified in subclause (b), and the Licensee did not block the subscriber to cellular data service, then the Licensee shall not charge the subscriber in respect of cellular data service.

        

  

  

                                                  

  
    	439	
            An “open” status on the service access form, without a cellular data arrangement, is relevant solely to a Business Subscriber; a Non-Business Subscriber and a Split Business Subscriber with Cellular Data via
              International Roaming, without a cellular data arrangement, shall be blocked from cellular data as the defult mode.

          

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(d)	
          The Licensee shall block, at no charge, the access to cellular data service, as stated in subclause (b) and shall not charge a Non-Business Subscriber or a Split Business Subscriber with Cellular Data Service via International Roaming or a
            blocked Business Subscriber in respect of cellular data service, as stated in subclause (c), at any time that the subscriber, as stated, who purchased a cellular data arrangement, reaches a destination that is not included in the cellular data
            arrangement. The Licensee shall again reinstate the cellular data service immediately and automatically to the subscriber, as stated, and without the subscriber having to perform any manual operation, at any time that the subscriber is located
            in a destination that is included in the cellular data arrangement.

        

  

  

  	

        	(e)	
          The Licensee shall send an SMS to the subscriber as stated, at no charge, about the blocking as stated in subclauses (b) and (d), shortly before the blocking date, and shall specify the reason for the blocking and the ways to contact the
            Licensee in order to open the blocking. The SMS shall include a cellular data arrangement.

        

  

  

  	

        	(f)	
          The ordering of cellular data service by a blocked Business Subscriber, while it is abroad, after its access to the cellular data service had been blocked, in order to enable him access to cellular data service without purchasing a cellular
            data arrangement, shall be carried out through a telephone conversation with a representative of the Licensee, who shall advise the subscriber about the full tariff for cellular data per 1 MB. The access to the cellular data service shall be
            opened after the subscriber confirms the full tariff for cellular data that was quoted to him. Clause 60.6 shall apply to documentation of the order, and the documentation shall also include the subscriber’s verified identification particulars
            and his confirmation, as stated.440

        

  

  

  75E.4        Cancelled.441

  

  

  	75E.5	
          Blocking of cellular data service to an open Business Subscriber442

        

  

  

  	

        	(a)	
          The Licensee shall send a test message, at no charge, to an open Business Subscriber who did not purchase a cellular data arrangement, or if the cellular data arrangement that he purchased does not include the country to which he arrived,
            immediately upon his arrival abroad, which shall include a warning about possible consumption of chargeable cellular data service, without the subscriber initiating any action to consume cellular data, and the message shall also include the
            tariffs for cellular data without a purchase of a cellular data arrangement. The SMS shall also include a cellular data arrangement offer.

        

   

  

  The Licensee shall document the sending of the said SMS to the Business Subscriber, as specified in clause 60.6(c), shall retain the documentation in its possession and shall make
    it available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the sending of the SMSs.

  

  

  	

        	(b)	
          The Licensee shall send SMSs, at no charge, to an open Business Subscriber who purchased only a basic package whereby the tariff after the full utilization of the package is a discount tariff or a full tariff, and the messages shall include
            notice regarding the package utilization ratio, as stated in clause 75E.2(b), and the tariff, as stated.

        

   

                                                     

    	440	
            Amendment No. 87

          

    	441	
            Amendment No. 87

          

    	442	
            Amendment No. 87

          

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  The Licensee shall document its sending of the said SMSs to the Business Subscriber, and about the subscriber sending the said SMSs to the Licensee, if sent, as specified in clause
    60.6(c), shall retain the documentation in its possession and shall make it available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the sending of the SMSs.443

  

  

  	75E.6	
          The Licensee will notify its subscribers in the telephone bill following the date of signature of the license amendment, with respect to the possibility to request to be blocked for cellular data by filling out a "service access form" that
            appears on the Licensee's website. The subscriber may send the said form to the Licensee by regular mail, e-mail, fax or by an online form on the Licensee's website, if the Licensee's website supports this possibility.

        

  

  

  	75E.7	
          The Licensee shall display on its website information regarding the subscriber's ability to block access to cellular data also through the handset, as long as said blockage does not block the ability to roam in Israel.

        

  

  

  	75E.8	
          The Licensee shall display on its website information about services that consume chargeable data volume without an active initiated action by the subscriber, for example: automatic synchronization of e-mail and updates of different
            applications.

        

  

  

  	75E.9	
          Charges for international roaming services according to a rate per unit shall be done retroactively in the telephone bill, after consuming the services and not in advance. If a subscriber purchases an arrangement that includes a payment that
            is known in advance, the charge will be done for this payment in the bill for the period during which the transaction became effective.

        

  

  

  	75E.10	
          Without derogating from the aforesaid in Article 55A, Article 60.6 shall apply to "remote sales transactions" of services through international roaming services.

        

  

  

  	75E.11	
          The Licensee will send as soon as possible, free of charge, an SMS to each subscriber that purchases services through a remote sales transaction of services through international roaming services, that includes the main points of the
            transaction, and no later than the end of the day on which the remote sales transaction was made.

        

   

  

  Insofar as the transaction for the purchase of calls or SMSs does not include destinations abroad, the said SMS shall advise that outgoing calls and the sending of SMSs to
    destinations abroad shall be charged according to the Full Tariff.

   

  

  The Licensee shall document the sending of the said SMS, as specified in clause 60.6(c), shall retain the documentation in its possession and shall make it available for delivery
    or forwarding to the Director, upon his request, within five (5) workdays of the transaction execution date.444

   

                                                     

    	443	
            Amendment No. 87

          

    	444	
            Amendment No. 87

          

    

  

  
    
      

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

  

  In addition, the Licensee will note information regarding the said " remote sales transaction " in the telephone bill following the date of the execution of the transaction, in
    accordance with the billing period of the subscriber, that includes the telephone number for which the transaction was executed, the date of the transaction, the amount and types of services that were purchased through international roaming services,
    the number of days allocated for the use of the services, the date and time of beginning of provision of the services, the price of the services purchased, the price according to which the charge will be done for consuming the services beyond the
    package, if a package is purchased and the manner of rounding up every amount consumed (hereinafter- "transaction details").

   

  

  The Licensee shall retain a copy of the Telephone Bill that specifies the details of the transaction in its possession and shall make it available for delivery or forwarding to
    the Director, upon his request, within five (5) workdays of the transaction execution date.

  

  

  	75E.12	
          In a transaction for the purchase of services through international roaming services that was done in the presence of the Licensee's representative and the subscriber, the subscriber shall be given at the time of the agreement execution a
            printed confirmation that includes the transaction details. The Licensee shall retain a copy of the confirmation as stated in its possession and shall make it available for delivery or forwarding to the Director, upon his request, within five
            (5) workdays of the transaction execution date.445

        

  

  

  	75E.13	
          The Licensee will publish on its website all of the arrangements being marketed446 to private subscribers as well as the tariffs of all international roaming
            services for subscribers without arrangements, for all the destinations for which the Licensee has an international roaming agreement. The Licensee will not charge a subscriber for international roaming services that was done at a destination
            that was not published as set forth above before the charge.

        

  

  

  	75E.14	
          The tariff for cellular data will be noted by the Licensee every place where it is noted in units of NIS 1 per Mb.

        

  

  

  	75E.15	
          The cellular data tariff for 1 Mb for a subscriber that does not have a cellular data447 arrangement will be lower than the price of the cheapest package
            offered by the Licensee.

        

  

  

  	75E.16	
          The purchase of a cellular data448 arrangement, in Israel or abroad, does not change the default listed in the updated service order form except for the period
            of that cellular data449 arrangement.

        

  

  

  	76.	
          Publication of Tariffs

        

  

  

  	76.1	
           The Licensee shall make available to anyone who requests, at the service offices and referral centers, and without charge, full and detailed information regarding updated tariffs for all its services including payment  for Call Completion;
            the Director may instruct the Licensee in regard to the manner and form in which tariffs are to be published, as aforesaid.

        

  

  

                                                  

  
    445 Amendment No.
      87

    446 Amendment No.
      87

    447 Amendment No.
      87

    448 Amendment No.
      87

    449 Amendment No.
      87

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	76.2	
          The Licensee shall specify in every account statement sent to the Subscriber, the Basket Of Services for which the Subscriber is being charged.

        

  

  

  	76.3	
          The Director may at any time require the Licensee to furnish him with details of the tariffs that it charges.

        

  

  

  	77.	
          Deleted450

        

  

  

  	77A.	
          Prevention of Fraud

        

  

  

  	77A.1	
          The Licensee shall take appropriate and reasonable steps to prevent fraud and shall establish a system for supervision and follow-up, in order to ensure, as far as possible, that calls for which a Subscriber is charged are in fact made from
            the Terminal Equipment that is connected to the MRT system of the Licensee in the Subscriber’s name.

        

  

  

  	77A.2	
          The Licensee shall disconnect the Subscriber’s Terminal Equipment from service after receipt at its service offices of a notification from the Subscriber that the Terminal Equipment has been lost or stolen, or that a suspicion exists that
            another is making calls though it without having received permission to do so; the Subscriber is permitted to give notification as stated by telephone or in writing, including fax and electronic mail; upon receipt of the telephone notification
            or immediately following receipt of written notice the Licensee shall verify its reliability, and shall disconnect the service.

        

  

  

  	77A.3	
          The Licensee shall cooperate with other Licenses in locating and preventing fraud.

        

  

  

                                                  

  
    450 Amendment No
      41

  

   

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Section C – Amendments to Tariffs

   

  	78.	
          Change in Tariffs451

        

  

  

  	78.1	
          Subject to that stated in clause 75, the Licensee may change a tariff or a number of the service units being allotted for a billing period (hereinafter – “the Number of Units”) of any service or bundle
            of services  (hereinafter in this clause – “service”) that it defines, provided:

        

  

  

  	

        	(a)	
          that it sent written notice to the Director between fourteen (14) and twenty-one (21) days before the effective date, in which it specifies the name of the service, the tariff or the new Number of Units, and their effective date, and the
            tariff or Number of Units prior to the change.

        

   

  

  The obligation to send notice of a change to the Director shall not apply to a change defined from the outset in the engagement agreement, when the subscriber subscribed to the
    service or the service bundle.

  

  

  	

        	(b)	
          that it sent prior written notice to every Subscriber who subscribed to the service, 452and to the additional telephone number as specified in clause
            55.4(a)(1), specifying the name of the service, the tariff or the new Number of Units, and their effective date. 453The notice to the additional telephone number
            shall also include the Subscriber’s telephone number in which the change shall be made and the tariff or Number of Units prior to the change, between fourteen (14) and twenty-one (21) days before the effective date.

        

  

  

  Notwithstanding that stated, with regard to a tariff reduction, the Licensee may send the notice to the subscriber up to one month after the reduction.

  

  

  For the purposes of this section, “change” means – any change in tariff that could cause an increase or decrease in the pre-VAT payment
    that a subscriber must pay for the Licensee’s services or any reduction in the number of  service units allotted for a billing period, without a change in tariff.

  

  

  	

        	(c)	
          Notice as stated in subclause (b) shall be sent to a subscriber who has access to the receipt of SMS services via SMS and, to a subscriber blocked from the receipt of SMS services, by voice message. After hearing the voice message for the
            first time, the subscriber shall be given an option to hear it again by pressing a particular key, and the message shall be replayed for the subscriber as many times as he wants.

        

  

  

  	

        	(d)	
          The Licensee shall retain documentation of the sending of the notice as follows:

        

  

  

  	

        	(1)	
          a printout of the log from the server of the short message service center (SMSC), as specified in clause 60.6(c);

        

  
    

    

    

    451 Amendment No.
      41

    452 Amendment
      No. 90

    453 Amendment
      No. 90

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(2)	
          recording of the voice message as specified in clause 106A.

        

  

  

  The Licensee shall make the documentation of the sending of the notice available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the
    sending thereof.

  

  

  	

        	(e)	
          The obligation to send notice of a change to a subscriber shall also apply to a change defined from the outset in the engagement agreement, when the subscriber subscribes to a service or to a service bundle or to a tariff plan.

        

  

  

  	

        	(f)	
          The Licensee shall specify in the telephone bill that a change came into effect during his billing period, under the “bill details,” as specified in clause 9(a) in Appendix E.1,  the tariff or the new Number of Units and the effective date,
            and the tariff or Number of Units prior to the change.

        

   

  

  The Licensee shall make a copy of the Telephone Bill available for delivery or forwarding to the Director, upon his request, within five (5) workdays of its production date.

  

  

  	

        	(g)454	
          Insofar as the Licensee provided a service to a private Subscriber, which is other than a voice service or text messages or cellular data, at a discount or for free for a defined period, including a service that is other than a
            telecommunications service, the Licensee must send to the Subscriber and to the additional telephone number specified by the Subscriber, as specified in clause 55.4(a)(1), which are accessible to text message services, a text message about the
            change in tariff, as specified in clause 78.1(b), to which a single-value link shall be attached to each service, which shall be valid for seven (7) days after the text message was sent, in which the Subscriber shall be asked to enter the
            attached link if he is not interested in continuing to receive the service for payment. The said link must lead to a landing page through which the service shall be cancelled; during the service cancellation, the Subscriber shall be identified
            solely by his ID number; the Subscriber may cancel the service from each of the two telephone numbers to which the text message was sent; the Licensee must send a text message to the Subscriber’s telephone number through which the service was
            cancelled to confirm the cancellation of the service; if the Subscriber cancelled the service through the said landing page, the Licensee is not allowed to continue or to begin charging the Subscriber in respect of the said service at the end
            of the said period. The sending of the text message by the Licensee to the Subscriber must be documented as specified in clause 60.6(c) and the contents of the text message shall be documented.

        

   

  

  The Licensee must make the said documentation available for delivery or forwarding to the manager upon his request within five (5) workdays of the date the text message was sent.

   

  

  The Licensee must send a voice message as specified in subclause (c) to telephone numbers having no access to text message services, and must document it as specified in subclause
    (d). Subscribers may also cancel a service as stated in other ways, including via regular post, electronic mail, internet chats and via facsimile.

   

  

  
                                                   

    454 Amendment
      No. 90

    

  

  
    
      

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

  

  The Licensee must send notice of the change in tariff to Business Subscribers and to Split Business Subscribers in the Bill details of the Bill preceding the date the change in
    tariff shall take effect or via text message with a link as specified above, or via electronic-mail message.

  

  

  	79.	
          Commencement of Increase or Reduction of a Tariff

        

  

  

  If the amount of any tariff for MRT services pursuant to the provisions of the license has been raised or lowered, the increase or decrease shall not apply to payments made for
    such a service prior to the date of commencement of the increase or decrease; the increase or decrease shall apply only with regard to payments for MRT services that were provided to the Subscriber after the date of the increase of decrease. The
    provisions of this clause shall not apply in the case of an amendment of a tariff pursuant to the instructions of the Minister under clause 83.

  

  

  	80.	
          Late Payments

        

  

  

  	80.1	
          The Licensee may charge a Subscriber interest, linkage and collection costs for payments for MRT services not paid by the Subscriber on the due date as specified in the  payment notice that was sent to the Subscriber, in accordance with the
            service contract455 between them (hereinafter: the “date of payment”).

        

  

  

  	80.2	
          Deleted456.

        

  

  

  	80.3	
          The amount of interest charged shall not be greater than the amount set out in the definition of “interest linkage” in section 1 of the Interest Linkage Adjudication Law 5721-1961, together with linkage for the period between the date on
            which the payment is due and the date of  actual payment of the specified amount.

        

  

  

  	80.4	
          The Licensee shall be permitted to charge a Subscriber with payment for collection costs for a payment for services provided to the Subscriber that were not paid on the due date (hereinafter- "the amount due")
            on condition that at least fourteen (14) days have elapsed from the payment date, except in the case of non-payment due to refusal by a bank or credit card company to pay a charge which the Licensee has authorization to collect; The amount of
            collection costs that the Licensee will charge, shall be reasonable and relatative in regard to the amount due and the actions that the Licensee must take to collect the said amount.

        

   

  

  For this matter, "collections costs"-including legal actions that the Licensee or anyone on the Licensee's behalf takes to collect the amount due before filing an  application
    with the courts.457

  
     

      

                                                   

    455 Amendment No.
      32

    456 Amendment No.
      41

    457 Amendment No.
      32

  

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Section D – Miscellaneous

  

  

  	81.	
          Connection Fee458

        

  

  

  	

        	(a)	
          A connection fee and a SIM card fee shall be uniform, regardless of the type or model of the Terminal Equipment, the type of SIM card, the generation of the network technology to which the subscriber’s Terminal Equipment shall be connected,
            etc.459

        

  

  

  	

        	(b)	
          The Licensee may, should it resolve to charge a Connection Fee as defined in Paragraph 74(A), to charge the subscriber for a Connection Fee only for the initial connection of the Subscriber to the MRT System and provision of MRT System and
            provision of MRT services, or forconnection after the conclusion of an engagement.460
              461

        

  

  

  	

        	(c)	
          The Licensee is not allowed to collect a connection fee from a subscriber as long as the connection of the Terminal Equipment has not been completed, including activation of the SIM card.462

        

  

  

  	

        	(d)463	
          When collecting connection fees, the Licensee is not allowed to discriminate against a Subscriber who did not purchase the Terminal Equipment from it.

        

  

  

  	81A.	
          SIM card fee

        

  

  

  	

        	(a)	
          The SIM card fee must be reasonable relative to the cost of the SIM card to the Licensee.

        

  

  

  	

        	(b)	
          The SIM card fee shall be uniform regardless of the type or model of the Terminal Equipment, the type of SIM card, the generation of the network technology to which the subscriber’s Terminal Equipment shall be connected, etc.

        

  

  

  	

        	(c)	
          The SIM card fee shall not be included in the price of the Terminal Equipment, and shall be presented separately in the engagement agreement, in the subscriber’s telephone bill and in advertisements of a tariff plan on the Licensee’s
            website, if advertised.

        

  
    

    

    

    458 Amendment No.
      87

    459 Amendment No.
      87

    460 Amendment
      No. 90

    461 Amendment No.
      87

    462 Amendment No.
      87

    463 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(d)	
          Insofar as the Licensee shall charge the subscriber for a SIM card fee, it shall be allowed to collect the payment from him only as a one-time payment in the first telephone bill after the delivery or sending of the SIM card at the very
            latest464. If the Licensee does not do so, it shall not be allowed to collect the said payment from the subscriber subsequently, and it shall not be allowed to
            collect the said payment from the subscriber, or any other payment, if he does not return the SIM card as a result of termination of the engagement betweeen them.

        

  

  

  	

        	(e)	
          The Licensee is not allowed to collect a SIM card fee from the subscriber in respect of a replacement of the SIM card, due to a malfunction in it.

        

  

  

  	

        	(f)	
          The Licensee is not allowed to discriminate against a subscriber during the collection of a SIM card fee because he did not purchase the Terminal Equipment from it.

        

  

  

  	

        	(g)	
          Insofar as a subscriber has a SIM card that was issued to him by the Licensee, which had been used by the subscriber in the past and was disconnected due to the termination of the engagement, and the subscriber asks to activate it in order
            to resume being a subscriber of the Licensee, the Licensee shall do so and it shall not be allowed to collect a SIM card fee from the subscriber.465

        

  

  

  	82.	
          Collection of a Connection466 Fee In Installments

        

  

  

  The Licensee is permitted to collect the Collection Fee set out in Paragraph 82 for connection to the MRT System in a number of payments, on dates agreed with the Subscriber and
    in amounts set out in the service contract.

  

  

  	83.	
          Harm to Competition or to Consumers

        

  

  

  	

        	(a)	
          If the Minister finds that one of the Licensee’s tariffs or a demand for payment to, or via the Licensee contravene the provisions of the License, then the Minister shall notify the License of such, specifying the required amendment and that
            in the event it is not amended the Minister shall exercise his authority pursuant to sections 5 and 15 of the Law; the Licensee shall furnish the Minister with written notification specifying the amended tariff and shall act to refund the extra
            amount, if any, to Subscribers charged according to the tariff prior to its amendment.

        

  

  

  	

        	(b)	
          If the Minister finds that one of the Licensee’s tariffs or a demand for payment to, or via, the Licensee are not reasonable or may cause harm to competition or to consumers, then the Minister shall notify the Licensee of such specifying the
            required amendment and that if it is not amended the Minister shall exercise his authority pursuant to sections 5 and 15 of the Law; the Licensee shall furnish the Minister with written notification specifying the amended tariff.

        

  
    

    

    
 

  
    464 Amendment
      No. 90

    465 Amendment No.
      87

    466 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	83A467	
          Overcharging

        

  

  

  	

        	(a)	
          The Licensee is allowed to collect payments from a subscriber only in conformity with that specified in its engagement agreement with the subscriber, and in conformity with the provisions of clauses 74.3(c) – 74.3(f)468;

        

  

  

  	

        	(b)	
          If a subscriber submits a complaint to the Licensee that the Licensee collected a sum in addition to the sum that it is allowed to collect pursuant to the engagement agreement (hereinafter – “Overcharge”),

            the Licensee shall clarify the subscriber’s complaint within ten (10) workdays of the date of receipt of the complaint. For the purposes of this clause, “complaint” – whether written or oral, including a
            subscriber’s inquiry to the Licensee to clarify the details of the charges; “date of receipt of the complaint” – in relation to a written complaint – the date of receipt of the complaint by the Licensee
            and, in relation to an oral complaint – the day the complaint was voiced to the Licensee.

        

   

  

  The Licensee shall document the contents of the complaint in its information system immediately upon its submission, and the outcome of the clarification of the complaint,
    immediately upon completing the clarification, and shall make this documentation available for delivery or forwarding to the Director, upon his request, within five (5) workdays of completing the clarification of the complaint.469

  

  

  	

        	(c)	
          If the Licensee found that it had overcharged the subscriber, the Licensee shall refund the subscriber for the overcharge in a single payment, unconditionally, and shall refund the VAT in respect of the said sum, plus “linkage differentials
            and interest,” as defined in section 1 of the Award of Interest and Linkage Law, 5721 – 1961, from the collection and until the date of the actual refund, as specified hereunder:

        

  

  

  	

        	(1)	
          If the sum of the refund is higher than NIS fifty (50), the refund shall be transferred directly to the subscriber’s means of payment (bank account or credit card) within four (4) workdays of the end of the period prescribed in subclause
            (b). Notwithstanding that stated, the Licensee may refund the said refund to a Business Subscriber by crediting the next telephone bill, if the Business Subscriber expressly agrees to this.

        

  

  

  	

        	(2)	
          If the sum of the refund is NIS fifty (50) or less, the Licensee shall refund the refund by crediting the next telephone bill after the end of the period prescribed in subclause (b). If the sum of the refund exceeds the sum for payment in
            the next telephone bill as stated, the balance shall be transferred directly to the subscriber’s means of payment, within four (4) workdays of sending the telephone bill to the subscriber; the matter of the offset of the balance of the refund
            from the telephone bill or the matter of the transfer of the balance of the refund to the means of payment shall be stated in the relevant telephone bill;

        

  

  

  	

        	(3)	
          Notwithstanding that stated in subclauses (1) and (2), the sum of the refund to a pre-paid subscriber shall be refunded by increasing the balance available to the subscriber.470

        

  

                                                   

  

  
    467 Amendment No. 57

    468 Amendment No.
      87

    469 Amendment No.
      87

    470 Amendment No.
      87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(d)	
          The Licensee shall issue a written response to the subscriber of his complaint within twenty-one (21) workdays of the date of receipt of the complaint. The response to the complaint shall include details of the rationale for rejecting the
            complaint and, insofar as the rationale relates to the terms of the engagement agreement and the Licensee refuted the disagreement regarding overcharging  an amount more than NIS 100 including VAT471, then the Licensee shall attach it to its response, refer to the clause therein pursuant whereto the charge was included in the telephone bill, and details of the mode of its calculation, or
            specifying the sum of the refund and details of its mode of calculation.

        

  

  

  	

        	(e)       (1)	
          The Licensee shall document any subscriber complaint in its information system regarding an Overcharge, that was submitted in writing or orally.

        

  

  

  	

        	(2)	
          The Licensee shall retain a copy of its response, as stated in subclause (d), in its possession; if the Licensee sent its response via electronic mail or facsimile, the Licensee shall retain a copy of its response and a copy of the
            transmission confirmation (hereinafter – “Copy of its Response”).

        

  

  

  	

        	(3)	
          The Licensee shall make the complaint and the Copy of its Response available for delivery or forwarding to the Director, upon his request, within five (5) workdays of sending the response to the subscriber.472

        

  

  

                                                  

  
    471 Amendment
      No. 90

    472 Amendment No.
      87

  

   

  

  
    
      
        

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

    

  Chapter G - Payments from the Licensee, Liability, Insurance and Guarantee

  

  

  Section A - Royalties and Payments

   

    

  	84.	
          Royalties

        

  

  

  	84.1	
          473The Licensee shall pay royalties as set out in the Telecommunications Regulations (Royalties), 5761-2001 or any other regulations that may replace those
            (hereinafter: the “Royalty Regulations”).

        

  

  

  	84.2	
           Deleted474

        

  

  

  	84.3	
          Deleted475

        

  

  

  	84.4	
           Where it becomes apparent that the  sum of royalties that the Licensee was required to pay476 is  higher than the sum paid by it for a certain quarter477, the Licensee shall pay royalty differentials, together with interest and linkage differentials as set out in the Royalty Regulations.

        

  

  

  	84.5	
          Where it becomes apparent that the sum of royalties that the Licensee is required to pay under the Adjusted Statement is lower than the sum paid by it for a certain quarter478, the Licensee shall be credited with the sum of the surplus payment;  surplus payments to which the Licensee is entitled shall be set off, upon written approval by the Director, against the next  royalties payment, and
            interest and linkage differentials shall be calculated in accordance with the last index published prior to the date of the setoff, as aforesaid;  for these purposes, interest and linkage differentials shall be as set out in the Royalty
            Regulations.

        

  

  

  	85.	
          Delay in Payment of Royalties

        

  

  

  The Licensee shall pay linkage differentials, arrearage interest and collection costs as set out in the Royalty Regulations, on royalties not paid in the time prescribed for their
    payment under said  regulations.

  

  

  	86.	
          Manner of Payment of Royalties

        

  

  

  Royalties and linkage differentials, arrearage interest, and collection fees therefor, shall be paid to the accountant of the Ministry of Communications by way of bank transfer
    into the account of the Ministry of Communications.

  

  

  	87.	
          Other Obligatory Payments

        

  

  

  The royalties under this section  shall be in addition to any fee, tax or other obligatory payment that the Licensee is required to pay under the provisions of any law.

  

  

  

  473 Amendment No.
    14

  

  474 Amendment No.
    98

  

  475 Amendment No.
    98

  

  476 Amendment No.
    98

  

  477 Amendment No.
    98

  

  478 Amendment No.
    98

  
     

    

    
      
        

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

    

  Section B - Liability and Insurance

  

  

  	88.	
          Definition of the Scope of Liability

        

   

  In this section:

  

  

  “Use of the License” - The establishment of an MRT System, its installation, subsistence, maintenance or operation,
    either by the Licensee or through its agent, including its employees, contractors, agents or representatives.

  

  

  	89.	
          Liability of the Licensee

        

  

  

  	89.1	
          The Licensee will be liable, pursuant to all laws, for any case of death, damage or loss caused to a person or his property, either directly or indirectly, from Use of the License or as a result of its use.

        

  

  

  	89.2	
          In using the License, the Licensee will take all reasonable steps to prevent damage or loss to a person or his property, and should damage or loss be incurred as a result of the Use of the License, the Licensee will repair the damage at its
            expense and compensate the injured party, all pursuant to all laws, with the exception of a case regarding which the Minister has granted it immunity as set out in Paragraph 90.

        

  

  

  	89.3	
          For the avoidance of doubt, the provisions of this paragraph do not place liability on the Licensee beyond the damage liability set out in the regular Civil Wrongs Laws or detract from such liability.

        

  

  

  	90.	
          Immunity from Liability

        

  

  

  	90.1	
          The Minister may, on request from the Licensee, grant it the immunities enumerated in Section 9 of the Law, wholly or partially, subject to the provisions of Paragraph 90.3.

        

  

  

  	90.2	
          The Licensee will detail in its request the immunities it requests and the reasons for so doing.

        

  

  

  	90.3	
          If the Minister is satisfied by the need to grant the Licensee immunities in accordance with Section 9 of the Law, he will publish his decision in the Official Gazette.

        

  

  

  	91.	
          Drawing Up an Insurance Contract

        

  

  

  	91.1	
          The Licensee, at its own expense, will draw up an insurance contract with an authorized insurer in accordance with the provisions of Paragraph 92, and it will be presented to the Director at the award of the License.

        

  

  

  	91.2	
          The Licensee will indemnify the State for all financial liability, as set out in Paragraph 89.1, that the State will be bound to any third party as a result of the Use of the License; indemnification in accordance with this paragraph will be
            insured by the Licensee in liability insurance.

        

  
     

    

    
      
        

    

    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  	91.3	
          The Licensee will insure itself, including its employees and contractors, against any financial liability as set out in Paragraph 89.1, which might bind it pursuant to all laws as a result of damage caused to person or his property, from Use
            of the License and against any loss or damage caused to the MRT system, wholly or partially, from Use of the License, and including third party risk.

        

  

  

  	91.4	
          The Licensee will provide the Director with a legal opinion, written by an attorney specializing in insurance, that confirms that the insurance policy covers all the requirements set out in Paragraphs 91.2 and 91.3; the Licensee will append
            to the said legal opinion a copy of the insurance contract and its annexes; the said documents will be submitted to the Director within seven (7) days from the signing of the insurance contract and will be appended to this License as Appendix G
            to the Second Annex.

        

  

  

  	92.	
          Conditions in the Insurance Contract

        

  

  

  	92.1	
          The insurance contract will determine the period of insurance and will contain a condition stipulating that at the end of the set period, the insurance will be automatically extended.

        

  

  

  	92.2	
          Once a year, the Licensee will present to the Director confirmation from the insurer that the insurance contract is valid, that the Licensee is not in arrears with insurance premium payments and that there are no pending notices regarding
            cancellation, suspension, limitation, amendment or termination of validity of the insurance contract.

        

  

  

  	92.3	
          The insurance contract will contain a stipulation, according to which in any event of the insurer wishing to cancel the insurance contract as a result of non-payment of insurance fees, he must inform the Director in advance, no less than
            ninety (90) days before he intends to actually cancel the contract (hereinafter in this paragraph “Cancellation Notice”).

        

  

  

  	92.4	
          Should a Cancellation Notice be sent as set out in Paragraph 92.3, the Licensee will take immediate action to remove the cause of the cancellation, or will take immediate action to obtain an alternative insurance contract as set out in
            Paragraph 92.6, and notify the Director of the action it has taken; should the cause of the cancellation be non-payment of insurance fees by the Licensee, the Director may make payment of said fees in its place, and may foreclose the bank
            guarantee or any part thereof to cover the expense incurred by payment of the insurance fees, or collect them in any other way.

        

  

  

  	92.5	
          Should the Licensee request the cancellation of the insurance contract, it will inform the Director in this matter within forty five (45) days at least before it intends to actually cancel the contract.

        

  

  

  	92.6	
          Should the Licensee agree to cancellation of the insurance contract by the insurer, or it has requested to do so itself, the Licensee will draw up an insurance contract with another authorized insurer in such a way that the new insurance
            contract will go into effect at the same time as the validity of the previous contract expires; the new insurance contract will be submitted to the Director, together with the legal opinion set out in Paragraph 91.4, at least thirty (30) days
            before it goes into effect, and it will be subject to the instructions in the paragraphs of this section.

        

  

  

  	93.	
          Remedy for Breach of Insurance Conditions

        

  

  

  Should the Licensee not draw up an insurance contract, or if it becomes clear that the insurance contract it drew up has been cancelled or it has expired, and the Licensee has not
    drawn up a new insurance contract as set out in Paragraph 92.6, the Director may execute the insurance in its place and pay the insurance fees, and may foreclose the bank guarantee to cover the expense incurred by payment of the insurance fees, or
    collect them in any other way; all of the above without derogating from the authority to cancel, limit or suspend the License because of non-execution of the insurance according to the conditions of this License by the Licensee.

  
     

    

    
      
        

    

     

    

    Translation from Hebrew

    The Binding version is the Hebrew version

     

    

  

  Section C - Guarantee to Ensure Fulfillment of the License Conditions479

  

  

  	94.	
          The Guarantees and their Objectives480

        

  

  

  	94.1	
          The Licensee shall issue two guarantees to the Director. A guarantee shall be a bank guarantee from an Israeli bank or an autonomous insurance guarantee from an Israeli insurance company (hereinafter jointly – “the Guarantees”). The Guarantees shall be unconditional in favor of the State of Israel in New Israeli Shekels to ensure the fulfillment of the License conditions; the sums of the
            Guarantees, as stated in Appendix H to the second Annex, the wording of the guarantee will be to the satisfaction of the Director-General481;482

        

  

  

  	94.2	
          One guarantee, which shall be issued according to that stated in Appendix H or  (hereinafter – “the License Guarantee”), shall be used to ensure the fulfillment of the License conditions by the
            Licensee and also for compensation and indemnification of the State for any damage, payment, loss or expense incurred or that is liable to be incurred by the State, whether directly or indirectly, as a result of nonfulfillment of all or a
            portion of the License conditions on time and in their entirety or as a result of the revocation, restriction or suspension of the License.483

        

  

  

  	94.3	
          A second guarantee, which shall be issued according to that stated in Appendix H (hereinafter – “the 5G Guarantee”), shall be used to ensure the fulfillment of the rollout obligation as stated in
            clauses 1.2(b)(3) and 1.2(b)(4) of Appendix E.484

        

  

  

  	95.	
          Foreclosing the Guarantee485

        

  

  

  	95.1	
          Without derogating from the general purport of that stated in clause 94.2, the Director may confiscate all or a portion of the License Guarantee as a result of nonfulfillment of the License conditions, including in each of the instances
            specified hereunder:

           

          

        

  
    	 	
            (a)

          	
            Cancelled.

          

  

  
    	 	
            (b)

          	
            Cancelled.

          

  

  
    	 	
            (c)

          	
            Cancelled.

          

  

  	

        	(d)	
          The Licensee is not fulfilling the coverage and quality of service requirements as stated in Appendix B and Appendix E (excluding clauses 1.2(b)(3) and 1.2(b)(4)), is not fulfilling the requirements regarding the Passive Components and the
            Cellular Radio Base Stations as stated in clause 19C.2, or the Licensee is persistently discontinuing, suspending or limiting the Service contrary to the provisions of the License;

        

  

  
    

    479 Amendment
      No. 107

    480 Amendment
      No. 107

    481 Amendment
      No. 108

    482 Amendment
      No. 107

    483 Amendment
      No. 107

    484 Amendment
      No. 107

    485 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(e)	
          Cancelled.

        

  	

        	(f)	
          Cancelled.

        

  	

        	(g)	
          A claim or demand for payment of compensation and damages is filed against the State due to a breach of a condition of the License, deficient implementation of the License or due to the revocation of the License, and also if expenses were
            incurred by the State as a result of a claim or demand as stated; the guarantee shall be confiscated for the purpose of covering the sum of a claim as stated only after the ruling in that claim has become conclusive;

        

  	

        	(h)	
          Cancelled.

        

  	

        	(i)	
          Expenses or damages were incurred by the State as a result of the License revocation;

        

  	

        	(j)	
          The Licensee has not supplemented the guarantee sums as stated in clauses 96.2 and 97.2;

        

  	

        	(k)	
          Cancelled.

