Document:

Exhibit
4.5

    
      

       

      
        	  

                TRANSLATION
      FROM HEBREW

                THE
      BINDING VERSION IS THE HEBREW VERSION

                 

              

      

       

       

      Deed
of Trust

       

      Made
and signed in Netanya on March 31, 2009

       

       

      Between:

       

      Cellcom
Israel Ltd.

      of 10
Hagavish Street, Netanya

      (hereinafter:
“the
Company”)

       

      of
the one part;

       

       

      And:

       

      Hermetic
Trust (1975) Ltd.

      Private
company no. 51-070519-7

      of 113
Hayarkon St., Tel Aviv

      Telephone:
03-5274867

      Fax:
03-5271736

      Email:
hermetic@hermetic.co.il

      Contact:
Meirav Ofer Oren, joint CEO

      (hereinafter:
“the
Trustee”)                                                                                              of the other
part:

       

      
        	
                Whereas:

              	
                The
      board of the Company decided, on March 30, 2009, to publish a Shelf
      Prospectus under which the Company may, inter alia, issue series of
      Debentures that would be titled series E through I and series 1
      through 2, in the manner described in this Deed of
  Trust;

              
	 	 
	
                Whereas:

              	
                The
      Trustee is a limited shares company that has been incorporated and
      registered in Israel according to the Companies Ordinance, whose principal
      goal is to engage in Trust; and

              
	 	 
	
                Whereas:

              	
                The
      Trustee has declared that there is no impediment in accordance with the
      Securities Law 5728 – 1968 or any other law to its entering into an
      engagement with the Company pursuant to this Deed of Trust, and that it
      fulfills all of the requirements and conditions for competency stated in
      the Securities Law to serve as a trustee for the issue of the Debentures
      covered by the Prospectus; and

              
	 	 
	
                Whereas:

              	
                The
      Company has requested that the Trustee serve as the trustee for the
      Debenture Holders, and the Trustee has agreed thereto, subject to the
      terms of this Deed of Trust;

              

      

       

      Now
therefore it has been agreed, declared and stipulated between the parties as
follows:         

       

      
        	1.  	Preamble, interpretation and
      definitions
	 	 	 
	 
      	
                1.1

              	
                The
      preamble to this Deed of Trust and the appendices attached hereto
      constitute a

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	 	material and
      integral part hereof
	 	 	 
	 
      	
                1.2

              	
                The
      division of this Deed and Trust into sections and the titling of the
      sections are for the sake of convenience and as references only and may
      not be used for construction purposes.

              
	 	 	 
	 
      	
                1.3

              	
                The
      provisions hereof in plural apply to singular and vice versa; the
      provisions hereof in masculine gender apply to feminine and vice versa,
      and all statements regarding natural persons also refer to corporations,
      wherever this Deed does not implicitly and/or explicitly state otherwise
      and/or if the content of context of the statements does not necessitate
      otherwise.

              
	 	 	 
	 
      	
                1.4

              	
                The
      provisions of this Deed of Trust shall apply specifically to each of the
      series of Debentures (as defined below) and the Debentures in each of the
      series shall be hereinafter referred to as “the Debentures”, all -
      unless otherwise stated or implied by the
  context.

              

      

       

      
        
          In this
Deed of Trust
and in the Debentures (Series E through I and series 1 through 2), the following
expressions will have the meaning beside them, unless another meaning is implied
by the content or context of the statements:

        

      

      
      

       

      
        	 
      	
                “This Deed” or the
      “Deed of
      Trust”

              	
                –

              	
                This
      Deed of Trust, including the appendices attached hereto, which constitute
      an integral part hereof;

              
	 	 	 	 
	 
      	
                The “Prospectus” or the
      “Shelf
      Prospectus”

              	
                –

              	
                The
      shelf prospectus of the Company that will be published, inter alia, for the
      Debentures;

              
	 	 	 	 
	 
      	
                The “Shelf Offer Report”
      or the “Offer
      Report”

              	
                –

              	
                The
      shelf offer reports that will be published under the Shelf Prospectus, in
      accordance with the provisions of Section 23A(f) of the Securities
      Law, 5728 – 1968, wherein all the details that are specific to such offer
      will be completed, including the composition of the offered units, under
      the provisions of any law and in accordance with the Code and guidelines
      of the Tel Aviv Stock Exchange, prevailing at such
time;

              
	 	 	 	 
	 
      	
                “The
      Series of Debentures”

              	
                –

              	
                Series
      that would be titled series E through I and/or series 1 through 2 of
      debentures, registered to name, the terms of each would be determined in
      accordance with the Debenture Certificate of that series and the Initial
      Offer Report of the debentures in that series, as shall be issued from
      time to 

              

      

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	time by the Company
      at its sole discretion;
	 	 	 	 
	 
      	
                The
      “Trustee”

              	
                –

              	
                Hermetic
      Trust (1975) Ltd. and/or any party serving from time to time as a trustee
      of the Debenture Holders pursuant to this deed;

              
	 	 	 	 
	 
      	
                “Register”

              	
                –

              	
                Register
      of the Debenture Holders as stated in Section 26
hereof;

              
	 	 	 	 
	 
      	
                The “Debenture Holders”
      and/or the “Debenture
      Owners”

              	
                –

              	
                Anyone
      holding the Debentures;

              
	 	 	 	 
	 
      	
                The
      “Debenture Certificate”

              	
                –

              	
                A
      Debenture certificate whose form appears as
      the first addendum to this deed;

              
	 	 	 	 
	 
      	
                The “Law” or the “Securities
      Law”

              	
                –

              	
                The
      Securities Law, 5728 – 1968 and the regulations thereby, as effective from
      time to time;

              
	 	 	 	 
	 
      	
                “Business day” or “Banking Business
      Day”

              	
                –

              	
                A
      day on which most of the banks in Israel are open for conducting
      transactions;

              
	 	 	 	 
	 
      	
                “Principal”

              	
                –

              	
                The
      outstanding par value of the Debentures in the relevant
      series;

              
	 	 	 	 
	 
      	
                The
      “Consumer Price Index” (“Index”)

              	
                –

              	
                The
      price index known by the name of "the Consumer Price Index", which
      includes fruit and vegetables, as published by the Central Bureau of
      Statistics and Economic Research, as shall be composed from time to time,
      including that index even if published by another official body or
      institute, and including any official index that replaces it, whether
      composed of the same data as the existing index or not. If it is replaced
      by another index that is published by such a body or institute, and that
      body or institute did not determine the ratio between it and the index
      thus replaced, the ratio will be determined by the Central Bureau of
      Statistics, and in the case of such a ratio not being determined, it will
      be determined by the Trustee for the relevant series, following
      consultation with economic 

              

      

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	experts of his
      choice; 
	 	 	 	 
	 
      	
                The “Known Index” on a
      given date

              	
                –

              	
                The
      last known index;

              
	 	 	 	 
	 
      	
                The
      “Basic Index”

              	
                –

              	
                The
      index known on a given date, which would be published in the Offer Report
      under which any series of debentures is initially
  offered;

              
	 	 	 	 
	 
      	
                The
      “Payment Index”

              	
                –

              	
                The
      consumer price index known on the date of making any payment on the
      account of the principal and/or the interest.

                The
      Initial Offer Report of the debentures in the relevant series, which are
      linked to the Index, will specify whether the principal and/or the
      interest of the debentures is secured (i.e. in the event that the known
      index on the date scheduled for the relevant payment is less than the
      basic index, the payment index shall be the basic index) or unsecured
      (i.e. the payment index shall be the known index on the date scheduled for
      the relevant payment, even if this index is less than the basic
      index);

              
	 	 	 	 
	 
      	
                “Trade
      Day”

              	
                –

              	
                A
      day on which transactions are executed on the Stock
    Exchange;

              
	 	 	 	 
	 
      	
                The
      “Stock Exchange”

              	
                –

              	
                The
      Tel Aviv Stock Exchange Ltd.;

              
	 	 	 	 
	 
      	
                “Meeting”

              	
                –

              	
                A
      meeting of the Debenture Holders, including a class
    meeting;

              
	 	 	 	 
	 
      	
                “Class
      Meeting”

              	
                –

              	
                A
      meeting of the Debenture Holders, who have an interest that is materially
      different from the interest of other Debenture Holders on the matter that
      is being discussed in the meeting;

              
	 	 	 	 
	 
      	
                “The
      Nominee Company”

              	
                –

              	
                The
      Israel Discount Bank Nominees Ltd.

              
	 	 	 	 
	 
      	
                “Foreign
      Currency”

              	
                –

              	
                Not
      more than one currency per each series of debentures, as shall be
      specified in the Initial Offer Report of the

              

      

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	Debentures in the
      relevant Series; 
	 	 	 	 
	 
      	
                “Foreign
      Currency Exchange Rate”

              	
                –

              	
                The
      representative exchange rate of the foreign currency published by the Bank
      of Israel, or any official exchange rate of the foreign currency in
      relation to Israeli currency that shall supersede the aforesaid
      representative exchange rate and that shall be applicable at such time
      with respect to government bonds that are linked to the exchange rate of
      the foreign currency;

              
	 	 	 	 
	 
      	
                The “Known Exchange
      Rate” on any date

              	
                –

              	
                The
      latest exchange rate determined by the Bank of Israel prior to such date.
      However, during a period in which the Bank of Israel does not customarily
      determine a representative exchange rate, the known exchange rate shall be
      the rate most recently determined by the Minister of Finance together with
      the Governor of the Bank of Israel for government bonds that are linked to
      the exchange rate of the foreign currency.