        

  	

        	(l)	
          A pecuniary sanction by law has been imposed on the Licensee and the sum demanded was not paid on time, provided that a sum exceeding the sum of the sanction shall not be forfeited;

        

  	

        	(m)	
          The Licensee failed to issue the 5G License Fee pursuant to clause 114 of this License and the conditions of the 5G Tender.

        

   

  	95A.1	
          The Director may confiscate all or a portion of the 5G Guarantee due to a failure to fulfill the License conditions pertaining to fulfillment of the obligation to rollout the System specified in clauses 1.2(b)(3) and 1.2(b)(4) of Appendix E
            to this License, according to the stages specified in these clauses.

        

   

  

  	95B.1	
          Notwithstanding that stated in clause 95.1 and in clauses 98.1 and 98.3, the Director shall not take action by way of confiscating the 5G Guarantee unless he found that the actual rollout is at the rate of 50% or less compared to the rollout
            obligation applying at that time (for example: if the actual rollout in Stage B as specified in clause 1.2(b)(4) is 37.5% or less of the minimum coverage requirements, compared to the obligation to fulfill 75% of the minimum requirements, then
            the Director shall enforce by way of confiscating the guarantee).

        

  

  

  	95.2	
          The Director may confiscate the Guarantees as stated in accordance with this part also due to an expected breach of the License conditions or frustration of the License conditions that justifies, according to his judgment, an early
            confiscation of the Guarantees, as the case may be.

        

  

  

  	96.	
          Mode of confiscation of the Guarantees486

        

  

  

  	96.1	
          The Director may confiscate all or a portion of the relevant guarantee up to the sum specified therein, provided that he warned the Licensee that if, within the timeframe specified in the warning, the Licensee does not rectify the act or
            omission that is the subject of the warning, the relevant guarantee shall be fully or partially confiscated.

        

  

  

                                                  

  
    486 Amendment
      No. 107

    

  

  
    
      

  

   
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	96.2	
          If all or a portion of the relevant guarantee is confiscated, the Licensee shall issue a new guarantee or supplement its balance up to the sum of the original guarantee immediately upon the Director’s request; a failure to supplement the sum
            of the guarantee as stated shall constitute a material breach of the License conditions, and the Director may – without derogating from his authority to revoke, limit or suspend the License – confiscate any balance of the total relevant
            guarantee.

        

  

  

  	96.3	
          The Licensee may appeal the Director’s decision to confiscate all or a portion of the relevant guarantee to the Minister within 15 days of the notification date of the Director’s decision.

        

  

  

  	97.	
          The Period of Validity of the Guarantee

        

  

  

  	97.1	
          The License Guarantee shall be in effect487 during the entire period of validity of the License and also during two years after the validity of the License
            expires.

        

  

  

  	48897A.1	
          The 5G Guarantee shall be in effect until 60 days after completing the third milestone as specified in Appendix E to the License, or until the Licensee fulfills its system rollout obligation, which is specified in clauses 1.2(b)(3) and
            1.2(b)(4) of Appendix E to this License, whichever date is later.

        

  

  

  	97.2	
          Cancelled.489

        

  

  

  	97.3	
          If the Director acknowledges receipt of a License Guarantee or a 5G Guarantee490, the validity of which may be extended from time to time in accordance with his
            demand, the Licensee will extend its validity, before the end of the expected period, and this for a period ordered by the Director; should the Director not exempt the Licensee from the obligation to extend the period of validity, and the
            validity of the guarantee has not been extended on the said date, the Director may foreclose the guarantee without prior warning.

        

  

  

  	98.	
          Preservation of Remedies491

        

  

  

  	98.1	
          Confiscation of all or a portion of the Guarantees in no way derogates from the authority to revoke, limit or suspend the License.

        

  

  

  	98.2	
          The sum of the guarantee in no way limits the scope of the Licensee’s liability to the State to pay all damages caused to the State, when the obligation to pay them applies to the Licensee pursuant to the License or by law.

        

  

  

  	98.3	
          Full or partial confiscation of the Guarantees in no way derogates from the Director’s right to sue the Licensee for payment of damages that the Licensee is obligated to cover pursuant to this License using any other means or remedies
            available to him by law, including the imposition of a pecuniary sanction.

        

  

  

                                                  

  
    487Amendment No. 107

    488 Amendment
      No. 107

    489 Amendment
      No. 107

    490 Amendment
      No. 107

    491 Amendment
      No. 107

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Chapter H - Supervision492

  

  

  Section A - Supervision of the Licensee’s Activities

  

  

  	99.	
          Authority for Supervision

        

  

  

  The Director or a person authorized by him may supervise the activities of the Licensee in all matters pertaining to the implementation of the License and the observation of the
    provisions of the Law, the Ordinance and the Regulations therein.

  

  

  	100.	
          Confidentiality

        

  

  

  The Director and any person engaged in supervision activities on his behalf over the Licensee, will not disclose any information or document that comes into their hands in the
    course of their duties, to a person not authorized to receive them, unless they have been made public, or if the disclosure is necessary for the purpose of fulfilling their duties in accordance with this License and in accordance with all laws.

  

  

  	101.	
          Entering Premises and Inspection of Documents

        

  

  

  For the purposes of  the supervision as set out in this section, the Director may:

   

  	

        	(A)	
          Enter, at any reasonable time, any installation or office serving the Licensee for the purpose of provision of its services in accordance with this License;

        

   

  	

        	(B)	
          Conduct measurements and tests in the MRT System and he may examine any record, document, plan, account book, ledger or data base, regular or computerized, of the Licensee or whomever is employed by it in the matters on which the Director
            has the said supervisory authority; the Director may examine and copy them in any way he deems fit.

        

  

  

  	102.	
          Cooperation

        

  

  

  The Licensee will cooperate with the Director in all matters concerning the execution of the supervision over its said activities, and without detracting from the generality of
    the above, it will enable them the execution set out in Paragraphs 100 and 101 and will provide them, on request, any information in its possession or under its control that is required for execution of the supervision.

  

  

                                                  

  
    492 Amendment
      No. 98

  

  

  

  
    
      

  

  

  

  

    
      Translation from Hebrew

       
      The Binding version is the Hebrew version

       

  

   

    

  Section B - Fault Repair and Preservation of Documents and Recordings493

  

  

  	103.	
          Deleted494

        

  

  

  	104.	
          Types of Report and their Submission Date495

        

  

  

  	104.1	
          Deleted496

        

  

  

  	104.2	
          Deleted497

        

  

  

  	104.3	
          The Licensee shall submit to the director a report for extraordinary events, as set forth in regulation 8 of the Supervision Regulations.

        

  

  

  	104.4	
          Deleted498

        

  

  

  	104.5	
          Deleted499

        

  

  

  	105.	
          Notice of Defect500

        

  

  

  	105.1	
          If the Director found defects or deficiencies in the Licensee’s activities, the Director shall notify it of this in writing (in this clause – “the Director’s Notice” or “the Notice.”

        

  

  

  	105.2	
          The Licensee shall deliver its response to the Director in writing, within the timeframe defined by the Director in the Notice. If the Director did not define a timeframe for the Licensee’s response, the Licensee shall deliver its response
            to the Director by no later than thirty (30) days of its receipt of the Director’s notice. In its response, the Licensee shall specify the means it took to rectify the defects and deficiences specified in the Notice and to prevent their
            recurrence.501

        

  

  

  	106.	
          Deleted502

        

  

  

  	106A.	
          Retention of documents and recordings

        

  

  

  	

        	(a)	
          The Licensee shall retain documents and recordings in its possession concerning the terms of the engagement with the subscriber for the entire duration of the engagement and for one year after the termination of the engagement.

        

  

  

  	

        	(b)	
          Deleted503

        

  

  

  

  

  493 Amendment No.
    98

  

  494 Amendment No.
    98

  495 Amendment No.
    41

  

  496 Amendment No.
    98

  

  497 Amendment No.
    98

  

  498 Amendment No.
    98

  

  499 Amendment No.
    98

  500 Amendment No.
    41

  501 Amendment No.
    87

  502 Amendment No.
    41

  

  503 Amendment No.
    98

  
     

    

    
      
        

    

    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

    

  Chapter I  - Miscellaneous

  

  

  	107.	
          The License as an Exhaustive Document

        

  

  

  	107.1	
          The rights of the Licensee, its obligations and powers in all matters pertaining to the establishment, subsistence and operation of the MRT System and the provision of services through it, originate in this License and they derive from it
            and are in accordance with it only.

        

  

  

  	107.2	
          The Licensee will be precluded from claiming the existence of any right, obligation or authority based on information, promise, undertaking, representation, proposal, publication, minutes, discussion or declaration that were made outside the
            License, either in writing or orally, either prior to the award of the License or after it was awarded, with the exception of the interpretation provided by the Minister in accordance with Paragraph 6.

        

  

  

  	108.	
          Holding the License Documents and their Return

        

  

  

  	108.1	
          The Licensee will hold the License documents in an office and will allow the public to examine their true and updated copies; should a License condition be changed, the Licensee will append the text of the change to the said License
            documents.

        

  

  

  	108.2	
          504Where the License and the documents related to it are on public display, the public shall not have the opportunity to inspect the following documents, contained in the Second Annex of the License:

        

  

  

  	

        	(a)	
          Appendix  A – Deleted505

        

  	

        	(b)	
          Appendix B-The engineering plan that is attached to Appendix B506;

        

  	

        	(c)	
          Deleted507

        

  	

        	(d)	
          Appendix  G – Insurance Contract;

        

  	

        	(e)	
          Appendix  H – Guarantees and letters of undertaking508

        

  	

        	(f)	
          Appendix  I – Letters of Undertaking;

        

  	

        	(g)	
          Appendix  K – Special Services for Security Forces;

        

  	

        	(h)	
          Appendix  L – Security Instructions.

        

  

  

  	108.3	
          The License documents are the property of the State and are entrusted to the Licensee for the period of the License’s validity; should the License be revoked or expire, the Licensee will return the License and all its documents to the
            Director.

        

  

  

  	509108.4	
          The Licensee shall allow the public to inspect the documents of the License via the internet;  the Licensee may also do so through  the Ministry of Communications’ internet site as  long as the Ministry of Communications publishes the
            License on its internet site.

        

  
    

    

    

    504 Amendment No.
      14

    505 Amendment
      No. 98

    506 Amendment No.
      41

    507 Amendment No.
      41

    508 Amendment
      No. 107

    509 Amendment No.
      14

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	510108.5	
          The Ministry may publish the License, other than the Appendices  set out in clause 108.2, on such date and in such manner as it sees fit.

        

  

  

  	109.	
          Deferment of Date

        

  

  

  	109.1	
          If an obligation imposed on the Licensee in this License has a set date for its fulfillment, the Licensee will fulfill it on that date.

        

  

  

  	109.2	
          The Director may, upon the Licensee’s request, defer a date set as stated above, if he deems that fulfillment of the obligation on that date is impossible for reasons of force majeure.

        

  

  

  	110.	
          Responsibility

        

  

  

  The approval or supervisory authority conferred upon the Minister or the Director in accordance with this License, including the employment of the said authority, does not impose
    on them any responsibility whatsoever, that is imposed in accordance with this License on the Licensee, and it does not harm or detract or remove or diminish the responsibility of the Licensee as stated above.

  

  

  	111.	
          Dispatch of Notice

        

  

  

  	111.1	
          A notice pertaining to this License or its implementation will be given in writing and be delivered by hand or by registered mail with confirmation of receipt; a notice dispatched by registered mail as stated above shall be deemed to have
            reached its destination within forty-eight (48) hours of its dispatch.

        

  

  

  	111.2	
          Any notice from the Licensee to the Minister will be delivered or dispatched through the Director.

        

  

  

  	111.3	
          For the purpose of receiving notices in accordance with this paragraph, the Licensee’s address is: 8 Amal Street, Afek Industrial Park, P.O. Box 435, Rosh Ha’ayin, P.O. Box 48103511;  the Licensee will inform the Director of any change of address immediately.

        

  

  

  	112.	
          Operation in the 512Judea and Samaria Civil Administration Area

        

  

  

  	112.1	
          The Licensee shall contact the communications staff officer in the Judea and Samaria Civil Administration Area for the allocation of frequencies, the expansion of its license in the Judea and Samaria areas, for the expansion of the MRT
            system and for the provision of 4G and 5G513 Services in the areas in which the authorities in the telecommunications sector are of the Civil Administration.

        

  

  

                                                  

  
    510 Amendment No.
      14

    511 Amendment No.
      4

    512 Amendment No.
      83

    513 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	112.2	
          The Licensee will operate in the Judea and Samaria areas in accordance with the license and frequencies allocation from the communications staff officer of the Civil Administration; the frequency allocation and the license in the Judea and
            Samaria area, including the deployment, the minimum requirements and the service level to the subscriber shall be mostly based on the allocation terms in Israel and the provisions of this license, mutatis
              mutandis, as shall be determined by the Civil Administration manager and in accordance with the law and the Security Legislation applicable to the Judea and Samaria areas, including the need to receive an individual approval for the
            establishment of each telecommunications facility.

        

  

  

  	113.514	
          Cancelled.515

        

  

  

  	114.	
          5G Licensee Fee516

        

  

  

  Licensee shall pay the 5G License Fee at the sum of ILS 31,190,000 after 4.9.2022, but by no later than 8.9.2022 and by this date only. The timely payment of the
    License Fee is a material condition of this License

  

  

                                                  

  
    514 Amendment No.
      57

    515 Amendment No.
      87

    516 Amendment
      No. 107

  

  
    
      

  

   
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Annexes

   

  First Annex 517

  

  

  List of Services and Gauges of Quality of Service

  

  

  	1.	
          General

        

  

  

  	1.1	
          This Annex  contains the list of services that the Licensee is to supply, under the conditions set out in Part B of Chapter E – “Level of Service to Subscribers”.

        

  

  

  	1.2	
          The services shall be supplied using the technology operated by the Licensee, unless otherwise noted in the License or in an Annex  to the License.

        

  

  

  	1.3	
          Wherever the words “Support in Various Languages” appear, the intention is at least to support in the following four languages: Hebrew, Arabic, English and Russian.

        

  

  

  
    	
            5181.4

          	
            The licensee shall include in the service file at least the following details:

          

  

  

  

  	

        	a)	
          Name of the Service: name of the service, including the commercial name of the service and a general description of the service.

        

  	

        	b)	
          Detailed Description of the Service: including:

        

  

  

  Is this a new service/expansion of an existing service/combination of services/is there a need for preliminary test;

  The manner of operation of the service;

  Date of commencement of the service;

  Availability and gauges for quality of service;

  Support centers;

  Service price;

  The target clientele of the service;

  The manner of ordering the service;

  The process of connecting to the service;

  The ramifications or influences of this service on other services.

  

  

                                                  

  
    517 Amendment
      No. 14

    518 Amendment No. 41

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	c)	
          Engineering Description

        

  A description and  diagram of the system;

  Handsets-target equipment for receipt of the service;

  

  

  	

        	d)	
          Miscellaneous

        

  The need for number portability necessary coordinations with the licensee or other factors.

  

  

  	5192.	
          List of Services:

        

  

  

  	2.1	
          Basic Services520

        

  

  

  	
          No.

        	
          Service

          Name

        	
          Service Description

        	
          Supply Date**

        	
          Service Quality Measures*

        	
          Notes

        
	
          1.

        	
          Basic

          Telephone service (cellular calls)521

        	
          Telephone conversations to and from Subscribers of the Licensee to any telephone or other Terminal Equipment appropriate to the Licensee’s Network and to any other Public Telecommunications Network in Israel or
            around the world.

        	
          Exists

        	
          High sound quality and high level of privacy

        	 
	
          2.

        	
           

          Telephone access to emergency call services522

        	
          Free dialing to such emergency services as shall be prescribed by the Director (e.g.: police, ambulance, fire department, and others).

          Caller to be directed to an emergency call center by way of definition of the service provider in the place where the Subscriber is. These services are available also without a SIM card in the handset.

        	
          Exists

        	 	
          The phone number of the caller shall be identifiable by the public emergency service centers. Dialing without a SIM card shall be possible to number 112 according to ETSI nad directed to the police.

        
	
          2A

        	
          Data Communications523

        	
          connecting a subscriber via telephone or independent modem to TCP/UDP/IP communications for message transmissions via packet switch.

        	
          Exists

        	
          according to the global GSM organization’s definitions and according to the European Telecommunications Standards Institute’s (ETSI) standards.

        	 

  

  

  	

        	*	
          The Licensee shall act in accordance with the definitions of the World GSM Organization, and in accordance with the standards of ETSI (the European Telecommunications Standards Institute), to the extent relevant for each  service.

        

  	

        	**	
          3G services are provided from January 2005 unless stated otherwise (notice of activation of 3G services as of February 2, 2005).

        

  

  

                                                  

  
    519 Amendment No. 63

    520 Amendment
      No. 107

    521 Amendment
      No. 107

    522 Amendment
      No. 107

    523 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	2.2	
          Accompanying Services

        

  

  

  	
          No.

        	
          Service Name

        	
          Service Description

        	
          Supply Date**

        	
          Gauges of Quality of Service*

        	
          Notes

        
	
          3.

        	
          Voice mail

        	
          Leaving and retrieving  voice messages stored in a personal voice mailbox when the customer is not available or does not wish to answer.  Sending an indicator when a message is waiting in the mailbox.  Licensee to
            support various languages.

        	
          Exists

        	 	
          Leaving and retrieving  messages from voice mail box even when dialing from other networks.

        
	
          4.

        	
          “Follow me”

        	
          Direction of incoming calls to another telephone number at the Subscriber’s election (permanently, only when the Subscriber’s number is engaged, only when the Subscriber does not answer or when the Subscriber is
            not available).  The service operates in accordance with the subscriber's choice when the handset is not turned on or is outside a coverage area.

        	
          Exists

        	
          Availability at peak hours at 99% probability

        	
          These services are available also without a SIM card in the handset.

        
	
          5.

        	
          "Selective follow me"

        	
          Direction of certain incoming calls at te Subscriber's election to another telephone number at the Subscriber’s election (permanently, only when the Subscriber’s number is engaged, only when the Subscriber does not
            answer or when the Subscriber is not available).  The service also operates in accordance with the subscriber's choice when the handset is not turned on or is outside a coverage area

        	
          Future

        	
          Availability at peak hours at 99% probability

        	
          These services are available also without a SIM card in the handset.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	
          6.

        	
          “Hold call”

        	
          Directing a caller to a “hold” status, when the Subscriber answers another call or calls another number.  Skipping between the two calls.

        	
          Exists

        	 	 
	
          7.

        	
          Call waiting

        	
          The ability of the Subscriber to transfer from one call to another (after indication of a second incoming call using special sounds) at the same time.  The Subscriber can choose to answer, not answer, or ignore.

        	
          Exists

        	
          Availability at peak hours at 99% probability

        	 
	
          8.

        	
          Selective call waiting

        	
          Only calls from a list of telephone numbers determined by the Subscriber will activate a sound that lets the Subscriber know about the waiting call.

        	
          Exists

        	
          Availability at peak hours at 99% probability

        	 
	
          9.

        	
          Caller id

        	
          Display of the number of the caller (at the time of the call) on the display screen of the handset.

        	
          Exists

        	 	
          Dependent upon the number not being blocked by the caller or the implementation by the other operator

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          10.

        	
          ID call concealer

        	
          Allows concealment of the Subscriber's number from being displayed on the screen of the handset receiving the call. The concealment can be one-time or permanent.

        	
          *4/1998

        	 	
          In accordance with a a notice dated 15/12/2011

        
	
          11.

        	
          Call blocking

        	
          The ability to limit making calls to certain destinations and in addition the ability to block receiving a call while overseas, in accordance with the Subscriber's preference.

        	
          2/2005

        	
          Availability at peak hours at 99% probability

        	
          The blocking for outgoing calls is for specific numbers. There shall not be a comprenhesive blockage for access to an MRT or fixed-line operator.

        
	
          12.

        	
          Short message service (SMS)

        	
          Sending, receiving, storing and routing of text messages in different languages, graphics, voice and picture messages to and from Subscribers’ handsets in the Licensee’s Network or Subscribers’ handsets on other
            networks in Israel and overseas who have reached an agreement with the Licensee.

          Sending such messages from a personal computer.

          Sending incoming messages to a facsimile machine.

           

        	
          Exists

        	
          Speed of transferring a graphic message-in accordance with the speed supported by the handset and dependent on the abilities of the network to supply data communications.

        	
          Dependent upon terminal handsets

        
	
          13.

        	
          Multi media message

        	
          The ability to send/receive/store/route messages, while utilizing a wide range of media types, such as: text, audio, fax, e-mail, video.

        	
          2/2005

        	
          Based on the speed supported by the handset and the ability of the network to supply data communications.

        	 
	
          14.

        	
          Unified messages

        	
          The Subscriber's ability to access various messages through one access point without depending on the type of media that was used to send the message.

        	
          Future

        	
          Availability at peak hours at 99% probability

        	 
	
          15.

        	
          24 hour subscriber service

        	
          Receipt of assistance from subscriber service 24 hours a day, 7 days a week, in four languages (Hebrew, Arabic, English and Russian).

        	
          Exists

        	
          See Appendix  E

        	 
	
          16.

        	
          Information service

        	
          Finding out telephone numbers in Israel.

        	
          Exists

        	
          See Appendix  E

        	
          Pursuant to provisions of the License

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          17.

        	
          Billing summary

        	
          Sending an invoice containing a summary of all billing (e.g., subscription fees, airtime billing, taxes, other expenses).  Information on billing via interactive answering service and SMS.

        	
          Exists

        	
          100% matching with company records

        	 
	
          18.

        	
          Detailed billing

        	
          Sending an invoice containing details of all calls made for the entire billing period, upon request.  Receipt of accounts, or specific parts of accounts.

        	
          Exists

        	
          100% matching with company records

        	 
	
          19.

        	
          Controlled billing

        	
          The Subscriber determines the maximum level of use for each billing month in order to assist with budgeting.

          Receipt of Short Message System (SMS) when billing reaches pre-determined level of use.

          Increase or decrease of level in real time.

        	
          Future

        	
          100% matching with company records

        	 
	
          20.

        	
          Personal number

        	
          The Subscriber can use a single number for all his communications (voice, fax and data)

        	
          Exists

        	 	 
	
          Able to combine with call screening while activating a "follow me" feature based on the time of day, identity of the caller or type of communication.

        	
          Future

        
	
          21.

        	
          Transfer of calls

        	
          Transfer of calls to third party

        	
          Exists

        	 	 
	
          22.

        	
          Call screening

        	
          Receipt, transfer or rejection of calls based on identity of caller or time.

        	
          Future

        	 	 
	
          23.

        	
          List of preferred callers

        	
          Allows Subscribers to receive calls from a list of preferred callers.  Other calls are sent automatically to the voice mail box or to another number.

        	
          Future

        	 	 

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          24.

        	
          Selection of number

        	
          Subscriber can choose his telephone number in accordance with the Numbering Plan in Israel, as part of the Licensee’s allotments

        	
          Exists

        	 	 
	
          25.

        	
          Ability to change number

        	
          Change of Subscriber’s telephone number, at Subscriber’s request

        	
          Exists

        	 	 
	
          26.

        	
          Access services to information in accordance with location

        	
          Access from MRT Terminal Equipment to specific information per geographic location of Subscriber

        	
          Exists

        	
          Coordination of information within cell – accuracy of several kilometers

        	
          Subject to provisions of protection of Privacy Law, 5741-1981

        
	
          27.

        	
          Loading “telephone book”

        	
          Loading of telephone numbers by Licensee directly into a “telephone book” on Subscriber’s SIM card, per list that Subscriber enters into system via exchange operator, answering service or internet.

        	
          2005

        	 	
          In accordance with a notice dated 15/12/2011

        

  

  

  	
          28.

        	
          Voice operated dialing

        	
          Dialing numbers via Subscriber’s voice command (instead of manual dialing)

        	
          Exists

        	 	
          Dependent upon terminal handset

        
	
          29.

        	
          Voice mail

        	
          The ability of callers to record messages and of addressees to return calls

        	
          2/2005

        	
          Availability at peak hours at probability of 99%

        	 
	
          30.

        	
          Automatic redial (completion of calls to engaged subscribers)

        	
          The system ‘locks’ on to an engaged line and the Network rings the Subscriber back automatically when the engaged line becomes free.

        	
          Exists

        	 	
          Dependent upon terminal handset

        
	
          31.

        	
          Renewal of line that drops out

        	
          Automatic renewal of calls that drop out

        	
          Future

        	 	 
	
          32.524

        	
          Two Number of SIM cards/MRT Terminal Equipment units on one number

        	
          Operating a number of MRT Terminal Equipment using an identical number and identical account (eg. one handset in the car and one mobile).

        	
          Exists

        	 	
          Orange 2

        

  

  

                                                  

  
    524 Amendment
      No. 93

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          33.

        	
          Two numbers for one SIM card

        	
          Operating two separate telephone numbers from the same MRT Terminal Equipment and SIM card (eg. a private line and a business line)  The lines may be billed separately or together.

        	
          Future

        	 	 
	
          34.

        	
          Blockage of international access

        	
          Blocking of a Subscriber’s ability to make outgoing international calls in Israel; and incoming or outgoing calls when roaming outside of Israel

        	
          Exists

        	 	 
	
          35.

        	
          Collect calls

        	
          Collect calling for calls to pre-determined numbers.

          The recipient of the call pays for the call

        	
          Future

        	 	 
	
          36.

        	
          Virtual private network (VPN)

        	
          Dialing MRT Terminal Equipment of Subscribers within a corporation by calling extension numbers on corporation’s private exchange (PBX) or truncated number.

        	
          Exists

        	 	
          For corporations

        
	
          37.

        	
          Wireless Centrex services

        	
          Receipt of some of the benefits of VPN for groups of subscribers who are not connected to a PBX.  Dialing members of the group via truncated code instead of whole numbers

        	
          Future

        	 	 
	
          38.

        	
          Closed user group

        	
          Allowed calls between subscribers in pre-determined groups

        	
          Future

        	 	 
	
          39.

        	
          Automatic subscriber location (Hunt Group)

        	
          Transfer of incoming calls automatically to a list of telephone numbers in order to locate Subscriber

           

           

        	
          Future

        	 	 
	
          40.

        	
          Conference call

        	
          Addition of third party to a call without disconnecting the second party and without needing to set up the service in advance through an exchange operator

        	
          Exists

        	 	
          Dependent upon terminal handset

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          41.

        	
          Data communications service

        	
          Transfer of data communications service via subscriber’s telephone handset/ PC/PDA/Laptop that is connected to the Subscriber's handset. Possible to transfer the data at the time the call or afterwards.

        	
          Exists

        	
          Speed of up to 42Mbps and in the future up to 300 Mhps

        	
          Dependent upon terminal handset and coverage

        
	
          42.

        	
          Over the air activation and alterations

        	
          On line activation and alteration of SIM card memory so as to save a Subscriber's having to come to a service center

        	
          Exists

        	 	 
	
          43.

        	
          Temporary disconnection

        	
          Disconnection of service for a Subscriber for a pre-determined  period of time without losing the specific telephone number (eg. during holidays or temporary stay overseas)

        	
          Exists

        	 	 
	
          44.

        	
          Consolidated billing

        	
          Receipt of one bill combining charges for all handsets for Subscribers with a number of telephones and/or services

        	
          Exists

        	
          Full coordination with system records for bills sent out

        	 
	
          45.

        	
          Clarification of bill status

        	
          Clarification of up-to-date bill status via voice response, SMS or internet

        	
          Exists

        	 	 
	
          46.

        	
          Account billing

        	
          Typing in an identification code before every call (so as to distinguish between business calls and private calls made on the same line).  Receipt of monthly invoice with details of use per billing code.

        	
          Future

        	
          Full coordination with system records for 100% of bills sent

        	 
	
          47.

        	
          Electronic billing / reporting

        	
          Control and analysis of information on billing and treatment of bills by Subscriber, using special software

        	
          Exists

        	
          Full coordination with system records for 100% of accounts sent

        	 
	
          48.

        	
          Additional copy of account

        	
          Receipt of more than one copy of every bill, upon request

        	
          Exists

        	 	 
	
          49.

        	
          Billing on demand

        	
          Supply of report of all bills and credits as at the period requested by the Subscriber.

           

           

           

        	
          Exists

        	
          100%  coordination with system records

        	 

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          50.

        	
          POC (Push to talk over Cellular)

        	
          Holding a conversation by the push of a button on the MRT Terminal Equipment. The call may be private (between Subscribers) or a group call on the data communications network

        	
          7/2004

        	
          In accordance with the Service File

        	
          Based on a temporary provision 525

        
	
          51.

        	
          Free of charge service for the caller

        	
          The initiator of the call shall not be charged for the call. The receiver of the call shall be charged in accordance with appropriate billing arrangements

        	
          3/2010

        	
          In accordance with the service file526

        	 
	
          52.

        	
          Commerce telephone service (premium) at a low price

        	
          Provides a commerce telephone service (premium) at a low price, via the Licensee or content provider.

        	
          9/2008

        	 	
          Prefix in accordance with the numbering program

        
	
          53.

        	
          Commerce telephone service (premium) at a fixed price

        	
          Provides a commerce telephone service (premium) at a fixed price, via the Licensee or content provider.

        	
          future

        	 	
          Prefix in accordance with the numbering program

        
	
          54.

        	
          Ring Back Tone

        	
          Playing of music or content  pre-selected by the Subscriber for those calling, instead of a waiting tone

        	
          4/2003*

        	 	
          *In accordance with a notice dated 30.4.2003

        

  

  

                                                  

  
    525 Temporary Provision - The Licensee will allow the activation of the "Push to Talk" service (hereinafter- the " Service") for any Subscriber that
          is a legal entity (an individual or corporation), provided that the number of users (the number of MRT Terminal Equipment units that are designated for the Service, hereinafter- Terminal Units) that the Subscriber has, does not exceed 20 during
          the first year from the beginning of the Service. Notwithstanding the above, if a significant change shall happen in the MRT sector that can affect the provision of the Service, the Ministry will consider shortening the period.

    Commencement- The beginning of the service not before 18.7.04

    526 In accordance with the service file "free of charge call for the caller" ("1-800 service")

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

       

      

    

  

  	
          2.3

        	
          Value Added Services

        	 	 	 	 

  

  

  	
          55.

        	
          Access to internet / intranet

        	
          Access to internet or to the private intranet network of a company through an account the access to which is via the Subscriber’s Terminal Equipment (including a mobile handset), computer, PDA or similar device and
            the ability to transfer files, e-mails and streamline video/audio data.

        	
          Exists

        	
          In accordance with the speed supported by the handset and dependent on the network's ability to supply data communication.

        	
          Access to internet via special internet services licensee

        
	 	 	 	 	 	 
	
          56.

        	
          Access to internal organizational internet (Intranet) and external (Extranet)

        	
          The ability to supply access to the organizational network either directly to the local organiznational netowrk (LAN) or to the private virtual network (VPN).

        	
          2/2005

        	
          In accordance with the speed supported by the handset and dependent on the network's ability to supply data communication.

        	
          Dependent on the performance of the organizational network.

        
	
          57.

        	
          Identification and verification

        	
          Identification and verification of user upon access to an internal organizational network (intranet) using Terminal Equipment

        	
          Future

        	 	 

  

  

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          58.

        	
          Email

        	
          Access to an electronic mailbox available on various devices (PDA, PC, mobile handsets).

          Sending and receiving messages, indication upon receipt of message into mailbox of Subscriber.

          Support in various languages

        	
          2/2005

        	
          In accordance with the speed supported by the handset and dependent on the network's ability to supply data communication.

        	
          Dependent upon terminal handset

        
	
          59.

        	
          Video communications

        	
          Sending photos, graphics or live video via the Network (eg. Subscribers who are far from one another can exchange photos and work interactively)

        	
          2/2005

        	 	 
	
          60.

        	
          Video Call

        	
          The ability to make a bi-directional video call between two callers.

        	
          2/2005

        	
          Data transfer speed-up to 46K

        	
          Dependent upon terminal handset

        
	
          61.

        	
          International roaming

        	
          Provision of MRT Services when visiting Israel (for “roamers” from overseas).

          Transfer of calls to a Subscriber overseas via a international long distance provider and the provision of the possibility for Subscribers that are overseas to receive MRT services from overseas operators,
            including call filtering and call back and the provision of cellular telephone services and accompanying services to those visiting Israel (for "roamer" from overseas) all by way of roaming agreements with operators in other countries.

           

        	
          Exists

        	
          Under GSM MoU

        	 
	
          62.

        	
          Information regarding international ascription

        	
          A Subscriber that calls the service receives information regarding ascription to international operators.

        	
          Exists

        	 	 

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          63.

        	
          Advanced voice mail box

        	
          Sending and receiving speech messages with more advanced features and abilities:

          Fax box

          sending messages to more than one person at once

          Sending messages from one voice box to another, including transfer of messages received to another person, or direct response to sender.

        	
          Exists

        	 	 
	
          64.

        	
          Personal secretary service

        	
          Connection of callers to an exchange operator to deal with more complex messages than voice mail service.  Notice passed to Subscriber via  speech or Short Message (SMS), per customer instructions (can work as a
            beeper service)

        	
          Future

        	 	 
	
          65.

        	
          GSM / satellite roaming

        	
          Licensee to support handsets with double GSM / satellite operating statuses

        	
          1/2005*

        	
          Conditional upon roaming agreement

        	
          Conditional upon roaming agreement with satellite operator and upon satellite network operator’s having a license from the Director to provide its services in Israel.

          In accordance with a notice dated 15/12/2011*

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          66.

        	
          Information, enterntainment and content services according to subscriber needs

        	
          Access to wide variety of information, enterntainment and content services based on various media types via sms messages/picture/multi media and cellular internet (receiving or transmitting) or via audio or visual
            content (eg. financial information, traffic reports, sports news and weather reports).

        	
          Exists

        	
          In accordance with the speed supported by the handset and dependent on the network's ability to supply data communication

        	
          Dependent upon terminal handset and network capacity

        
	
          67.

        	
          Services based on location

        	
          Combination of various services with location abilitites in the network or a satellite navigation system (GPS) so as to offer customers location-based services (eg. whilst driving in a car).  Subscriber can be
            quickly and accurately located.  Receipt of navigation instructions based on location of Subscriber.

          Various services based on receipt of information regarding traffic situation on roads in Israel based on Subscriber’s location.  Following up movements of subscriber’s vehicle (eg if car  is stolen)

        	
          1/2004*

        	 	
          Subject to the Protection of Privacy Law, 5741-1981.

          In accordance with a notice dated 15.12.2011

        
	
          68.

        	
          Managing mobile workforce/location/navigation

        	
          The ability to supervise, control and manage mobile employees, assist with their navagation while monitoring their location.

        	
          1/2005

        	 	
          Subject to the Protection of Privacy Law, 5741-1981.

           

        
	
          69.

        	
          Notification of activation of alarm

        	
          Checking status of Subscriber’s house alarm, car alarm or any other alarm using Terminal Equipment

        	
          Future

        	 	 
	
          70.

        	
          Marketing and shopping by telephone

        	
          Receiving advertisements for products via speech or written messages (by request). Ordering products via Subscriber’s terminal equipment

        	
          Future

        	 	 

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          71.

        	
          Electronic Money

        	
          Storage and transfer of “electronic money” in the memory of the Subscriber’s SIM card. Loading of SIM card with money using various, convenient means (such as direct transfer from bank account, from ATMs, from
            appropriate public telephones or computerized public information stands).

        	
          Future

        	 	 
	
          72.

        	
          E-Commerce

        	
          Purchase of products and services via Terminal Equipment, being billed via telephone account.

        	
          Exists

        	 	
          To be updated in accordance with the “Mobile Electronic Commerce” regulations, when published and in accordance with the Ministry of Communications' policy.

        
	
          73.

        	
          Payments via the cellular handset

        	
          The ability to effect on line purchases directly from the the cellular handset. The service allows the complete execution of the transaction-verfication of the Subscriber, ordering the goods and execution of the
            payment

        	
          2/2005

        	 	
          Dependent upon terminal handset

        
	
          74.

        	
          Electronic Banking

        	
          Effecting basic banking operations using Terminal Equipment as a terminal (eg. ordering check books, inspecting bank account statements) the information being transferred to a Subscriber’s Terminal Equipment via
            Short Message System (SMS)

        	
          Exists

        	
          In accordance with bank requirements

        	
          Conditional upon the approval of the Supervisor of Banks

        
	
          75.

        	
          Electronic clearance

        	
          Ability of clearance between a trader and the credit card company, using cellular Terminal Equipment

        	
          Future

        	
          In accordance with requirements of credit card companies

        	 

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          76

        	
          Facsimile

        	
          Receipt, storage and retrieval of facsimile message via Subscriber’s Terminal Equipment (fax mail).  Subscriber receives a Short Message (SMS) when new fax arrives. Retrieval of fax by redirecting fax message to
            the fax of the Subscriber’s choice.

        	
          Exists

        	 	
          Direct or via the voice mailbox-dependent on the handset. The service does not exist on the 3G network.

        
	
          77.

        	
          Telemetry applications

        	
          Enables Subscribers to perform remote controlling and monitoring (such as electricity and water meters, traffic lights, cargo, safety warnings, remote readings from computer equipment, environmental monitoring, car
            parking, medical observation)

        	
          Exists

        	
          In accordance with the speed supported by the handset and dependent on the network's ability to supply data communication

        	 
	
          78.

        	
          “Yellow Pages” type directory

        	
          Access to “Yellow Pages” type information via exchange operator using truncated dialing

        	
          Future

        	 	 
	
          79.

        	
          Provision of MRT Terminal Equipment

        	
          Provision of Terminal Equipment  for use in countries with different service bands than Israel  (such as in GSM 1800 and 1900 networks) all charges being transferred to the Subscriber’s GSM account in Israel

        	
          Exists

        	
          Not relevant

        	 

  

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

    

  

  	
          80.

        	
          Provision of SIM card

        	
          Provision of SIM card to  visiting “roamers” from countries with whom there is no roaming agreement

        	
          Future

        	 	 
	
          81.

        	
          Regional tariffs

        	
          A special tariff for calls that begin and end in a pre-ordained area (eg. house, office)

        	
          Future

        	 	 
	
          82.

        	
          Pre-paid card

        	
          Enables a Subscriber to load his  MRT account  with a pre-defined amount of money

        	
          Exists

        	 	 
	
          83.

        	
          Advertisement during call

        	
          Lower tariffs for Subscribers willing to listen to an advertisement at the beginning of the   call.  Advertiser pays for this discount

        	
          Future

        	 	 
	
          84.

        	
          Deleted527

        	 	 	 	 
	
          85.

        	
          Deleted528

        	 	 	 	 
	
          86.

        	
          Filtering of offensive sites and content on the internet

           

        	
          4/12

        	 	 	
          The service is provided to a subscriber that uses internet access service. No additional charge in additional to the payment charged from the subscriber for internet access service.

        
	
          87529

        	
          Personal Message

        	
          a message, warning and short explanation of the security forces that is sent immediately, selectively and focused to subscribers with MRT handsets that support the use of the cell broadcast ("CB") technology.

        	
          10/2014

        	
          As set out in the service file

        	
          In accordance with Article 65B and the "Personal Message" service file

        

  

  

  
    527 Amendment
      No. 100

    528 Amendment
      No. 100

    529 Amendment
      No. 74

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

      

    

  

  	
          88530

        	
          Premium service at a premium tariff

        	
          Premium service provided by dialing a designated prefix that has been allocated for this (1-900, 1-901, 1-903)

           

        	
          2/2015

        	
          The service will be provided in accordance with the provisions of Appendix N.

        	 
	
          89531

        	
          Premium service at a regular tariff

        	
          The premium service will be provided by:

          1)          Network access code-as an internal network service

          2)          Dialing a Fixed-line telephone number-as a general national service.

        	
          2/2015

        	
          A fixed-line telephone number and a regular taiff as defined in article 67D1 of the license

        	 
	
          90

        	
          Partner WiFi Calling

        	
          Making and receiving calls in Israel over the internet network, via wireless access point (WiFi) and keeping the subscriber's telephone number in the Licensee's network.

        	
          7.8.2016

        	
          GOS 2% only in the Licensee's network

        	
          
            1

          

        
	91

        	
          Partner WiFi Calling abroad

        	
          Making and receiving calls abroad over the internet network, via wireless access point (WiFi) and keeping the subscriber's telephone number in the Licensee's network.

        	
          Future

        	 	
          2

        
	92

        	
          Virtual leading number with a cellular prefix

        	
          Receiving calls to a virtual number with a cellular prefix on the Licensee's network and forwarding it to a telephone number on networks in Israel or abroad.

        	
          3.2021

        	 	 
	
          93

        	
          Call recording

        	
          
            
              Recording outgoing calls of the subscriber to the service using an access number with a cellular prefix in the Licensee's network.

              The recordings are stored on a server which the subscriber can access with his terminal equipment and / or via the Internet or are sent as a file to the subscriber after the call.

            

          

        	
          3.2021

        	 	
          
            
              Listening to the recordings also from telephones of other networks in addition to the Internet.

            

          

        
	94.3

        	
          Preference to providers of essential services

        	
          MCPTT service and/or PoC preferred service

        	
          10/2021

        	 	
          In accordance with the service file-prefernce to providers of essential services.

        

  

                                                  

  
    1 Amendment No. 113

    
      2 Amendment No. 113

      
        3 Amendment No. 120

      

    

    530 Amendment
      No. 80

    531 Amendment
      No. 80

  

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

  Second Annex - Appendixes

  

  

  The appendixes in this Annex include the following appendixes and information:

  

  

  Appendix

  

  

  Appendix A - Deleted532

  

  

  Appendix B - Engineering Plan

  

  

  Appendix C - Maintenance Organization-Annulled533

  

  

  Appendix C - National Roaming (NR)534

  

  

  Appendix D - Standard Agreement-Annulled535

  

  

  Appendix D1- Preparations for managing cyber defense;536

  

  

  Appendix E - Minimum Requirements and Grade of Service to Subscribers

  

  

  Appendix F - Service order on the Licensee's or content provider's website537

  

  

  Appendix G - Insurance Contract

  

  

  Appendix H - Guarantees and letters of undertaking538

  

  

  Appendix I - Written Undertakings

  

  

  539Appendix J- Access to International Telecommunication Services

  

  

  540Appendix K-Special Services for the Security Forces (Confidential)

  

  

  541Appendix L-Security Provisions (not for Publication)

  

  

  Appendix M- Adult Voice Services

  

  

  Appendix N- Premium Service that are provided at a Premium Tariff

  

  

  Appendix O- Timely instructions

  

  

  542Appendix P – 5G Service other than Data Communications Using a Broad Frequency Band

  

  

  543Appendix Q – Entitlement to a grant for a 5G rollout

  

  

  544Appendix R – Conditions and restrictions on the use of radio frequencies

   

  

  
    4Appendix S-Cessation of service of a system on old technologies

  

  

  

  

  

  

  4 Amendment No. 115

  532 Amendment No.
    98

  

  533 Amendment No. 41

  

  534 Amendment No. 59

  

  535 Amendment No. 41

  

  536 Amendment No.
    107

  

  537 Amendment No. 60

  

  538 Amendment No.
    107

  

  539 Amendment No. 1

  

  540 Amendment No. 4

  

  541 Amendment No.
    4

  

  542 Amendment No.
    107

  

  543 Amendment No.
    107

  

  544 Amendment No.
    107

  

  

  
    
      

  

   
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Appendix A - Deleted545

   

    

  

  

  

  545 Amendment No.
    98

  

  

  
    
      

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

  Appendix B-Engineering Plan546

  

  

  	1.	
          Cancelled.

        

  

  

  	2.	
          Provisions, characterizations and work procedures:

        

  

  

  	 	2.1	
          Blockage of cellular terminal equipment, as set forth in Article 71A, shall be in accordance with the functional characterization dated November 2, 2008.

        

  

  

  	3.	
          Engineering Plan:

        

  

  

  
    	 	
            3.1

          	
            The following shall be considered as a detailed appendix of the engineering report:

          

  

  

  

  	

        	(a)	
          Cancelled547

        

  	

        	(b)	
          Any engineering plan for the development and upgrade of the network that was delivered to the Director General.

        

  	

        	(c)	
          Outline engineering report that was delivered to the Director General.

        

  

  

  	 	3.2	
          548Engineering array report:

        

  

  

  	

        	(a)	
          Report submission format:

        

  

  

  	

        	1)	
          The Licensee shall submit a report according to the order of the clauses as specified hereunder:

        

  

  

  	

        	2)	
          The report will use the terms and expressions as defined in the License; English terms that shall be used shall be followed by their Hebrew translation;

        

  

  

  
    	

          	3)	
            The report is to be submitted in an original digital soft copy that is compatible with the operating system, hardware and recognized software being used by the Director.1

          

    

  

  	

        	4)	
          The engineering array report shall be written in tracked changes version relative to the previous year’s report, so that changes (additions/ deletions) may be identified in the report compared to the previous year.

        

  

  

  
    

    

    

    1 Amendment No. 113

    546 Amendment
      No. 41

    547 Amendment
      No. 107

    548 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Outline engineering report

  

  

  Table of Contents

  

  

  	Chapter A:	
          General- shall be presented in tracked changes version549

        

  

  

  	

        	1.	
          Definitions, terms and explanations

        

  	

        	2.	
          Approvals and signatures

        

  

  

  	Chapter B:	
          Summarized Description- shall be presented in tracked changes version550

        

  

  

  	Chapter C:	
          Detailed Description- shall be presented in tracked changes version551

        

  

  

  	Chapter D:	
          Risks, Disturbances, Special Difficulties- shall be presented in tracked changes552 version

        

  

  

  	Chapter E;	
          Engineering Plans- shall be presented in tracked changes version;

        

   

  

  In this chapter, update the activities performed over the last year compared to the Engineering Plan that was prepared and presented in last year’s report; present the annual
    planning for the coming year in a detailed manner so that it includes, inter alia, the number and location of the planned sites, planned changes in services or in the network core, coverage expansion, improvements to performance.553

  

  

                                                  

  
    549 Amendment
      No. 107

    550 Amendment
      No. 107

    551 Amendment
      No. 107

    552 Amendment
      No. 107

    553 Amendment
      No. 107

  

  
    
      

  

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

  

  Chapter A: General

  

  

  	

        	1.	
          Definitions, terms and explanations

        

  

  

  
    	 	
            a.

          	
            Concentration and explanation of terms that are included in the engineering plan report, including details of abbreviated terms.

          

  

  

  

  	

        	2.	
          Approvals and signatures

        

  

  

  
    	 	
            a.

          	
            I, the undersigned [the highest ranking engineering officer in the company] hereby confirm that this engineering report accurately and completely describes the engineering outline of the
              company and its engineering plans as they are known to me.

          

  

  

  

  _________________________

  

  

  Chapter B: Summarized Description

  

  

  	

        	1.	
          A summarized description of the engineering outline:

        

   

  

  	

        	a.	
          A summarized description of the engineering outline that includes a description of the engineering system configuration, deployment and quantities of the system components.

        

  

  

  
    
      

  

  

     

    

    
      Translation from Hebrew

       
      The Binding version is the Hebrew version

    

     

    

  

  Summary of the Engineering Report554

  

  

  	 
	
          No.

        	
          Subject

        	
          2G (GSM)

        	
          3G

          (HSDPA/HSPA/HSPA+)

        	
          4G

          (LTE/Adv LTE)

        	
          5G

        
	
          1.

        	
          No. of subscribers (m)

        	 	 	 	 
	
          2.

        	
          Frequency ranges (MHz)

        	 	 	 	 
	
          3.

        	
          No of core sites

          Principal manufacturer

          Additional manufacturer

        	 	 	 	 
	
          4.

        	
          Number of interim sites

          (such as RNC)

          Principal manufacturer

          Additional manufacturer

        	 	 	 	 
	
          5.

        	
          Number of end sites (such as BS)

          Principal manufacturer

          Additional manufacturer

        	 	 	 	 
	
          6.

        	
          Average voice transmission per end site (mbps/E1)

        	 	 	 	 
	
          7.

        	
          Average data transmission per end site (mbps)

        	 	 	 	 
	
          8.

        	
          Congestion management system – yes/no

        	 	 	 	 
	
          9.

        	
          Interconnections (mbps)

        	 	 	 	 
	
          10.

        	
          Number portability

          Who is the supplier?

          Backup – yes/no

        	 	 	 	 
	
          11.

        	
          Billing system

          Postsale billing supplier

          Presale billing supplier

        	 	 	 	 
	
          12.

        	
          Cellular coverage [%]

          compared to the milestones defined in clause 1.2(4) of Appendix E

        	 	
          Area

        	
          Area

        	
          Statistical Region

        
	 	 	 	
          Population

        	
          Population

        	
          Residential area

        
	 	 	 	
          1-3-digit roads, passenger train route

        	
          1-3-digit roads, passenger train route

        	
          Open/

          institutional area

        
	 	 	 	
          4+-digit roads, cargo train route

        	
          4+-digit roads, cargo train route

        	
          Public/

          industrial complex

        
	 

  

  

  
    

    

    

    554 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Chapter C: Detailed Description- shall be presented in tracked changes version555

  

  

  	

        	1.	
          The diagrams of the outline engineering in a Top-Down format from the diagrams of the entire system and disassembly into subsystems.

        

  

  

  	

        	2.	
          Deployment and Quantities: Quantitive scope and deployment of the system in the allocated frequency ranges, while emphasizing:

        

  

  

  	

        	-	
          Location and number of MRT cells, details accompanied by clear diagrams divided by the various types of typical cells being operated by the Licensee (large cell, small cell, microcell, indoor cell and
            the like);

        

  

  

  556Attach a table in an Excel file containing the following data: site name,
    site location, type of technology, type of transmission to the site (microwave, fixed-line, etc.), the transmission bandwidth, number of sectors, frequency ranges, quantity of carrier aggregation, overall bandwidth in MHz per sector (20/30/40/45 or
    more).

  For each sector in a site: indicate the actual division of the data files (adjusted for the last week of November each year) in the network according to a table:

  More than 300 Mbit/s – T % of the traffic;

  200-300 Mbit/s  – X % of the traffic;

  100-200 Mbit/s  – Y % of the traffic;

  50-100 Mbit/s  – Z % of the traffic;

  0-50 Mbit/s  – K % of the traffic;

  

  

  Additionally, indicate those sectors that are not complying with the quality requirements (according to an average peak hour of the 5 workdays in the last week
    of November);

  Specify the names and locations of the sites that were cancelled and the reason for it.

  With regard to 5G, attach a table with the following data:

  

  

  	
          City

        	
          Statistical Region number

        	
          Statistical Region classification

        	
          % rollout

        	
          Community in central Israel/ outlying regions557

        
	 	 	 	 	 

  

  

                                                  

  
    555 Amendment
      No. 107

    556 Amendment
      No. 107

    557 As defined in clause 1.1 of the License.

    

  

  
    
      

  

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

  

  	

        	-	
          Location and quantity of MRT Voice switches (Voice, Data), including additional components of the switching systems in various technologies that the Licensee
            uses (for example-routers, HLR servers, AUC, EIR, MSC, BSC, TRAU, PCU, SGSN, GGSN, BG, RNC, MGW);

        

  

  

  In addition, to the general description, the Licensee shall indicate the changes that it made in its systems over the year, such as: upgrading of hardware/software systems, addition of new
    capabilities, new features, new systems.558

  

  

  	

        	3.	
          Designation and quantity of physical and wireless transmission channels: the transmission channels will be be displayed in groups according to the transmisson speeds; and will be classified in
            accordance with their designation; transmission to links between sites, links to switches, links between switches, links to other operators in Israel and abroad.

        

  

  

  	

        	4.	
          The capacity of each of the system components in the various technologies being operated by the Licensee, which are specified in the Engineering Plan, versus the actual utilization at the peak hour and
            the system’s general capacity (Mbps, EI). The capacity of each of the system components and the actual utilization versus the figure in the previous year shall also be specified, as well as the percentage
            of growth or decline compared to the previous year.559

        

  

  

  
    	

          	5.	
            Network coverage-deleted2

          

    

  

  
                                                   

    2 Amendment No. 113

    558 Amendment
      No. 107

    559 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	6.	
          Description of a wireline and wireless sub system transmission, including transmission services to link the cells, the switches and other telecommunication networks, while detailing the
            following:

        

   

  

  	

        	a.	
          Transmission through other licensees;

        

  	

        	b.	
          Transmission that the Licensee installed;

        

  	

        	c.	
          Switching means, backup and transmission control;

        

  	

        	d.	
          Technical standards for transmission and for its operation.

        

  

  

  	

        	7.	
          Speed switching sub system Voice, Data and routing:technology description, equipment, technical standards and capacity, including the manner of handling interconnetion, handling number
            portability, handling other issues of interconnect for transit data and the servers for the different services will be supplemented by the appropriate diagrams.

        

   

  

  Shall be updated according to changes in the systems or additions of systems or additions of services.562

  

  

  
    	 	
            8.

          	
            Control and central monitoring sub system: Description of control and monitoring system technology, equipment details, system manufacturer,
              technical standards and capacity, including how to handle internconnection, with an emphasis on control and monitoring centers, their location and integration in routine work processes and when handling faults, subsystem control 1.of various
              components of the network and monitoring performance and service quality, according to the various services.

          

  

   

  

  Shall be updated according to changes in the systems or additions of systems or additions of services.563

  

  

  	

        	9.	
          System assessments for congestion control: details of automatic and monitored recovery system of the main network components (for example: MSC, HLR, RNC, HIS/STP etc.)

        

   

  

  Shall be updated according to changes in the systems or additions of systems or additions of services.564

  

  

  
    	 	
            10.

          	
            Information sub system: description of the information system technology, equipment details, 10.          technical standards and capacity,
              manner of handling internconnection, including customer billing and collection, customer service and handling of fraud.

          

  

   

  

  Shall be updated according to changes in the systems or additions of systems or additions of services.565

  

  

                                                  

  
    562 Amendment
      No. 107

    563 Amendment
      No. 107

    564 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	11.	
          Suppler sub system: description of the input sub-system including the backup in case of a power outage at the various sites on the MRT network.

        

   

  

  Shall be updated according to changes in the systems or additions of systems or additions of services.566

  

  

  	

        	12.	
          Backup, survivability and maintenance: description of manner of planning system maintenance, back up of its main components and standards for back up and survivability. Shall be updated
            according to changes in the systems or additions of systems or additions of services.567

        

  

  

  
    	 	
            13.

          	
            Compatability with security requirements: statement regarding the existence, correctness, operation and technological adaptation of
              infrastructure, equipment and other means to achieve the ability to exercise the authorities of the security forces under the provisions of section 13 of the Law and the provisions of the License.

          

  

  

  

  
    	 	
            14.

          	
            Presentation of an engineering test plan:a plan that is executed in the sub systems detailed in the previous sections, including all its
              components and frequency of the tests,

          

  

   

  

  	

        	-	
          Periodical tests

        

  	

        	-	
          Special tests

        

  	

        	-	
          A regular and continuous inspection of the network: monitoring and control (24/7/365)-performance level, hardware alarms software problems

        

  	

        	-	
          Subs system monitoring RF environment, detection of interference sources and their location and broadcast directions.

        

  	

        	-	
          specify the tests conducted for each system and the date of the test.568

        

  

  

  
    	 	
            15.

          	
            Independent operation / lease of infrastructure components: the Licensee will note in the engineering array report the components of the
              infrastructure it erected as well as the components of the infrastructure it leased or acquired from other licensee, for each of the sub systems detailed in the engineering plan. Shall be presented in tracked changes version.569

          

  

  

  

                                                  

  
    565 Amendment
      No. 107

    566 Amendment
      No. 107

    567 Amendment
      No. 107

    568 Amendment
      No. 107

    569 Amendment
      No. 107

    

  

  
    
      

  

  
    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

       

      

    

    	 	
            16.

          	
            Quality of the service:

          

  

  

  

  570The Licensee shall specify the indicators and standards for the quality of the Services that
    it provides to its customers, according to that specified hereunder:

   

  The technical quality of the Services and the performance of the MRT System being operated by it, and particularly the following:

   

  	a.	
          End-to-end performance – systemic performance: calls blocked during the peak hour, dropped calls during the peak hour;

        

   

  	

        	(1)	
          The Licensee shall present the percentage (%) of disconnections and the percentage (%) of blocked calls at the network level; these data are to be taken from the system performance system. The Licensee shall present its calculations.

        

   

  	

        	(2)	
          The Licensee shall  measure all of the CDRs and the CDRs transmitted through the IMS system on workdays during the last week of November and, on the basis of these figures, shall calculate the percentage of calls made using each of the
            technologies;

        

   

  	

        	(3)	
          The Licensee shall provide performance reports based on that same period in relation to the percentage of disconnections and the percentages of call connection failures using each of the technologies.

        

   

  	b.	
          Data transfer performance: performance using the various technologies operated by the Licensee. The performance shall be presented in comparison to the previous year and shall be presented at the
            network level.

        

   

  	c.	
          Reliability and availability – description of the survivability of key network components, internal survivability of the transmission network components, electricity backup at sites, in switches. In
            this part, the annual level of the systemic availability of each of the key system components shall be specified.

        

   

  Unavailability: affecting more than 10% of the subscribers to a particular service;

   

  The Licensee shall forward a table of all services and systems and shall specify in relation to each of them how many minutes per annum the system had not been available and
    what availability had been received.

   

  Including details about the availability of key systems (transmission, sites, switches, data network), average time between malfunctions, quantity and nature of communications
    disruptions during a defined period, definition of the systemic redundancy, etc.;

   

  

  	d.	
          Details about the Licensee’s compliance with standards and recommendations of international, regional and Israeli standards, inter alia, in relation to these matters.

        

  

  

  
    	
            

            

          	
            17.   Fraud prevention and fraud treatment:description of the measures used and the existing system
              for the purpose of fraud prevention and fraud treatment;

          

  

  

  

                                                  

  
    570 Amendment
      No. 107

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Chapter D: Risks, disruptions, special difficulties

  

  

  Electromagnetic spectrum: Details of the manner of providing the required quality of services under constraints of the spectrum in each of the frequency
    bands alloted to the Licensee, including:

   

  

  	

        	a.	
          Displaying the method used by the operator for reuse in the different frequency ranges used by the Licensee.

        

  	

        	b.	
          The number of radio channels in each site, and the average traffic congestion at the site;

        

  
    	

          	c.	
            
              Presenting spectral difficulties, if any exist, and alternatives taken to solve them under allocation constraints of existing frequencies; presentation of a disturbance analysis of the
                system and its components, if any exist, for the Licensee's systems, other licensee systems, for radio systems operating in Israel in neighboring frequency areas, and for radio systems operating outside of Israel, as well as details on how
                to prevent such disturbances. Events should be noted and how they were handled.571

            

          

  

   

  

  	

        	2.	
          Radio sub system: the report will include a description of the method of planning the radio coverage, for each of the frequency bands alloted for the use of the operator, including:

           

          

        

  	

        	a.	
          Signal levels for planning purposes, with an emphasis on the signal strength that the operator uses for the purpose of:

        

  	

        	i.	
          Coverage of commerical areas in cities (signal level that guarantees coverage for portable devices in large commercial buildings);

        

  	

        	ii.	
          Coverage of areas in which portable devices are operated in city streets, residential buildings and in open areas with a typical plan;

        

  	

        	iii.	
           Coverage of traffic routes and open areas with a typical plan.

        

  

  

  	

        	b.	
          Presentation of a model of the spread calculations with an emphasis on adapting the model to the conditions of the country. Specify how the theoretical model was tested against the performance in the field; also relate to indoor coverage
            support.572

        

  	

        	c.	
          Calculation manner of the number of sites required and the number of radio channel operated on them;

        

  	

        	d.	
          List of specifications and standards of the radio sub system (including antennas)/ or manufacturer's name that has these documents.

        

  

  

                                                  

  
    571 Amendment
      No. 107

    572 Amendment
      No. 107

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  Chapter E: Engineering Plans

   

    

  	

        	1.	
          Future engineering plan: expect to update the engineering array for two consecutive calender years following the date of submission of the report. The intended outcomes of upgrading each of the system’s components and the estimated timetable
            for completion should be specified; also present the level of achievement of last year’s plans.573

        

   

  

  
                                                    

  

  
    573 Amendment
      No. 107

  

  

  

  
    
      

  

   

    

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

    

      Appendix C-National Roaming (NR)

  

  

  

  Definitions

   

  

  

  	

        	1.	
          In this Appendix-

        

  

  

  	

        	"Hand-Over"-	
          continuation of a call by handing it over through MRT terminal equipment from a coverage area of a cellular radio base of one licensee to the coverage area of a cellular radio base of another licensee, continuously and without disconnection
            or interference;

        

  

  

  	

        	"Call"-	
          including sms, data communication, cellular internet browsing, application use, etc.

        

  

  

  
    	

          	
            "Subscriber of a

             Roaming Licensee"- 

          	
            including a subscriber of an MRT licensee on another network, if said licensee makes use of the roaming licensee's network;

          

    

    

  

  	

        	"Lock"-	
          A situation in which the terminal equipment of a subscriberof a roaming licensee that roamed to a host network continues to receive service on the licensee's network after the call has ended, even if
            that area has coverage of a roaming licensee;

        

  

  

  
    

    

    	

          	"The Specifications"- 

          	
            The most updated 3rd generation project partnership (3GPP) regarding National Roaming that are published from time to time.

          

    

    

  

  

  	

        	2.	
          The Licensee shall provide the Roaming Licensee with national roaming services through its network, as set forth in Article 67E, in accordance with the conditions set forth below.

        

  

  

  Transfer and initiation of calls on the Licensee's network

   

  	

        	3.	
          The Licensee shall provide said National Roaming services, in one of the following manners:

        

  

  

  	

        	a)	
          Call transfer-the Licensee shall enable the transfer of a call that is carried out via a subscriber's handset, from the network of a Roaming Licensee to the Licensee's network, when the Roaming Licensee does not have coverage in that area.
            After the call is transferred, the call will be carried out on the Licensee's network until the call is terminated;

        

  

  

  	

        	b)	
          Call initiation-The Licensee shall enable the initiation of a call on its network that is carried out via the handset of a Subscriber of a Roaming Licensee, if the network of the Roaming Licensee does not have coverage in that area, or due
            to the handset lock of the Subscriber of a Roaming Licensee on the Licensee's network. After the initiation, the call shall be carried out on the Licensee's network until the call is terminated.

        

   

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

    

  Duration of the Lock

   

  	

        	4.	
          The Licensee shall determine the duration of the lock time in accordance with the requirements of the Roaming Licensee.

        

  

  

  

  Discrimination prohibition

   

  	

        	5.	
          The Licensee shall ensure fair and equal conditions for each Roaming Licensee with regards to the provision of MRT services, including the following:

        

  

  

  	

        	1)	
          Discrimination prohibition-The scope, standard and quality of the services that a Roaming Licensee's subscribers shall receive shall not be less than those provided to the Licensee's subscribers; if
            the Licensee distinguishes between types of its subscribers, with regards to the scope, standard or quality of its services, it shall allow the Roaming Licensee to make the same distinction between its subscribers;

        

  

  

  	

        	2)	
          Transfer-The Licensee shall enable the Roaming Licensee's subscribers to transfer in one direction, i.e.-from the Roaming Licensee's coverage area to the coverage area of the Licensee, in a continuous
            manner, without disconnecting or interference to the call;

        

  

  

  	

        	3)	
          Advanced Network-The Licensee shall provide a Roaming Licensee with NR services through its most advanced network574 and
            in the lowest frequency spectrum that it uses575, only if it does not have the said coverage, shall provide NR services through a higher frequency spectrum or
            through a network from a previous generation576, and all in the same manner of preference as its own subscribers;

        

  

  

  	

        	4)	
          Service Variety-The Licensee shall enable a Roaming Licensee to provide the variety of services that the Roaming Licensee shall wish to provide to its subscribers' subject to the technical possibility
            of the host licensee and in absence of any unreasonable burden on the host licensee;

        

  

  

  
    

    574 HSPA+/HSPA/UMTS and in the future LTE

    575 For example, a licensee that operates UMTS networks
      in the 850/900 and 2100 Mhz spectrums, will give a Subscriber of a Roaming Licensee services through the network in the 850/900 spectrum in the same manner of preference as his own subscribers.

    576 GSM/GPRS/EDGE

     

  
    
      

  

   
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

  Cooperation

   

  	

        	6.	
          The Licensee shall cooperate with the Roaming Licensee, including by the following:

        

  

  

  	

        	1)	
          Blocking sites-The Licensee shall block, in accordance with the Roaming Licensee's demand from time to time, the use by the Roaming Licensee's subscribers of the specific coverage areas of the
            Licensee's sites, in which the Roaming Licensee has coverage.

        

  

  

  	

        	2)	
          Dynamic update-The Licensee shall update the Roaming Licensee on a regular basis with regards to the required data to support NR, based the needs of the Roaming Licensee and in accordance with the
            expansion of its network, the changes of the Licensee's network, including traffic data per site, call detail records, billing data of a Roaming Licensee's subscribers, faults, system changes, etc, and the Licensee shall update its systems, as
            so required, based on the network data of the Roaming Licensee;

        

  

  

  	

        	3)	
          Location data-The Licensee shall provide the Roaming Licensee with continuous location data in real time of the Roaming Licensee's subscribers that are within the coverage area of the Licensee; the
            said location data shall not be less than that received for the Licensee's subscribers;

        

  

  

  	

        	4)	
          Visibility-The Licensee shall act, to the extent possible, so that the subscribers of a Roaming Licensee shall not be able to detect that they are receiving service from the Licensee;

        

  

  

  	

        	5)	
          Switching-The Licensee shall transfer all outgoing and incoming calls through the Roaming Licensee's network, in order to enable the Roaming Licensee to supply to its subscribers all of the services
            that it wishes to provide, including signaling of calls that were not executed;

        

  

  

  	

        	6)	
          Smart network- The Licensee shall support, to the extent possible, smart network services provided by the Roaming Licensee;

        

  

  

  	

        	7)	
          Calls to emergency call centers-a call by a subscriber of  a Roaming Subscriber to an emergency call center, that was initiated on the Licensee's network, shall be directly routed to the emergency call
            center by the Licensee, unless the Roaming Licensee has the ability to route the call to the appropriate emergency call center according to the geographical location of the subscriber;

        

  

  

  	

        	8)	
          Fulfillment of statutory provisions-The Licensee shall cooperate with the Roaming Licensee in order to fulfill any statutory provisions following any law, to the extent that the said cooperation is
            required due to the existence of NR;

        

  

  

  	

        	9)	
          Handling malfunctions-The Licensee shall handle malfunctions in its systems that are caused or could cause harm to the NR regarding the level of service agreed upon between the Licensee and the Roaming
            Licensee577 or determined by the Ministry;

        

  

  

                                                  

  
    577 Service Level Agreement (SLA)

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	10)	
          Prevention of transfer of information-The Licensee shall keep completely confidential all information regarding the Roaming Licensee, and shall prevent the transfer of any information regarding the
            Roaming Licensee from its employees and anybody on its behalf that handles NR operations to any other entity of the Licensee, particularly its sales and marketing personnel.

        

  

  

  

  Specifications

   

  	

        	7.	
          With regards to NR, the Licensee shall act in accordance with the specifications. To the extent that a matter is not dealt with in the specifications, the relevant licensees shall act in accordance with the best engineering practice.

        

   

  578

   

                                                   
    578 Amendment No. 41

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  
  579Appendix D - Preparation to ensure the
      functional continuity 

  during an emergency

  

  

  	1.	
          Preamble

        

  

  

  	

        	1.1.	
          The telecommunications market in Israel constitutes a vital national infrastructure both on a routine basis as well as in emergencies and hence requires the Licensee to be prepared to ensure the functional
              continuity of operations during an emergency in order to continue to provide its services also during emergencies.

        

   

  	

        	1.2.	
          The License will implement a comprehensive work plan and ensure its durability to function during emergencies while ensuring the functional continuity for the provision of its services.

        

   

  	

        	1.3.	
          This Appendix constitutes the minimal operational framework for the Licensee in order to maintain functional continuity of operations during emergencies that includes a business continuity plan (BCP) and a disaster recovery plan for the
            network (DRP).

        

   

  	2.	
          Definitions

        

  

  

  	
          "Interim Site"

        	
          -

        	
          A site that includes sub-systems of the network for the performance of connection and control of end sites;

           

        
	
          "Alternate Site"

        	
          -

        	
          A site that is maintained in a state of readiness and is designated for use during an emergency, in which the activity will continue to ensure functional continuity;

           

        
	
          "Core Site"

        	
          -

        	
          A main site that includes central systems of the network including switch, databases, computer systems, storage and a control and management center;

           

        
	
          "End Site"

        	
          -

        	
          A cellular radio base on an MRT Licensee network;

           

        
	
          "Sharing Agreement"

        	
          -

        	
          An active frequency sharing agreement, as defined in Section 19A of the License;

           

        
	
          "Recovery Target"

        	
          -

        	
          A target that the Licensee has determined to restore technological activity and support systems to a defined service level and within a defined period of time;

           

        
	
          "Portable Site"

        	
          -

        	
          A portable end site;

           

        
	
          "Functional Continuity"

        	
          -

        	
          Ensuring operation continuity of the Licensee's services, that includes a network recovery plan from a disaster and a business continuity plan;

           

        
	
          "The Plan"

        	
          -

        	
          A plan for ensuring the functional continuity;

           

        
	
          "Business Continuity Plan"

        	
          -

        	
          An activity plan that is executed by the Licensee during an emergency to ensure the functional continuity of processes that are defined as critical and of telecommunication, computerization and storage systems
            (BCP).

        

  
    

    

    

    579 Amendment
      No. 82

  

  
    
      

  

  
    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

       

      

    

    	3.	
            Formulation of a plan for ensuring the functional continuity

            

          

    

  

  	

        	3.1.	
          The Licensee will formulate a Plan for ensuring the functional continuity that will assist during an emergency to ensure its ability to operate in a continuous manner, to mitigate the damage in provision of its services and to recover its
            operations; the Plan will include at least the following matters:

        

  

  

  	

        	(a)	
           Analysis of risks to which it is exposed during an emergency, including a results analysis; repercussions and implications for the ongoing and standard work of the infrastructures and its services;

        

  

  

  	

        	(b)	
           Determination of service targets and Recovery Targets for emergencies, in accordance with the risk analysis and their implications for Functional Continuity and continued provision of its services;

        

  

  

  	

        	(c)	
           The guidelines that are detailed in this Appendix, including the different plans that are detailed in this Appendix, while addressing the roles and areas of responsibility of various functionaries in managing an emergency and upholding the
            Plan in practice;

        

  

  

  	

        	(d)	
           Implementation of the Plan amongst the managers, employees suppliers and subcontractors.