              
	 	 	 	 
	 
      	
                The
      “Basic Exchange Rate”

              	
                –

              	
                The
      known exchange rate on a given date, which shall be determined in the
      Initial Offer Report of the Debentures in the relevant
    Series;

              
	 	 	 	 
	 
      	
                The
      “Payment Exchange Rate”

              	
                –

              	
                The
      known exchange rate on the actual date of payment;

              
	 	 	 	 
	 
      	
                “Prime Interest Rate” on
      any given date

              	
                –

              	
                The
      interest rate derived from the average of the basic debit interest rate
      offered at such date by the four (4) major banks in
  Israel.

              
	 	 	 	 
	 
      	
                “Telbor Interest Rate”
      on any given date

              	
                –

              	
                Tel
      Aviv Interbank Offered Rate - The interest rate for interbank loans, which
      is calculated based on interest bids submitted by several banks in Israel,
      for a period that shall be determined in the Initial Offer Report of the
      Debentures in the relevant Series, and that appears on the Reuters data
      distribution system on Mondays through Thursdays at 13:00 or shortly
      thereafter and on Fridays at 12:00 or shortly thereafter or on any other
      source of information that shall be specified in the Initial Offer Report
      of the Debentures in the relevant
Series.

              

      

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                “Libor Interest Rate” on
      any given date

              	
                –

              	
                The
      interest rate offered on such date on the interbank market in London for
      dollar deposits for a period that shall be determined in the Initial Offer
      Report of the Debentures in the relevant Series (week, month, six months
      etc.), as quoted at 11:00 London time or shortly thereafter on the Libor01
      Page published by the Reuters News Agency or, if this Page is replaced, as
      quoted at such time or shortly thereafter on the replacement
      page.

              
	 	 	 	 
	 
      	
                “Euribor Interest Rate”
      on any given date

              	
                –

              	
                Euro
      Interbank Offered Rate - The interest rate offered on such date on the
      interbank market for euro deposits for a period that shall be determined
      in the Initial Offer Report of the Debentures in the relevant Series, as
      quoted at 11:00 London time or shortly thereafter on the Euribor01 Page
      published by the Reuters News Agency or, if this Page is replaced, as
      quoted at such time or shortly thereafter on the replacement page, or on
      any other source of information that shall be specified in the Initial
      Offer Report of the Debentures in the relevant Series.

              
	 	 	 	 
	 
      	
                The “Basic Interest Rate”
      on any given date

              	
                –

              	
                The
      Libor or the Telbor or the Euribor or the Prime or any other basic
      interest rate that may be selected by the Company, as shall be determined
      in the Initial Offer Report of the Debentures in the relevant
      Series.

              

      

       

      
        	2.	Issuance
      of the Debentures and the Applicability of the Deed of
      Trust
	 	 	 
	 
      	
                2.1

              	
                The
      Company shall be entitled to issue:

              
	 	 	 	 
	 
      	 
      	
                2.1.1

              	
                Up
      to 5 series of Debentures (series E through I), each with a par value of
      up to NIS 2,000,000,000, registered to name and repayable (principal)
      in a number of installments that shall not fall below one and shall not
      exceed ten (10) annual installments, or that shall not fall below one and
      shall not exceed twenty (20) semi-annual installments that shall be
      consecutive and equal (with the exception of the first or the last
      installment, that may be set at a different rate) and shall be payable in
      each of the years, all as shall be specified in the Offer Report under
      which each of the Series of Debentures (“The Debentures Series E
      through I”) is initially offered. The linkage basis (or the absence
      thereof) and the type of interest (or the absence thereof) applicable to
      the principal of the Debentures in each of the aforementioned series that
      is issued will be specified 

              

      

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	in the Offer Report
      under which the aforesaid Debentures are initially offered. For details of
      the linkage bases of the Debentures in Series E through I allowed by the
      Shelf Prospectus and for details of the types of interest allowed by the
      Shelf Prospectus, see Sections 3 and 4 to the terms listed in the
      overleaf, respectively. The interest rate that shall be applicable to the
      principal of the Debentures in each of the aforementioned series that may
      be issued under the Shelf Prospectus, or the margin above or below the
      basic interest that shall be applicable to the principal of the Debentures
      in each of the aforementioned series, as appropriate, will be specified in
      the Offer Report under which these Debentures are initially offered, or
      will be determined in a bid pursuant to which the Debentures would be
      initially offered.  The interest, if any, on the principal of
      the Debentures in Series E through I will be payable every year in one
      annual installment or in two semi-annual installments or in four quarterly
      installments, all as shall be stipulated in the Offer Report under which
      these Debentures are initially offered. The dates and the number of the
      principal payments, the linkage basis (or the absence thereof), the type
      of interest, the interest rate or the manner of its determination and the
      dates of payment of the interest (or the absence of interest) with respect
      to the Debentures in Series E through I, as shall be specified in the
      Offer Report under which each of the aforesaid Series of Debentures is
      initially offered, will be determined by the Company shortly before the
      initial offering of the Debentures in the relevant Series. As to the
      Company’s right for the early redemption of the Debentures in Series E
      through I, see Section 6 to this Deed.
	 	 	 	 
	 
      	 
      	
                2.1.2

              	
                Up
      to 2 series of Debentures (series 1 through 2), each with a par value of
      up to NIS 2,000,000,000, registered to name and repayable (principal)
      in a number of installments that shall not fall below one and shall not
      exceed ten (10) annual installments, or that shall not fall below one and
      shall not exceed twenty (20) semi-annual installments that shall be
      consecutive and equal (with the exception of the first or the last
      installment, that may be set at a different rate) and shall be payable in
      each of the years, all as shall be specified in the Offer Report under
      which each of the Series of Debentures (“The Debentures Series 1
      through 2”) is initially offered. The linkage basis (or the absence
      thereof) and the type of interest (or the absence thereof) applicable to
      the principal of the Debentures in each of the aforementioned series that
      is issued will be specified in the Offer Report under which the aforesaid
      Debentures are initially offered. For details of the linkage bases of the
      Debentures in Series 1 through 2 allowed by the Shelf Prospectus and for
      details of the types of interest allowed by the Shelf Prospectus, see
      Sections 3 and 4 to the terms listed in the
  overleaf,

              

      

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	respectively. The
      interest rate that shall be applicable to the principal of the Debentures
      in each of the aforementioned series that may be issued under the Shelf
      Prospectus, or the margin above or below the basic interest that shall be
      applicable to the principal of the Debentures in each of the
      aforementioned series, as appropriate, will be specified in the Offer
      Report under which these Debentures are initially offered, or will be
      determined in a bid pursuant to which the Debentures would be initially
      offered.  The interest, if any, on the principal of the
      Debentures in Series 1 through 2 will be payable every year in one annual
      installment or in two semi-annual installments or in four quarterly
      installments, all as shall be stipulated in the Offer Report under which
      these Debentures are initially offered. The dates and the number of the
      principal payments, the linkage basis (or the absence thereof), the type
      of interest, the interest rate or the manner of its determination and the
      dates of payment of the interest (or the absence of interest) with respect
      to the Debentures in Series 1 through 2, as shall be specified in the
      Offer Report under which each of the aforesaid Series of Debentures is
      initially offered, will be determined by the Company shortly before the
      initial offering of the Debentures in the relevant Series. The Debentures
      in Series 1 through 2 shall be convertible into ordinary shares of the
      Company existing at the date of publication of the Initial Offer Report
      for each of the aforesaid series, at any day on which trade is held on the
      Stock Exchange, commencing on the day on which these Debentures are listed
      for trade on the Stock Exchange until a few days prior to the end of the
      term of the Debentures in that series, with the exception of a number of
      days preceding the determinant date for partial redemption in accordance
      with the guidelines of the Stock Exchange on the date of the Initial Offer
      Report for each of the aforesaid series, until the date on which the
      redemption is executed, this at a rate of conversion that shall not fall
      below the par value of the ordinary shares of the Company on the date of
      the Initial Offer Report of the Debentures in Series 1 though 2,
      subject to adjustments as described in Section 5.3 of the terms
      listed in the overleaf, all in the manner and under the conditions that
      shall be stipulated in the Initial Offer Report of the Debentures in each
      of the aforementioned series, in accordance with the details determined in
      this respect by the Company shortly before the initial offering of the
      Debentures in the relevant series. As to the Company’s right for the early
      redemption of the Debentures in Series 1 through 2, see Section 6 to
      this Deed.
	 	 	 	 
	 
      	 
      	
                2.1.3

              	
                In
      the event that, subsequent to the date of the initial offering of the
      Debentures in the aforesaid series, these Series of Debentures are
      expanded by the Company, the Holders of Debentures in those series that
      are issued in the 

              

      

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	framework of the
      expansion of the series will not be entitled to receive a payment on
      account of the interest on the Debentures in respect of interest periods
      that had ended prior to their issuance by the Company as aforesaid, and/or
      to receive payment on account of the principal and/or interest in respect
      of said Debentures, that had been paid by the Company prior to their
      issuance as aforesaid. 
	 	 	 	 