        

  

  

  	4.	
          Board of Directors and Management Responsibility

        

  

  

  	

        	4.1.	
          The Licensee's Board of Directors will approve the Plan, while addressing the Functional Continuity risks and control thereof, as part of the comprehensive framework of the general work for risk management and will guide the Licensee's
            management to execute it.

        

  

  

  	

        	4.2.	
          The Board of Directors will discuss the Functional Continuity matters during significant technological changes and after a telecommunications failure event, a significant failure of the critical IT systems such as the billing system or the
            customer relationship management (CRM) system, provided that the Functional Continuity matters will be discussed at least once a year.

        

  

  

  	

        	4.3.	
          The Licensee will appoint a Functional Continuity manager and will define the areas of his responsibility and authority that will include ensuring implementation of the Plan and adapting it to technological changes, the existence of an
            assimilation plan, practice drills and lesson drawing as well as mapping and monitoring existing deficiencies and reporting thereon to the management.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	4.4.	
          The Plan will be audited periodically by the internal auditor or an executive office holder of the Licensee.

        

  

  

  	

        	4.5.	
          The Board of Directors and management will define periodic monitoring discussions, documentation and reporting format, within the Company.

        

  

  

  	5.	
          Management of An Emergency Situation

        

  

  

  	

        	5.1.	
          The Licensee will appoint a senior authority to declare a transition from routine work to emergency work in a transition procedure from routine to emergency.

        

  

  

  	

        	5.2.	
          The Licensee will operate a situation room during an emergency that will include all of the required means to manage the situation, including alternative communication means that do not rely on the Licensee's network ("the Main Situation Room").

        

  

  

  	

        	5.3.	
          The Licensee will establish an alternative situation room at another site, at a distance of at least thirty (30) Km from the Main Situation Room; notwithstanding the aforesaid, at the Licensee's written request, the Director General may
            approve establishing an alternative situation room at a closer location.

        

  

  

  	

        	5.4.	
          The situation room will be used by the Licensee's office holders to manage the situation and to operate the action plan for Functional Continuity.

        

  

  

  	

        	5.5.	
          The Licensee will appoint a team to manage the emergency situation that will be composed, inter alia, of office holders, key decision makers and professional people from the technology division
            (communications and IT).

        

  

  

  	6.	
          Manpower, Economic Immobilization and Emergency Economy

        

  

  

  	

        	6.1.	
          The Licensee will operate vis-à-vis the Ministry of Economics to obtain recognition as an essential enterprise in accordance with the Emergency Work Service Law, 1967.

        

  

  

  	

        	6.2.	
          The Licensee will prepare manpower for every operating sector thereof that will enable it Functional Continuity; The Licensee will validate the staff lists once a year.

        

  

  

  	

        	6.3.	
          The Licensee will ensure regular working conditions, and inter alia, in the following matters:

        

  

  

  	

        	a)	
          Food, water, sleep equipment for all of the manned sites;

        

  

  

  	

        	b)	
          Equipment, protection, food and water for all the field teams (field technicians/field maintenance);

        

  

  

  	

        	c)	
          Protected spaces/rooms (floor shelters/apartment shelters) and safe work areas.

        

  

  

  	

        	6.4.	
          The Licensee will maintain one armored vehicle that will enable the work of a field team. A Licensee that operates over 1,000 sites will maintain an additional armored vehicle; said vehicles will be owned by the Licensee or will be provided
            through a supplier.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	6.5.	
          The Licensee will ensure transportation for its employees to and from its sites in accordance with the workforce that it determined for each area of activity as set forth in section 6.2

        

  

  

  	7.	
          Continuity, Backup and Survivability of the Network and the Infrastructure

        

  

  

  	

        	7.1.	
          The Licensee's network will comprise of at least two Core Sites at a geographical distance of at least thirty (30) km; notwithstanding the aforesaid, the Director-General may, at the Licensee's written request, approve Core Sites at a
            shorter distance.

        

  

  

  	

        	7.2.	
          The core systems of the network will operate on BCP architecture, insofar as the technology is made available by the equipment manufacturer.

        

  

  

  	

        	7.3.	
          The network core will be planned so that there will be no single point of failure, a malfunction in which causes the malfunction of the entire network.

        

  

  

  	

        	7.4.	
          The Licensee will operate a manned management and control center 24/7, 365 days a year, for the monitoring, control and operation of all of the network’s components.

        

  

  

  	

        	7.5.	
          The Licensee will set up an alternative management and control center at another geographic site at a distance of at least thirty (30) km; notwithstanding the aforesaid, at the Licensee’s written request, the Director General may approve
            having an alternative management and control center at a shorter distance.

        

  

  

  	

        	7.6.	
          The alternative management and control center will include all of the management and control systems required for Functional Continuity of the Licensee’s services independently, and will be available for immediate action.

        

  

  

  	

        	7.7.	
          The Licensee will formulate a technological and engineering backup plan for the Core Sites which will enable Functional Continuity in the event of a Core Site failure.

        

  

  

  	

        	7.8.	
          The Licensee will formulate a technological and engineering backup plan for the Interim Sites which will enable Functional Continuity in the event of an Interim Site failure.

        

  

  

  	

        	7.9.	
          The Licensee will formulate a contingency plan (without actual rollout of additional infrastructures) which will be operated at failure events to link End Sites in accordance with criteria to be determined by the Licensee.

        

  

  

  	

        	7.10.	
           In the event of a failure at the Core Site or an Interim Site, the backup plans will allow additional reception of at least fifty percent (50%) of the disconnected End Sites.

        

  

  

  	

        	7.11.	
          The Licensee will formulate a plan for regular backup of data and information systems on a routine basis and in emergencies at another geographic site, at a distance of at least thirty (30) km; notwithstanding the aforesaid, at the
            Licensee’s written request, the Director General may approve an Alternative Site at a shorter distance.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	7.12.	
          The Licensee will maintain backed up transmission infrastructures to link the Core and Interim Sites.

        

  

  

  	

        	7.13.	
          The Licensee will maintain four (4) Portable Sites which will substitute damaged End Sites, to expand coverage or increase capacity; such resources shall be owned by the Licensee. Notwithstanding the aforesaid, in the event that the Licensee
            entered into a Sharing Agreement with another licensee, the Licensee may maintain the aforesaid together with the other licensee.

        

  

  

  	

        	7.14.	
          The Licensee will have the independent capacity to roll out and operate the Portable Sites, supply energy and transmission and connect them to the network within twelve (12) hours.

        

  

  

  	

        	7.15.	
          The Licensee will maintain reserve technical equipment for the entire technological system which will allow current continuous maintenance for at least three weeks, without the need to bring alternative equipment from overseas; such
            equipment shall be owned by the Licensee.

        

  

  

  	8.	
          Transmission Infrastructures

        

  

  

  	

        	8.1.	
          The Licensee will formulate a technological and engineering backup plan for the infrastructure and the transmission routes for Functional Continuity of the transmission services, through landline or wireless transmission.

        

  

  

  	

        	8.2.	
          The Licensee will formulate a technological and engineering backup plan for the transmission infrastructure connecting the network to the core facilities of another general licensee and any licensee through which it provides the internet
            access service.

        

  

  

  	9.	
          Energy and Electricity Infrastructures

        

  

  

  	

        	9.1.	
          The Licensee will prepare for energy and electricity backup, as specified below, for which purpose it may use a supplier:

        

  

  

  	

        	(a)	
          Core Sites – alternative supply of electricity through batteries, generators, diesel oil containers and supply of diesel oil for continuous operation of at least forty-eight (48) hours;

        

  

  

  	

        	(b)	
          Interim Sites – alternative supply of electricity through batteries, generators, diesel oil containers and supply of diesel oil for continuous operation as specified below:

        

   

  

  	

        	(1)	
          An Interim Site which connects more than thirty-two (32) End Sites – for twenty-four (24) hours;

        

  

  

  	

        	(2)	
          An Interim Site which connects up to thirty-two (32) End Sites – for twelve (12) hours.

        

   

  

  	

        	9.2.	
          The Licensee will prepare for energy and electricity backup at the End Sites for an alternative supply of electricity through batteries for two hours for each End Site whose activity is required to meet the coverage level set forth in the
            provisions of the license; such batteries shall be owned by the Licensee.

        

  

  

  
    
      

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

   

  

  	

        	9.3.	
          The Licensee will maintain at least six (6) generators for continuous operation of End Sites in the event of a power outage; such generators shall be owned by the Licensee. Notwithstanding the aforesaid, in the event that the Licensee
            entered into a Sharing Agreement with another licensee, the Licensee may maintain the aforesaid together with the other licensee.

        

  

  

  	

        	9.4.	
          The Licensee shall enter into an agreement with a subcontractor for the repair and transportation of generators in emergencies.

        

  

  

  	

        	9.5.	
          The Licensee shall enter into an agreement with a supplier for the supply of diesel oil for fuelling in emergencies.

        

  

  

  	10.	
          Data and System Protection

        

  

  

  	

        	10.1.	
          The Licensee shall formulate a data and system protection plan which shall include protection procedures and responses to data protection events.

        

  

  

  	

        	10.2.	
          The data and system protection plan will be determined in accordance with the instructions of the Ministry and the security forces.

        

  

  

  	

        	10.3.	
          The Licensee will determine the work procedures and rules for remote access upon a data systems event as part of the plan to ensure Functional Continuity.

        

  

  

  	11.	
          Suppliers and Subcontractors

        

  

  

  	

        	11.1.	
          The Licensee will ensure that the engagement agreements with the suppliers and the subcontractors regulate the duty of the supplier and the subcontractor to provide the services required by the Licensee to ensure Functional Continuity in
            emergencies.

        

  

  

  	

        	11.2.	
          The agreements shall include a plan to ensure Functional Continuity of the supplier and the subcontractor, including manpower and the resources required to provide the service.

        

  

  

  	

        	11.3.	
          The agreements shall include the participation of the supplier and the subcontractor in drills.

        

  

  

  	12.	
          Reinstatement of Service in Emergencies

        

  

  

  	

        	12.1.	
          In the event of a significant service interruption in an emergency, the Licensee will reinstate the service according to the reinstatement of service procedure; insofar as possible, the procedure will give priority to the reinstatement of
            service to vital bodies, including security forces and emergency services, hospitals, emergency centers and government ministries.

        

  

  

  	

        	12.2.	
          The procedure will be formulated such that reinstatement of the telecommunication services will be according to the order specified below:

        

  

  

  	

        	(a)	
          Dialing and maintaining a voice call between subscribers of the Licensee and between its subscribers and the subscribers of another license holder;

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(b)	
          National and personal messaging (cell broadcast);

        

  

  

  	

        	(c)	
          Data services;

        

  

  

  	

        	(d)	
          Sending SMSs between subscribers of the Licensee and between its subscribers and the subscribers of another licensee;

        

  

  

  	

        	(e)	
           The other services.

        

  

  

  	13.	
          Restoration of the Service

        

  

  

  	

        	13.1.	
          The Licensee will formulate a plan for restoration of its services which includes the following stages:

        

  

  

  	

        	(a)	
          Immediate restoration – preplanned restoration; such restoration will be carried out within a very short time and almost automatically;

        

  	

        	(b)	
          Interim restoration – utilization of existing surplus capacity, including available alternative machines; such restoration will be carried out within several days;

        

  

  

  	

        	(c)	
          Long-term restoration – installation of new systems; such restoration will be carried out within weeks or months and is contingent on available equipment at the supplier and installation and
            construction capabilities.

        

  

  

  	

        	13.2.	
          According to the restoration plan, the service level of the various services provided by the Licensee will be determined.

        

  

  

  	14.	
          Assimilation and Practice

        

  

  

  	

        	14.1.	
          The Licensee will implement the plan to ensure Functional Continuity among its employees by instructing and training them.

        

  

  

  	

        	14.2.	
          The Licensee will formulate a periodic practice drill plan which includes all of the scenarios and the critical processes included in the plan to ensure Functional Continuity.

        

  

  

  	

        	14.3.	
          The Licensee will carry out, within the company, a practical and comprehensive drill, once a year, with the participation of an internal control team which shall examine the Licensee’s emergency preparedness; the Licensee will notify the
            Ministry of the date of holding of the drill at least thirty (30) days in advance thereof and will allow the Ministry’s representatives to attend the same.

        

  

  

  	

        	14.4.	
          The conclusions of the drill will be provided to the Licensee’s management to study and examine required updates to the plan to ensure Functional Continuity; the conclusions of the drill will be provided in writing to the Director General
            within thirty (30) days after the holding of the drill.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	15.	
           Procedures

        

  

  

  	

        	15.1.	
          The Licensee will formulate designated procedures for various emergency scenarios in the framework of the plan, as specified below:

        

  

  

  	

        	(a)	
          Procedure for handling malfunctions and irregular events in emergencies and recovery therefrom;

        

  

  

  	

        	(b)	
           Procedure for skipping and transition to an alternative management and control center;

        

  

  

  	

        	(c)	
          Procedures for backup and survivability of Core and Interim Sites;

        

  

  

  	

        	(d)	
          Operation of portable resources procedure;

        

  

  

  	

        	(e)	
          Procedure for reporting to the Ministry in emergencies;

        

  

  

  	

        	(f)	
          Procedure for operation of the customer service system in emergencies;

        

  

  

  	

        	(g)	
          Procedure for protection and response against data protection events;

        

  

  

  	

        	(h)	
          Procedure for reinstatement of service in emergencies;

        

  

  

  	

        	(i)	
           Procedure for transition from routine to emergency.

        

  

  

  	

        	15.2.	
          The procedures will be approved by relevant office holders at the company and will be updated once a year.

        

  

  

  
    
      

  

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

  

  580Appendix D1 - Preparations for managing cyber defense

  

  

  	1.	
          Formulation of a plan for managing the defense against cyber incidents

        

  

  

  	 	1.1	
          The Licensee shall formulate a plan for managing its defense against cyber incidents, which shall help it contend during cyber incidents, ensure its ability to maintain continuity of operations, limit the adverse impact on the provision of
            its services and reinforce its operations; the plan shall include at least the following topics:

        

   

  

  	

        	a.	
          Mapping of the cyber assets whose proper functioning is required in order to ensure the operating continuity of the processes defined as critical and of the Licensee’s core systems;

        

  	

        	b.	
          Analysis of the cyber risks to which the Licensee is exposed, including an analysis of the results, implications and significance of the routine work and the standardization of the infrastructures and of its services;

        

  	

        	c.	
          Definition of service targets and recovery targets in the event of a cyber incident according to the risk analysis, and their significance to operational continuity and the continued provision of its services;

        

   

  

  	2.	
          Responsibility of the board of directors and the management

        

   

  

  
    	 	
            2.1

          	
            The Licensee’s board of directors shall approve the cyber defense management plan at least annually, while referring to the organization’s outline of its cyber threats and the controls that
              it has to implement for them as part of the comprehensive work framework for managing cyber defense, and shall instruct the Licensee’s management to implement it.

          

  

  
    	 	
            2.2

          	
            The board of directors shall discuss topics of cyber threats and defense management when making significant technological changes and subsequent to a cyberattack or material exposure of
              information security, and provided that the organization’s cyber security policy is discussed at least annually.

          

  

  
    	 	
            2.3

          	
            The Licensee shall appoint a cyber defense officer and shall define his spheres of responsibility and his authorities, which shall include verification of the cyber defense management plan
              and its compatibility with technological changes, the existence of an assimilation plan, the existence of exercises and the drawing of conclusions, and mapping and monitoring of gaps and reporting them to the management.

          

  

  
    	 	
            2.4

          	
            The plan shall be audited periodically by the internal auditor or senior officer of the Licensee.

          

  

  
    	 	
            2.5

          	
            The board of directors and the management shall define the format of reporting, documentation and periodic monitoring discussions inside the company.

          

  

  

  

  

  580 Amendment No.
    107

  

  

  
    
      

  

   

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

  

  

      Appendix E - Minimum Requirements

   

  and Grade of Service to Subscribers

  

  

  	1.	
          581System Performances582

        

  

  
    
      	
              1.1

            	
              Definitions:

            

    

    

    

    "Population" - the entire population in the area, according to the publications of the Central Bureau of Statistics;

    

    

    "Statistical Region”583 – contiguous unit of land
      created by geographic-statistical parcelization, defined as a statistical region according to the latest publication by the Central Bureau of Statistics.

    

    

    "Layout Ratio"- the ratio between the household rates in the peripheral settlements and the household rate in central settlements;

    

    

    "Central Settlement" – A settlement defined by the Central Bureau of Statistics as a settlement of a "intermediate" level (clusters
      5,6), at a "central" level (cluster 7) and at a "very central" level (clusters 8, 9, 10);

    

    

    "Peripheral Settlement" – A settlement defined by the Central Bureau of Statistics as a settlement at a "very peripheral" level
      (clusters 1, 2, 3) and a "peripheral" level (cluster 4);

    

    

    "Street" - the area (length x width) of any street whose number is up to 4 digits inclusive, and the national and local railroad
      route in the area of the State of Israel, during the license period; when the width of the street or the national and local railroad route shall include the actual width of the street/route + 5 meters from each side of the street/route;

    

    

    
      "Coverage Level"- Broadcast and reception of electromagnetic signals which allow for the proper existence of any service to the
        mobile telephony communications end equipment, rising to a height of one and a half meters (1.5) above the surface; For this License, the coverage level shall be examined and be reported to the Ministry in accordance with that detailed in the
        information request regarding provision of periodic data, Appendix K-Information on cellular coverage;

    

    

    "Area"- the overall area regarding which the Law, jurisdiction and Administration of the State of Israel apply.

    

      

       581 Amendment No. 14
        

        582 Amendment No. 83

      

      583 Amendment No. 107

      

    

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

    

     

      

    "Blocked Calls"- calls and data communication or links that cannot be established or messages that cannot be transferred immediately
      upon an order to establish contact due to unavailability of the network resources or resources for linkage between the network and other networks;

    

    

    "Dropped Calls"- calls and data communications or links that were terminated not by the initiation of the subscriber who initiated
      the call/link or the call recipient.

    

    

    “VoLTE Call” 584– technology enabling a call to be
      made via 4G Network.”

    

    

    
      	
              1.2

            	
              Milestones for the establishment of the network:

            

    

    (a) The network and its services shall meet the performances, features and indicators defined in the engineering plan – Annex B, including an engineering plan attached to
      the 4th Generation Tender;

    (b) The milestones for the establishment of the network and provision of service:

    (1) canceled;

    (2) network using 4th Generation technology:

    ((a)) Stages and dates

    

    

    Stage A at the end of 18 months from the determining date;

    Stage B at the end of 36 months from the determining date;

    Stage C at the end of 48 months from the determining date;

    Stage D at the end of 24 months from the date of the Director General's announcement;

    

    

    "Determining Date" - date of amendment of the license;

    

    

    "Date of Director General's Announcement"- a date on which the Director General shall provide the Licensee with written notice
      regarding the performance of Stage D. The notice shall be provided after the end of 60 months from the determining date.

    

    

    ((b)) The Licensee shall operate to establish the 4th Generation network as follows:

    

    

    ((1)) shall submit a deployment plan in a format set forth in the provisions of this Annex no later than sixty (60) days after the Determining Date; the deployment plan
      shall constitute part of the engineering plan.

    

    

    ((2)) the deployment plan shall include the following data:

    

    

    (((a))) all of the settlements in Israel shall be detailed therein, in accordance with the Central Bureau of Statistics, divided into two groups – Central Settlements and
      Peripheral Settlements; the number of households in each settlement shall be stated next to the name of each settlement, and the total number of households in central settlements and in peripheral settlements shall be stated; the planned date for the
      completion of the deployment plan for each settlement shall be stated next to each settlement;

     

    

                                                    

    
      584 Amendment No. 107

      

    

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

    

     

    

    (((b))) all of the Streets shall be detailed therein; next to each Street the number of the Street shall be stated and across from each Street, the planned date for the
      completion of the deployment plan for that Street shall be stated.

    

    

    ((3)) The Licensee may update the deployment plan and change the order of the settlements or Streets in which the network deployment is planned by providing notice to the
      Director General up to 60 days before the date the deployment is planned, provided that the updated deployment plan meets the provisions set forth in this Annex.

    

    

    ((4)) The network layout pace shall be as follows:

    

    

    (((a))) at the end of one year from the Determining Date, the Licensee shall deploy the network so that at the end of said period, there will be access to the network at a
      certain rate of households, according to the determination of the Licensee, provided that no later than 12 months from the Determining Date, the Licensee shall commence providing service;

    

    

    (((b))) As of the beginning of the second year from the Determining Date, the Licensee shall deploy the network at the Deployment Ratio that is no less than one (1), and
      according to the following:

    

    

    At the end of Stage A – coverage of 30% minimum requirements of the network coverage obligation, as stated in Article 1.3(b)(1);

    

    

    At the end of Stage B – coverage of 65% minimum requirements of the network coverage obligation, as stated in Article 1.3(b)(1);

    

    

    At the end of Stage C – coverage of 100% minimum requirements of the network coverage obligation, as stated in Article 1.3(b)(1);

    

    

    At the end of Stage D – coverage of 100% minimum requirements of the network coverage obligation, as stated in Article 1.3(b)(1);

    

    

    585(3) Rollout using frequency 700 MHz:

    ((a)) Rollout stages and timing

    The network’s performance and services shall be provided in stages and at the times specified hereunder and while achieving a coverage level that does not undershoot the
      following minimum requirements:

     

    Stage 1 – by the end of 36 months after the Record Date:

     

    ((a)) Service area: area in which 70% of the Population resides and not less than 65% of the area;

     

    

                                                    

    
      585 Amendment No. 107

      

    

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

    

     

    

    ((b)) Road/route: 70% of the area of a single-digit road up to a three-digit road, route of a national and local railway track including stations, etc. and 60% of the area
      of a four-digit road and the route of cargo trains.

     

    Stage 2 – by the end of 60 months after the Record Date:

     

    ((a)) Service area: area in which 99% of the Population resides and not less than 95% of the area;

     

    ((b)) Road/route: 99% of the area of a single-digit road up to a three-digit road, route of a national and local railway track including stations, etc. and 90% of the area
      of a four-digit road and the route of cargo trains.

     

    In this clause – “the Record Date” – date of allotment of the frequency as a result of the 5G Tender;

     

    ((b)) The Licensee shall take action to rollout the network while making use of the frequency 700 MHz, as follows:

     

    ((1)) The Licensee shall submit a rollout plan in the format prescribed in the instructions of this appendix by no later than sixty (60) days after the Record Date; the
      rollout plan shall be attached to this License and shall constitute a part of the Engineering Plan.

     

    ((2)) The rollout plan shall include the following data:

     

    (((a))) details of all communities in Israel, according to the Central Bureau of Statistics’ publication, divided into two categories – communities in central Israel and
      communities in outlying regions; the number of households in each community shall be specified beside each community and the total number of households in communities in central Israel and in outlying regions shall be specified; the planned date for
      completing the rollout plan in each community shall be specified beside each community;

     

    (((b))) specify all roads; the road number shall be specified beside each road and the planned date for completing the rollout plan on the road shall be specified beside
      each road.

     

    ((3)) The Licensee may update the rollout plan and change the order of communities or the roads in which the network rollout is planned.

     

    (4) 5G System at the frequencies of 3,500-3,800 MHz for Data Communications Service Using a Broad Frequency Band:

     

    ((a)) System rollout stages, timing and pace -

     

    The system’s performance and services shall be provided in stages and at the times specified hereunder and while achieving a coverage level that does not undershoot the
      following minimum requirements:

     

    Stage 1 – by the end of 36 months after the Record Date: coverage of 40% of the minimum requirements for the system coverage
      obligation as specified in clause 1.3(d)(1);

     

    Stage 2 – by the end of 48 months after the Record Date: coverage of 70% of the minimum requirements for the system coverage
      obligation as specified in clause 1.3(d)(1);

     

    Stage 3 – by the end of 60 months after the Record Date: coverage of 100% of the minimum requirements for the system coverage
      obligation as specified in clause 1.3(d)(1)(2.1);

     

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

    

     

      

    Stage 4 – by the end of 84 months after the Record Date: coverage of 100% of the minimum requirements for the system coverage
      obligation as specified in clause 1.3(d)(1)(2.2);

     

    In this clause – “the Record Date” – date of allotment of the frequency as a result of the 5G Tender;

     

    ((b)) The Licensee shall take action to establish a 5G System for Data Communications Service Using a Broad Frequency Band as follows:

     

    (1) The Licensee shall submit a rollout plan in the format prescribed in the instructions of this appendix by no later than sixty (60) days after the Record Date; the
      rollout plan shall constitute a part of the Engineering Plan;

     

    (2) The rollout plan shall include the following data:

    

    

    
       

    

    
      	
              City

            	
              Statistical Region number

            	
              Statistical Region classification

            	
              Community in central Israel/ outlying regions

            	
              Expected rollout date

            
	 	 	 	 	 

    

     

    (3) The Licensee may update the rollout plan subject to advance notice to the Director.

     

    

    (4) The Licensee shall report the completion of a rollout in a Statistical Region according to that stated in clause 1.3(d) as of the date of Stage 1, according to the data
      included above in (2).

    

    

    
      	
              1.3

            	
              Minimum Requirements of the Obligation Network Coverage:

            

    

     

      

    	

          	(a)	
            In the 3 generation technology:

          

    

    

    	

          	(1)	
            The performance and services of the network will be provided while meeting the coverage level and shall be no less than  the following minimum requirements:

          

    

    

    Service area: an area in which 99% of the Population resides, and not less than 92% of the area;

    (b) In the 4th Generation technology:

    

    

    (1) in stages A through C, the network performances and its services shall be supplied while meeting the coverage level, and shall be no less than the following minimum
      requirements:

    

    

    ((a)) Service area: an area in which 97% of the Population resides, and not less than 75% of the area;

    

    

    ((b)) Settlement: each settlement separately, the coverage level shall be at least 90% of the settlement area.

    

    

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

    

     

    

    ((c)) Street / Route:

    

    

    ((1)) 90% of the area of a single digit, double digit and triple digit street, national and local railroad route, including stations, road structures and operational areas
      and tunnels in each street or national and local railroad route;

    

    

    ((2)) 75% of the area of a four digit street and national railroad route for cargo trains.

    

    

    (2) in stage D, the network performance and its services shall be supplied while meeting the coverage level, and shall be no less than the following minimum requirements:

    

    

    ((a)) Service area: an area in which 99% of the Population resides, and not less than 90586% of the area;

    ((a1)) at the end of 48 months from the date of the Director's notice, instead of "service area" as set forth in section 1.3(b)(2)((a)) shall come:

    Service area: an area in which 99% of the Population resides, and not less than 95% of the area.587

    

    

    ((b)) Settlement: each settlement separately, the coverage level shall be at least 95% of the settlement area.

    

    

    ((c)) Street / Route:

    

    

    ((1)) 95% of the area of a single digit, double digit and triple digit street, national and local railroad route, including stations, road structures and operational areas
      and tunnels in each street or national and local railroad route;

    

    

    ((2)) 80588% of the area of a four digit street and national railroad route for cargo
      trains. Except for roads: 3922, 8510, 6531, 3866, 8833 where the minimum requirements will be 85% of the road area589.

    

    

    (c) Canceled.

     

    

                                                    

    
      586 Amendment No. 110

      587 Amendment No. 110

      588 Amendment No. 110

      589 Amendment No. 110

      

    

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

    

     

    

    (d)590 Minimum requirements for the obligation to rollout a 5G System at the frequencies of
      3,500-3,800 MHz for service using a broad frequency band:

     

    

    5G System performance and its services shall be provided while achieving a level of coverage that does not undershoot the following minimum requirements:

      

    

    	 	(1)	
            5G Service Area: area to be comprised of a mix of Statistical Regions according to the Central Bureau of Statistics’ classifications, and provided that the mix of regions will lead to cumulative points according to the legend specified
              hereunder; points shall be given for completing the rollout as specified hereunder in clause (2) in the said Statistical Regions according to the table below; the total points shall not be less than 500 points.

          

     
    	 	(2)	
            Completion of a rollout in a Statistical Region shall be defined in the following manner:

          

     

    
      	
              Classification of a Statistical Region according to CBS classifications

            	
              Community in central Israel

            	
              Community in outlying regions

            
	
              Residential

            	
              1 point

            	
              2 points

            
	
              Open area

            	
              2 points

            	
              3 points

            
	
              Institutional

            
	
              Public complex

            	
              3 points

            	
              4 points

            
	
              Industry

            

    

     

    

    	

          	(2.1)	
            By Stage 3:

          

     

    	

          	((a))	
            Statistical Region classified as a residential area according to the CBS classifications – coverage level of at least 80% of the Population residing in that area.

          

     

    	

          	((b))	
            Statistical Regions classified as nonresidential areas according to the CBS classifications – coverage level of at least 80% of the area of that Statistical Region.

          

     

    	

          	(2.2)	
            Stage 4:

          

     

    	

          	((a))	
            Statistical Region classified as a residential area according to the CBS classifications – coverage level of at least 99% of the Population residing in that area.

          

     

    	

          	((b))	
            Statistical Regions classified as nonresidential areas according to the CBS classifications – coverage level of at least 95% of the area of that Statistical Region.

          

     

    

    
      	
              (3)

            	
              After a rollout in a Statistical Region as stated has been completed, and reported as stated in clause 1.2(b)(4)((b))(4), the Licensee shall not be allowed to eliminate a Statistical Region that it had
                reported, except subject to the Director’s approval, and provided that it complies with the minimum requirements under the obligation to rollout a 5G System at frequencies of 3,500-3,800 MHz for service using the broad frequency band
                specified in this clause. The Director shall exercise his authority while considering, inter alia, the harm to be caused by discontinuing the provision of the service.

            

    

    
      

      

                                                     

      590 Amendment No. 107

      

    

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

         

        

      

    

    
      	
              1.4

            	
              Service Quality:

            

    

    

    

    	

          	(a)	
            Blocked Calls and Dropped Calls 591using 2G or 3G or VoLTE technology:

          

    

    

    	

          	(1)	
            A percentage of Blocked Calls at peak times shall not exceed two percent (2%) and the percentage of Dropped Calls at peak times shall not exceed two percent (2%);

          

    

    

    	

          	(2)	
            Up to ten percent (10%) of all sectors shall allow for deviation beyond two percent (2%).

          

    

    

    	

          	(3)	
            Amount of Blocked and Dropped Calls shall be measured in the following manner:

          

    

    

    ((a)) the measurement shall refer to a one-hour time frame;

    

    

    ((b)) the peak time to which the measurement shall refer shall be the busiest time of the system, during the week, which is not a Hol Hamoed or holiday eve;

    

    

    ((c)) the measurement and the calculation of the percentage of Blocked or Dropped Calls shall be performed by the Licensee of each sector and the system in general. The data
      shall be presented in a graphical manner and shall be forwarded to the Ministry in the framework of the engineering system report 592while segregating the generations
      and combining all generations.

    

    

    	

          	(b)	
            Reception Level:

          

     

    

    	

          	(1)	
            The reception level of a reference signal for 3rd generation services will be determined according to the most updated standards of ETSI/3GPP for 3rd generation, so that the provision of telephony services will be possible for coverage outdoors, according to the limiting channel of the upward and downward
              channel;

          

    

    

    
      The Licensee will perform a prediction once a year for each section and for each cell. The data will be presented and given to the office as a national coverage map and in a defined format in the 3information
        request regarding provision of periodic data, Appendix K-Information on cellular coverage.

    

    
       

        

                                                     

      3 Amendment No. 113

      591 Amendment No. 107

      592 Amendment No. 107

      

    

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

       

      

    

    	

          	(2)	
            The reception of a reference signal for 4th Generation services to networks on a broadband of 15/20 MHz of signals received from descending/upward channel, according to the limiting of the two, under the ETSI593 standard, according to a bandwidth of 5 MHz, shall be:

          

    

    

    	
            4th Generation network

          	
            Reception Range (dbm)

          
	
            Descending Channel

          	
            Upward Channel

          
	
            1800 frequencies

          	
            -101.5 (Site in open area)

          
	
            Mhz

          	
            -93.5 (site in constructed area)

            For indoor coverage – relief of 20db.

          

    

    

    
      The examination shall be performed once per year by the Licensee for each sector and each cell. The data shall be presented and delivered to the Ministry by way of a
        national coverage map in the 1information request regarding provision of periodic data, Appendix K-Information on cellular coverage.

    

    

    

    594(3) Level of signal reception attributed to 5G Services to networks at a bandwidth of
      15/20 MHz of the signals being received from the decreasing/increasing channel, whichever is more limiting, according to the ETSI standard, according to a bandwidth of 5 MHz shall be:

     

    

    
      	
              5G Network

            	
              Reception threshold (dBm)

            	
              Type of area

            
	
              Decreasing channel

            	
              Increasing channel

            
	
              Frequencies of 3,500-3,800 MHz

            	
              - 98.5

            	
              -101.5

            	
              Open

            
	 	
              -93.5

            	
              Built-up

            

      
        

                                                         

        1 Amendment No. 113

        593 http://www.etsi.org/deliver/etsi_ts/136100_136199/136104/10.01.00_60/ts_136104v100100p.pdf 16

        Tables 7.2.1-3, 7.2.1-2, 7.2.1-1

        http://www.etsi.org/deliver/etsi_ts/136500_136599/13652101/11.02.00_60/ts_13652101v110200p.pdf

        Table 7.3.3-1

        594 Amendment No. 107

        

        

      

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

     For indoor coverage – relief of 20 db.

    

    

    	

          	(c)	
            Service provision pace:

          

    

    

    	

          	(1)	
            Canceled;

          

    

    

    	

          	(2)	
            In regards to the proper existence of data communications in 4th Generation, the record data pace per sector in the descending channel/upward channel:

          

     

    

    
      	
              Table 1

            	
              Record data pace (Mbps) in a network of 20 megahertz bandwidth

               

            
	
              Data Upload

               

            	
              At least 100

               

            
	
              Data Download

               

            	
              At least 50

            

    

    

    
      	
              Table 2

            	
              Record data pace (Mbps) in a network of 15 megahertz bandwidth

               

            
	
              Data Upload

               

            	
              At least 80

               

            
	
              Data Download

               

            	
              At least 40

            

    

     

    The Licensee shall measure once per quarter the provision of record service pace and shall present the data and the method of examination in the framework of the engineering system
      report.                    

     

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

       

      

    

    	

          	5951A.	
            LTE Technology Network

             

            

          

     

    		1.1a

          	Definitions

    
       

    

    
      
         

        

        	

              	"Population"	-	
                The general population in an area, according to the publications of the Central Bureau for Statistics;

                 

                

              

      

    

    
      
        	

              	"Coverage Ratio"	-	
                The ratio between the rate of households in Periphery Settlements and the rate of households in Central Settlements;

                 

                

              

      

    

    
      
        	

              	"Central Settlements"	-	
                A settlement that is defined by the Central Bureau for Statistics as a settlement at a "middle" level, at a "central" level and a "very central" level;

                 

                

              

      

    

    
      
        	

              	"Periphery Settlements"	-	A settlement that is defined by the Central Bureau for Statistics as a settlement at a "very peripheral" and "peripheral" level;

         

        

        
                                                         

          595 Amendment No. 77

          

          
            
              

          

        

      

    

    
      
        
           

          

          
            Translation from Hebrew

            The Binding version is the Hebrew version

          

           

          

        

        	

              	"Road"	-	
                The area (length x width) of every road whose number is up to 4 digits inclusive as well as the route of the national and local train tracks in the area of the State of Israel, during the License term; The width of the road or the
                  route of the national and local train tracks will include the width of the road/actual route+5 meters on each side of the road/route;

                 

                

              

      

    

    
      
        	

              	"Population Concentration"	-	An area in which from time to time or continuously there is population concentration, for example designated beaches, sports stadiums, parks, nature reserves, markets, etc.
	 	 	 	 
	 	"Coverage Level"	-	
                Broadcasting and reception of electromagnetic signals that allow normal existence of any service for cellular handsets that are 1.5 meters above sea level;

                 

                

                
                  For this matter-normal existence of a service will be considered a service that is provide in the coverage level, while complying with minimum requirements for environmental matters as set forth in this
                    article;

                

              

      

    

    
       

    

     

    

    
      
        	

              	"Area"	-	
                The total area that the Law, jurisdiction and administration of Israel apply to;

                 

                

              

      

    

    
      
        	

              	"Blocked Calls"	-	
                Calls and data communication or interconnections that cannot be completed or messages that cannot be relayed immediately upon the communications order as a result of unavailability of network resources or resources related to
                  interconnection between the network and other networks;

                 

                

              

      

    

    
      
        	

              	"Dropped Calls"	-	Calls and data communication or interconnections that were terminated not by the initiative of the Subscriber that initiated the call/interconnection or the receiver of the call.

      

    

              

    

    
      
        

    

    
       

      

      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

       

      

    

    	1A.2	
            Deployment obligations for the LTE technology network

          

     

    

    Upon building  an LTE technology network, the Licensee will act as follows:

     

    

    	

          	(1)	
            Will submit a deployment plan for the LTE technology network in the format set out in the provisions of this Appendix no later than thirty (30) days after the determination date; The deployment plan will become an integral part of the
              engineering plan. In this article, "the Determination Date"- July 15, 2014.

          

    

    

    	

          	(2)	
            The deployment plan will include the following data:

          

    

    

    	

          	a)	
            It will include details of all the settlements in the country, according to the publications of the Central Bureau for Statistics, divided into two groups- settlements in the center and settlements in the periphery; next to each settlement
              the number of households in that settlement should be marked and it should also note the total number of households in central settlements and in  periphery settlements; next to each settlement it should note the planned date for finishing
              the deployment plan with respect to that settlement;

          

    

    

    	

          	b)	
            It will note all the Roads, according to the publications of the Central Bureau for Statistics; next to each Road it will note the Road number and the planned date for finishing the deployment plan on the Road.

          

    

    

    	

          	(3)	
            The Licensee may update the deployment plan and change the order of the settlements or Roads in which the network deployment is planned, by giving the Director notice of this up to 30 days before the date that was planned for the
              deployment as long as the updated deployment plan complies with the provisions of this Appendix.

          

    

    

    	

          	(4)	
            The deployment speed shall be as follows:

          

    

    

    	

          	a)	
            The Licensee will deploy the network at a deployment ratio that shall not be less than one (1).

          

     

    

    	1A.3	
            Synchronization of clocks

          

    

    

    The Licensee, who is operating a network at the frequencies of 3,500-3,800 MHz shall comply with the frequency, time and phase synchronization requirements as defined in the standards IEEE 1588v2 and
      ITU-T G8271.1.

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	2.	
          Gauges of Quality of Service to Customers and Subscribers

        

  

  

  	2.1	
          Cancelled596

        

  

  

  	2.2	
          Cancelled597

        

  

  

  	2.3	
          Bills to Subscribers:

        

  

  

  	

        	(a)	
          Subscribers' bills shall set out:

        

  

  

  	

        	(1)	
          a monthly charge (fixed payment)

        

  	

        	(2)	
          conversation duration or airtime duration (minutes, seconds)

        

  	

        	(3)	
          volume of data consumption (kB, MB) - if the service provided is priced in accordance with data transfer volume.

        

  	

        	(4)	
          other charges (such as for receipt of information, SMS transmission, M-Commerce)

        

  	

        	(5)	
          a combination of the above billing methods.

        

  

  

  	

        	(b)	
          Structure of the Bill:

        

  

  

  Bills shall be sent in a fixed structure as set out below:

  

  

  	

        	(1)	
          After payment, the bill shall act as a receipt which includes:

        

   

  

  the sum to be paid without VAT, the amount of VAT and the total to be paid including VAT.  This part shall also contain details of the identity
    of the Licensee and of the Subscriber.

  

  

  	

        	(2)	
          The Licensee may include information regarding special offers and personal notices to the Subscriber.

        

  

  

  	

        	(c)	
          Issue and Dispatch of Bills

        

  

  

  	

        	(1)	
          The Licensee shall issue bills to its Subscribers on a monthly basis or at such other time, with the consent of its Subscribers.

        

  	

        	(2)	
          A subscriber that wishes to disconnect from the Licensee shall receive a final bill at the closest possible date and no later than two months after the date of disconnection598. A Subscriber wishing to disconnect from the Licensee shall receive a final bill on the nearest possible date, and no later than two months after the date of disconnection.

        

   

  

                                                 
    596 Amendment
      No. 91

    597 Amendment
      No. 91

    598 Amendment No. 60

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(3)	
          599

        

   

    

  600If the subscriber and Licensee agree on payment by installments for a handset purchased by the
    subscriber from the Licensee and the commitment agreement of the subscriber with the Licensee is terminated before the subscriber has completed all payments for the handset purchased from the Licensee, the Licensee shall send the subscriber a final
    bill for the Licensee's services and afterwards may send the subscriber bills only for the handset.

  

  

  	

        	(4)	
          After collecting the amount for payment as detailed in the final bill, the Licensee shall not be permitted to collect from the subscriber, by a method of payment that the subscriber gave, any payment that is not for goods, without prior
            written explicit consent from the subscriber. The Licensee shall keep a copy of the subscriber's consent, and shall make it available for delivery to the Director, upon his demand, within five (5) working days from the day it was delivered to
            the Licensee.

        

  

  

  6012.4      Gauges for handling consumer complaints

  

  

  	

        	(a)	
          The level of handling complaints in writing-the response times to the complaints shall be no more than 14 working days, and 5% of the applications should be answered within one month.

        

  

  

  	

        	(b)	
          Gauges for the quality of service for service centers-

        

  	

        	-	
          90% of the applications should be handled directly by the service representatives, until resolved.

        

  	

        	-	
          No more than 10% of the applications, of which some will arise from the escalation of complaints, should be referred to higher levels.

        

  

  

  	

        	(c)	
           Applications that will be handled by the higher levels-in any case where the reply of the Ombudsman602 does not satisfy the applicant, the application shall be
            referred to the management level that will re-examine the application and will directly respond to the applicant. In any case, the applicant shall receive an answer within thirty days from the date of his application.

        

  

  

  	

        	(d)	
          The Licensee shall not make use of a telephone number in an MRT area code for the purpose of the Ombudsman receiving complaints via facsimile.

        

  

  

                                                  

  
    599 Amendment No. 50

    600 Amendment No. 57

    601 Amendment
      No. 41

    602 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	6032.5	
          Manner of Execution of a Computerized Graphic Signature

        

  

  

  	

        	(a)	
          Subscriber identification- The Licensee shall perform identification of a subscriber before revising the subscriber agreement or signing a new subscriber agreement, by means of an identifying document
            that bears a photograph or a power of attorney together with an identifying document of the legal representative.

           

          

        

  	

        	(b)	
          Use of a Digital Screen- The Licensee shall allocate for the subscriber's sole use a digital screen during the duration of the transaction until its completion and shall allow the subscriber a
            reasonable amount of time to review the entire agreement and to understand its contents before he is required to sign it.

           

          

        

  	

        	(c)	
          Signature of the Subscriber-marking "form for services access" and a signature on the documents relevant to the agreement shall only be done by the subscriber.

           

          

        

  	

        	(d)	
          Fixed Signature-each separate signature shall be locked and fixed in place with its unique characteristics, in a manner that enables being able to prove that this signature is not a result of "cut and
            paste" of another signature of the subscriber that was signed elsewhere in the subscriber agreement or on other documents. In addition to the aforesaid, each signature will have an additional layer of information that will document the exact
            time of the signature (date and exact time in seconds).

           

          

        

  	

        	(e)	
          "Locking" of an Agreement- once the entire agreement is signed, the agreement document will be "locked" in a manner in which it will be possible to identify a change made to the agreement after the
            date of its signature. "Locking" of an agreement by a secure electronic signature or approved electronic signature (hereinafter-electronic signature) of the Licensee, as defined in the Electronic Signature Law, 2001, immediately after it has
            been signed by the subscriber, shall be considered as a reasonable means of locking the agreement and protecting it from changes.

           

          

        

  	

        	(f)	
          Document Preservation-The Licensee shall preserve documentation of all of the agreement documents in accordance with the requirements of Article 106A604 of its license and shall take reasonable means to prevent the addition or removal of documents to the electronic archive system in an undocumented manner. The Licensee shall take necessary steps to ensure
            that that the contents of the agreement are preserved without changes from the date of its editing throughout the preservation period, while taking into account technological changes or changes in encryption methods that are used for preserving
            documents. The Licensee will be able to prove to the Ministry at any time that it has taken the said steps and procedures.

        

   

  

  
                                                   

    603Amendment No. 69

    604 Amendment
      No. 90

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(g)	
          Receipt of a Copy of the Subscriber Agreement-

           

          

        

  	

        	(1)	
          The subscriber may choose from two possibilities for receiving documents at the time of execution of the transaction (by marking x in one of two boxes):

           

          

        

  	

        	(a)	
          First box-receipt of only the "the Plan Basics page"605;

        

  	

        	(b)	
          Second box-to receive the entire signed agreement.

           

          

        

  	

        	(2)	
          The subscriber shall confirm his choice with his signature. The signature place shall be next to the above 2 boxes.

           

          

        

  	

        	(3)	
          A subscriber that requests to receive only the Plan Basics page606, will need to mark his e-mail address or fax number to which the entire signed agreement will
            be sent (including the Plan Basics page607").

           

          

        

  	

        	(4)	
          The sales representative shall type in the e-mail address or fax number, to where the entire agreement will be sent (from his keyboard).

           

          

        

  	

        	(5)	
          The address or fax number shall appear under and next to the above boxes.

           

          

        

  	

        	(6)	
          The subscriber shall confirm by his additional signature that this is his e-mail address or fax number to where the entire agreement will be sent.

           

          

        

  	

        	(7)	
          As a result of the above-mentioned: a subscriber that does not have an e-mail address or fax number shall receive the entire agreement at the time of execution of the transaction.

        

  

  

  	

        	(h)	
          Identification of the Representative-each agreement shall include an unequivocal identification of the representative (full name and signature).

           

          

        

  	

        	(i)	
          The Licensee shall maintain a signed copy of the subscriber agreement; the said copy shall be available at the Licensee to be presented to the Director, within five (5) working days from the date of the transaction;

        

   

    605 Amendment
      No. 87

    606 Amendment
      No. 90

    607 Amendment
      No. 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(j)	
          If the subscriber wishes to make changes to the terms of the subscriber agreement, including a request to receive an additional service, to cancel a service or to join a service package- at the time of the change request a printed notice
            shall be given to the subscriber that bears the name or logo of the Licensee in which the details of the changes made shall be noted, the effective date as well as the full names of the Licensee's representative and the subscriber and their
            original signatures. The Licensee shall maintain a copy of the signed notice and make it available to be presented to the Director, within five (5) working days from the date of execution of the subscriber's request.608

           

            

        

  	

        	(k)	
          Door to Door Sales-The above detailed rules shall apply also to door to door sales.

           

          

        

  	

        	(l)	
          609Purchase/rental of MRT Terminal Equipment without purchasing MRT Services – the rules specified above shall also apply to a transaction of this type, apart
            from that stated in subclause (g).  The purchase agreement and the tax invoice must be delivered to the applicant at the time the transaction is executed

        

   

  

  

                                                  

  608 Amendment No.
    87

  609 Amendment No.
    90

   

  

  
    
      

  

  

     

    

    
      Translation from Hebrew

       
      The Binding version is the Hebrew version

    

  

   

      

  610Appendix E1 - Fair Disclosure in Telephone
      Bills

   

  General

  

  

  1. The telephone bill (hereinafter referred to in this Appendix as the “Bill”) to be presented by the licensee to a subscriber shall be clear, legible and
    comprehensible; the Bill shall include accurate details about the components of the charge demanded, as set forth in this Appendix.

  

  

  1A.The telephone bill will include the payment for all of the services and goods that are present in the Plan Basics.611

  

  

  2. The Bill shall include the following parts:

  

  

  	

        	(a)	
          “Billing Summary”;

        

  

  

  	

        	(b)	
          “Billing Details” including:

        

  

  

  	

        	1)	
          Details of fixed charges, variable charges, one-time charges, credits and reimbursements, within the meaning in section 8 E of this Appendix;

        

  

  

  	

        	2)	
          Information on usage patterns;

        

  

  

  	

        	(c)	
          “Call Details”.

        

  

  

  3. The Bill shall be constructed using a bottom-up method, with its bottom level being Part C - “Call Details”, above it Part B - “Billing Details” and at the top level Part A - “Billing Summary”.

  

  

  4. The Company name and logo shall be displayed on each page of the Bill, including on the “Call Details”.

  

  

  5. The licensee shall issue a “Billing Summary”, “Billing Details” and “Call Details” for each telephone number separately. The licensee may issue to a subscriber holding several telephone lines one
    “Billing Summary” to refer to all the telephone numbers in the possession of the subscriber, provided that the “Billing Summary” sets forth each of the telephone numbers to which the Bill relates (see examples 1 and 2). “Call Details” and “Billing
    Details” shall be issued by the licensee for each telephone number separately. Notwithstanding the above, a subscriber in possession of several telephone numbers may demand from the licensee to receive a separate “Billing Summary” for each telephone
    number in his possession. In this regard, a PRI line shall be deemed one telephone number.

  

  

  6. Amounts in the Bill shall be rounded off and shall be set forth according to the provisions of section 2.2.2 of Israeli Standard 5262 - “Honesty in Billing and Fair Disclosure in Telephone Bills”
    (hereinafter referred to in this Appendix as the “Standard”) and the provisions of the General License on this matter. It should be clarified that in respect of the manner of calculating the billing amount, in
    contrast to the manner of presenting the “Call Details”, and the “Billing Details”, as determined in the provisions, the licensee must calculate this pursuant to the tariff provided in the Regulations, with no rounding off.

  

  

  
    

    610 Amendment No. 50

    611 Amendment
      No. 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  7. The Ministry of Communications’ website in the section on “General Licenses” has examples of telephone bills drawn up pursuant to the detailed provisions of this Appendix (hereinafter referred to in
    this Appendix as the “Examples”). The Examples are based on telecommunications agreements and tariff plans marketed in 2008 by the general licensees. The examples are for the sake of illustrating the mode of
    implementation of the provisions only. In the case of any inconsistency  between the provisions and the Examples, the binding version is that in the provisions.

  

  

  Part A - “Billing Summary”

  

  

  8. The following details shall be presented in the “Billing Summary”:

  

  

  A. Subscriber Details –

  	

        	1)	
          First name;

        

  	

        	2)	
          Surname;

        

  	

        	3)	
          Address and email address612;

        

  	

        	4)	
          Customer number;

        

  	

        	5)	
          Telephone number and/or PRI line number by means of which the services on account of which the Bill is presented to the subscriber were provided;

        

  

  

  B. Licensee Details -

  	

        	1)	
          Company name;

        

  	

        	2)	
          Company management address;

        

  	

        	3)	
          Customer service telephone and facsimile numbers;

        

  	

        	4)	
          Company website address.

        

  

  

  C. Dates613 -

  	

        	1)	
          Bill execution date;

        

  	

        	2)	
          Manner in which the Bill was sent;

        

  	

        	3)	
          Bill period;

        

  	

        	4)	
          Last date for Bill payment - in respect of a Bill not paid by standing order or by credit card;

        

  	

        	5)	
          The date that the method of payment will be charged- in respect of a Bill not paid by standing order or by credit card;

        

  

  

  D. Notices to Subscriber

  1) Notice on the option of filing a complaint to the Ombudsman of the Licensee and regarding his authorities and ways of contacting him as set forth in section 61.3 and 61.4.614

  

  

  2) The licensee’s address, telephone number, facsimile number and email address by means of which the subscriber may request the Licensee to suspend, disconnect or terminate the service or deliver to
    the Licensee a notice of cancellation, within the meaning in section 13D of the Consumer Protection Law, 5741- 1981.615

  

  

                                                  

  
    612 Amendment
      No. 87

    613 Amendment
      No. 87

    614 Amendment
      No. 87

    615 Amendment
      No. 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  3) Information on offers and personal notices to the subscriber, at the decision of the licensee.

  

  

  E. Billing charge inclusive616 of VAT, as set forth below:

  

  

  1) Fixed charges - charges applying to the subscriber not dependent on the scope of usage;

  

  

  2) Variable charges - charges applying to the subscriber dependent on the scope of usage;

  

  

  3) One-time charges, such as charges for “Exit Fee”, linkage and interest differentials charge for a monetary debt, charge for collection expenses, etc. (hereinafter referred to in this Appendix as “One-Time Charges”);

  

  

  4) 617Benefits/Credits- for example: Benefit of providing a service at a discount or free of charge for a fixed period
    or a benefit of  providing a discount for the entire rate plan for a fixed period of time, credit for return of old terminal equipment, etc. (in this Appendix-"Benefits/Credits");

  

  

  5) Financial reimbursements for surplus charges and interest and linkage differentials in respect of excess charges618
    (hereinafter referred to in this Appendix as “Reimbursements”).

  

  

  6) Purchase of products619

  

  

  F. Total payment amount will be presented as set forth below:

  

  

  1) Total payment amount exclusive of VAT; the amount shall be calculated according to the charges summary presented in the “Subtotals Summary” and the “Billing Summary”;

  

  

  2) VAT amount;

  

  

  3) Total payment amount, plus VAT.

  

  

  F. All charges appearing in the “Billing Summary” shall be presented as a decimal number in New Israeli Shekels to a degree of accuracy of two digits after the decimal point.

  

  

  Part B - “Billing Details”

  9. Part 1 of the “Billing Details” will include information on fixed charges, variable charges, One-Time Charges, Credits and Reimbursements, as set forth below:

  

  

  	

        	(a)	
          “Billing Details” will include general information on the tariffs plan according to the terms of which the subscriber is charged, including the date on which the tariff plan takes effect, detailing its principal rates, including VAT, insofar
            as the amount of the payments or tariffs for the services purchased by the subscriber are to be changed, the licensee shall indicate the amount of the new payments or rates for the said services or the amount of the said benefits, including
            VAT, or the quantities of new consumption units and the date of entry into effect.620

        

  

  

                                                  

  
    616 Amendment
      No. 87

    617 Amendment
      No. 87

    618 Amendment
      No. 87

    619 Amendment
      No. 87

    620 Amendment
      No. 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(b)	
          If the subscriber’s agreement includes a commitment period the licensee must note on every bill in the “Billing Details” the following details:

        

  

  

  	

        	1)	
          The duration of the commitment period and its date of expiration; the provisions of this subsection shall not apply in respect of a transaction where there is no obligation to give a collection notice as stated in section 13A(d)(2)(b) of the
            Consumer Protection Law, 5741-1981.

        

  

  

  	

        	2)	
          The payment the subscriber will be asked to pay if he requests to terminate his agreement with the licensee prior to the expiration of the commitment period to the company or the tariff plan (“Exit Fee”)
            in the course of the billing period following the present billing period (hereinafter referred to in this Appendix as the “Subsequent Billing Period”). In the event that the amount of the Exit Fee changes
            throughout the Subsequent Billing Period, the time point of reference for determining the amount of the Exit Fee shall be the middle of the Subsequent Billing Period (see Example 1).

        

  

  

  	

        	3)	
          Cancelled621

        

  

  

  	

        	4)	
          The licensee will present to the subscriber written details in respect of the mode of calculation of the Exit Fee within 14 days of the date the subscriber submitted a request to the licensee’s customer service center or the Ombudsman.

        

  

  

  	

        	(c)	
          “Billing Details shall be presented by means of a table composed of columns and rows, as set forth in the Examples.

        

  

  

  	

        	(d)	
          Each service provided to the subscriber in the course of the Billing Period shall be presented in the “Billing Details” in a separate row, with the following details:

        

  

  

  	

        	1)	
          Name of service; the name of the service shall identify as clearly and as accurately as possible, the service provided to the subscriber; respecting a service provided to the subscriber not by means of the licensee, the licensee shall
            present the details of the service provider, including its name and a telephone number by means of which it can be contacted;

        

  

  

  	

        	2)	
          Quantity for service unit622623; quantity measured in time will be presented in
            the form of mm:ss (minutes: seconds). Quantity measured by data volume will be presented as a decimal number in MB to a degree of accuracy of at least 3 digits after the decimal point. The quantity of internet pages viewed or text messages will
            be presented as a natural number.

        

  

  

  	

        	3)	
          Tariff for service unit624; the tariff will be presented as a decimal number in New Israeli Shekels, to a degree of accuracy of at least 3 digits after the
            decimal point. The tariff is composed of several payment components, such as one tariff for the licensee’s services and a second tariff for reciprocal link or for international phone service, will also be presented as one inclusive tariff (see
            Examples 1 and 2).

        

  

  

                                                  

  
    621 Amendment
      No. 87

    622Call units, texts, internet data

    623 Amendment
      No. 87

    624 Amendment
      No. 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

  

  Calls in respect of which the tariff varies in the course of performance, such as a transition from off peak to peak rates and from peak to off-peak rates, a change in tariff in the
    course of a conversation, including a conversation started within the scope of a “pay as you go” plan and exceeding the minutes in the course of performance, will be presented collectively within the “Calls at Variable Tariff in the Course of a Call”
    service; the tariff will be presented under the column “Average Tariff” and will be calculated by dividing the charge amount in the “Subtotal Row”, within the meaning in section 11I of the Appendix by the quantity (see Example 5 – Version A). To the
    extent that a call in the “Calls at Variable Tariff in the Course of a Call” is presented as set forth in the concluding part of section 11L below, the “Average Tariff” will not be required to be presented and the tariff will be presented according to
    each segment separately (see Example 5 - Version B).

  

  

  Tariff for calendar time unit625- the tariff will be presented as a decimal number in NIS with an
    accuracy of 2 digits after the decimal point.

  

  

  	

        	4)	
          The charge amount; the charge amount will be calculated by multiplying the quantity by the tariff and will be presented as a decimal number with an accuracy of 2 digits after the decimal point.626

        

  

  

  	

        	5)	
          In the event that there is also a fixed charge for each individual call, the number of calls made and the fixed tariff per call shall also be presented in the same row and the charge amount shall be calculated by multiplying the number of
            calls by the fixed charge tariff per call plus the quantity multiplied by the tariff (see Example 4).

        

  

  

  	

        	(e)	
          The “Fixed Charges”, "variable charges"627, “One-Time charges”, “Credits”, and “Reimbursements” and "Linkage differences and interest"628 as specified in
            sections 60.8 and 83A, shall each be presented in the “Billing Details” in a separate group (see Examples 3 and 5).

        

  

  

  	

        	(f)	
          The licensee shall notify the subscriber in the Bill of his option to request written details in respect of the mode of calculation of the “One-Time Charge”; the licensee will furnish the subscriber with such written details within 30 days
            of the date of submission of a request by the subscriber on the matter to the licensee’s customer service center or the Ombudsman (see Examples 3 and 5).

        

  

  

  	

        	(g)	
          Charges will be noted in the “Billing Details” for sale of goods that were purchased or rented as part of an agreement to receive MRT services629 and charges
            for services which are not telecommunication services.

        

  

  

                                                  

  
    625 Amendment
      No. 87

    626 Amendment
      No. 87

    627 Amendment
      No. 87

    628 Amendment No. 57

    629 Amendment
      No. 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(h)	
          The “Billing Details” shall include subtotals of charge amounts inclusive630 of VAT, for fixed charges, variable charges, One-Time Charges, Credits and
            Reimbursements (“Subtotal Row”). The amount to be charged in each Subtotal Row will be moved from "Bill Details" to "Bill Total"631.

        

  

  

  	

        	(i)	
          The final charge amount will be presented inclusive of VAT632.

        

  

  

  	

        	(j)	
          Cancelled633

        

  

  

  	

        	(k)	
          All charge amounts appearing in the “Billing Details” will be presented as a decimal number in New Israeli Shekels to a degree of accuracy of two digits after the decimal point634.

        

  

  

  	

        	(l)	
          The Licensee is not permitted to present in the Billing Details tariffs and amounts to be charged without VAT.635

        

  

  

  10. In Part 2 of the “Billing Details” the licensee shall present in graph form or in any other manner in respect of each telephone number to which the telephone bill relates information about usage
    patterns, as set forth below:

  

  

  	

        	(a)	
          The rate of utilization of each package of services included in the tariffs plan to which he is a subscriber, including packages of services granted to a subscriber within the scope of the fixed charge including international roaming
            packages636;

        

  

  

  	

        	(b)	
          Details of charges according to categories of services;

           

          

        

  	

        	(c)	
           Distribution of call minutes and text messages according to categories of licensees on whose network the call was completed (internal network, external network according to category of licensee - mobile radio-telephone, internal domestic
            fixed line telephony).

        

  

  

  Part C - “Call Details”

  11. The details set forth below shall be presented in the “Call Details”:

  

  

  	

        	(a)	
          “Call Details” shall include information about all the services provided to the subscriber in the period to which the Bill relates.

        

  

  

  	

        	(b)	
          Each “category of service” shall be set forth in a separate group under the heading of the service name, with each item in the “category of service” being presented in a separate row, pursuant to the provisions of subsection 11E. Respecting
            PTT services, no details are required for each call separately.

        

  

  

  	

        	(c)	
          Presentation of data in relation to each “category of service” appearing in the “Call Details” will be carried out in ascending chronological order.

        

  

  

                                                  

  
    630 Amendment
      No. 87

    631 Amendment
      No. 87

    632 Amendment
      No. 87

    633 Amendment
      No. 87

    634 Amendment
      No. 87

    635 Amendment
      No. 87

    636 Amendment
      No. 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(d)	
          “Call Details” will be presented in table format pursuant to the details in the Examples.

        

  

  

  	

        	(e)	
          In respect of each item appearing in the “Call Details”, at least the following data shall be noted:

        

  1) Date of performance637;

  2) Time (hh:mm:ss);

  3) Call destination (if any);

  4) Quantity for service unit638;

  5) Tariff inclusive639 of VAT, to a decimal number in New Israeli Shekels to a degree of accuracy of
    at least 3 digits after the decimal point.

  6) Charge amount inclusive640 of VAT, to a decimal number in New Israeli Shekels to a degree of
    accuracy of at least 2641 digits after the decimal point.

  

  

  
    	 	
            (e1)

          	
            642 Notwithstanding the provisions of sub-clause (e), the license holder is permitted to  not present details of the cellular data
              consumed daily but rather only the total volume of cellular data consumed daily. The Licensee shall keep a record of cellular data details consumed daily and will submit them to the subscriber at his request.

          

  

  

  

  	

        	(f)	
          The tariff presented shall be the tariff according to which the subscriber is charged, viz., for example, after a discount, if any, the cheaper tariff offered to the subscriber within the scope of any offer, etc.

        

  

  

  
    	 	
            (f1)

          	
            643 The Licensee is not permitted to present in the call details tariffs and amounts charged without VAT.

          

  

  

  

  	

        	(g)	
          The quantity, tariff and charge amount will be presented in adjacent columns if possible, so that the quantity multiplied by the tariff will give the charge amount. If there is also a fixed charge per call the quantity of calls made and the
            fixed charge per call shall be presented and the charge amount will be calculated by the quantity of calls multiplied by the fixed charge tariff per call plus the quantity multiplied by the tariff (see Example 4).

        

  

  

  	

        	(h)	
          Quantity measured by time will be presented in the form of mm:ss (minutes: seconds); quantity measured by data volume will be presented as a digital  number in MB, while the data volume allocated to a subscriber for the bill period is up to
            1GB and in GB when the data volume allocated to a subscriber for the bill period is more than GB644  to a degree of accuracy of at least 3 digits after the decimal
            point; the quantity of internet pages viewed or text messages will be presented as a natural number.

        

  

  

  
                                                    

  

  
    637 Amendment
      No. 87

    638 Amendment
      No. 87

    639 Amendment
      No. 87

    640 Amendment
      No. 87

    641 Amendment
      No. 87

    642 Amendment
      No. 87

    643 Amendment
      No. 87

    644 Amendment
      No. 87

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	(i)	
          Any “Category of Service” appearing in the “Call Details” will include a summary row in which will be set forth only645 the total quantity for which the
            subscriber is charged 646(hereinafter referred to in this Appendix as the “Subtotal Row”). The total quantity in the
            Subtotal Row will be moved from the "Call Details" to the "Bill Details".647

        

  

  

  	

        	(j)	
          Cancelled.648

        

  

  

  	

        	(k)	
          The presentation of each Subtotal Row shall be made in a prominent manner.

        

  

  

  	

        	(l)	
          A call whose tariff is variable in the course of performance thereof, such as a transition from off-peak to peak rate or from peak to off-peak rate, a change in tariff in the course of the conversation, including a conversation starting
            within the scope of a “pay as you go” program and exceeding the minutes in the course of performance thereof, will be presented within the scope of “Calls at Variable Tariff in the Course of a Call”; the tariff will be presented under the
            column “Average Tariff” and will be calculated by dividing the charge amount into the quantity (see Example 5 - Version A). A call whose tariff is variable in the course of performance thereof may also be presented in another form in which the
            charge tariff, the quantity and the charge amount, as well as the total charge of the call will be presented in respect of each segment of such call (see Example 5 - Version B).

        

  

  

  	

        	(m)	
          The licensee may provide a subscriber making an express request, with Call Details in chronological order in which the calls were provided with no separation between categories of services, provided that it notifies the subscriber within the
            scope of the “Call Details” that he may receive “Call Details” also pursuant to the format determined in section 11(b).

        

  

  

                                                  

  
    645 Amendment
      No. 87

    646 Amendment
      No. 87

    647 Amendment
      No. 87

    648 Amendment
      No. 87

  

   

  

  
    
      

  

  
    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  649Appendix E2-Services Access Form650651

  

  

  Access form for services through the cellular handset that are charged in the telephone bill

  

  

  Name of the Licensee

  Methods for sending the form:

  Address

  E-mail address

  Fax number

  Date:______________

  

  

  I, the person whose details appear below, request access to the services detailed below, for the telephone number noted in this form as follows:

  

  

  Subscriber Details

  Name of the subscriber/company:___ I.D./Company No._____________________

  Address:____Telephone No.__________

  

  

  Mark X according to your choice and sign. For your information, not marking shall mean blocking the possibility to receive the service except for outgoing international call services.

  

  

  	
           

          No.

        	
          Type of Service

        	
          Block

        	
          Open

        
	
          1.652

        	
          International cellular data service without a package/international cellular data plan

        	
          o

        	
          o

        
	 	
          (a)          This section is intended only for a business subscriber;

        	
          o

        	
          o

        
	 	
          (b)          A subscriber who finances cellular data from his own pocket will be blocked for international cellular data and will not be charged for it and he does not have a package/international cellular
            data plan;

        	
          o

        	
          o

        
	 	
          (c)          Blocking does not prevent cellular data through WiFi;

        	
          o

        	
          o

        
	 	
          (d)          Marking "Open" in this section does not include the opening for services in Jordan and Egypt.

        	
          o

        	
          o

        
	
          1A.653

        	
          Cancelled

        	
          o

        	
          o

        
	
          2.

        	
          Content service

          and/information in or in a one-time payment

        	
          a.

        	
          Receipt or download of content through the internet, watching it and/or listening to it on a one time basis (for example: download or watching a video
            clip, listening to a song, download of a ringtone, download of a video clip, download of a game and all on a one time basis)

        	
          o

        	
          o

        
	 	
          b.

        	
          Sending of an sms at a special date in order to vote as part of a televised show on a one time basis (for example: voting for a reality show on a one
            time basis).

        	
          o

        	
          o

        
	 	
          c.

        	
          Making a donation by sending an sms on a one time basis (for example: a donation to an organization on a one time basis)

        	
          o

        	
          o

        
	 	 	
          d.

        	
          Receipt of useful654
              information on a one time basis (for example: information about transportation routes, professionals, financial information, information regarding receipt of registered mail655, and all on a one time basis).

        	
          o

        	
          o

        
	 	 	
          e.656657

        	
          Receipt of content on a one time basis (for example: a quiz, lottery,
            survey, poll, astrology forecast, receipt of a link to download a video and all on a one time basis)

        	
          o

        	
          o

        
	
          3.

        	
          Content service

           and/or

           continuous information

        	
          a.

        	
          Receipt or download of content through the internet, watching it and/or listening to it on a one time basis (for example: a subscription to download or
            watch a video clip, a subscription for a music service, or a subscription to download ringtones or a subscription to download video clips and a subscription to download games)

        	
          o

        	
          o

        
	 	 	
          b.

        	
          Receipt of content and/or information not on a one time basis (for example: a subscription for the receipt of news updates, a subscription for the
            receipt of sports results, a subscription for the receipt of trivia questions and a subscription for the receipt of diet recipes)

        	
          o

        	
          o

        
	
          4.

        	
          Voice or visual content service to 1-900 and 1-901 numbers at a special tariff

        	
          o

        	
          o

        
	 	 	
          a.

        	
          Numbers in the 1-900 prefix at a rate of up to 50 agorot per minute And not more than NIS 30 for the entire conversation.

        	
          o

        	
          o

        
	 	 	
          b.

        	
          Numbers in the 1-901 prefix at a tariff that does not exceed NIS 50 for the entire conversation.

        	
          o

        	
          o

        
	
          5.

        	
          International call service658

        	
          o

        	
          o

        
	
          6.

        	
          Cancelled659

        	
          o

        	
          o

        
	
               By signing this agreement in the presence of a Licensee representative-I declare that this form was marked and signed

              by myself

           

          Name of Licensee representative:______________Signature of Licensee representative________________

           

          Subscriber Signature__________________

           

        

  

  

  

  649 Amendment No. 57

  650 Amendment No. 58

  651 Amendment No.
    72

  652 Amendment No.
    87

  653 Amendment No.
    87

  654 Amendment No.
    87

  655 Amendment No.
    87

  656 Amendment No.
    87

  657 Amendment No. 87

  658 Amendment No.
    87

  659 Amendment No.
    90

  
    
      

  

  
    
      
         

        

        Translation from Hebrew

        The Binding version is the Hebrew version 

       

    

    Appendix E3660

    Questionnaire on the mode of receipt of the Bill and on publishing the telephone 

    number/s, which are billed in the Bill, in the telephone directory (“144”) and on the internet

    

    

    	
            Questionnaire on the mode of receipt of the Bill and on publishing the telephone number/s, which are 

            billed in the Bill, in the telephone directory (“144”) and on the internet

          
	 	
             

            

            Licensee’s name

            Methods for sending the Questionnaire:

            Address

            Electronic mail address

            Facsimile no.