	 
      	
                2.2

              	The
      Company intends to publish a Shelf Prospectus not later than
      April 30, 2009, under which the Company shall be entitled to issue
      the Debentures to the public by way of Shelf Offer Reports (this section
      does not derogate from the Company’s right to offer Debentures under other
      Prospectuses and/or private placements, or in any other way under any
      law).
	 	 	 	 
	
                2.3

              	It
      is clarified that if, on the date of publication of any Offer Report the
      Trustee serves as trustee for another Series of Debentures of the Company
      and/or the Offer Report relates to more than one Series of Debentures, the
      possibility of the Trustee acting as Trustee for the additional Series of
      Debentures would be considered in light of the directives of the
      Securities Authority and/or the laws in force at such time. If another
      Trustee is appointed for any Series of Debentures as a result of the
      aforesaid, the details of such Trustee will be published in the framework
      of the relevant Offer Report.

      

       

      
        	3.	Terms
      of the Issuance; Self-Purchase
	 	 	 
	 
      	
                3.1

              	
                The
      Company shall issue the Debentures according to the conditions specified
      in the Prospectus and in the Offer Report under which the Debentures are
      initially offered.

              
	 	 	 
	 
      	
                3.2

              	
                The
      Company reserves the right to purchase at any time, within or without the
      Stock Exchange, Debentures at any price of its choosing, without prejudice
      to the obligation of repayment of the Debentures remaining in circulation
      as specified above. The Debentures that will be purchased by the Company
      will be cancelled and delisted from trade on the Stock Exchange, and the
      Company will not be allowed to re-issue them. If the purchase of the
      Debentures by the Company is carried out as part of the trade on the Stock
      Exchange, the Company will apply to the Stock Exchange Clearing House to
      withdraw the relevant Debentures.

              
	 	 	 
	 
      	
                3.3

              	
                A
      subsidiary of the Company and/or the controlling share Holder and/or
      companies under the control of the controllers of the controlling share
      Holder of the Company (“Affiliated Company”)
      are allowed to purchase and/or sell from time to time within or without
      the Stock Exchange, including by way of issuance by the Company,
      Debentures at any price of their choosing and sell them accordingly. The
      Debentures thus held by the Affiliated Company will be considered as an
      asset of the Affiliated Company, and if they are listed for trading, they
      will not be delisted from trade on the Stock
  Exchange.

              

      

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	 
      	
                On
      the matter of holding Meetings of Holders of Debentures, the provisions of
      Section 2.19 of the second addendum to this Deed will
      apply.

              
	 	 	 
	 
      	
                3.4

              	
                The
      Company is allowed, at any time and from time
      to time, without needing the consent of the Debenture Holders or the
      Trustee, to issue, including to an Affiliated Company, Debentures of a
      different type and/or of different series and/or other Debentures
      securities, whether secured or unsecured, whether granting a right of
      conversion into shares of the Company or not granting such right, whether
      by public offering pursuant to a prospectus, by private placement, by a
      Shelf Offer Report or otherwise, under terms of redemption, interest,
      linkage, discounting, repayment rate in the case of liquidation and other
      conditions, as the Company sees fit, whether they are preferable to the
      terms of the Debentures issued pursuant to the prospectus, equal to them
      or inferior to them.

              
	 	 	 
	 
      	
                3.5

              	
                Without
      derogating from the foregoing, the Company is allowed, at any time and
      from time to time, without needing the consent of the Debenture Holders or
      the Trustee of each of the series, to issue, including to an Affiliated
      Company, additional Debentures from the Series offered under the Shelf
      Prospectus. The additional Debentures that will be issued, to the extent
      issued, including their conditions and resulting rights, will be identical
      and as the existing Debentures in the same series, and will together
      constitute one series for all purposes (it is clarified that in the case
      of such issuance, the offerees to which additional Debentures will be
      issued will not be entitled to payment of principal and/or interest whose
      determinant payment date preceded the issuing date). The provisions of the
      Deed of Trust of the relevant series will apply to these additional
      Debentures. The Company will publish an immediate report on such an
      issuance of additional Debentures and will apply to the Stock Exchange in
      an application to list these additional for trading these additional
      Debentures therein. In the case of expansion of the series of the
      Debentures as above, the fee of the Trustee shall be increased in
      proportion to the increase of the size of the series.

              
	 	 	 
	 
      	 
      	
                The
      Company shall inform the Trustee and the Debenture Holders of the issue of
      these additional Debentures.

              
	 	 	 
	 
      	 
      	
                This
      right of the Company does not exempt the Trustee from examining such an
      issuance, to the extent that such a duty is imposed on the Trustee by law,
      and it does not derogate from the rights of the Trustee and of the Meeting
      of the Debenture Holders according to the Deed of Trust, including their
      right to make the Debentures immediately repayable as stated in
      Section 16 of the terms listed in the overleaf.

              
	 	 	 
	 
      	
                3.6

              	
                The
      Company reserves the right to allocate the Debentures following an
      expansion of the series at a different discount rate (higher or lower)
      than the discount rate of the Debentures then in circulation (including
      due to issuance at a price that reflects a

              

      

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	different discount
      rate). The discounted allocation of the Debentures originating from
      expansion of the series of the Debentures at a rate exceeding the discount
      rate established for the Debentures before the expansion may adversely
      affect the state of the Debenture Holders.
	 	 	 
	 
      	
                3.7

              	
                The
      provisions of this Section 3 above itself do not bind the Company or the
      Debenture Holders to purchase Debentures or sell the Debentures in their
      possession.

              
	 	 	 
	 
      	
                3.8

              	
                Wherever
      the rules of the Stock Exchange apply or will apply to any action
      according to this Deed of Trust, they will have preference over the
      provisions hereof, and the dates of such an action will be determined in
      accordance with the rules of the Stock
Exchange.

              

      

       

      
        	4.	Undertakings
      of the Company
	 	 	 
	 
      	
                4.1

              	
                The
      Company undertakes hereby towards the Debenture Holders, through the
      Trustee, to pay, on the dates set thereto, all of the sums of the
      principal, the interest and the linkage differences that will be payable
      pursuant to the terms of the Debentures, and fulfill all of the other
      conditions and undertakings imposed thereupon pursuant to the terms of the
      Debentures and this Deed.

              
	 	 	 
	 
      	
                4.2

              	
                The
      Company hereby warrants that the capital raised that it will hold until
      the date of their use according to the designation of the issuance
      remuneration as stated in the relevant Shelf Offer Report, will be
      deposited and invested by the Company as it deems fit, as long as each
      investment is made in solid channels, including, but not limited to, an
      interest-bearing monetary deposit, a foreign currency deposit, Debentures
      with a rating of not less than BBB-, and so on. For this purpose, an
      investment in shares or basket certificates whose base asset is shares or
      share indices or options in the Maof or the purchase or writing of
      positions in derivatives, will not be considered as an investment in solid
      channels.

              

      

       

      
        	
                5.

              	Securing
      of the Debentures
	 	 	 
	 
      	
                5.1

              	
                The
      Debentures may or may not be secured by collateral, any pledge or
      otherwise. Information concerning the Debentures’ securing mechanism, if
      secured by collateral, any pledge or otherwise, will be provided in the
      Initial Shelf Offer Report for each of the relevant Series of
      Debentures.

              
	 	 	 
	 
      	
                5.2

              	
                Unless
      otherwise stated in the Initial Shelf Offer Report for each of the
      relevant Series of Debentures, the Company shall be allowed to pledge its
      assets, in part or in full, by any pledge and in any way, including to any
      third party, without the need for any consent from the Trustee and/or the
      Debenture Holders in any of the Series. Additionally, the Company will be
      allowed to sell, lease, assign, deliver or transfer in any other way its
      assets, in part or in full, in any way, for benefit of any third party,
      

              

      

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	without the need for
      any consent of the Trustee and/or the Debenture Holders in any of the
      Series.
	 	 	 
	 
      	
                5.3

              	
                For
      the removal of doubt, it is clarified that the Trustee has no duty to
      examine, and in fact the Trustee will not examine, the need for providing
      collateral for securing the payments to the Debenture Holders. In its
      entering the engagement in this Deed of Trust, and with the consent of the
      Trustee to serve as the trustee for the Debenture Holders, the Trustee
      does not express its opinion, implicitly or explicitly, as to the ability
      of the Company to fulfill its undertakings towards the Debenture Holders
      in any of the Series.

              
	 	 	 
	 
      	 
      	
                For
      the removal of doubt, it is clarified that if the Company’s undertakings
      towards the Debenture Holders are secured by any collateral, the Trustee
      has no duty to examine, and in fact the Trustee will not examine, the
      value of the collateral. In its entering the engagement in this Deed of
      Trust, and with the consent of the Trustee to serve as the trustee for the
      Debenture Holders, the Trustee does not express its opinion, implicitly or
      explicitly, as to the value of the collateral, to the extent that
      collateral is provided, or as to the ability of the Company to fulfill its
      undertakings towards the Debenture Holders in any of the Series. In the
      event that the Debentures are secured by any collateral, the fee of the
      Trustee shall be increased as shall be agreed between the Company and the
      Trustee. The Trustee has not been requested to perform, and in fact has
      not performed a financial, accounting or legal due diligence as to the
      state of affairs of the Company or the subsidiaries and will not perform
      such due diligence when a series is taken off the
shelf.

              
	 	 	 
	 
      	 
      	
                The
      foregoing does not derogate from the duty of the Trustee by law and/or
      Deed of Trust, nor does it derogate from the duty of the Trustee (to the
      extent that this duty applies to the Trustee according to any law) to
      examine the effect of changes in the Company from the date of the
      Prospectus onwards, to the extent that these may adversely affect the
      ability of the Company to fulfill its undertakings to the Debenture
      Holders in any of the Series.

              
	 	 	 
	 
      	
                5.4

              	
                The
      Debentures in any of the Series will be in an equal pari passu degree of
      security among themselves concerning the undertakings of the Company
      pursuant to the Debentures of the same Series, without precedence or
      preference over each other.

              

      

       

      
        	
                6.

              	Early
      redemption
	 	 	 
	 
      	
                6.1

              	
                Early
      redemption initiated by the Stock Exchange - In the event that the Stock
      Exchange decides to delist from trade therein the Debentures in any of the
      Series E through I in circulation by reason of the value of the Series
      falling below the minimum amount stipulated in the Code and guidelines of
      the Stock Exchange with respect to the

              

      

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	delisting from trade
      therein and/or in the event that the Stock Exchange decides to delist from
      trade therein the Convertible Debentures in any of the Series 1 through 2
      in circulation by reason of the public’s holdings therein falling below
      the minimum amount stipulated in the Code and guidelines of the Stock
      Exchange with respect to the delisting from trade therein, the Company
      will not allow such early redemption of the Series due to the delisting
      from trade as aforesaid, unless otherwise notified by the Company in the
      Shelf Offer Report under which the Series of Debentures is initially
      issued.
	 	 	 
	 
      	 
      	
                Should
      the Company choose to allow early redemption of the Debentures as
      aforesaid, the Company will take the following
  actions:

              

      

       

      
        	 
      	 
      	
                6.1.1

              	
                Within
      forty five (45) days of the decision of the Stock Exchange on the
      delisting from trade therein, the Company will announce a date for the
      early redemption, on which the Debenture Holder would be allowed to redeem
      the Debentures. The announcement of the date of early redemption will be
      published in two (2) widely distributed daily newspapers that are
      published in Israel in Hebrew.

              
	 	 	 	 
	 
      	 
      	
                6.1.2

              	
                The
      date of early redemption of the Debentures in Series E through I with
      respect to which a delisting decision has been made as aforesaid, shall
      not be earlier than seventeen (17) days from the date of publication of
      the announcement or later than forty five (45) days of the said date, but
      shall not fall in the period between the determinant date for the payment
      of interest and the date of its actual payment.

              
	 	 	 	 
	 
      	 
      	
                6.1.3

              	
                The
      date of early redemption of the Debentures in Series 1 through 2 with
      respect to which a delisting decision has been made as aforesaid, shall
      not be earlier than thirty (30) days from the date of publication of the
      announcement or later than forty five (45) days of the said date, but
      shall not fall in the period between the determinant date for the payment
      of interest and the date of its actual payment.

              
	 	 	 	 
	 
      	 
      	
                6.1.4

              	
                On
      the date of early redemption, the Company will redeem the Debentures from
      the Series in which the Holders have requested the redemption of the
      Debentures, at their par value, with the addition of linkage differences,
      if any, and the interest accrued on the principal, with the interest being
      calculated in proportion to the period from the last date for which
      interest has been paid to the aforesaid actual date of early redemption
      (the calculation of interest for a part of a year will be based on a
      365-day year).

              
	 	 	 	 
	 
      	 
      	
                6.1.5

              	
                The
      scheduling of a date of early redemption, as above, does note derogate
      

              

      

       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	from the redemption
      rights provided for in the Debentures of the same Series, of any of the
      Debenture Holders that do not redeem them on the date of early redemption
      as above, and in the case of Convertible Debentures, does not derogate
      from the conversion rights provided for therein, but the Debentures will
      be delisted from trade on the Stock Exchange and shall be, inter alia,
      subject to the consequent tax implications. 
	 	 	 	 
	 
      	 
      	
                6.1.6

              	
                The
      early redemption of the Debentures as aforesaid will not confer upon the
      Holder of Debentures of the same Series redeemed as above the right to
      receive interest in respect of the period subsequent to the date of
      redemption.

              
	 	 	 
	 
      	
                6.2

              	
                Early
      redemption initiated by the Company - The Company will be allowed to call
      for the early redemption of the Debentures in Series E through I and 1
      through to 2 offered under the Offer Report in accordance with the Shelf
      Prospectus, under the terms and according to the price, mechanism,
      schedules and the other terms stipulated by the Code and guidelines of the
      Stock Exchange, prevailing at such time, as shall be determined in the
      Initial Offer Report of the Debentures in the relevant
    Series.

              

      

       

      
        	
                7.

              	Immediate
      repayment
	 	 	 
	 
      	
                7.1

              	
                In
      one or more of the events enumerated below:

              
	 	 	 	 
	 
      	 
      	
                7.1.1

              	
                If
      the Company does not repay any sum that is due from it in connection to
      the Debentures within 45 days of the maturity of that
  sum.

              
	 	 	 	 
	 
      	 
      	
                7.1.2

              	
                A
      temporary liquidator has been appointed by a court, or if a valid
      resolution has been adopted to liquidate the Company (other than
      liquidation for merging with another company and/or restructuring of the
      Company) and this appointment or resolution is not cancelled within 30
      Business Days of being given.

              
	 	 	 	 
	 
      	 
      	
                7.1.3

              	
                If
      an attachment is imposed on some or all of the material assets of the
      Company and the attachment is not removed within 60
  days.

              
	 	 	 	 
	 
      	 
      	
                7.1.4

              	
                An
      execution action is carried out against a material asset of the Company,
      in part or in full, and the action is not cancelled within 90
      days.

              
	 	 	 	 
	 
      	 
      	
                7.1.5

              	
                If
      a receiver is appointed for the Company and/or some or all of its material
      assets, and the appointment is not cancelled within 90
    days.

              
	 	 	 	 
	 	 	 	 
	 
      	 
      	
                7.1.6

              	
                If
      the Company ceases the payments of the Debentures and/or announces its
      intent to cease the payments of the Debentures.

              
	 	 	 	 
	 
      	 
      	
                7.1.7

              	
                If
      the Company discontinues its business affairs or managing its business
      affairs, as they are from time to time, and/or announces its intent to
      cease in engaging in or managing its business affairs as shall be from
      time to time.

              

      

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	 
      	
                7.1.8

              	
                If
      another series of Debentures that the Company has issued is called for
      immediate repayment other than according to a resolution of the
      Company.

              
	 	 	 	 
	 
      	 
      	
                7.1.9

              	
                If
      an order for staying of proceedings is given or if a motion has been filed
      concerning the Company to make an arrangement with the creditors of the
      Company pursuant to Section 350 of the Companies Law (other than for
      merging with another company and/or restructuring of the Company) against
      the Company and this order or motion is not cancelled within 90 days of
      commencement thereof.

              
	 	 	 	 
	 
      	 
      	
                7.1.10

              	
                If
      the Company is wound up or struck for any reason.

              
	 	 	 	 
	 
      	 
      	
                7.1.11

              	
                A
      fundamental breach of the terms of the Debentures and the Deed of Trust,
      including if it is found that the undertakings of the Company in the
      Debentures or herein are incorrect and/or incomplete, provided a notice
      has been given to the Company to rectify the violation and the Company
      does not correct such a violation within 14 Business Days of issue of the
      notice, and provided that the payments to the Debenture Holders and/or the
      rights thereof are infringed or may be infringed as a
    result.

              
	 	 	 	 
	 
      	 
      	
                7.1.12

              	
                If
      there is material concern that the Company will discontinue the payments
      of the Debentures and/or there is material concern that it will cease
      managing its business affairs as shall be from time to
    time.

              
	 	 	 	 
	 
      	 
      	
                7.1.13

              	
                In
      the occurrence of any other event that constitutes material infringement
      and/or may cause material infringement of the rights of the Debenture
      Holders.

              
	 	 	 	 
	 
      	 
      	
                For
      the purposes of this entire section, "Material Asset" is an asset whose
      value in the books of the Company exceeds 20% of the income of the Company
      according to its last (audited) consolidated annual statements on the date
      of the event.

              
	 	 	 
	 
      	
                7.2

              	
                In
      the occurrence of any of the events listed in Section 7.1 above, the
      following provisions will apply:

              

      

       

      
        	 
      	 
      	
                7.2.1

              	
                (A)

              	
                In
      the case of any of the events in Sections 7.1.1 to 7.1.10 (inclusive)
      above, the Trustee will be required to call a Meeting of the Debenture
      Holders; or

              
	 	 	 	 	 
	 
      	 
      	 
      	
                (B)

              	
                In
      the case of any of the events in Sections 7.1.11 to 7.1.13 (inclusive)
      above, the Trustee will be allowed (but not required) to call a meeting of
      the Debenture Holders, but the Trustee will be required to call a Meeting
      of Holders by a written request of Holders of at least ten percent (10%)
      of the par value of the unsettled balance of the principal of the
      Debentures in circulation, as specified in Section 1.1 of the
    

              

      

       

      
        
          
          

        

        
          -15-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	 	second addendum
      hereto.