          
	 	
            Date: ____________  

            

          
	
            I, according to my details listed below, request to receive the Bill and to publish my telephone number/s, which are billed in the Bill, in the telephone directory (“144”) and on the internet, as follows:

            Subscriber’s details

            Name of the Subscriber/Company: _________________ ID/Co. no. ________ Address: __________________          

            

            Mark your choice with an x, complete as needed and sign.

          
	
            1.

          	
            Mode of receipt of the Bill

            ☐ Regular post

            ☐ Electronic mail with a file attached

            ☐ Text message (SMS) with a link – telephone number:          

            ☐ The Licensee’s website

            ☐ Other electronic means at the Licensee’s discretion

          
	
            2.

          	
            Publishing the telephone number/s, which are billed in the Bill, in the telephone directory (“144”) and on the internet

            ☐ All telephone numbers – unlisted

            ☐ All telephone numbers – published

            ☐ Particular telephone numbers – unlisted; and the rest – published

            The unpublished / published telephone numbers (mark your choice) are:

            _________, __________, ____________, ____________, _____________

            And the rest are unlisted / published (mark your choice).

          
	
            In this engagement, in the presence of a representative of the Licensee – I declare that I marked and signed this form

            Name of Licensee’s representative: ___________ Signature of the Licensee’s representative: ___________

            The Subscriber’s signature: _______________

          

    

    

    

  

  

  660 Amendment No.
    90

  

  

  
    
      

  

  

     

    

    
      Translation from Hebrew

       
      The Binding version is the Hebrew version

    

  

   

    

  Appendix E4661- Telephone Call Centers

  

  

  	
          1.

        	
          Staffing of a telephone call center

           

          

        
	 	
          (a)

        	
          A telephone call center for handling Subscribers’ calls regarding any malfunction in the receipt of MRT Services, regarding theft or loss of MRT Terminal Equipment and regarding international roaming service shall
            be staffed twenty-four (24) hours a day all year round; the Licensee is allowed to not operate a telephone call center as stated on Yom Kippur.

          

           

          

        
	 	
          (b)2

        	
          
            A telephone call center for the purpose of accepting calls about the Licensee’s services, which are not calls as stated in subclause (a) shall be staffed for forty- five (45) hours a week:

          

           

          

        
	 	 	
          (1)

        	
          
            The Licensee may shorten 8 of the 45 hours in the same week for each holiday that week.

             

            

            For this section, "holiday"-both days of Rosh Hashanah, Yom Kippur, the first and eighth day of Sukkot, the first and seventh day of Passover, Shavuot, Independence day, election day for the
              Knesset and election day for local municipalities.

          

           

          

        
	 	 	
          (2)

        	
          
            The Licensee may shorten 5 of the 45 hours in the same week for a holiday eve that occurs that week.

             

            

            For this section, "holiday eve"- the eve of Passover the eve of Sukkot, the eve of the eve of Shavuot, Chol Hamoed and the eve of the Memorial Day for the Fallen Soldiers of Israel and
              Victims of Terrorism.

          

           

          

        
	 	
          (c)

        	
          The Licensee is allowed to not operate a telephone call center, as stated in subclause (b) on Saturdays and on the following Israeli holidays: on the two days of Rosh Hashanah,
            on Yom Kippur, on the first day of Sukkot and on Shmini Atseret, on the first and seventh days of Passover and on Shavuot, on Independence Day, on the parliamentary election day and on the general election day to the municipal authorities662.

          

        

  

  

  	1.1

        	
          Digital Call Center

        
	 	 
	 	 	
          In addition to the telephone call center, as set forth in section 1(b), the Licensee shall operate a digital communications means (for example: text message or chat) for
            the receipt of inquiries regarding the Licensee's services that are not inquiries as set forth in section (1)(a).

        

  

  

  
    

    1 Amendment No. 116

    661 Amendment
      No. 91

    662 Amendment
      No. 92

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          2.

        	
          Publishing of information about the activities of telephone call centers

           

          

        
	 	
          (a)

        	
          The Licensee must publish the information about the activities of all of its telephone call centers clearly and conspicuously in each of the following:

           

          

        
	 	 	
          (1)

        	
          in the engagement agreement between the Licensee and Subscribers;

           

          

        
	 	 	
          (2)

        	
          on the Licensee’s website;

           

          

        
	 	 	
          (3)

        	
          in every Bill to be issued by the Licensee;

          

           

          

        
	 	 	
          (4)

        	
          in documents sent on the Licensee’s behalf to Subscribers concerning customer service.

           

          

        
	 	
          (b)

        	
          The information that the Licensee shall publish as stated in subclause (a) shall include the following:

           

          

        
	 	 	
          (1)

        	
          the days of operation of the centers;

           

          

        
	 	 	
          (2)

        	
          the hours of operation of the centers;

           

          

        
	 	 	
          (3)

        	
          the telephone numbers of the centers.

           

          

        
	
          3.

        	
          Accessing a telephone call center

           

          

        
	 	
          (a)

        	
          A telephone call center shall be accessed through a “free caller service” (1-800 service); the Licensee must enable access to any such telephone call center from any domestic network.

           

          

        
	 	
          (b)

        	
          The Licensee may enable any telephone call center to be accessed through additional domestic telephone numbers.663

           

            

        
	 	
          (c)

        	
          If the Licensee provides international roaming service, it must enable any Subscriber who is located abroad to call a telephone call center at no charge, as specified in subclause 1(a), provided that the call is
            made using a telephone number on the Licensee’s network.

           

          

        
	
          4.

        	
          Routing of calls in a telephone call center

           

          

        
	 	
          (a)

        	
          Upon the initiation of interactive communications between a caller and the Interactive Voice Response system installed at a telephone call center (“IVR System”), the Licensee
            must enable a caller to select the response language that he/she requires if the Licensee provides service in more than one language, the name of the requested service, and the caller must be asked to identify himself/herself. The listening
            order of the selection of services and of the request for identification on the IVR System shall be at the Licensee’s discretion.

        

  

  

                                                  

  
    663  Such as: a networked number, a speed dial number for businesses.

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	 	
          (b)

        	
          The Licensee must make the provision of a response to any call of any type contingent upon the caller identifying himself/herself on the IVR System solely by entering his/her telephone number or ID number; the
            Licensee is allowed to enable a caller to route the call in the IVR System and to receive a response to any type of call also without entering a telephone number or ID number as stated.

           

          

        
	 	
          (c)

        	
          After completing the performance of that specified in subclause (a), the Licensee shall announce the following options to the caller:

           

          

        
	 	 	
          (1)

        	
          “For a human response relating to repair of a malfunction, press 1”;

           

          

        
	 	 	
          (2)

        	
          “For a human response relating to a billing clarification, press 2”;

           

          

        
	 	 	
          (3)

        	
          “For a human response relating to the termination of an engagement, press 3.”

           

          

        
	 	
          (d)

        	
          The order of presentation of the above options shall  be at the Licensee’s discretion. The Licensee is allowed to replace the use of the term “repair of a malfunction” with the term “technical support.”

           

          

        
	 	
          (e)

        	
          After a caller selects the option of “1,” “2” or “3” as stated, the caller shall not be redirected to additional options and shall wait to receive the human response as the caller selected.

           

          

        
	 	
          (f)

        	
          The topics announced via the IVR System after the aforesaid three topics shall be at the Licensee’s discretion.

           

          

        
	
          5.

        	
          Quality of service provided by a telephone call center

           

          

        
	 	
          (a)

        	
          In this annex –

        

  

  

  	 	
          “Waiting time”

        	
          –

        	
          The measured interval between the caller’s selection on the IVR System and the response;

        
	 	
          “Human response”

        	
          –

        	
          Response provided by professional and skilled staff possessing suitable qualifications to handle calls.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	 	
          (b)

        	
          The percentage of calls in which:

           

          

        
	 	 	
          (1)

        	
          the caller is answered after a waiting time for a human response of more than six (6) minutes;

           

          

        
	 	 	
          (2)

        	
          the caller disconnects the call without having received a human response, after waiting for a response for more than six (6) minutes;

          

           

          

        
	 	 	
          (3)

        	
          the caller switched to the “leave a message” service, as specified in section 1 of the Consumer Protection Regulations (Provision of Telephone Service), 5772 – 2012, after having waited for a human response for more than six (6) minutes;

           

          

        
	 	 	
          shall be a maximum of 15% during two consecutive weeks for each of the three types of circumstances specified in this subclause, for each of the three types of calls specified above in clause 4(c), out of the
            inclusive number of calls in each of the three types of calls during those two weeks.

           

          

        
	 	
          (c)

        	
          The average waiting time during those two weeks for each of the three types of calls specified in clause 4(c) that were answered, shall not exceed three (3) minutes.664

           

        
	 	
          (c1)665

        	
          The average wait time during those two weeks of each of the three types of calls detailed in section 4(c) that were answered, shall not exceed four and a half (4.5) minutes

        

  

  

                                                  

  
    664   Examples for sub-section (b)-(c1):

    During two certain weeks, there were 1,000 calls that received a human response regarding "account inquiry." 900 of which were answered
      within 6 minutes waiting by a human response, 100 more were answered after waiting more than 6 minutes for a human response, and the average waiting time for a human response of all the 1,000 calls was 7 minutes.

    During these two weeks, the Licensee complied with the license instructions on waiting time for a human response regarding "account inquiry"
      of up to 6 minutes (the rate of calls answered after 6 minutes waiting for a human response-10%) (less than 15%).

      During these two weeks, the Licensee did not comply with the license instructions on waiting time for a human response regarding "account inquiry" regarding waiting time for a human response (the average wait time for a human response of all 1,000
      calls-7 minutes (above the average required of up to 45 minutes))."

    665 Amendment
      No. 97

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	 	
          (d)

        	
          The Licensee shall allocate an ID number for every type of call, or the call shall be identified by the first name of the Licensee’s representative who took the call, and the name of his/her team shall be given to
            the caller immediately upon completing the call or at the end of the call, as the case may be, in one of the following ways:

           

          

        
	 	 	
          (1)

        	
          by electronic mail;

           

          

        
	 	 	
          (2)

        	
          by text message;

           

          

        
	 	 	
          (3)

        	
          by initiating a telephone call – for subscribers who are blocked from receiving text messages;

           

          

        
	 	 	
          (4)

        	
          orally by a representative of the Licensee.

           

          

        
	 	
          (e)

        	
          If a caller using the IVR System selects the option of terminating an engagement, a representative of the Licensee who answered the call is not allowed to transfer the call to another representative or to any other
            person for the purpose of handling the caller’s request to terminate the engagement.

           

          

        
	 	
          (f)

        	
          If a caller using the IVR System selects the option of billing clarification, a representative of the Licensee who answered the call is not allowed to transfer the call to another representative or to any other
            person except at the caller’s express request.

           

          

        
	 	
          (g)

        	
          The Licensee shall not be required to comply with the waiting times specified above on any day that one of the following circumstances transpired (hereinafter – “Extenuating
              Circumstance”):

           

          

        
	 	 	
          (1)

        	
          malfunction in a communications network or a malfunction in a leading international application666
            that caused an interruption of service to a significant ratio of Subscribers;

           

          

        
	 	 	
          (2)

        	
          wide-scale blackouts;

           

          

        
	 	 	
          (3)

        	
          weather conditions that caused traffic jams on main transportation arteries;

           

          

        
	 	 	
          (4)

        	
          terrorist attack or wide-scale disaster;

           

          

        
	 	 	
          (5)

        	
          any other incident at the manager’s discretion.

        

  

  

                                                 

  
    666 Facebook, WhatsApp, etc.

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	 	
          (h)

        	
          Deleted667

           

            

        
	 	
          (i)

        	
          Insofar as an Extenuating Circumstance has occurred that is a fault in the telecommunications network that has caused damage to the service for a significant portion of the subscribers668, the Licensee shall notify the caller, immediately upon connecting to the IVR System, by voice message regarding the nature and location of the Extenuating Circumstance that is causing
            long waiting times.

           

          

        
	 	
          (j)

        	
          For each type of call, the routing menu of the IVR System shall be comprised solely of the routing options, without announcing any advertisements or offers to join plans or various types of special offers, or any
            other information that does not directly relate to the routing menu as stated.

           

          

        
	 	
          (j1)669

        	
          Notwithstanding sub-section (j), the Licensee may offer through the IVR system proposals to contact it through various digital means.

           

          

        
	 	
          (k)

        	
          At any time, in the event of busy-hour call attempts to a telephone call center, the ratio of callers whose calls will be added to the waiting line for a response will not be less than 90%.

           

          

        
	 	
          (l)

        	
          The Licensee is not allowed to disconnect any call, at its initiative, including automatic disconnection of the IVR System, which was answered by the IVR System or that was added to the waiting line to receive a
            response.

           

          

        
	 	
          (m)

        	
          In the event that the waiting time for a call of any type is expected to be more than three (3) minutes, the Licensee must notify the caller by recorded message, by no later than after two (2) minutes of the start
            of the waiting time, that the waiting time is expected to be more than three (3) minutes and that the caller has the option of being redirected to the “leave a message” service or to wait for a human response; if the caller decides to wait for
            a human response, the Licensee must notify the caller by recorded message of his/her place in the line and the estimated waiting time, and that it shall notify the caller that he/she can switch at any time to the “leave a message” service.

        

  

  

                                                  

  
    667 Amendment
      No. 98

    668 Amendment
      No. 98

    669 Amendment
      No. 97

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	
          6.

        	
          Recording and documentation of calls

           

          

        
	 	
          (a)

        	
          The Licensee must record every call made on topics relating to billing clarification and termination of an engagement, from the time that a call is answered and until the end of the call.

           

          

        
	 	
          (b)

        	
          A representative of the Licensee shall document the contents of every call of every type in the Licensee’s information systems, whether or not the call was initiated by the representative. Documentation as stated
            shall also include the identification number of the call, the date of the call and the full name of the Licensee’s representative who answered the call.

           

          

        
	 	
          (c)

        	
          The Licensee shall retain the recording of the call as specified in subclause (a) in its possession, and the documentation of the contents of the call as specified in subclause (b) for the timeframe as specified in
            clause 106A(a), so that they shall be available for delivery or forwarding to the manager, upon his request, within five (5) workdays of the date the call was made.

           

          

        
	
          7.

        	
          Documentation of call data

           

          

        
	 	
          (a)

        	
          The Licensee must retain documentation in its possession of every call that received a human response, for each of the three types of calls specified above in clause 4(c), which must include the following fields:

           

          

        
	 	 	
          (1)

        	
          date of the call;

           

          

        
	 	 	
          (2)

        	
          source of the call;

           

          

        
	 	 	
          (3)

        	
          time the waiting time started (HH:MM:SS);

           

          

        
	 	 	
          (4)

        	
          time the call was answered (HH:MM:SS);

           

          

        
	 	 	
          (5)

        	
          waiting time until the call was answered (MM:SS).

           

          

        
	 	
          (b)

        	
          The Licensee must retain documentation in its possession of every call that was disconnected by the caller without having received a human response, for each of the three types of calls specified above in clause
            4(c), which must include the following fields:

           

          

        
	 	 	
          (1)

        	
          date of the call;

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	 	 	
          (2)

        	
          source of the call;

           

          

        
	 	 	
          (3)

        	
          time the waiting time started (HH:MM:SS);

            

            

          

        
	 	 	
          (4)

        	
          time the call was disconnected (HH:MM:SS);

           

          

        
	 	 	
          (5)

        	
          waiting time until the call was disconnected (MM:SS).

           

          

        
	 	
          (c)

        	
          The Licensee must retain documentation in its possession of every call that was redirected to the “leave a message” service, for each of the three types of calls specified above in clause 4(c), which must include
            the following fields:

           

          

        
	 	 	
          (1)

        	
          date of the call;

           

          

        
	 	 	
          (2)

        	
          source of the call;

           

          

        
	 	 	
          (3)

        	
          time the waiting time started (HH:MM:SS);

           

          

        
	 	 	
          (4)

        	
          time the call was redirected to the “leave a message” service (HH:MM:SS);

           

          

        
	 	 	
          (5)

        	
          waiting time until the call was redirected to the “leave a message” service (MM:SS).

            

            

          

        
	 	
          (d)

        	
          The Licensee must retain documentation in its possession pursuant to subclauses (a) through (c) for at least one year after the calls were made.670

           

            

        
	
          8.

        	
          Deleted671

        

  

  

                                                  

  
    670 Amendment
      No. 98

    671 Amendment
      No. 98

     

    

    
      
        

    

  

   

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

  Appendix F- Service order on the Licensee's or content provider's website672

  

  

  	

        	1.	
          Service order from the Licensee

        

  

  

  	

        	1.1	
          A service order from the Licensee's website or cellular portal (both hereinafter- "the website") shall be done by way of one of the alternatives detailed in section 1.2 or 1.3.

        

  

  

  	

        	1.2	
          Random Code

        

  

  

  	

        	a)	
          The subscriber shall key in his subscriber number673 in the designated place on   the Licensee's website.

        

  

  

  	

        	b)	
          If the subscriber is blocked from receiving the service, the Licensee shall send the subscriber a text message that notifies him that he is blocked from receiving the service ordered and that he can apply to the Licensee in order to cancel
            the blocking for the type of said service;

        

  

  

  	

        	c)	
          If the subscriber is not blocked from receiving the service, the Licensee shall send the subscriber a text message that includes the following:

        

  

  

  	

        	1)	
          The name of the service including its classification as "one time" or "continuing";

        

  	

        	2)	
          The price of the service; the price shall be displayed in a detailed manner including details regarding a "one time" payment, a "regular" payment for a specific period including noting the period and the price per unit according to which the
            payment for the service is gauged;

        

  	

        	3)	
          A random code of five (5) digits (hereinafter-the "code sent");

        

  

  

  	

        	d)	
          The subscriber shall key in the code sent on the website, in the designated place;

        

  

  

  	

        	e)	
          The Licensee shall compare the code sent with the code that was keyed in by the subscriber as set forth in sub-section (d) (hereinafter-the "keyed in code");

        

  

  

  	

        	f)	
          If the keyed in code is identical to the code sent, the Licensee shall send the subscriber a text message that notifies him that his registration for the service has been approved and if this is a continuing service-information regarding the
            manner in which the registration for the service can be cancelled;

        

  

  

  	

        	g)	
          If the keyed in code is not identical to the code sent, the Licensee shall send the subscriber a text message that notifies him that his registration for the service has failed due to the lack of said identity.

        

  

  

  
    

    

    

    

    672 Amendment
      No. 60

    

    673(MSN)-Mobile Subscriber Number

    

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	1.3	
          User Code and Password

        

  

  

  	

        	a)	
          The Licensee shall display on its website in a prominent manner near the designated place for service orders, clear and legible, the following details:

        

  

  

  	

        	1)	
          The service name including its classification as "one time" or "continuous"; if it is a continuous service-information regarding the manner in which the registration for the service can be cancelled;

        

  

  

  	

        	2)	
          The service price; The price shall be displayed in a detailed manner including details regarding a "one time" payment, a "regular" payment for a specific period including noting the period and the price per unit according to which the
            payment for the service is gauged;

        

  

  

  	

        	b)	
          The subscriber shall key in the user code and password that were set or confirmed by the Licensee (hereinafter-"the identification code");

        

  

  

  	

        	c)	
          If the subscriber is blocked from receiving the service, the Licensee shall present the subscriber with a notice on the website addressed only to him stating that he is blocked from receiving that type of service that was ordered and that he
            can apply to the Licensee in order to cancel the blocking  for the said type of service;

        

  

  

  	

        	d)	
          The Licensee shall compare the identification code with the user code and password set by the Licensee for the subscriber and that are saved in its system (the "saved code");

        

  

  

  	

        	e)	
          If the identification code is identical to the saved code, the Licensee shall provide the service to the subscriber;

        

  

  

  	

        	f)	
          If the identification code is not identical to the saved code, the Licensee shall send a notice addressed only to the subscriber through the website stating that his registration for the service has failed due to the lack of said identity.

        

  

  

  	

        	2.	
          Service Order from a Service Provider674

        

  

  

  	

        	2.1	
          A service order on the service provider's website shall be done in the following manner:

        

  

  

  	

        	a)	
          Engagement with a service provider within the meaning of Section 60.6, for the purpose of receiving its services, shall be carried out solely through the website of the service provider (hereinafter "the
              supplier's website675").

        

  

  

  	

        	b)	
          The first item that the subscriber will be required to type on the supplier's website, in the designated place - is the customary payment method - for payment for services provided by or through the Licensee- Pre-paid or post-paid;

        

  

  

                                                  

  
    674 Amendment
      No. 87

    

    675 It is
      forbidden to contract with a service provider in response to an offer that was sent to terminal equipment or by way of a message that was sent from terminal equipment.

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	c)	
          Cancelled676

        

  

  

  	

        	d)	
          A Pre-paid subscriber shall key in the service provider's website the following;

        

  

  

  	

        	1)	
          The telephone number in respect of which it is possible to deduct from the balance due to him for consumption of the service;

        

  

  

  	

        	2)	
          If the loading was done using a calling card-the last four (4) digits of the calling card number; in case the loading was done using a credit card-the last four (4) digits of the credit card.

        

  

  

  	

        	3)	
          If the loading was done in cash- the box indicating the loading method should be marked accordingly.677

        

  

  

  	

        	e)	
          The service supplier shall send a notice to the Licensee a notice that includes the details in subsections (c) or (d), as the case may be, as well as the following:

        

  

  

  	

        	1)	
          The name of the service, including the classification of the service as a service at a "one time" payment or as a service at an "ongoing" payment;

        

  

  

  	

        	2)	
          Service tariffs.

        

  

  

  	

        	f)	
          Immediately after the above said details have been transferred to the Licensee by the service provider, the Licensee will execute a compatibility check between the said details and the information appearing in its information systems.The
            registration process can only be continued after the Licensee informs the service provider that in the compatibility check the details that were checked were found to be identical.

        

  

  

  	

        	g)	
          If the subscriber is blocked for receipt of the service or the details are not  identical, as aforesaid, the Licensee will notify the service provider that the subscriber is blocked to receive the type of service requested or his
            registration for the service failed, as the case may be, and will inform the subscriber via a text message, at no charge, that he is blocked for receiving the type of service requested by him or his registration to the service failed, as the
            case may be, and that he may contact the Licensee to remove the blockage for the said type of service.

        

  

  

                                                  

  
    676 Amendment
      No. 89

    677 Amendment
      No. 90

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	h)	
          If the subscriber is not blocked from receiving the service, and the details are identical, as aforesaid,  the Licensee shall send the subscriber a text message, at no charge, that includes only the following:

        

  

  

  	

        	1)	
          The service name including its classification as a "one time" or "continuous" service;

        

  

  

  	

        	2)	
          The service tariffs;

        

  

  

  	

        	3)	
          A random code of at least five (5) digits;

        

  

  

  	

        	i)	
          The subscriber shall key in the code, in the designated place on the service provider's website.

        

  

  

  	

        	j)	
          The service provider shall give the Licensee the code keyed in by the subscriber as set forth in sub-section (i).

        

  

  

  	

        	k)	
          The Licensee shall compare the code that it sent to the subscriber with the code that the subscriber keyed in on the provider's site.

        

  

  

  	

        	l)	
          If the code that was keyed in by the subscriber is identical to the code that was sent to him, the Licensee shall send a text message to the subscriber, at no charge, that notifies him that his registration for the service was approved and
            if this is a "ongoing" service- information regarding the manner in which the registration for the service can be cancelled. In addition, the Licensee shall notify the service provider that it has approved the registration for the service;

        

  

  

  	

        	m)	
          If the code that was keyed in is not identical to the code that was sent to him, the Licensee shall send the subscriber a text message, at no charge that notifies him that his registration for the service has failed due to the lack of
            identity. In addition, the Licensee shall notify the service provider that the registration for the service has failed.

        

  

  

  	

        	n)	
          A one-time payment service will only be provided to a subscriber once, and the charge for it will be one-time. If the subscriber wishes to receive additional one-time services, he will have to register for the service each time.

        

   

   

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

    

  Appendix G - Insurance Contract

   

  

  	A.	
          The Appendix will not be published, in accordance with the provisions of Paragraph 108 of the License.

        

   

  	B.	
          The Appendix will be completed by the Licensee, in accordance with the provisions of Paragraph 91 of the License.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

  678679 APPENDIX H – GUARANTEES AND LETTERS OF UNDERTAKING

  

  

  The Licensee shall issue two unconditional Guarantees to the Director in favor of the State of Israel.680
    The Guarantees shall be in the version presented hereunder and at the following sums:

   

  

  	(1)	
          License Guarantee at the sum of ILS forty-five million (45,000,000)681. This guarantee shall replace any previous guarantee issued by the Licensee to the
            Director according to the provisions of its License. If the Licensee fulfills the provisions of Appendix E, the sum of the guarantee shall be reduced to ILS five million (5,000,000)682.

        

  	(2)	
          5G Guarantee at the sum of ILS six million (6,000,000).

        

   

  State of Israel – Ministry of Communications

  23 Jaffa Street

  Jerusalem 91999

  

  

  Re: Insurance/bank guarantee number ......

   

  We are herewith guaranteeing to you the payment of any sum up to a total of _____ (in words ______ New
    Shekels that might be demanded from: _____ (hereinafter: “the Debtor”) in relation to a General License for the Provision of MRT Services (hereinafter – “the License”).

   

  We shall supplement the aforesaid sum within fifteen days of the date of your first demand sent to us in writing via registered mail or personal delivery, without you being required
    to rationalize your demand and without any argument of defense to you that a debtor might have in relation to charging you, or of first demanding payment of the said sum by the Debtor.

   

  This guarantee shall be in effect until ________;

   

  A demand pursuant to this guarantee should be sent to the bank branch/insurance company, whose address is _______. The demand for payment should be delivered to the bank
    branch/company specified in this deed of guarantee, during the workhours when the branch is open. A demand via facsimile, telex, email or telegram shall not be deemed a satisfactory demand for the purpose of this guarantee.

   

  Name of the bank/insurance company

   

  State of Israel – Ministry of Communications

  23 Jaffa Street, Jerusalem

  

  

  Re: Undertaking to extend the autonomous bank/insurance guarantee no.            

   

  Further to autonomous bank/insurance guarantee no. _____ issued to you pursuant to the provisions of the General License for MRT Services (hereinafter: “the Guarantee”), we [Licensee’s name] (hereinafter – “the Licensee”) undertake that, by no later than sixty days before the expiry of the period of the Guarantee, it shall be extended for a
    period of five additional years and so on each time for an additional period so that the Guarantee shall be in effect until [two years after the expiration of the License granted to us]; however, if, by the
    said date, we have not discharged all of our obligations to your satisfaction, the Guarantee shall be extended each time for a period of one additional year according to your written demand.

   

  Sincerely,

       [the Licensee]

   

  

  

  

  678 Amendment No.
    83

  

  679 Amendment No.
    107

  

  	680	
          Amendment number 107 [Inception: this clause shall come into effect as of the date of its signature and by no later than 06.10.2020]

        

  

  681 Amendment No.
    108

  

  682 Amendment No.
    108

  

  

  
    
      

  

   

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

  Appendix I - Written Undertakings

  683The Letter of Undertaking shall be in this form

  

  

  To:

  The Director General

  Ministry of Communications

  23 Jaffa Road

  Jerusalem

  

  

  
    Re:    Letter of Undertaking

  

  		
          

        

  

  

  	Whereas	
           _________ (hereinafter: the “Company”) submitted an application to extend the Company’s general license to provide MRT Services under Tender No. 1/01 (hereinafter: the “License”);  and

        

  

  

  	Whereas	
          as a condition for  the extension of the License, the Company is required to prove its ability to finance, in due course, the investments stemming from the business plan that it submitted as part of the basic application in Tender No. 1/01,
            or other requirements relating to the License;

        

  

  

  We hereby declare as follows:

  

  

  	1.	
          We hereby undertake to you, that if the Company wins the extension of the License, in any event that the Company is required to pay a sum of money in order to meet the conditions of the License,
            or in order to meet the rest of the undertakings connected to the License, whether they stem from the conditions of the License or from any law, such sum shall be obtained and funded from the Company’s direct sources or from external sources
            that the Company shall ensure to obtain.

        

  

  

  	2.	
          We are aware that if the Company does not act in accordance with this undertaking, despite having received a written demand from the Director General of the Ministry of Communications, such
            shall be deemed to be a breach of the conditions of the License.

        

  

  

  	3.	
          This undertaking is irrevocable, and shall remain in force so long as the License granted to us, if granted, remains in force.

        

  

  

  ____________________

  

  [Name of person making undertaking]

  

  

  Name of Signatory / Signatories:

  His / her / their position:

  

  

  I hereby certify that the signatories to this Letter of Undertaking are authorized to bind [name of company ] by their signature.

  

  

  

  

  __________, Advocate.

  

  

  (  __  )

  ____________________

  Limor Livnat

  Minister of Communications

  

  

  

  Jerusalem,  April 7, 1998

  

  

  

  

  

  683 Amendment No.
    14

   

  
    
      

  

  
    
      Translation from Hebrew

      The Binding version is the Hebrew version 

     

      

    684Appendix J- Access to International Telecommunication Services

     

    
      
        	

              	1.	
                Definitions

              

      

    

    

    

    
      
        	

              	1.1.	
                In this document the following words and phrases shall have the meanings set out beside them, unless the language or context of this document indicates a different meaning:

              

      

    

    

    

    
      	
              Bezeq International

            	 	
              Bezeq International Corp. Ltd.

            
	 	 	 
	
              Barak

            	 	
              Barak I.T.C. (1995) The International Telecommunication Company.

            
	 	 	
              

              

            
	685	 	 
	
              Occasional Caller

            	 	
              A Subscriber of the Licensee, who calls abroad by means of an International Operator using a three digit dialing code, as detailed out in section 2.

            
	
              Subscriber Number

            	 	 
	
              (or Telephone Number)

            	 	
              
                A group of digits in a certain order, including prefix, which, if dialed, should create telecommunications connection between the calling Subscriber's terminal equipment and the terminal equipment of the called Subscriber; A called
                  Subscriber's number may be a Subscriber's  number of a number to a Subscriber's telephone call centre or a number to a Licensee's telephone service call centre686687.

              

            
	 	 	 
	
              International Operator

            	 	
              A person supplying international telecommunications services to the public in Israel, pursuant to a general license granted by the Minister.

            
	 	 	 
	
              Preselected Operator

            	 	
              
                The International Operator selected by a Subscriber, pursuant to the provisions of Section 4688689.

              

            

      
        
           

            

           

          
          

        
          684 Amendment No. 1

          

          685 Amendment No. 2

          

          686 Amendment No. 2

          

          687 The
            Telephone Number is set by the Licensee, in accordance with the rules and guidelines set by the Director General.

          

          688 Amendment

            No. 2

          

          689 The
            selected Operator can be one of Bezeq International, Barak or Golden Lines.

          

        

      

      
        
          

      

        
        
          Translation from Hebrew  

          The Binding version is the Hebrew version

        

         

        

      

      	
              Access Code

            	 	
              
                A group of numbers in a certain order, the dialing ofwhich enables access to a particular telecommunications services provided by a given operator; the dialing of further access codes, as required, and a Subscriber Number, should
                  create a telecommunications connection to the Subscriber's terminal equipment. Where the access code is to a manned centre, the service is provided by a telephone operator.690

              

            
	 	 	 
	
              Short Dialing Code

            	 	
              The “00” or “188” Access Codes, which are designated for the receipt of International Telecommunication Services, whether by direct dialing or by means of an operator as specified in
                section 2.

            
	 	 	 
	
              Golden Lines

            	 	
              Golden Lines International Communications Services Ltd.

            
	 	 	 
	
              Subscriber Allocation

            	 	
              The technical definition effected by a domestic operator at its switch allowing for calls made by its Subscribers, by means of a Short Dialing Code, to be redirected to the switch of the
                Preselected Operator.

            
	 	 	 
	
              Outgoing International

            	 	 
	
              Telecommunication

            	 	
              The transfer of a speech or facsimile message via an International Telecommunications system initiated by a Subscriber of the Licensee.

            
	 	 	 
	
              Incoming International

            	 	 
	
              Telecommunication

            	 	
              The transfer of a speech message or a facsimile message via an International Telecommunication system initiated by a caller from abroad.

            
	 	 	 
	
              International

            	 	 
	
              Telecommunications Service

            	 	
              A telecommunications service granted to the public in Israel pursuant to a license granted by the Minister, by means of an International Telecommunications system of an International
                Operator.

            
	 	 	 
	
              International

            	 	 
	
              Telecommunications

            	 	
              A bi-directional simultaneous transfer of speech or a bi-directional simultaneous transfer of facsimile messages through an International Telecommunication system.

            

      

      

    

    
      
        	

              	1.2.	
                Words and phrases in this document, insofar as not defined above, shall have the meaning ascribed to them in the Law, the Regulations enacted pursuant thereto, the Interpretation Law, 1981, or as specified in the appropriate places in
                  the General License of the Licensee and in the licenses of International Operators, save where the language or context indicate a different meaning.

              

      

    

    

    

    
      

    690 Amendment No. 2
      
        

      

    

    
      
        

    

    

      
       
        Translation from Hebrew

        The Binding version is the Hebrew version

      

       

      

    

    
      
        	

              	2.	
                Allocation of Access Code

              

      

    

    

    

    
      
        	

              	2.1.	
                In order to access the International Telecommunications Services the Licensee shall redirect to the International Opertors' switches the Subscribers' dialing of the following Access Codes:

              

      

    

    

    

    a) A two-digit Access Code – the ‘00’ Access Code, which will serve as the Abbreviated Access Code for International Telecommunications
      Services provided by the Selected Operator. Should the Subscriber dial the prefix ‘00’, the call will be routed by the Licensee to the Pre-selected Operator.

    

    

    b) A three-digit Access Code – a ‘01X’ type Access Code, which will serve as the Access Code to International Telecommunication Services
      provided to an Occasional Caller; should a Subscriber dial the ‘01X’ prefix, the call will be routed by the Licensee to the appropriate International Operator according to the variable number ‘X’; the variable number X is the code of the
      International Operator, in accordance with the following breakdown:

    

    

    (i) ‘2’ – the code for Golden Lines services;

    (ii) ‘3’ – the code for Barak services; and

    (iii) ‘4’ – the code for Bezeq International services.

    

    

    c)  691The '188' Access Code-this shall serve as the number for operator services; when a Subscriber dials '188' the call will be transferred by the Licensee to the operator services of the Preselected Operator.

    

    

    d) Four digit Access Codes- a number of type '18XY', which will serve as an Access Code for the various International Telecommunications
      Services provided by each International Operator; when a Subscriber dials '18XY', the call will be redirected by the Licensee to the appropriate International Operator according to the digit X; the digits X is the International Operator code set out in section 2.1(b); the digit Y may be any digit from 1 to 9, and the digit 0; the use of the number Y shall be determined by the Director General, in
      consultation with the International Operators, in order to ensure uniformity; every International Operator should be allocated ten (10) four-digit Telephone Numbers as aforesaid; these numbers will be
      accessible by both Subscribers of the Preselected Operator and by Occasional Callers.

    

    

    
      
        	

              	2.2.	
                Where the Licensee allows their Subscribers to use a different Short Dialing Code (such as +) in place of the "00" Access Code ("Special Code"), all the terms and regulations applying to the "00" Short Dialing Code shall apply to the
                  Special Code.

              

      

    

    

    

    
      
        	

              	2.3.	
                Dialing by means of a pre-paid program to unidentified Subscribers who have not been blocked from Outgoing International Telecommunications will be possible only by means of three digit Access Codes of the type 01X and Access Codes of
                  the type 01XY; with a Short Dialing Code or a Special Code, a recorded voice message shall be played directing the customer to dial the aforementioned Access Codes, which are available for his use.

              

      

    

    

    

    
      

    
      

      691 Amendment No. 2
      
        

      

      

      

    

    
      
        

    

    

      
       
        Translation from Hebrew

        The Binding version is the Hebrew version

      

       

      

    

    
      
        	6922A	
                Subscriber Accessibility to Outgoing International Telecommunications

              

      

    

    

    

    
      	 	
              2A.1

            	
              The Licensee shall allow a Subscriber to act as one of the following, regarding Outgoing International Telecommunications:

            

    

     

    

    a)          As an allocated Subscriber.

    b)          As barred.

    c)          As an Occasional Caller.

    

    

    
      
        	

              	3.	
                Blocking of Outgoing International Calls and Removal of the Blocking

              

      

    

    

    

    
      	 	
              3.1

            	
              The Licensee shall block Outgoing International Telecommunications and may also block collect Incoming International Telecommunications for any Subscriber who requests to block access to
                International Services, or to a Subscriber whose International Services in respect of Outgoing International Telecommunications has been suspended or disconnected, in accordance with the provisions set forth in the License. The Licensee may
                not block Incoming International Telecommunications, other than collect calls.

            

    

    

    

    
      	 	
              3.2

            	
              693Should Outgoing International Telecommunications be barred as requested by the Subscriber, the Licencee
                shall remove the bar as follows:

            

    

    
      
        	

              	(a)	
                If the Subscriber requests to pre-select a carrier, he shall sign an appropriate form noting the International Carrier he chooses as his “Preselected Carrier”;

              

      

    

     A notice which was transmitted by means of a facsimile machine shall be deemed in this matter as a written notice by the Subscriber.

    
      
        	

              	(b)	
                If the Subscriber requests to be an Occasional Caller, he shall notify the Licensee; If the notice is given orally, the Licensee shall verify the identity of the person making the request.

              

      

    

    

    

    
      
        	

              	3.3	
                The Licensee shall block Outgoing International Telecommunications or remove such blocking, carried out based on the Subscriber's request, as follows:

              

      

    

    
      
        	

              	•	
                90% within one working day of receipt of the notice; requests received after the hour 15:00, shall be deemed to have been received on the next working day;

              

      

    

    
      
        	

              	•	
                The rest within five working days.

              

      

    

    

    

    
      	 	
              3.4

            	
              The Licensee will ensure that Subscribers whose Outgoing International Telecommunications have been blocked are unable to make any outgoing calls with the Access Codes "00", "01X", "188"
                and "18XY" or any other code that will replace it694.

            

    

    

    

    
      	 	
              3.5

            	
              The Licensee may charge a reasonable fee for effecting the blocking of Outgoing International Telecommunications or for removing the block.

            

    

    

    

    
      	 	
              3.6

            	
              Notwithstanding the provisions of section 3.5 above, the Licensee shall permit any new Subscriber, to block Outgoing International Telecommunications, for no charge before commencing the
                provision of services to that Subscriber.

            

    

    

    

    
      

    
      
        692 Amendment No. 21

        

        693 Amendment

          No. 21

        

        694 Amendment

          No. 21

        

      

      

    

    
      
        

    

    
      
         

          
           
            Translation from Hebrew

            The Binding version is the Hebrew version

          

           

          

        

        	

              	3.7	
                The Licensee shall ensure that every Subscriber whose access to Outgoing International Telecommunications has been blocked, receives an appropriate voice message when he dials Access Codes or Telephone Numbers for access to
                  International Services.

              

      

    

    

    

    
      
        	

              	3.8	
                Where a Subscriber who selected a Preselected Operator has requested to block Outgoing International Telecommunications, the Licensee shall notify as such the Preselected Operator within seven (7) work days from the day the blocking
                  was executed.

              

      

    

    

    

    
      
        	

              	4.	
                Subscriber’s Choice of a Pre-selected Operator

              

      

    

    

    

    
      	 	
              4.1

            	
              A Subscriber of the Licensee may inform an International Operator in writing, by use of a signed form which has been approved by the Director General, that he has chosen as the Pre-selected
                Operator, by means of which he wishes to receive          International Telecommunication Services with the ‘00’ and ‘188’ Access Codes; 695The form shall
                include the following details of the Subscriber: the Subscriber's first and last name or the corporate name, address, and the Telephone Numbers for which the Subscriber wishes to appoint the International Operator as the Pre-selected
                Operator and the date and time on which the Subscriber's instructions were given; The form will clearly state that only one International Operator can be appointed in respect of each Telephone Number, and it will comply with the
                requirements set forth for this purpose in the International Operator's license (the " Pre-selection Form").

            

    

    

    

    
      	 	
              4.2

            	
              A Subscriber may change his Pre-selected Operator at any time by means of a written notice on the Pre-selection Form; No fee will be charged for the first selection, which was effected at
                his request, however, for any subsequent change of selection the Subscriber will pay a reasonable fee.

            

    

    

    

    
      	 	
              4.3

            	
              The Pre-selected Operator will notify the Licensee that he has been selected by the Subscriber as his Pre-selected Operator ( the "Pre-selection Notice"). The Pre-selection Notice will
                include the Subscriber’s particular’s – first name and last name, address and the Telephone Numbers for which the Subscriber wishes to appoint the International Operator as the Pre-selected Operator.  The Pre-selected Operator will deliver
                Pre-selection Notices to the Licensee by means of the signed Pre-selection Forms in its possession. Pre-selection Notices will be delivered by magnetic medium, or in another manner which will be agreed upon between the Licensee and the
                International Operators; In the event that two or more Pre-selection Notices, which relate to the same Telephone Number, are transmitted to the Licensee, the Licensee will act in accordance with the Pre-selection Notice, which bears the
                later date and time.

            

    

    

    

    
      
        	 	4.4	
                Should a person apply to become a new Subscriber of the Licensee, he will be required to state in his application the International Operator, with whom he wishes to contract as a Pre-selected Operator. The Licensee will enable every
                  new Subscriber to choose their own Pre-selected Operator or to block its Outgoing International Telecommunications or will enable the Subscriber to receive Outgoing International Telecommunication services solely as an Occasional Caller;
                  Initial allocation services or connection as an Occasional Caller and blocking of Outgoing International Telecommunications will be provided to a new Subscriber free of charge at his initial registration.

              

      

    

    

    

    
      

    
      

      
        695 Amendment

          No. 2

        

      

      

    

    
      
        

    

    
      
         

          
           
            Translation from Hebrew

            The Binding version is the Hebrew version

          

           

          

        

        	 	4.5	
                For the purpose of carrying out the procedure for appointing a Pre-selected Operator, and without derogating from the foregoing, the Licensee will act in the following manner:

              

      

    

    

    

    
      
        	

              	a)	
                The Licensee will enable each Subscriber, who owns a number of Subscriber lines, to set some of them aside for one International Operator as a Pre-selected Operator and to set other of them aside for another International Operator as a
                  Pre-selected Operator;

              

      

    

    

    

    
      
        	

              	b)	
                Annulled696;

              

      

    

    

    

    
      
        	

              	c)	
                697The Licensee shall effect Subscriber Allocation within one working day from the date of receipt of the Preselection notice from the Preselected
                  Carrier.;

              

      

    

    

    

    
      
        	

              	d)	
                The Licensee will inform the International Operator of the completion of the Subscriber allocation as aforesaid in section c, including any change in the selection, of the date and in the manner agreed upon by the Licensee and the
                  International Operator; the report shall include the Subscriber's details- the Subscriber's first and last name or the corporate name, address, and the Telephone Numbers allocated to the International Operator.

              

      

    

    

    

    
      	 	
              e)

            	
              The Licensee shall transfer on a daily basis to all International Operators, a daily modification file of Subscriber Ascription( “Modification File”) that includes the details of the 
                Subscribers that ascribed to the International  Operator or terminated the ascription that day. The Modification File shall be transferred in the time and manner that will be agreed upon between the Licensee and the International Operator.
                The file shall include the details of the Subcriber and at least the following: first and last name or corporation name, ID number or corporation number, address and telephone number ascribed to the International Operator.698

            

    

    

    

    
      
        	

              	f)	
                The Licensee may apply to the Director General to permit it, in certain cases, to set rules and limitations concerning a Subscriber allocation. The Licensee will specify the technical or operational reasons upon which its request is
                  based; where the Director General, on the basis of his professional discretion, approves the foregoing request of the Licensee, he will set the period during which the rule or limitation will be in effect.

              

      

    

    

    

    
      
        	

              	g)	
                Deleted699

              

      

    

    

    

    
      
        	

              	h)	
                If disagreements occur between international operators or between the Licensee and an international operator regarding the selection of an operator by a subscriber, the matter shall be decided by the Director General or by an
                  independent arbitrator that will be appointed by the Director General in accordance with his sole discretion.

              

      

    

    

    

    696 Amendment
      No. 21

    
      

      697 Amendment
        No. 21

      

      698 Amendment
        No. 17

      

      699 Amendment
        No. 98

      

    

    

    
      
        

    

     
      
        Translation from Hebrew

        The Binding version is the Hebrew version

      

    

     

    

    1.          700The number of Subscribers connected to international services solely as Occasional Callers.

    

    

    
      
        	

              	i)	
                 In the event that differences of opinion arise between the International Operators or between the Licensee and an International Operator with respect to the selection of a Subscriber of a Pre-selected Operator, the matter will be
                  referred for settlement to the Director General or to an independent arbitrator, appointed by the Director-General at his sole discretion.

              

      

    

    

    

    
      
        	 	4.6	
                The dialing by a Subscriber of the Access Code "00" or another Special Code to access International Telecommunications Service to redirecting a call to the Licensee's Subscriber located outside Israel by means of an International
                  Operator (Subscriber's follow me services), shall be redirected by the Licensee to the Pre-selected Operator.

              

      

    

    

    

    
      
        	

              	5.	
                Annulled701

              

      

    

    

    

    
      
        	

              	6.	
                Blocking 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 requesting.

              

      

    

    

    

    
      	 	
              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) .

            

    

    

    

    
      	 	
              6.3

            	
              Annulled

            

    

    

    

    
      	 	
              6.4

            	
              Annulled

            

    

    
       

      

      	 	
              6.5

            	
              Annulled

            

    

    
       

      

      	 	
              6.6

            	
              Annulled

            

    

    

    

    
      	 	
              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 for Cellcom Israel Ltd. Company’s General License for Cellular Telephone Network (Cellular) Services. Consolidated Version as of
      December 12, 2010

    (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.

    

    

    
      

    
      700 Amendment
        No. 21

      
        

        701 Amendment

          No. 2

        

      

    

    
      
        

    

    
      
         

          
           
            Translation from Hebrew

            The Binding version is the Hebrew version

          

           

          

        

        	

              	7.	
                Interconnectivity702

              

      

    

    

    

    
      
        	

              	7.1	
                 The Licensee will connect its system, directly or indirectly, in accordance with its License, to the International Telecommunications Systems of all international operators in a manner which will enable every Subscriber to receive
                  International Telecommunications Services, by means of the International Telecommunications System of each International Operator, including Outgoing International Telecommunications and Incoming International Telecommunications, direct
                  dialing, operator assisted dialing ('188’ service as aforementioned in section 2.2(a)), the “Israel Direct” service, collect services (from overseas to Israel, from Israel to overseas), international 1-800 services (incoming and outgoing
                  calls), calling card services, from and to any destination abroad.

              

      

    

    

    

    
      	 	
              7.2

            	
              The technical, operational and commercial arrangements between the Licensee and the International Operator shall ensure that the following is provided to each Subscriber:

            

    

    

    

    
      
        	

              	a)	
                Quality service, including quality control and means to check and handle complaints of Subscribers with respect to the quality of service;

              

      

    

    

    

    
      
        	

              	b)	
                Reliable and accurate charging of the Subscriber, including auditing of the charge, and means to check and handle complaints of Subscribers with respect to wrongful charges and the ways and means for the identification and prevention
                  of deceit and fraud;

              

      

    

    

    

    
      
        	

              	c)	
                A consumer response service for Subscribers to call in order to make applications and receive clarifications, together with the ways and means to provide a detailed bill to the Subscriber, and to deal with Subscriber requests in
                  respect of any issue concerning the receipt of International Services.

              

      

    

    

    

    
      	 	
              7.3

            	
              For the implementation of all the foregoing in this Appendix, the Licensee will act, inter alia, as follows:

            

    

    

    

    
      
        	

              	a)	
                The Licensee will, at all times, enable every Subscriber that has not blocked Outgoing International Telecommunications, to make calls abroad via the International Operator selected by him or as an Occasional Caller, using the dialing
                  format specified in section 2;

              

      

    

    

    

    
      
        	

              	b)	
                The Licensee will enable every Subscriber to change his Pre-selected Operator; this service will be provided for a reasonable fee;

              

      

    

    

    

    
      
        	

              	c)	
                The Licensee will take reasonable measures to prevent the allocation of a Subscriber to a Pre-selected Operator without his knowledge or against his will (“Slamming”); these measures will include the identification of the Subscriber
                  and the verification of the Subscriber’s right to receive the service;

              

      

    

    

    

    
      
        	

              	d)	
                Every Subscriber will be given, free of charge, a service enabling him to identify the name of his Pre-selected Operator;

              

      

    

    

    

    
      

    
       702 Amendment

        No. 2

      
        

        

      

    

    
      
        

    

    
      
        
           

          

          
            Translation from Hebrew

            The Binding version is the Hebrew version

          

           

          

        

        	

              	e)	
                The Licensee will offer non-discriminatory terms to each International Operator, including with respect to commercial terms, billing and collection arrangements, the availability of the connection facilities and the quality of service;
                  without derogating from the generality of the foregoing, the Licensee will provide service to all the International Operators on non-discriminatory terms including with respect to Interconnection, the supply of infrastructure facilities
                  and Network connection services, the execution of changes to switching, Facilities, protocols and Network Interfaces;

              

      

    

    

    

    
      
        	

              	f)	
                The terms for Interconnection between the Licensee’s system and an International Telecommunications System of an International Operator will be reasonable and non-discriminatory; In the event that the parties cannot reach an agreement
                  in this regard, the Minister will resolve these matters;

              

      

    

    

    

    
      
        	

              	g)	
                The Licensee will make available to the Director General a copy of each agreement between the Licensee and an International Operator regarding interconnection;

              

      

    

    

    

    
      
        	

              	h)	
                The Licensee shall transfer to any International Operator which requests, the details of a Subscriber who refuses to pay the Licensee payments which are meant for the International Operator for International Telecommunication Services
                  used by the Subscriber through the International Telecommunications System of an International Operator, whether the Subscriber is allocated to the International Operator or is an Occasional Caller; these details shall include the
                  Subscriber's first and last name or the corporate name, identity number of corporate number, address and the Telephone Number.

              

      

    

    

    

    
      
        	

              	i)	
                703it shall permit the International Carrier to directly collect payment for their services, from a Subscriber who is allocated to that International 
                  Carrier  and has chosen to receive from it charging and collecting services directly; the Licensee shall make available to the International Carrier any vital information that the International Carrier  may need in order to provide
                  charging and collecting services to an allocated Subscriber;

              

      

    

    

    

    
      
        	

              	j)	
                shall provide its services to an allocated Subscriber that has chosen to receive charging and collecting services directly from their International Carrier on equal conditions and equal rates.

              

      

    

    

    

    
      	 	
              7.4

            	
              The International Operators will equally bear the costs for the application of the interconnectivity and, if requested, the expenses for the initial allocation of the Subscriber to the
                Pre-selected Operator; The amount of the foregoing payments will be determined in negotiations between the Licensee and the International Operators; In the event that the parties are unable to reach an arrangement, the Minister will issue
                directives regarding these matters, after affording the parties a reasonable opportunity to present their claims.

            

    

    

    
      

  

  
    703 Amendment
      No. 20

  

   

  

  
    
      

  

   

  Translation from Hebrew   
    The Binding version is the Hebrew version

     

      

    Annex M-Adult Voice Services704

    

    

    
      
        	1.	
                Definitions

              

      

    

    

    

    
      
        	

              	1.1	
                In this Annex:

              

      

    

    

    

    
      	
              “Licensee”

            	
              -

            	
              A party that has received from the Minister a general license to provide Wireline Domestic Telecommunications Services or to provide MRT Services;

            
	 	 	 	 
	
              “Telephone Bill”

            	
              –

            	
              A statement that the Licensee provides to a Subscriber for services rendered;

            
	 	 	 	 
	
              “Writing”

            	
              -

            	
              Including by means of a facsimile machine or electronic mail;

            
	 	 	 	 
	
              “Service Number”

            	
              -

            	
              A set of numbers that have been allocated by the Licensee to a Service Provider of  Adult Voice Services, available by dialing a phone number, subject to the provisions of the Numbering
                Plan and administrative provisions for this purpose, and which the dialing of such numbers after the Dialing Code will allow the Subscriber access to Adult Voice Services;

            
	 	 	 	 
	
              “Service Provider”

            	
              -

            	
              Whoever provides Adult Voice Services through the Network and the payment for the service is done through the Telephone Bill;for the purpose of Adult Voice Services available by dialing a
                phone number, the access to the service shall be done by a Service Number,

            
	 	 	 	 
	
              705"Adult Voice Promo"-

            	
              -

            	
              The playing or display of a voice or contractual message of sexual content, including a recorded message, provided through a public telecommunications installation, either directly or indirectly, and the said
                message intends to relay information regarding the service that will follow the message or encourage use of it, as long as there is no additional charge for the playing or the display of the message besides the cost for the call that is
                charged through the telephone bill.

            
	 	 	 	 
	 	 	
              For this matter, "indirectly"- including a connection  from the terminal equipment of the Subscriber as a condition for the provision of the Adult Voice Promo."

            

      
        
          

          

          

          

          704 Amendment No. 34

          

          705 Amendment

            No. 37

          

        

        

      

      
        
          

      

      

        
         
          Translation from Hebrew

           
          The Binding version is the Hebrew version

        

         

        

      

      	
              “Dialing Code”

            	
              -

            	
              A domestic dialing code by a plan set by the Ministry for the purpose of Adult Voice Services;

            
	 	 	 	 
	
              “The Network”

            	
              -

            	
              the Public Telecommunications Network of the Licensee;

            
	 	 	
              

              

            	 
	
              “Adult Voice Services”

            	
              -

            	
              A voice service or display of a voice or contractual message of sexual content, including a recorded message, provided through a public telecommunications installation, either directly or
                indirectly, including a service for encounters, conversations (chat) or relaying of messages between occasional callers, that are intended or serves as, even partially, for sexual purposes, and including the following:

               

              

            
	 	 	
              (1)

            	
              service available by dialing a telephone  number provided by the Service Provider;

            
	 	 	 	 
	 	 	
              (2)

            	
              
                access service to a closed database of content, including multimedia files provided by the Licensee or someone else that provides the service with the consent of the Licensee (" the Cellular Portal");
                  706

              

            
	 	 	 	 
	 	 	 	
              For this matter, "indirectly"-including connecting from terminal equipment of a subscriber as a pre-requisite for providing the service or charging for it;

            
	 	 	 	 
	
              “Payment Regulations”

            	
              -

            	
              Communication Regulations
                (Telecommunications and Broadcasting)
                  (Payments for Telecommunication Services), 2005

                

              

            
	
              

              

            	 	 	 
	
              “Special Payment”

            	
              -

            	
              A fee set forth in Article 6, and which the Subscriber must pay for Adult Voice Services in addition to the Regular Payment;

            
	
              

              

            	 	 	 
	
              “Duration Payment”

            	
              -

            	
              A Special Payment set in accordance with the the amount of time that the Subscriber uses the Adult Voice Services;

            
	
              

              

            	 	 	 
	
              “Regular Payment”

            	
              -

            	
              One of the following:

            
	 	 	 	 
	 	 	
              (a)

            	
              In a call within the Network-payment that shall not exceed the fixed payment in accordance with the tariff settlement between the Subscriber and the Licensee regarding a call to another
                subscriber within the same network;

            

      

      

      
        
 

      
        

        706 Amendment No. 36

        
          

          

        

      

      
        
          

      

      

        
         
          Translation from Hebrew

           
          The Binding version is the Hebrew version

        

         

        

      

      	 	 	
              (b)

            	
              In a call from one MRT network to another MRT network or to a DO Network-payment as set forth in sub-section (a) in addition to a fee that shall not exceed 0.50 NIS per minute (including
                VAT).

            
	 	 	 	 
	 	 	
              (c)

            	
              In a call from the Bezek Corporation Network to an MRT network-payment that shall not exceed the fee set forth in section “D” in chart A of the First Supplement to the Payment Amendments,
                in addition to 0.50 NIS per minute (including VAT).

            
	 	 	 	 
	 	 	
              (d)

            	
              In a call from a DO Network, excluding the Bezek corporation network, to an MRT network-payment that shall not exceed the  payment set forth in the payment schedule between the subscriber
                of the DO and the DO, regarding a call to another subscriber on the same network, in addition to 0.50 NIS per minute (including VAT).

            
	 	 	 	 
	 	 	
              (e)

            	
              In Adult Voice Services that are provided through a Cellular Portal-payment that shall not exceed the set payment in accordance with the payment schedule between the subscriber and the
                Licensee regarding access service to the Cellular Portal.

            

    

    

    
      
        	2.	
                Access to Adult Voice Services

              

      

    

    

    

    
      
        	

              	2.1	
                Subject to Article 4 below, the access to Adult Voice Services for a Subscriber available by dialing, shall be done through the Dialing Code and the Service Number.

              

      

    

    

    

    
      
        	3.	
                Allocation of a Service Number

              

      

    

    

    

    
      
        	

              	3.1	
                For Adult Voice Services available by dialing, the Licensee may allocate a Service Number to a Service Provider; If the Licensee allocates such a Service Number, the Licensee shall allow the Service Provider to offer its services both
                  to the Licensee’s Subscribers as well as to the subscribers of other licensees.

              

      

    

    

    

    
      
        	4.	
                Barring Access to Adult Voice Services

              

      

    

    

    

    4.1

    
      
        	

              	a)	
                The Licensee shall bar access to the Adult Voice Services from all Terminal Equipment connected to the Network; without derogating from the above, for the purpose of barring access to Adult Voice Services available by the Cellular
                  Portal, the Licensee may use blocking devices, including content filter programs, as long as they effectively prevent the access to such service.

              

      

    

    
      
         

        

        
          
            

        

         

          
           
            Translation from Hebrew

             
            The Binding version is the Hebrew version

          

           

          

        

        	

              	b)	
                707If the Ministry of Communications should notify the Licensee that an AdultVoice Promo is being provided through a telehone line on the Licensee's
                  network and the access to it is being provided not through a service number, the Licensee will disconnect the said line, or shall block the line for incoming calls.

              

      

    

    

    

    4.2

    
      
        	

              	a)	
                A Subscriber over 18 years of age may request that the Licensee remove the blocking set forth in Article 4.1 (a) from the Terminal Equipment in his possession.

              

      

    

    

    

    
      
        	

              	b)	
                708A subscriber's request to remove the bar to Adult Voice Services that is provided in the cellular portal, shall be done by submitting a written
                  request, including by sending a facsimile message or a scanned message by electronic mail, that will include a copy of formal document that identifies the subscriber as an adult, for example an identification card, drivers license,
                  passport or by appearing before the licensee and presenting such an identifying card.

              

      

    

    

    

    
      
        	

              	4.3	
                A Subscriber’s request to remove the bar shall be either in Writing or an oral request, as long as the Licensee has set out procedures for credible identification of the Subscriber making the request.

              

      

    

    

    

    
      
        	

              	4.4	
                If a Subscriber requests to remove the bar, the Licensee shall remove the bar within a reasonable amount of time, so as to allow the Subscriber access to Adult Voice Services through the Terminal Equipment in his possession.

              

      

    

    

    

    
      
        	

              	4.5	
                If the bar to Adult Voice Services has been removed, and the Subscriber requests to bar access from his Terminal Equipment to such services, the Licensee shall bar access as quickly as possible and in any case, no later than two
                  working days from the date of receipt of the Subscriber’s request.

              

      

    

    

    

    
      
        	

              	4.6	
                The first removal of the bar to Adult Voice Services that was done in accordance with the Subscriber’s request as set forth in Articles 4.2 and 4.3 shall be done free of charge; the Licensee shall be allowed to charge the Subscriber a
                  reasonable fee for any additional bars to Adult Voice Services or for any additional removal of bars, that are done in accordance with the Subscriber’s request.

              

      

    

    

    

    
      
        	

              	4.7	
                The Licensee shall document the Subscriber's request to remove the bar to Adult Voice Services. The documentation will be available at the Licensee delivery or transfer, as the case may be, to the Director within five (5) working days
                  from the date that the Subscriber submitted his request.709

              

      

    

    

    

    
      

    
      
        
          707 Amendment No. 37

          

          708 Amendment No. 44

          

        

      

      709 Amendment No. 87 

    
      
        

    

    

      
       
        Translation from Hebrew

         
        The Binding version is the Hebrew version

      

       

      

    

    
      
        	5.	
                Preliminary Registration

              

      

    

    

    

    Notwithstanding the abovementioned in Article 4, the Licensee may deem necessary preliminary registration of the Subscriber in order to receive a password that will be conditional
      for receiving Adult Voice Services.

     

    

    The provisions of this Article shall not derogate from the abovementioned in Articles 4.2-4.3

    

    

    
      
        	6.	
                Setting Special Payment

              

      

    

    

    

    If Special Payment is set for Adult Voice Services, the amount shall be set by the Licensee or by an agreement between the Licensee and the Service Provider.

    

    

    
      
        	7.	
                Charging the Subscriber for Adult Voice Services

              

      

    

    

    

    
      
        	

              	7.1	
                If Special Payment is set for Adult Voice Services, the Licensee shall display the charge for the service in the Telephone Bill separately from the charges for other services of the Licensee, unless the Subscriber requests otherwise.

              

      

    

    

    

    
      
        	

              	7.2	
                The Licensee shall provide the Subscriber within ten (10) working days with the details of the Special Payment for Adult Voice Services in accordance with the following:

              

      

    

    

    

    
      
        	

              	a.	
                The Service Number allocated for the service;

              

      

    

    
      
        	

              	b.	
                The date and time of receipt of the service;

              

      

    

    
      
        	

              	c.	
                The time unit charges-a charge in accordance with the duration- the number of time unit charges that were counted or the total amount of the Special Payment; in case of charging according to data volume (for example-MB, KB)-the number
                  of data volume units of the data that were transmitted;

              

      

    

    
      
        	

              	d.	
                The amount charged for that service.

              

      

    

    

    

    The Licensee may collect a reasonable payment for providing the details of the Special Payment.

    

    

    
      
        	8.	
                Announcement Obligation

              

      

    

    

    

    
      
        	

              	8.1	
                If Special Payment is set for Adult Voice Services provided through the Network, the Licensee shall play, either himself or through the Service Provider at the beginning of the call, a recorded message that includes the following
                  details:

              

      

    

    
      
        	

              	a.	
                The essence of the service;

              

      

    

    
      
        
          

          

        

        

        
          
            

        

         

          
           
            Translation from Hebrew

             
            The Binding version is the Hebrew version

          

           

          

        

        	

              	b.	
                The amount of the Special Payment for the service, either the total amount,  by Duration Payment or volume transmission, whichever is relevant;

              

      

    

    
      
        	

              	c.	
                The possibility to disconnect from the service free of charge before the sound of the tone, as set forth in Article 8.4.

              

      

    

    

    

    
      
        	

              	8.2	
                The recorded message shall be in the language that the Adult Voice Services are provided, in clear and fluent language, at a reasonable pace and without any recording distortions.

              

      

    

    

    

    
      
        	

              	8.3	
                At the beginning of the Adult Voice Services that are provided in a language other than Hebrew, a message will be played that details the language the service is provided in and afterwards the recorded message will be played in the
                  language the service is provided, as set forth in Articles 8.1 and 8.2.

              

      

    

    

    

    
      
        	

              	8.4	
                At the end of the recorded message as set forth in Article 8.1, the caller will have 5 seconds after which a tone will be played to indicate the beginning of the receipt of the Adult Voice Services; If the caller disconnects before the
                  tone is played, he shall not be charged the Special Payment. Alternatively, the caller will be required to punch a certain key in his Terminal Equipment in order to confirm his wish to receive the service, and only from that moment will
                  the Subscriber will charged the Special Payment.

              

      

    

    

    

    
      
        	

              	8.5	
                If Special Payment is set for Adult Voice Services available by accessing the Cellular Portal, the Licensee shall notify the subscriber of the service charge in a clear and prominent manner, while allowing the subscriber the ability to
                  disconnect from the service without being charged the Special Payment.

              

      

    

    

    

    
      
        	9.	
                The Relationship between the Licensee and the Service Provider

              

      

    

    

    

    
      
        	

              	9.1	
                The Licensee may allow the Service Provider to perform Telecommunication Activities through the Licensee’s installations in order to provide Adult Voice Services; The Service Provider shall be exempt from the duty to receive a license
                  to perform Telecommunication Activities in accordance with the provisions of Article 3 (5) of the Law.

              

      

    

    

    

    
      
        	

              	9.2	
                The Licensee shall include the provisions of this Annex, with the necessary changes, in the agreement between himself and a Service Provider, in such a manner that the Service Provider must comply with these provisions.

              

      

    

    

    

    
      
        	

              	9.3	
                The Licensee shall provide the Director, in accordance with his request, with any agreements between the Licensee and a Service Provider.

              

      

    

    

    

    
      
        	10.	
                Interconnection

              

      

    

    

    

    
      
        	

              	10.1	
                The conditions for Interconnection between the Network and the Public Telecommunication Network of another licensee, with respect to the provision of services for charging and collecting by one licensee for another licensee, for the
                  provision of Adult Voice Services through the network for the subscribers of another licensee, shall be set forth in an agreement between the Licensee and the other licensee; should the parties not reach an agreement , the Minister shall
                  decide the matter.

              

      

    

    

    

    
      
        

    

    
      
         

          
           
            Translation from Hebrew

             
            The Binding version is the Hebrew version

          

           

          

        

        	

              	10.2	
                The Licensee shall pass to the Director, upon his request, a signed copy of any agreement between the Licensee and another licensee regarding the matter of Interconnection.

              

      

    

    

    

    
      
        	11.	
                General

              

      

    

    

    

    
      
        	

              	11.1	
                The Licensee shall be responsible for handling complaints of customers of the Adult Voice Services, regarding Subscriber problems in accessing the service, problems of charges and collection regarding the service, and shall create for
                  this purpose a mechanism to handle customer complaints; The Service Provider shall be responsible for handling customer complaints regarding the contents of the service. If the Licensee provides the Adult Voice Service himself, the
                  Licensee shall also be responsible for handling customer complaints regarding the contents of the service.

              

      

    

    

    

    
      
        	

              	11.2	
                The Licensee shall not be allowed to disconnect, stop or impair the basic telephone service of a Subscriber that contests the payment for Adult Voice Services and refuses to pay, however he may disconnect such a Subscriber from the
                  receipt of further Adult Voice Services.

              

      

    

    

    

    
      
        	

              	11.3	
                The Licensee shall not pass the details of the Subscriber to the Service Provider or anyone else without written confirmation of the Subscriber and after verifying the credibility of the confirmation.

              

      

    

    

    

    
      
        	

              	11.4	
                The Licensee shall give any Subscriber who so requests, free of charge, within three (3) working days, details regarding the Service Provider as follows:

              

      

    

    

    

    
      
        	

              	a.	
                The name and address of the provider.

              

      

    

    
      
        	

              	b.	
                The phone number by which the provider can be reached.

              

      

    

    

    

    
      
        	

              	11.5	
                This Annex shall also apply with the necessary changes, to the provision of Adult Voice Services that are provided as a network service only to the Subscribers of the Licensee.

              

      

    

    

    

    
      
        	

              	11.6	
                The Licensee may provide the Adult Voice Services himself and the provisions of this Annex will apply with the necessary changes.

              

      

    

    

    

    
      
        

    

  

  

  

  
    
      
        Translation from Hebrew  

        The Binding version is the Hebrew version

      

       

      

    

  

  

  710Appendix N-Premium Service that are provided at a Premium Tariff711

  

  

  	

        	1.	
          Definitions

        

  

  

  	

        	1.1	
          In this Appendix:

        

  

  

  	

        	"Licensee"-	
          One who has been given a general license pursuant to the law;

        

  

  

  	

        	" Hosting Licensee"-	
          A Licensee that through its network the service provider provides its services;

        

  

  

  	

        	"Origin Licensee"-	
          A domestic fixed-line or cellular Licensee, whose subscriber wishes to purchase a premium service;

        

  

  

  	

        	"Service Order"-	
          Any action that the subscriber initiates in order to receive a premium service, including calling a prefix code, entering the subscriber's telephone number, entering a password and entering a code;

        

  

  

  	

        	"Telephone Bill"	
          A bill given to the subscriber by the Licensee for services provided to him;

        

  

  

  	

        	"Writing"	
          Including via facsimile or electronic mail;

        

  

  

  

  	

        	
          "International

          Operator"-	
          One who has been given a general license for the provision of international telecommunication services;

        

  

  

  	

        	"Subscriber"-	
          An Origin Licensee's subscriber;

        

  

  

  	

        	"Service Number"-	
          A 10 digit telephone number that was determined in accordance with the provisions of the numbering plan and the administrative provisions for this matter, that include a predestined prefix code with additional digits, that the Hosting
            Licensee will allocate to the Service Provider and which number if dialled allows the Subscriber access to the Premium Service;

        

  

  

  	

        	"Service Provider"-	
          One who provides a Premium Service via the telecommunications network of a Licensee, and payment for the service is made through the telephone bill;

        

  

  

                                                  

  
    710 Amendment
      No. 75

    

    711 Amendment
      No. 80

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	"Prefix Code"-	
          A national prefix code in such model as prescribed by the Ministry for access to a Premium Service;

        

  

  

  	

        	"Network" -	
          A set of telecommunication facilities through which the Licensee provides its services;

        

  

  

  	

        	"Premium Service"-	
          Audio broadcast or presentation of an audio or visual message, including a recorded message, provided via a telecommunications facility, directly or indirectly, for among others, one of the following: provision of information and content,
            entertainment, receipt of consultation, dating service, chats, participation in competitions, lottery, game or voting or a service provided via the internet, excluding erotic services; for this matter, "indirectly"- including by way of creating
            a connection from the Subscriber’s end user equipment, or entering the Subscriber's telephone number, including through the internet, as a condition for providing the service or for charging for it;

        

  

  

  	

        	"Premium Tariff"-	
          The tariff for payment for a Premium Service, in accordance with the Hosting Licensee's requirement; this tariff will include a tariff for completion of the call on the Hosting Licensee's public telecommunications network, that was
            determined in accordance with the Telecommunications Regulations (Bezeq and Broadcasting) (Payments for interconnection), 2000, and for the matter of a service provided by an International Operator as a Hosting Licensee, the tariff will include
            the payment that the International Operator will retain;

        

  

  

  	

        	"Regular Tariff"-	
          A tariff that is collected from the Subscriber by the Origin Licensee, in accordance with the tariff plan set forth in the engagement agreement it has with the Subscriber.712

        

  

  

  	

        	1.2	
          Words and expressions in this Appendix that are not defined in this section, shall have the meaning as ascribed to them in the law, its regulations enacted by virtue thereof, in the Interpretation Law, 1981, in article 1 of the License or as
            set out in other places in this Appendix, unless otherwise deriving from the language or context.