      

       

      
        	 
      	 
      	
                7.2.2

              	
                The
      date of convening the meeting, which will be called in accordance with the
      provisions of Section 7.2.1 A or B above, will be 30 days after the date
      of its calling (or a shorter term in accordance with the provisions of
      Section 7.2.5 below), whose agenda will have a resolution concerning
      calling for immediate repayment the entire unsettled balance of the
      Debentures, due to the occurrence of any of the events specified in
      Section 7.1 above, as relevant.

              
	 	 	 	 
	 
      	 
      	
                7.2.3

              	
                In
      the case that until the date of convening of the Meeting, none of the
      events specified in Section 7.1 above has been canceled or removed, and
      the Meeting of the Debenture Holders as stated resolve to call all of the
      unsettled balance of the Debentures for immediate repayment as a Special
      Resolution (as defined in the second addendum hereto), the Trustee will be
      required, within a reasonable time, to call all of the unsettled balance
      of the Debentures for immediate repayment, as long as it has given the
      Company at least 15 days written warning of its intent to do so and the
      event for which the resolution was adopted has not been canceled or
      removed within this period.

              
	 	 	 	 
	 
      	 
      	
                7.2.4

              	
                A
      copy of the
      notice for calling the Meeting will be sent by the Trustee to the Company
      as soon as the notice is published and will constitute advance written
      warning to the Company of the intent to act to call the Debentures for
      immediate repayment.

              
	 	 	 	 
	 
      	 
      	
                7.2.5

              	
                The
      Trustee is entitled, at its discretion, to reduce the count of 30 days (in
      Section 7.2.2 above) and/or the said 15 days of warning (in Section 7.2.3)
      in the case of the Trustee opining that any deferral in calling the debt
      of the Company for repayment endangers the rights of the Debenture
      Holders, but in any case the Trustee shall not do so without first
      applying to the Company in writing 7 Business Days before the date of the
      meeting, indicating the reasons for reducing the time, at the discretion
      of the Trustee in the circumstances at hand.

              
	 	 	 	 
	 
      	 
      	
                7.2.6

              	
                The Trustee will be
      responsible for reporting to the Debenture Holders of the occurrence of
      any of the events specified in Sections 7.1.11 to 7.1.13 (inclusive)
      above, whether pursuant to publications that the Company has made or
      according to a notice of the Company that will be sent to it according to
      the provisions of Section 24 below, soon after it being brought to its
      attention or delivered to it.

              

      

       

      
        	
                8.

              	Claims
      and Proceedings by the Trustee
	 	 	 
	 
      	
                8.1

              	
                Without
      derogating from any other provision of the Deed of Trust, the Trustee
      shall be allowed, at its discretion, and will be required to do so by a
      special resolution that is 

              

      

       

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	adopted by a meeting
      of the Debenture Holders and after issue of written notice to the Company
      immediately after the adoption of the resolution, to take all of the
      proceedings, including legal proceedings and motions for receiving orders
      as, it deems fit and subject to the provisions of the law, for enforcing
      the undertakings of the Company according to the Deed of Trust, exercising
      rights of the Debenture Holders and protection of their rights according
      to the Deed of Trust. The Trustee shall be allowed to instigate legal
      and/or other proceedings even if the Debentures are not called for
      immediate repayment, for protecting the rights of the Debenture Holders
      and subject to the law. Notwithstanding the provisions of this section,
      the right of calling for immediate repayment will apply only in accordance
      with the provisions of Section 6 of thus Deed and not pursuant to this
      section.
	 	 	 
	 
      	
                8.2

              	
                The
      Trustee is allowed, at its exclusive discretion and without a need for
      notice to the Company, to apply to the appropriate court for a motion for
      receiving orders on any matter that is related to and/or arises from this
      Deed of Trust, whether before or after the Debentures are called for
      immediate repayment.

              
	 	 	 
	 
      	
                8.3

              	
                Subject
      to the provisions of the Deed of Trust, the Trustee is allowed, but not
      compelled, to call at any time a general Meeting of the Debenture Holders
      in order to discuss and/or receive its instructions on any matter related
      to the Deed of Trust, and is allowed to call it
  repeatedly.

              
	 	 	 
	 
      	
                8.4

              	
                The
      Trustee is allowed, at its exclusive discretion, to delay the execution of
      any action thereby pursuant to this Deed of Trust, for applying to the
      Meeting of the Debenture Holders or the court until it receives
      instructions from the Meeting of the Debenture Holders and/or orders from
      the court on how to act. Notwithstanding the foregoing, the Trustee is not
      allowed to delay proceedings for calling for immediate repayment that have
      been decided upon by a Meeting of the Debenture Holders pursuant to the
      provisions of Section 7.2 hereto.

              

      

      
      

       

      
        	
                9.

              	Distribution
      of the Receipts
	 	 	 
	 
      	
                9.1

              	
                All
      of the receipts that are received by the Trustee including but not limited
      to as a result of calling the Debentures for immediate repayment and/or as
      a result of proceedings that it takes, if it takes any, against the
      Company, will be by it in the trust and will serve it for the following
      purposes and in the following order of priority:

              
	 	 	 
	 
      	 
      	
                Firstly,
      for settling all expenses, payments, duties and undertakings expended by
      the Trustee, imposed thereupon or caused due to or as a result of the
      actions of the Trust or in another manner otherwise connected to the terms
      of this Deed, including the fee thereof (on the condition that the Trustee
      does not receive a double fee from both the Company and the Debenture
      Holders); secondly – in order to pay the Debenture
  

              

      

       

      
        
          
          

        

        
          -17-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	Holders the arrears
      interest due to them in accordance with the terms of the Debentures and
      subject to the terms of the linkage in the Debentures, pari
      passu, in proportion to the sum of the arrears interest due to each
      of them, without preference or priority for any of them; thirdly, in order
      to pay the Debenture Holders the sums of the principal that are due to
      them pursuant to the Debentures held thereby, pari
      passu, and subject to the terms of linkage in the Debentures,
      whether the principal sums have matured or not, in proportion with the
      sums due thereto, without any preference concerning priority in time of
      issue of the Debentures by the Company or otherwise, and the surplus, if
      any, will be paid by the Trustee to the Company or the successors thereof.
      Withholding tax will be deducted at source from the payments to the
      Debenture Holders, to the extent that there is a duty to deduct it by
      law.
	 	 	 
	 
      	
                9.2

              	
                Payment
      of the sums by the Trustee to the Debenture Holders out of the receipts
      that are received thereby, will be subject to rights of other creditors of
      the Company, which precede or are equal to those of the Debenture Holders
      by law, relative to the said receipts, if there are any, in accordance
      with the provisions of the law.

              

      

       

      
        	
                10.

              	Authority
      to Delay Distribution of Money
	 	 	 
	 
      	
                10.1

              	
                Notwithstanding
      the provisions of Section 9 of this Deed, if the sum of money that is
      received as a result of taking the proceedings stated above that is
      available for distribution at any time, as stated in that section, will be
      less than ten percent (10%) of the balance of the unsettled principal of
      the Debentures and the interest, subject to the terms of the linkage in
      the Debentures, the Trustee shall not be required to distribute it and it
      will be allowed to invest the said sum, in part or in full, in investments
      that are permitted according to the Deed of Trust and replace these
      investments from time to time with other permitted investments, as it sees
      fit.

              
	 	 	 
	 
      	
                10.2

              	
                On
      the first payment date of the principal and/or the interest to the
      Debenture Holders that is paid after receipt of the sum stated in Section
      10.1 above by the Trustee, or earlier, once the aforementioned
      investments, with their profits and other sums that are received by the
      Trustee for the said purpose, reach a sum that will suffice to pay at
      least ten percent (10%) of the unsettled balance of the principal of the
      Debentures and the interest (subject to the terms of linkage in the
      Debentures), the Trustee shall pay them to the Debenture Holders as stated
      in section 9 hereof.

              
	 	 	 
	
                11.

              	
                Notice of Distribution
      and Depositing with the Trustee

              
	 	 	 
	 
      	
                11.1

              	
                The
      Trustee shall inform the Debenture Holders of the day and place on which
      any payment is made out of the payments stated in Sections 9 and 10 of
      this Deed, by 14 days prior notice that is delivered in the manner stated
      in section 24 to this Deed hereof.

              

      

       

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                11.2

              	
                After
      the day stated in the notice, the Debenture Holders will be entitled to
      interest for the Debentures in accordance with the rate stated in the
      Debentures only for the balance of the principal sum (if any) after
      deducting the sum that has been paid or offered to them for such
      payment.

              
	 	 
	
                12.

              	
                Abstention from
      Payment for a Reason that does not depend on the
      Company

              
	 	 
	 
      	
                12.1

              	
                Any
      sum that is due to the debenture Holder that is not actually paid for a
      reason that does not depend on the Company, while the Company was prepared
      to pay it, will cease to bear interest and linkage differences from the
      date stated for its payment, whereas the debenture Holder will be entitled
      only to the sums that it would have been entitled to on the date stated
      for repayment of that sum on the account of the principal, the linkage
      differences or the interest.

              
	 	 	 
	 
      	
                12.2

              	
                The
      Company will deposit with the Trustee by no later than 14 business days
      from the date stated for that payment, the sum of the payment that has not
      been paid for a reason that does not depend on the Company, and such a
      deposit will be considered as settlement of that payment, and in the case
      of settlement of all dues pursuant to the debenture, as redemption of the
      debenture.