        

  

  

  	

        	2.	
          Access to the Service and Universality Requirement

        

  

  

  	

        	2.1	
          An Origin Licensee shall allow every Subscriber access to all Premium Services that are provided via all of the networks of the Licenses.

        

  
                                                   

    

    712  In case the Subscriber has a limited monthly
      minutes plan, the Licensee will deduct the payment according to the length of the call from the monthly allocated minutes; in case the Subscriber has an unlimited plan, he will not be charged for an additional payment for dialing a Service Number; in
      case the Subscriber has a tariff plan that is not part of a package, his Regular Tariff will be identical to the tariff for a one minute domestic call.

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

      

    

  

  	

        	2.2	
          A Hosting Licensee shall allow all callers of all the Licensees access to the Premium Services that are provided through its network.

        

  

  

  	

        	2.3	
          Hosting Licensees and Origin Licensees shall allow the provision of Premium Services only via the Prefix Code and the Service Number.

        

  

  

  	

        	2.4	
          A referral to the Prefix Codes shall be done only for the purpose of receipt a Premium Service; a referral to the said Prefix Codes for other purposes, including debit and collection arrangements, customer service or administration, is
            strictly forbidden.

        

  

  

  	

        	2.5	
          The Licensee shall block the access to a telephone number, including an international number, without the Prefix Code to the Premium Service, insofar as it is notified by the Ministry, or it comes to its knowledge otherwise, that the Premium
            Service is provided via this telephone number.

        

  

  

  	

        	3.	
          Recorded Message Requirement and Notification to the Subscriber

        

  

  

  	

        	3.1	
          Immediately following the execution of the engagement, and before provision of the Premium Service, the Hosting Licensee shall play a recorded message for the caller, in the language in which the service is provided, in clear and concise
            language, and without recording disruptions. The recorded message shall include these details, according to the following order:

        

  

  

  	

        	a)	
          The essence of the service;

        

  	

        	b)	
          The premium tariff, in addition to the Subscriber's Regular Tariff;

        

  	

        	c)	
          The maximum tariff that can be charged for the service;

        

  	

        	d)	
          The maximum time that has been set for the receipt of the Premium Service, insofar as it has been set;

        

  	

        	e)	
          713The ability of the caller to disconnect the call before the beginning of provision of the service, with no charge, by the end of hearing the sound as set
            forth in article 3.2.

        

  

  

  	

        	3.2	
          714Upon hearing the end of the recorded message, as set forth in article 3.2 and before the beginning of provision of the service, the Hosting Licensee shall
            play a special sound for the caller and afterwards be given at least a  5 second pause to disconnect the call, without being charged at the Premium Tariff; the Licensee may give the Subscriber the opportunity to confirm receipt of the service
            by pressing a certain key on the handset in his possession in order to begin the provision of the service even before the said pause is over.

        

  

  

  	

        	3.3	
          If access to the Premium Service has been blocked as set forth in article 7.1, the Origin Licensee will play a recorded message for the Subscriber that the said service cannot be provided, due to access blockage to the Prefix Code. The
            Licensee may give details in the recorded message as to how the blockage can be removed.

        

  

  

                                                  

  
    713 Amendment
      No. 78

    

    714 Amendment
      No. 78

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	4.	
          Service Purchase

        

  

  

  	

        	4.1	
          715At the end of the said procedure in article 3.2, the caller will be given the opportunity to purchase the Premium Service.

        

  

  

  	

        	4.2	
          Service purchase shall be done separately for each service, and in accordance with the Prefix Code and the purchase of a certain service shall not be considered as the purchase of an additional service, whether the same service or whether
            another service.

        

  

  

  	

        	5.	
          Service Price

        

  

  

  	

        	5.1	
          In all of the Prefix Codes set forth below, the service tariff for the Subscriber will be the premium tariff for the service in addition to the Regular Tariff.

        

  

  

  	

        	5.2	
          For a service provided with the 1-900 Prefix Code, a maximum amount of NIS 0.5 can be required for a call minute and no more than NIS 30 for the entire call.

        

  

  

  	

        	5.3	
          For a service provided with the 1-901 Prefix Code, a maximum amount of NIS 50 can be required, whether if the premium tariff for the service is determined in a one-time manner or whether the tariff is determined according to the length of
            the service or a combination of the two.

        

  

  

  	

        	5.4	
          For a service provided with the 1-902 Prefix Code, a maximum amount of NIS 100 can be required, whether if the premium tariff for the service is determined in a one-time manner or whether the tariff is determined according to the length of
            the service or a combination of the two.

        

  

  

  	

        	5.5	
           Subject to the aforesaid in articles 5.2-5.4, the obligating premium tariff is the tariff that was given to the Subscriber in the recorded message, before provision of the service, in accordance with article 3.1.

        

  

  

  	

        	5.6	
          The prices set forth in this article include VAT.

        

  

  

  	

        	6.	
          Collection and Debiting Arrangements

        

  

  

  	

        	6.1	
          The Origin Licensee shall not collect from a Subscriber payment for a Premium Service that is given contrary to the provisions of this Appendix.

        

  

  

  	

        	6.2	
          The Origin Licensee will collect from the Subscriber payment for the Premium Service in accordance with the debit records that the Hosting Licensee gives him, in addition to the Regular Tariff.

        

  

  

  	

        	6.3	
          The Hosting Licensee shall give at least once a day716, the Origin Licensee the debit records for the Premium Service provided to the Subscriber, as advised to
            the Subscriber in the message in accordance with article 3.1.

        

  

  

                                                  

  
    715 Amendment
      No. 78

    

    716 Amendment
      No. 81

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	6.4	
          The Origin Licensee shall give the Hosting Licensee payments that it collected from its Subscribers for Premium Services, according to the premium tariff and will not be required to do so with respect to payments that it was unable to
            collect from its Subscribers.

        

  

  

  	

        	6.5	
          If the Subscriber disconnects the call before the provision of the service begins, the Origin Licensee is allowed to collect from him a Regular Tariff and will not give the interconnection tariff to the Hosting Licensee, as set forth in the
            Telecommunications Regulations (Bezeq and Broadcasting) (Payments for interconnection), 2000 (hereinafter- ("Interconnection Regulations").

        

  

  

  	

        	7.	
          Termination of a Premium Service

        

  

  

  	

        	7.1	
          A Hosting Licensee may disconnect the caller of the Premium Service when the payment for the call reaches the maximum amount as set forth in article 5.

        

  

  

  	

        	7.2	
          The Origin Licensee shall block the Premium Service for pre-paid Subscribers, upon completion of the available balance of the Subscriber or at the latest upon receipt of the Premium records file717.

        

  

  

  	

        	7.3	
          The aforesaid in article 7.2 will apply also to pre-paid Subscribers that have limited credit and that have reached the maximum amount of credit agreed with them.

        

  

  

  	

        	8.	
          Access Blockage to the Service

        

  

  

  	

        	8.1	
          The Licensee shall allow every Subscriber, existing or new, to choose whether the access from his telephone line to Premium Services at 1-900 and 1-901 Prefix Codes shall be open or blocked. The Subscriber's decision shall be done by marking
            his choice in the appropriate box, next which is written "block" or "open" as part of the service access form (hereinafter- "the Form").

        

  

  

  	

        	8.2	
          The Licensee shall prepare a Form for services access or amend the service access form defined in its license (hereinafter- "the Service Access Form") in a
            manner that includes that stated in the Premium Service access form in article 12.

        

  

  

  	

        	8.3	
          The Licensee will place the Service Access Form on its website.

        

  

  

  	

        	8.4	
          A new Subscriber's choice will be done by marking the form that is part of the "engagement agreement" when the transaction is done in the Subscriber and Licensee's representative's presence, as part of the "engagement terms and conditions",
            when the engagement is done by a remote sale transaction via a telephone call or as marked by the Subscriber on the online form, at the time of the engagement via the internet.

        

  

  

  	

        	8.5	
          The Licensee shall notify an existing Subscriber in the Telephone Bill with respect to the possibility of downloading the Form from its website and marking his choice regarding Premium Service access through 1-900 and 1-901 Prefix Codes. An
            existing Subscriber that has filled out a form in the past and now is filling out his choice only regarding access to Premium Services, his previous choices regarding service access will remain valid, unless he requests to change them.

        

  

  

                                                  

  
    717 Amendment
      No. 81

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	8.6	
          An existing Subscriber that did not specifically mark his choice regarding Premium Service access at 1-900 and 1-901 Prefix Codes, within two months of the commencement date of this Appendix, the defaults will be as follows:

        

  

  

  	

        	a.	
          With respect to 1-900 Prefix Code-open;

        

  	

        	b.	
          With respect to 1-901 Prefix Code-blocked;

        

  

  

  	

        	8.7	
          Blockage of the Premium Service access at the 1-901 Prefix Code, in accordance with the default set forth in section 8.4, shall be done by the Licensee within seven (7) working days from the end of two months after the commencement date of
            this Appendix. Blockage of a Subscriber for the first time of access to 1-900 and 1-901 Prefix Codes, whether in accordance with the Subscriber's choice or whether in accordance with the default, shall be done free of charge.

        

  

  

  	

        	8.8	
          The Licensee shall block the access of all its Subscribers to the services provided at the 1-902 Prefix Code as a default, free of charge, within one working day of the commencement of this Appendix. A Subscriber's request to remove the
            blockage shall be done in writing, or orally as long as the Licensee conducted a reliable identification of the Subscriber submitting the request, in accordance with the a set procedure.

        

  

  

  	

        	8.9	
          If a Subscriber requests to remove a blockage, the Licensee shall remove the blockage within a reasonable amount of time.

        

  

  

  	

        	8.10	
          The Licensee shall document the Subscriber's request to remove the blockage for the Premium Service. The documentation will be available at the Licensee for remittance or transfer, as applicable, to the Director within five (5) work days
            from the day that the Subscriber submitted his request.

        

  

  

  

  	

        	9.	
          Provision of the Service in Israel through an International Operator

        

  

  

  	

        	9.1	
          An International Operator is allowed to be a Hosting Licensee, and to allow the provision of Premium Services via its network, without being required to route the call abroad.

        

  

  

  	

        	10.	
          Miscellaneous

        

  

  

  	

        	10.1	
          The Hosting Licensee may allow the Service Provider to execute telecommunication activities through the facilities of the Licensee for provision of the service; the Service Provider is exempt from the requirement to receive a license or
            general permit for the execution of telecommunication activities, in accordance with the provisions of article 3(5) of the Law.

        

  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	

        	10.2	
          If the Subscriber does not pay a Telephone Bill that includes a charge for Premium Services, the Licensee shall give the Hosting Licensee the Subscriber's following details: his full name, I.D number and method of contacting him.

        

  

  

  	

        	10.3	
          In the Telephone Bill in which the Premium Service charges are included, the Licensee shall give details regarding each Service Supplier whose charges for its services are included in the bill, regarding the following details:

        

  

  

  	

        	a.	
          The name of the Hosting Licensee and its address;

        

  	

        	b.	
          The registration number or business number of the Hosting License;

        

  	

        	c.	
          Details that allow contacting the Hosting Licensee, including a telephone number718.

        

  

  

  	

        	10.4	
          The Hosting Licensee is not allowed to make use of the payment details that were given to him by the caller for payment for other services, in order to collect a premium payment.

        

  

  

  	

        	11.	
          Temporary Order

        

  

  

  
    
      	

            	11.1          	(a)          	The Hosting Licensee will play a message for the caller according to which the Premium Service is provided only by using 1-900, 1-901 and 1-902 Prefix Codes in the following
              cases:

    

  

  

  

  	

        	1)	
          When calling Premium Services that the access to them was allowed, before this Appendix commenced, by dialing an international number;

        

  

  

  	

        	2)	
          When calling Premium Services that the access to them was allowed, before this Appendix commenced, by dialing a network access code, as defined in the numbering program in Israel.

        

  

  

  	

        	(b)	
          The message will be played in the language that the Premium Service is provided.

        

  

  

  	

        	(c)	
          The Hosting Licensee will play the message for six months, from the date of commencement of this Appendix.

        

  

  

  	

        	(d)	
          The Origin Licensee may charge the Subscriber the Regular Tariff for the message.

        

  

  

  	

        	12.	
          Cancelled719

        

  

  

                                                 

  

  
    718 Amendment
      No. 78

    

    719 Amendment
      No. 90

    

    

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  

  

  Annex O - Timely instructions720

  

  

  	
          1.(a)

        	
          Notwithstanding the provisions of section 1(b)(1) of Annex E4, a telephone call center for the purpose of receiving inquiries regarding the services of the Licensee, which are not applications
            as stated in section 1(a) of Annex E4, shall be staffed at least eight (8) hours, starting at 08:00 in the morning, on weekdays, on the eve of Holocaust Remembrance Day, Holocaust Remembrance Day and on the eve of Memorial Day for the victims
            of the Israeli military and the victims of hostilities;

           

          

        
	
            (b)

        	
            This section will be valid from September 21, 2020, until October 18, 2020.

           

          

        
	
          2.(a)

        	
          Notwithstanding the provisions of section 5(b) of Annex E4 regarding the types of calls specified in sections 4(c)(2) and 4(c)(3) of Annex E4, the rate of calls which the Licensee will meet for
            each of the three types of incidents listed in section 5(b) of Annex E4, shall be a maximum of 20% for two consecutive weeks, for each of the types of calls listed in sections 4(c)(2) and 4(c)(3) of Annex E4, from the total number of calls of
            each of the two types of calls in those two weeks;

           

          

        
	
            (b)

        	
          This section will be valid from September 21, 2020, until October 18, 2020.

           

          

        
	
          3.(a)

        	
          Notwithstanding the provisions of section 5(c1) of Annex E4 with regard to the types of calls specified in sections 4(c)(2) and 4(c)(3) of Annex E4, the average waiting time during those two weeks of each of the
            two types of calls specified in sections 4(c)(2) and 4(c)(3) that are answered, shall not exceed five and a half (5.5) minutes;

           

          

        
	
            (b)

        	
          This section will be valid from September 21, 2020, until October 18, 2020.

        

  

  

                                                  

  
    720 Amendment
      No. 106

      

      

    

  

   

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

  

   

      

  721APPENDIX P – 5G SERVICE OTHER THAN DATA
      COMMUNICATIONS USING 

  A BROAD FREQUENCY BAND

  

  

  The following provisions shall apply to the provision of 5G Service that is other than Data Communications using a Broad Frequency Band, notwithstanding any other provision
    prescribed in this License:

  

  

  	1.	
          The quality and characteristics of the services shall be defined in an agreement between the Licensee and the Subscriber. Without derogating from the general purport of that stated, the provisions applying in relation to a Private Subscriber
            and to a Split Business Subscriber shall not apply to this agreement.

        

  

  

  	2.	
          The provision of the said services to a Subscriber shall be via a 5G System, subject to that stated in this appendix, and particularly in clause 3 hereunder. A service being provided via a 5G System shall not be deemed as if it is being
            provided through a public telecommunications network of the Licensee. Without derogating from the general purport of that stated, the coverage obligations specified in Appendix E shall not apply to the Licensee in relation to these services.

        

  

  

  	3.	
          Provision of the Service shall not adversely impact the engineering characteristics of providing other services by the Licensee.

        

  

  

  

  
 721 Amendment No. 107 
  

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

   

      

  722APPENDIX Q – ENTITLEMENT TO A 5G SYSTEM
      ROLLOUT GRANT

   

  	1.	
          The following expressions and terms shall have the definitions ascribed alongside them:

        

   

  	

        	1.1	
          “Notice of Eligibility for a Grant” – written letter from the Director confirming that an Eligible Operator fulfilled the Engineering Condition for Entitlement;

        

   

  	

        	1.2	
          “Entitled Winner”  – Eligible Operator that received a Notice of Eligibility for a Grant;

        

   

  	

        	1.3	
          “First Entitled Winner” – Eligible Operator with the earliest record date for entitlement according to a Notice of Eligibility for a Grant issued to it;

        

   

  	

        	1.4	
          “Second Entitled Winner” – Eligible Operator with a record date for entitlement according to a Notice of Eligibility for a Grant issued to it that is the next earliest after the First Entitled Winner;

        

   

  	

        	1.5	
          “Third Entitled Winner” – Eligible Operator with a record date for entitlement according to a Notice of Eligibility for a Grant issued to it that is the next earliest after the Second Entitled Winner;

        

   

  	

        	1.6	
          “Record Date for Entitlement” –

        

   

  	

        	1.6.1	
          During the period between the date of the win of the 5G Tender and 31.12.2021 – the last day of the quarter in which an Eligible Operator fulfilled the Engineering Condition for Entitlement, according to the Notice of Eligibility for a Grant
            issued to it;

        

   

  To dispel any doubt, if two or more operators fulfilled the Engineering Condition for Entitlement during the same quarter according to their Notices of Eligibility for a Grant, then
    their entitlement date shall be that same last day of the quarter;

   

  	

        	1.6.2	
          During the period between 1.1.2022 and 30.6.2022 – the last day of the month in which an Eligible Operator fulfilled the Engineering Condition for Entitlement, according to the Notice of Eligibility for a Grant issued to it;

        

   

  To dispel any doubt, if two or more operators fulfilled the Engineering Condition for Entitlement during the same month according to their Notices of Eligibility for a Grant, then
    their entitlement date shall be that same last day of the month;

   

  	

        	1.7	
          “Deadline for Eligibility for a Grant” – 30.6.2022, unless the Director announced a later date;

        

   

  
    	 	
            1.8

          	
            “Grant” – sum that an Entitled Winner shall receive from the Qualifying Receipts, according to the conditions of this appendix;

          

  

   

  
    	 	
            1.9

          	
            “Eligible Operator” – anyone whose General License was expanded after winning the 5G Tender; for the purposes of this clause, MRT Operators that submitted a joint proposal agreement that received the Committee’s
              approval and whose licenses were expanded, shall be deemed a single Eligible Operator;

          

  

   

  	

        	1.10	
          “Qualifying Receipts” – ILS two hundred million (200,000,000);

        

   

  	

        	1.11	
          “Engineering Condition for Entitlement” – rollout and operation of 250 Cellular Radio Base Stations in a 5G System and operation of a minimum bandwidth of 60 MHz at frequencies in the range of 3,500-3,800 MHz in a network or via the shared
            network, for the provision of 5G Service through this frequency range, all prior to the Deadline for Eligibility for a Grant.

        

   

  
    

    

    

    

    722 Amendment
      No. 107

  

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	2.	
          In order to promote and accelerate the development of the MRT networks, inter alia, for the purpose of advancing the rollout of a 5G System according to the targets of the 5G Tender, Eligible Operators shall be entitled to a Grant if they
            fulfilled the Engineering Condition for Entitlement and according to the conditions hereunder.

        

   

  	3.	
          The Qualifying Receipts shall be distributed as Grants among the Entitled Winners in the following manner, according to the chronological order of their entitlement:

        

   

  	

        	3.1	
          The First Entitled Winner shall be entitled to 41% of the Qualifying Receipts or to ILS eighty-two million (82,000,000), whichever is lower.

        

   

  	

        	3.2	
          The Second Entitled Winner shall be entitled to 33% of the Qualifying Receipts or to ILS sixty-six million (66,000,000), whichever is lower.

        

   

  	

        	3.3	
          The Third Entitled Winner shall be entitled to 26% of the Qualifying Receipts or to ILS fifty-two million (52,000,000), whichever is lower.

        

   

  	4.	
          Notwithstanding that stated in clause 3, if there are two First Entitled Winners, the Grant shall be divided between these winners as an average of the sums to which a First Entitled Winner and a Second Entitled Winner are entitled. If there
            are three First Entitled Winners, the Qualifying Receipts shall be divided among them equally.

        

   

  For example, if there are two First Entitled Winners of a Grant, each of them shall be entitled to a Grant at the sum of ILS 74 million (74,000,000), and the sum of the Grant to the Third Entitled Winner shall not change.

   

  	5.	
          Notwithstanding that stated in clause 3, if there are more than one Second Entitled Winners, the Grant shall be divided between these winners as an average of the sums to which a Second Entitled Winner and a Third Entitled Winner are
            entitled.

        

   

  	6.	
          The Grant to the Entitled Winners shall be paid in 2022 and, in any event, shall not be paid before 1.10.2022. The payments shall not bear interest and linkage.

        

   

  	7.	
          The fulfillment of the Engineering Condition for Entitlement shall be verified as follows:

        

   

  	

        	7.1	
          After the Licensee examined and found that it fulfills the Engineering Condition for Entitlement, the Licensee shall so report to the Director or to whoever he authorized for this purpose, in the format specified in Addendum A to this
            appendix, and shall attach an affidavit of officers of the Licensee (the general manager and the deputy general manager holding the office of engineering or technologies manager) in the version as specified in Addendum B to this appendix.

        

   

  	

        	7.2	
          The date of the Licensee’s report according to the provisions of clause 7.1 shall be the record date for the purpose of fulfilling the Engineering Condition for Entitlement.

        

   

  	

        	7.3	
          The Director or whoever he authorized for this purpose shall notify the Licensee of the date of the examinations during the day prior to the examination. The Licensee shall make available representatives on its behalf who possess
            professional knowledge on the date of the examinations that the Director notified it, both during the examination of the sites to be performed from the control center and during site examinations in the field. The Licensee’s representative
            shall arrive at the examinations in the field equipped with calibrated and properly working measuring equipment.

        

   

  	

        	7.4	
          The Licensee shall present data to the Ministry’s employees who are in the control center, at their request, inter alia, in relation to the operation of the sites, and the map of the rollout of the sites reported to the Ministry, or any
            other information relating to the establishment or operation of the sites at the request of the Ministry’s employees.

        

   

  
    
      

  

  
     

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

     

    

  

  	8.	
          That stated above in no way prevents the Director from performing additional examinations, at his discretion, to examine the Licensee’s fulfillment of the conditions of entitlement, to the extent that such a need arises.

        

   

  	9.	
          The eligibility for a Grant or fulfillment of the Engineering Condition for Entitlement does not release the Licensee in any way from the payment of a License Fee and/or any other payment that it is obligated to pay to the State pursuant to
            any law. The Grant monies may not be offset from other payments that the Licensee owes to the Ministry of Communications.

        

    

  Addendum A to this appendix – Reporting format

     

  [excel file  – 5G site report.xlsx]

   

  Addendum B to this appendix – Officers’ affidavit

   

  

  Affidavit regarding fulfillment of the condition for entitlement to a Grant due to a 5G rollout

   

  We the undersigned _____ the general manager and ___________ the deputy general manager for engineering/technologies of the company, hereby certify and declare on behalf of the
    company that:

   

  	1.	
          According to that known to us, and after we personally examined all of the information needed in this regard, ________ [insert company’s name] fully fulfills the condition for entitlement to a Grant for the 5G rollout as specified hereunder:

        

   

  	

        	•	
          Correct to the date of the affidavit, the company has _______ [enter the number of sites] Cellular Radio Base Stations operating in a 5G System, as defined in the General License for the Provision of MRT Services that was issued to the
            company;

        

   

  	

        	•	
          Correct to the date of the affidavit, the company is operating a minimum bandwidth of 60 MHz at frequencies within the range of 3,500-3,800 MHz [in a network/through the joint network – mark the relevant alternative] for the provision of 5G
            Service as specified in Appendix E to its General License.

        

   

  	2.	
          All of the information attached in Appendix A is correct and accurate, according to our personal examination.

        

   

  Deputy General Manager, Engineering/Technologies: ________

   

  CEO: _______________

   

  Date: ___________

   

  Confirmation

   

  I certify that, on __________, Mr. ______________, bearing ID number __________ and Mr. __________, bearing ID number __________ appeared before me, __________ Adv., and, after I
    warned them that they must state the truth and that they can expect the punishment prescribed by law if they do not do so, confirmed the veracity of their above affidavit and signed it in my presence.

   

  ________________

  ___________, Adv.

   

  

  
    
      

  

  
    Translation from Hebrew
      The Binding version is the Hebrew version

    

     

    1Appendix R-Terms and Conditions for use of radio frequencies-not for
        publication

    

    

    

    

    

    1 Amendment No. 107

    

    

    
      
        

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

    

    

    2Appendix S-Cessation of service on Old Technology systems (2G and 3G Technologies)

    

    

    	
            1.

          	
            Definitions

             

          	 	 
	
            1.1

          	
            In this Appendix-

             

          	 	 
	 	
            "Announcement day of Cessation of the Service"

             

          	
            -

          	
            The day on which the Minister's decision on the framework for the cessation of service for Old Technologies was given, 27.6.2021

          
	 	
            "Service Cessation Day"

          	
            -

          	
            31.12.2025 or an earlier date that the Director approved and subject to section 5 of this Appendix.

             

          
	 	
            "New Equipment"

          	
            -

          	
            MRT Terminal Equipment that operates on Advanced Technologies with support capability for VoLTE calls (for MRT Terminal Equipment cellular
              handset types) including M2M/IOT terminal equipment that supports NB-IOT and/or LTE-M technologies.

             

          
	 	
            "Old Equipment"

          	
            -

          	
            MRT Terminal Equipment that operates on Old Technologies or MRT Terminal Equipment that does not support VoLTE calls (for MRT Terminal Equipment
              cellular handset types) including M2M/IOT terminal equipment that does not support NB-IOT and/or LTE-M technologies.

          
	
            2.

          	
            Starting from January 1, 2023, the Licensee will not connect an Applicant or a Subscriber that possesses Old Equipment to the Licensee's network,
              except the Security Forces, as defined in section 13 of the Law, for which the Director shall determine that the provisions of this section will not apply to them. It should be clarified that the Licensee must continue to provide Service to a
              Subscriber that on January 1, 2023 was connected to the network by Old Equipment, including a Subscriber that ported to another licensee's network, until the date of cessation of service.

          
	
            3.

          	
            The Licensee will cease providing voice service through 2nd Generation technology to a Subscriber that has Old Technology and will
              cease providing service through 3rd Generation technology to a Subscriber that has Old Technology, as of the Service Cessation Date.

          
	
            4.

          	
            The Licensee shall cease providing Service to a Subscriber that has M2M equipment which is Old Equipment on 2nd Generation technology
              ("M2M Equipment that is Old Equipment"), as of the Service Cessation Date.

          

    

      

      2 Amendment No. 115

    

    
      
        

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

    

    

    	
            5.

          	
            Service cessation on a date earlier than the Service Cessation Date:

          
	
            5.1

          	
            The Licensee may request from the Director to cease providing Service to a Subscriber that has Old Equipment, including M2M Equipment that is Old
              Equipment, at an earlier date that the Service Cessation Date, however not before 1.1.2025, subject to the following cumulative conditions:

          
	 	
            a.

          	
            The total amount of Old Equipment connected to the Licensee's network constitutes 5% or less of all of
              the Terminal Equipment connected to the Licensee's network.

          
	 	
            b.

          	
            The Licensee completed stage D of the 4th Generation deployment, in accordance with the Director's notice as set forth in Appendix E
              of the License.

          
	
            5.2

          	
            The Licensee's said application will be sent in writing to the Director, at least 30 days before the date he wishes to cease providing the said
              Service, together with references of compliance with the conditions set forth in sub-sections (a) and (b).

          
	
            6.

          	
            Publication regarding cessation of connecting Old Equipment and service cessation

          
	
            6.1

          	
            The Licensee will publish, in at least three of the largest daily newspapers in the country, one of which is in Arabic, a notice informing the
              public of the expected dates for discontinuing the connection of Old Equipment to the network; for cessation of provision of service to a Subscriber that has Old Equipment including a Subscriber that has M2M Equipment that is Old Equipment. The notice should be published on the Friday after the Friday that is closest to the Announcement day of Cessation of the Service.

          
	
            6.2

          	
            Starting from one week from the Announcement day of Cessation of the Service and for 60 days after the date of cessation of the service, the
              Licensee will display on its homepage of its website, in a clear place and manner, details regarding the expected dates for discontinuing the connection of Old Equipment to the network, including M2M equipment that is Old Equipment; for
              discontinuing provision of service for old technologies and the services that are provided through them to its subscribers, and the discontinuing of service to subscribers that have M2M equipment that is Old Equipment. The Licensee will also
              display on its homepage of its website a link through which the subscriber can check compatibility of its equipment to the advanced technologies and it will detail the handset models that do not support the advanced technologies.

          
	
            6.3

          	
            Starting from one month from the Announcement day of Cessation of the Service and until the date of the actual cessation of the service, the
              Licensee will notify the subscribers with Old Equipment and M2M equipment that is Old Equipment, of the cessation of the service for old technologies on the following dates and through the following means:

            •          In the monthly
                bill-once a year;

            •          By a voice
                message and an SMS (insofar as the handset support this)-once every six (6) months. Insofar as the subscriber is not registered for receiving messages, the notification will be executed by IVR to the subscriber in a format similar to the
                SMS.

          
	
            6.4

          	
            The Licensee will publish, in at least three of the largest daily newspapers in the country, one of which is in Arabic, on a Friday that is
              closest to a date that is less than 30 days from January 1, 2023, a notice in which it will notify the public regarding discontinuing the connection of Old Equipment to the network, including M2M equipment that is Old Equipment.

          
	
            6.5

          	
            The Licensee will publish, in at least three of the largest daily newspapers in the country, one of which is in Arabic, on a Friday that is
              closest to a date that is less than 30 days from the Service Cessation Day and the day of service cessation to a subscriber with M2M equipment that is Old Equipment, a notice in which it will notify the public regarding cessation of the
              network activity and the services that are provided to its subscribers through it.

          

    

    

    
      
        

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

    

    

    3Appendix T-Examination of compliance with engineering conditions set forth in regulation
        2 of the Wireless Telegraph Regulations (Licenses, Certificates and Fees) (Amendment and Temporary Provision), 2020

    

    

    	

          	1.	
            The following phrases and terms shall have the meaning as set forth below:

          

    

    

    	
            1.1

          	
            "Reduced Fee" - A fee that the Licensee pays in accordance with the provisions of regulation 2(b) of the Wireless Telegraph Regulations (Licenses, Certificates and Fees) (Amendment and
              Temporary Provision), 2020 during the reduced period.

          
	
            1.2

          	
            "Notice regarding non-compliance with the engineering terms"- a written notice from the Director that confirms that the Licensee has not complied with the Engineering Terms that Entitle it to
              a Reduced Fee in accordance with the provisions of regulation 2 of the Regulations;

          
	
            1.3

          	
            "Record Date" -Thursday-29.9.2020;

          
	
            1.4

          	
            "Director" – as defined in the Ordinance;

          
	
            1.5

          	
            " the Engineering Terms that Entitle it to a Reduced Fee"-the terms set forth in regulation 2 of the Regulations;

          
	
            1.6

          	
            "Reduction Period"- a period of 4 years that commences on the Record Date, and until 28.9.2024;

          
	
            1.7

          	
            "Regulations"- the Wireless Telegraph Regulations (Licenses, Certificates and Fees) (Amendment and Temporary Provision), 2020.

          

    

    

    	

          	2.	
            During the Reduction Period, the Director shall examine annually the Licensee's compliance with the engineering terms that entitle the Licensee to a Reduced Fee for
              that year as set forth below:

          

    

    

    	
            2.1

          	
            The Licensee shall report to the Ministry, no later than August 15 each year4 of Cellular Radio Bases that allow the provision
              of MRT services with an aggregate bandwidth of 45 Mhz at each of the bases, and with respect to the rate from the total amount of voice calls on the Licensee's network that occurred over the first five working days in the month of August that
              year that are executed through VoLTE; and all in accordance with their numbers and the appropriate rate each year-in the format detailed in form A attached to this Appendix. The Licensee shall attach to the report and affidavit signed by the
              Chief Operating Officer and by the Vice President that is serving in the Licensee in the position of Director of Engineering or Technologies, in the format detailed in form B. The report must be sent to the director of communications
              (cellular) in the engineering department at the Ministry of Communications at mocengineering@moc.gov.il

             

          
	
            2.2

          	
            Engineering tests for the operation of Cellular Radio Bases that allow the provision of MRT services with an aggregate bandwidth of 45 Mhz at each of the bases, and examination of the
              percentage of voice calls through VoLTE, will be done at the Licensee's control center. The Licensee or someone on its behalf will present to the Director or someone on his behalf from the employees of the office, information regarding the
              operation of Cellular Radio Bases that allow the provision of MRT services with an aggregate bandwidth of 45 Mhz and information regarding calls made through VoLTE. An office employee that has been authorized in accordance with section 11A of
              the Ordinance may request additional information from the Licensee or someone on its behalf.

          

    

    

    	

          	3.	
            The Director or someone on his behalf from the office employees may perform additional tests, in accordance at their discretion, to examine the Licensee's compliance
              with the engineering conditions for eligibility for a reduced fee as necessary and to make use, among others, of the tests and measurements that will be conducted by anyone authorized in accordance with section 11A of the Ordinance.

          

    

    

    	

          	4.	
            The engineering tests at the Licensee's control center or additional tests, insofar as they will be conducted, will be done during the month of September of that
              year.

          

    

    

    	

          	5.	
            This appendix will be effective until the end of the Reduction Period.

          

    
      

      

      

      

      3 Amendment No. 118

      4 15.8.2021, 15.8.2022,
        15.8.2023 and 15.8.2024

      

      

      
        
          

      

    

    
      Translation from Hebrew

      The Binding version is the Hebrew version

    

    

    Form A-format for reporting to the office

    

    

  

  
    
      

  

  
    Translation from Hebrew

    The Binding version is the Hebrew version

    

    

    Form B

    

    

    Supporting affidavit for the Licensee's reports regarding the fulfillment of the engineering conditions for eligibility for a reduced
      fee for the year___ [the Licensee shall complete in accordance with the relevant year]

    

    

    In this affidavit-

    "the engineering conditions for eligibility for a reduced fee"- the conditions sets forth in Regulation 2(b)___[the Licensee shall complete the relevant
      section in accordance with the affidavit period] of the Wireless Telegraph Regulation  (Licenses, Certificates and Fees) (Amendment and Temporary Order)-2020;

    

    

    "Reduced Fee" – a fee paid by the Licensee in accordance with Regulation 2(b) of the Wireless Telegraph Regulation  (Licenses, Certificates and Fees)
      (Amendment and Temporary Order)-2020 during the Reduction Period, as defined in these regulations, that commence on 29.9.202 and end on 28.9.2024.

    

    

    I_____ the undersigned, the Chief Operating Officer and _____the Vice President Engineering/Technologies of the Company, hereby confirm that declare on
      behalf of _____ that:

    

    

    	

          	1.	
            To the best of our knowledge, and after personally examining all of the information required for the matter, the Company ____[fill in name of company] operated at least [fill in a number] Cellular Radio Bases on the 4G MRT network that
              allow for the provision of MRT services by using radio bandwidths with an aggregate bandwidth of 45 Mhz at each of the bases. In addition,  [add a percentage] of all voice calls on the Licensee's network during the first five work days of the
              months on August 20215 were done through VoLTE.

          

    

    

    	

          	2.	
            All of the attached information in Form A is accurate and true, in accordance with my personal examination.

          

    

    

    CEO:_______________

    

    

    VP Engineering/Technologies:_______________

    

    

    Date:________________

    

    

    I confirm that on___, Mr.____ I.D.____appeared before Adv.____, and after being warned that he must tell the truth and that he
      will subject to punishment by law if he does not do so, confirmed the accuracy of the above affidavit and signed before me____,Adv.

    

      

    5 August 2021, August 2022,
      August 2023 and August 2024

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