              
	 	 	 
	 
      	
                12.3

              	
                The
      Trustee shall deposit in a bank the sums that will be transferred thereto
      as stated in Section 12.2 of this Deed, to the credit of those Debenture
      Holders and will invest it in investments permitted hereby that are
      securities of the State of Israel or other securities that the laws of the
      State of Israel permit investment of the trust money in, as the Trustee
      deems fit and subject to the provisions of the law. Should the Trustee do
      so, it will not owe the beneficiaries sums other than the remuneration
      that is received from realizing the investments less the expenses,
      commissions and mandatory payments, if any that are related to the said
      investment in managing the trust account less its fee.

              
	 	 	 
	 
      	
                12.4

              	
                The
      Trustee shall transfer to each debenture Holder for which sums and/or
      funds due to the Debenture Holders have been deposited with the Trustee,
      out of sums thus deposited, less all expenses, commissions, the mandatory
      payments and its fee, against presentation of the proof that is required
      by the Trustee, to the full satisfaction thereof.

              
	 	 	 
	 
      	
                12.5

              	
                The
      Trustee shall keep these sums and invest them in the above mentioned
      manner until one year elapses from the final redemption date of the
      Debentures. After this date, the Trustee shall transfer to the Company
      these sums, including profits that result from their investment, less its
      expenses and other expenses expended in accordance with the provisions of
      this Deed of Trust (such as service provider fees, etc.) to the extent
      that these remain in its possession on that date. The Company will keep
      these sums in trust for an additional year from the day of their transfer
      thereto by the Trustee, for the Debenture Holders that are entitled to
      those sums, and with regard to the sums that
are

              

      

       

      
        
          
          

        

        
          -19-

          
            

          

        

        
          
          

        

         

        
          	 
      	
                   

                	
                  transferred
      thereto by the Trustee as stated above, the provisions of Section 12.3 of
      this Deed of Trust will apply, mutatis mutandis. Upon
      the transfer of the sums from the Trustee to the Company, to the
      satisfaction of the Trustee, the Trustee shall be exempt from payment of
      such sums to the entitled Debenture Holders. The Company will approve to
      the Trustee in writing the holding of the sums and the receipt thereof in
      trust for the said Debenture Holders, and will indemnify the Trustee for
      any claim and/or expense and/or damage of any type that it sustains due to
      and for the said money transfer, as long as the Trustee has acted
      reasonably. The Company will keep these sums in trust for the Debenture
      Holders that are entitled to these sums for an additional year from the
      day of their transfer to it from the Trustee. Sums that are not demanded
      from the Company by a Debenture Holder two years from the final repayment
      date of the Debentures will be transferred to the Company, which will be
      entitled to use the remaining sums for any
  purpose.

                

        

      

      
      

       

      
        	
                13.

              	Receipt
      from the Debenture Holders as Proof
	 	 	 
	 
      	
                13.1

              	
                A receipt from the
      Debenture Holder for the sums of the principal, the interest and the
      linkage differences that have been paid thereto by the Trustee for that
      Debenture will release the Trustee categorically in all matters related to
      payment of the sums stated on the receipt.

              
	 	 	 
	 
      	
                13.2

              	
                Until
      the end of the period specified in Section 12.5 above, a receipt from the
      Trustee concerning the deposit of the sums of the principal, the interest
      and the linkage differences in its possession to the benefit of the
      Debenture Holders as stated in this Deed will be considered as a receipt
      from the Debenture Holders for the sums specified
  therein.

              
	 	 	 
	 
      	
                13.3

              	
                The
      sums distributed as stated in Sections 9 and 10 hereof will be considered
      as payment on the account of the repayment of the
    Debentures.

              
	 	 
	
                14.

              	
                Presentation of a
      Debenture to the Trustee and Noting Concerning Partial
      Payment

              
	 	 
	 
      	
                14.1

              	
                The
      Trustee shall be entitled to demand that a Debenture Holder present to the
      Trustee, at the time of payment of any interest or partial payment of
      principal, interest and linkage differences in accordance with Sections
      8-10 hereof, the debenture for which the payments are being
      made.

              
	 	 	 
	 
      	
                14.2

              	
                The
      Trustee shall note on the Debenture a comment concerning the sums paid as
      above and the date of payment thereof.

              
	 	 	 
	 
      	
                14.3

              	
                The
      Trustee shall be entitled, in any special case, at its discretion, to
      waive the presentation of the Debentures after it is given a statement of
      indemnification letter and/or a sufficient guarantee, to its satisfaction,
      for damages that may be sustained due to not noting the said comment, as
      it deems fit. In such a case, the Company will
  not

              

      

       

      
        
          
          

        

        
          -20-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	assume any liability
      for the payments stated in Section 14.1 towards that
    Holder.
	 	 	 
	 
      	
                14.4

              	
                Notwithstanding
      the foregoing, the Trustee shall be entitled, at its discretion, to make
      notes in other ways concerning such partial
  payments.

              

      

       

      
        	
                15.

              	Reporting
      and Undertakings of the Company towards the Trustee
	 	 	 
	 
      	
                15.1

              	
                The
      Company hereby undertakes towards the Trustee, for as long as the
      Debentures (including linkage differences thereupon) have not been repaid,
      as follows:

              
	 	 	 	 
	 
      	 
      	
                15.1.1

              	
                To
      inform the Trustee upon its notice to the public in writing of reasonable
      concern on the part of the Company that any or all of the events specified
      in Section 7.1 above may occur and the occurrence of any or all of the
      events specified in Section 7.1 above.

              
	 	 	 	 
	 
      	 
      	
                15.1.2

              	
                To
      give to the Trustee by no later than 30 days of the date of the Initial
      Offer Report for the relevant Series an amortization table for payment of
      the Debentures (principal and interest) in an Excel
  file.

              
	 	 	 	 
	 
      	 
      	
                15.1.3

              	
                To
      inform the Trustee in a written notice signed by the Company's senior
      financial officer, within 4 Business Days, of effecting any payment to the
      Debenture Holders and the balance of the Sums that the Company will owe on
      that date to the Debenture Holders after effecting this
      payment.

              
	 	 	 	 
	 
      	 
      	
                15.1.4

              	
                To give to the
      Trustee immediately upon their publication a copy of the annual audited
      and consolidated financial statements (including the periodical statement)
      and the reviewed consolidated financial statements of the
      Company.

              
	 	 	 	 
	 
      	 
      	
                15.1.5

              	
                To
      deliver to the Trustee, immediately upon its delivery, any statement that
      it must submit to the Securities Authority.

              
	 	 	 	 
	 
      	 
      	
                15.1.6

              	
                To
      deliver to the Trustee notices concerning the purchase of Debentures by
      the Company or the subsidiary, as stated in this Deed of
      Trust.

              
	 	 	 	 
	 
      	 
      	
                15.1.7

              	
                On
      December 31 of each year, as long as the Deed of Trust is in effect, the
      Company will provide the Trustee with a confirmation signed by the CEO of
      the Company whereby to the best of his knowledge, during the period from
      the date of this Deed and/or the date of the previous confirmation
      provided to the Trustee, whichever is later, to the date of the
      confirmation, the Company has not violated the Deed of Trust (including
      violation of the terms of the Debenture), unless explicitly stated
      otherwise.

              
	 	 	 	 
	 
      	 
      	
                15.1.8

              	
                To
      give the Trustee copies of notices and invitations that the Company gives
      to the shareholders in the Company and the Debenture Holders, as stated in
      Section 24.1 hereof.

              

      

       

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	 
      	
                15.1.9

              	
                To
      cause a senior financial officer in the Company  to give, within
      a reasonable time, to the Trustee and/or the persons as he instructs, any
      explanation, document, calculation or information related to the Company,
      its business affairs and/or assets that are reasonably required for the
      purpose of inquires conducted by the Trustee for protecting the Debenture
      Holders.

              
	 	 	 	 
	 
      	 
      	
                15.1.10

              	
                To
      keep regular account books in accordance with generally accepted
      accounting principles. To keep the books and the documents used for them
      as references (including deeds of pledge, mortgage, bills and receipts)
      and allow the Trustee and/or the party that the Trustee appoints in
      writing for this purpose, to inspect at any reasonable time any such book
      and/or document and/or confirmation, to the extent required for protecting
      the Debenture Holders. The Trustee undertakes to inform whichever party is
      appointed thereby as above that the Trustee has undertaken to keep
      information that is given to it in confidence.

              
	 	 	 	 
	 
      	 
      	
                15.1.11

              	
                To
      allow the Trustee or a party that is appointed by the Trustee in writing
      for this purpose to enter its offices and anywhere where its assets may be
      found, at any reasonable time, for inspecting its assets, at the
      discretion of the Trustee, for protecting the Debenture
      Holders.

              
	 	 	 	 
	 
      	 
      	
                15.1.12

              	
                To
      summon the Trustee to all of its general meetings (whether annual general
      meetings or special general meetings of the shareholders of the Company),
      without granting the Trustee a voting right in these
    meetings.

              
	 	 	 	 
	 
      	 
      	
                15.1.13

              	
                To
      give the Trustee, upon his demand, an affidavit and/or declarations and/or
      documents and/or details and/or information, as required by the Trustee,
      in accordance with its reasonable discretion, for applying and exercising
      the authorities, powers and authorizations of the Trustee and/or its
      proxies according to this Deed of Trust.

              
	 	 	 	 
	 
      	 
      	
                15.1.14

              	
                The
      Trustee undertakes, by signing the Deed of Trust, to keep in confidence
      all information that is given to it by the Company and any information
      that the Trustee and/or its representative and/or agent and/or proxy has
      inspected and not make any use thereof other than for the fulfillment of
      its undertakings according to this Deed. Notice of the authorization of a
      representative and/or agent for the Trustee shall be given to the Company
      in advance and in writing. The Trustee declares that any representative
      and/or agent and/or proxy on its part will be committed towards the
      Trustee and towards the Company to keep in confidence the information that
      reaches it in its activities for the Trustee. It is clarified that subject
      to the law, the transfer of the relevant information only to the Debenture
      Holders for making a decision that is related to their rights
      in

              

      

       

      
        
          
          

        

        
          -22-

          
            

          

        

        
          
          

        

        
          	 
      	 
      	
                   

                	
                  accordance
      with the Debentures or for giving a report on the state of the Company
      does not constitute a violation of its undertaking for
      confidentiality.

                

           

        

      

      
        
          	
                  16.

                	
                  Additional
      Undertakings

                
	 	 
	 
      	
                  16.1

                	
                  After
      and to the extent that the Debentures are
      called for immediate repayment, as defined in Section 7 hereof, the
      Company will perform, from time to time and at any time it is required to
      do so by the Trustee, all of the reasonable actions in order to provide
      for the exercising of all of the authorities granted to the Trustee, and
      in particular the Company will perform all of the following actions, to
      the extent that they are
reasonable.

                

        

         

        
          	 
      	 
      	
                  16.1.1

                	
                  It
      will declare the declarations and/or sign all of the documents and/or
      execute and/or have executed all of the actions that are necessary and/or
      required by law for validating the exercise of the authorities, the powers
      and the authorizations of the Trustee and/or the agent
      thereof.

                
	 	 	 	 
	 
      	 
      	
                  16.1.2

                	
                  It
      will give all of the notices, the orders and the instructions that the
      Trustee considers beneficial and will demand them.

                
	 	 	 	 
	 
      	 
      	
                  16.1.3

                	
                  For
      the purposes of this section – a written notice signed by the Trustee that
      confirms that an action that is required thereby, within his authorities,
      is a reasonable action, will constitute prima facie evidence
      thereof.

                

        

        

        
          	
                  17.

                	Agents
	 
      	 
      	
                  17.1

                	
                  The
      Company hereby irrevocably
      appoints the Trustee as its agent, to effect and execute on its behalf and
      in its place all of the actions that it will be required to execute
      according to the conditions of this Deed, and in general to act on its
      behalf with regard to the actions that the Company is required to perform
      according to this Deed, which it has not performed, or exercise some of
      the authorities granted thereto, and appoint any other person as the
      Trustee deems fit for performing its duties according to this Deed,
      subject to the Company not having performed the actions that it must
      perform pursuant to the terms of this Deed within a reasonable time from
      the date of the demand of the Trustee, provided it has acted in good faith
      and reasonably.

                
	 	 	 	 
	 
      	 
      	
                  17.2

                	
                  The
      appointment pursuant to Section 17.1 above does not bind the Trustee to
      perform any action.

                

        

         

        
          	
                  18.

                	
                  Other
      agreements

                
	 	 	 
	 
      	 
      	
                  Subject
      to the provisions of the law and the restrictions imposed on the Trustee
      by law, the performance of the duty of the Trustee according to this Deed
      or pursuant to its status as a Trustee will not prevent it from
      associating with the Company by various contracts or executing
      transactions with it within the normal course of its business
      affairs.

                

        

         

        
          
            
            

          

          
            -23-

            
              

            

          

          
            
            

          

        

         

        
          	
                  19.

                	
                  Reporting by the
      Trustee

                
	 	 	 
	 
      	
                  19.1

                	
                  The
      Trustee shall prepare, within three months of the end of each Trust year,
      an annual report on the trust affairs (the “Annual
      Report”)

                
	 	 	 
	 
      	
                  19.2

                	
                  The
      Annual Report will include a breakdown of the following subjects: current
      details of the course of affairs of the Trust in the elapsing year; a
      report on extraordinary events concerning the Trust that have occurred
      during the elapsing year.

                
	 	 	 
	 
      	
                  19.3

                	
                  The
      Debenture Holders will be allowed to review the Annual Report in the
      offices of the Trustee during acceptable business hours and will be
      allowed to receive a copy thereof upon demand. A copy of the report will
      be provided to the Company along with it being made available for review
      by the Debenture Holders.

                
	 	 	 
	 
      	
                  19.4

                	
                  The
      Trustee shall give the Debenture Holders notice of the date of submission
      of the report as stated in Section 24 hereof. Should the Trustee learn of
      a material violation hereof on the part of the Company, it will inform the
      Debenture Holders of the violation and of the steps that it has taken for
      preventing it or for fulfilling the undertakings of the Company, as
      relevant.

                

        

         

        
          	
                  20.

                	
                  Fee and coverage of
      expenses of the Trustee

                
	 	 	 
	 
      	
                  20.1

                	
                  The
      Company shall pay the Trustee for its services hereby as elaborated below
      - in respect of each Series of Debentures for which it shall serve as
      Trustee:

                
	 	 	 

        

         

        
          	 	 
      	
                  20.1.1

                	
                  For
      the first year of Trust, i.e. until 12 months from the date of the issue
      of the relevant Debentures, a sum of NIS 12,000. This sum will be paid
      within 30 days of the end of the month on which the Company has received
      from the Trustee a proforma invoice for this payment. The Trustee will be
      allowed to provide the Company with a proforma invoice within one business
      day of publishing the results of the issue.

                
	 	 	 	 
	 	 
      	
                  20.1.2

                	
                  For
      each of the years from the second year (i.e. from the end of 12 months
      from the date of issue of the relevant Debentures) in which Debentures
      will be in circulation and not yet paid up, a sum of NIS 10,000, linked to
      the index known on the date of publication of the Prospectus, but in any
      case the sum will not be less than the sum specified above (“the Annual Fee”). The
      Annual Fee will be paid to the Trustee within 30 days of the end of the
      month on which the Company received from the Trustee a proforma invoice
      for the Annual Fee. The Trustee will be allowed to provide the Company a
      proforma invoice at the beginning of each year of Trust. The Annual Fee
      shall be paid to the Trustee for the period through to the end of the term
      of the Trust hereby even if a receiver and/or administrative receiver is
      appointed for the Company and/or if the Trust hereby is managed under the
      supervision of a court.

                

        

         

        
          
            
            

          

          
            -24-

            
              

            

          

          
            
            

          

        

         

        
          	 	 
      	
                  20.1.3

                	
                  If
      the tenure of the Trustee expires, as stated in Section 28 below, the
      Trustee will not be entitled to payment of the fee thereof from the day of
      the expiry of its tenure. If the tenure of the Trustee expires during the
      Trust year, the fee that was paid for the months for which the Trustee did
      not serve as the trustee of the Company will be refunded. It is clarified
      that this refund will not apply to the first year of
  Trust.

                

        

         

        
          	 	
                  20.2

                	
                  The
      Trustee is
      entitled to a refund of reasonable expenses incurred within the
      performance of its duty and/or by the authorities granted thereto hereby,
      including for publications in the press, as long as for the expenses of an
      expert opinion, as elaborated in Section 21.2 below, the Trustee will give
      advance notice of its intent to receive an expert
  opinion.

                
	 	 	 
	 	
                  20.3

                	
                  The Trustee is
      entitled to additional payment, for an action that results from a
      violation hereof by the Company or for an action of calling the Debenture
      for immediate repayment and for special actions that it will be required
      to perform, if required, for fulfillment its duties hereby, without
      prejudice to the entirety of this Section 20.

                
	 	 	 
	 	 
      	
                  It
      is agreed hereby between the parties that the Trustee will be entitled to
      a fee of 120 US dollars for each hour of work that is required as stated
      above.

                
	 	 	 
	 	
                  20.4

                	
                  For
      each annual meeting of shareholders or Meeting of Debenture Holders that
      the Trustee participates in, an additional fee of NIS 500 per meeting will
      be paid, linked to the Index in accordance with the provisions of Section
      20.1.2 above.

                
	 	 	 
	 	
                  20.5

                	
                  If
      changes occur
      in the provisions of the Law whereby the Trustee will be required to
      perform actions and/or checks and/or prepare additional reports, the
      Company undertakes to bear all of the reasonable expenses that the Trustee
      incurs as a result, including reasonable fee for these actions. The
      Trustee will inform the Company in advance and in writing before incurring
      the expenses, of changes as stated in this section.

                
	 	 	 
	 	
                  20.6

                	
                  VAT,
      if charged, will be added to the payments that are due to the Trustee
      pursuant to the provisions of this section and will be paid by the
      Company. The Trustee will transfer to the Company a tax invoice for these
      payments, within 14 days of the date of payment thereof to the Trustee by
      the Company.

                

        

         

        
          	
                  21.

                	
                  Special
      Authorities

                
	 	 
	 
      	
                  21.1

                	
                  The
      Trustee shall be entitled to deposit all of the deeds and documents that
      attest, represent and/or determine its right concerning any asset then in
      its possession, in a safe and/or in any other place of its choice, in the
      possession of any banker and/or any banking company and/or an
      advocate.

                

        

         

        
          
            
            

          

          
            -25-

            
              

            

          

          
            
            

          

        

         

        
          	 
      	
                  21.2

                	
                  The
      Trustee is entitled, within the performance of the Trust affairs hereby,
      to order the opinion and/or advice of any advocate, certified public
      accountant, appraiser, assessor, surveyor, mediator or other expert,
      whether such an opinion and/or advice has been prepared at the request of
      the Trustee and/or by the Company and shall be allowed to act in
      accordance with its conclusions. The Trustee shall allow the Company to
      review any such opinion that the Company as paid for, upon demand. The
      provisions of this section do not exempt the Trustee of its responsibility
      by law.

                
	 	 	 
	 
      	
                  21.3

                	
                  Any
      such advice and/or opinion may be given, sent or received by a letter,
      telegram, facsimile and/or any other electronic data transfer
      medium.

                
	 	 	 
	 
      	
                  21.4

                	
                  The
      Trustee shall not be required to inform any party of the signing of this
      Deed of Trust and is not allowed to intervene in any way in the management
      of the business or affairs of the Company other than pursuant to the
      authorities that have been granted to the Trustee
  herein.

                
	 	 	 
	 
      	
                  21.5

                	
                  The
      Trustee shall faithfully use the powers, authorizations and authorities
      granted thereto hereby in good faith and reasonably.

                
	 	 
	
                  22.

                	
                  Authority of the
      Trustee to Employ Proxies

                
	 	 
	 
      	
                  The
      Trustee shall be entitled to appoint a proxy/ies for acting in its place,
      whether an advocate or another party, in order to perform or participate
      in the performing of special actions that must be performed concerning the
      Trust, including, but not limited to, taking legal proceedings. In
      addition, the Trustee shall be entitled to settle, at the expense of the
      Company, the reasonable fee of any such proxy, and the Company will return
      to the Trustee immediately upon the first demand thereof any such
      reasonable expense, on the condition that the Trustee gives the company
      advance notice of such appointment of proxies.

                
	 	 
	 
      	
                  The
      Company will be allowed to object to such an appointment on reasonable
      grounds, including in the case of the proxy competing directly or
      indirectly with the business of the Company.

                
	 	 
	 
      	
                  The
      Trustee is allowed at any time to delegate from the Trusteeships, powers,
      authorizations and authorities granted thereto hereby, in part or in full,
      to another person or persons, and any such delegation will be made under
      the conditions and instructions (including permission for a proxy to
      appoint a proxy) that the Trustee deems suitable, but such delegation of
      authority will not release the Trustee from any responsibility assumed
      thereby in case the authorities were not delegated.

                
	 	 
	 
      	
                  Such
      proxies and/or delegates will be bound by the confidentially provisions
      stated in Section 15.1.4 above.

                

        

         

        
          
            
            

          

          
            -26-

            
              

            

          

          
            
            

          

        

         

        
          	
                  23.

                	
                  Indemnification of the
      Trustee

                
	 	 	 
	 
      	
                  23.1

                	
                  The
      Trustee shall be entitled to receive indemnification from the Debenture
      Holders or from the Company, as relevant, for reasonable expenses that it
      has incurred and/or will incur in connection with the actions that it has
      performed or must perform pursuant to its duty hereby, and/or by law
      and/or by order of a competent authority and/or any statute and/or upon
      the demand of the Debenture Holders and/or according to the demand of the
      Company. Notwithstanding the above, it is clarified and agreed hereby
      that:

                

        

         

        
          	 
      	 
      	
                  23.1.1

                	
                  The
      Trustee shall not be entitled to demand such indemnification in advance on
      a matter that is urgent.

                
	 	 	 	 
	 
      	 
      	
                  23.1.2

                	
                  The
      Trustee shall be entitled to indemnification for liability for torts, in
      the case of being found thus liable by a final court ruling or a concluded
      settlement towards a third party that is not one of the Debenture
      Holders.

                

        

         

        
          	 
      	
                  23.2

                	
                  The
      Indemnification right detailed in section 23.1 above will be subject to
      the following terms:

                
	 	 	 	 
	 
      	 
      	
                  23.2.1

                	
                  The
      expenses for liability for damages are reasonable.

                
	 	 	 	 
	 
      	 
      	
                  23.2.2

                	
                  The
      Trustee acted in good faith and the appropriate care, and the action was
      preformed within the fulfillment of its duty, according to the provisions
      of law and this Deed.

                

        

         

        
          	 
      	
                  23.3

                	
                  Subject
      to the provisions of Sections 23.1 and 23.2 above, without prejudice to
      the rights to compensation and indemnification that are granted to the
      Trustee by law and/or the commitments of the Company and the Debenture
      Holders hereby, the Trustee, its proxy, manager, agent or other person
      appointed by the Trustee hereby will be entitled to receive
      indemnification out of the sums that are received by the Trustee out of
      the proceedings taken and/or otherwise hereby, concerning undertakings
      that they have assumed, concerning expenses they incurred due to
      the  performance of the Trust or related to such actions, which
      in their opinion were required for executing the aforesaid and/or
      concerning the exercising of authorities and authorizations granted hereby
      and concerning all kinds of legal proceedings, opinions of advocates and
      other experts, negotiations, discussions, expenses, claims and demands
      concerning any matter and/or thing that are made and/or not made in any
      way concerning the subject matter, and the Trustee may withhold the funds
      that are in its possession and pay out of them the sums that are necessary
      for payment of the said indemnification. The said sums will take
      precedence over the rights of the Debenture Holders, subject to the
      provisions of the law.

                
	 	 	 
	 
      	
                  23.4

                	
                  For
      as long as the Trustee is required pursuant to the terms hereof an/or any
      statute and/or an order of a competent authority and/or the law and/or
      upon the demand of the 

                

        

         

        
          
            
            

          

          
            -27-

            
              

            

          

          
            
            

          

        

         

        
          	 	 	Debenture Holders
      and/or the demand of the Company to perform any action, including, but not
      limited to instigating proceedings or filing claims upon the demand of the
      Debenture Holders, as stated herein, the Trustee shall be allowed to
      abstain from taking any such action until it receives, to its
      satisfaction, a letter of indemnification from any or all of the Debenture
      Holders, and if the action is performed owing to a demand of the Company,
      from the Company, for any liability for damages and/or expenses that may
      be incurred by the Trustee and by the Company or either of them, due to
      performing such an action. It is clarified that the foregoing does not
      exempt the Trustee from taking an urgent action that is required for
      preventing material infringement to the rights of the Debenture
      Holders.
	 	 	 
	 
      	
                  23.5

                	
                  Notwithstanding the provisions of
      this Section 23, as long as the trustee deems it right for protecting
      and/or exercising the rights of the Debenture Holders, and/or it is
      required hereby and/or by law and/or by an order of a competent authority
      and/or any statute and/or upon the demand of the Company and/or the
      Debenture Holders, to take legal proceedings, in the case of taking such
      an action due to a demand of the Company, the Company will deposit in the
      hands of the Trustee a sum that will be determined by the Trustee as the
      expected sum of the expenses of the Trustee concerning the proceedings. In
      any other case, the Trustee shall immediately call a Meeting of Debenture
      Holders in order to confirm their responsibility for covering the expenses
      involved in proceedings that the Trustee takes. In the case of the
      Debenture Holders refusing to assume the expenses involved in taking
      proceedings by the Trustee, the Trustee shall assume no duty to take such
      proceedings. In addition, all of the sums that are received from the
      realization proceedings will also be used for refunding and covering
      expenses that the Debenture Holders thus undertake to bear. It is
      clarified that the foregoing does not exempt the Trustee from taking an
      urgent action that is required for preventing material infringement of the
      rights of the Debenture Holders. The consent of the Debenture Holders as
      above does not release the Company from its undertakings to bear and to
      cover all of the expenses involved in the taking of proceedings as
      aforesaid, to the extent that such expenses are applicable to the Company
      under the provisions of any law or this Deed.

                
	 	 	 
	 
      	
                  23.6

                	
                  The
      Trustee is entitled to order the Company in writing to transfer to the
      Trustee part of the payment that is due by the Company to the Debenture
      Holders, for the purpose of financing proceedings and/or expenses and/or
      the Trustee’s fees as aforesaid. The Company will act in accordance with
      the Trustee’s notice and will be deemed as having fulfilled its
      undertakings towards the Debenture Holders if it proves that it has
      transferred the required amount in full to the account whose details have
      been specified in the Trustee’s
notice.

                

        

         

        
          
            
            

          

          
            -28-

            
              

            

          

          
            
            

          

        

         

        
          	
                  24.

                	
                  Notices

                
	 	 	 
	 
      	
                  24.1

                	
                  Any
      notice from the Company and/or the Trustee to the Debenture Holders, as
      relevant, shall be given as follows:

                
	 	 	 
	 
      	 
      	
                  24.1.1

                	
                  By
      reporting in the MAGNA system of the Securities Authority; the Trustee is
      allowed to instruct the Company and the Company will be required to report
      forthwith in the MAGNA system on behalf of the Trustee any report in the
      format as forwarded in writing by the Trustee to the Company); and
      by

                
	 	 	 	 
	 
      	 
      	
                  24.1.2

                	
                  A
      notice that will be published in two widely distributed daily newspapers
      that are published in Israel in Hebrew;

                
	 	 	 	 
	 
      	 
      	 
      	
                  Any
      notice or demand from the Trustee to the Company may be given by a letter
      that is sent by registered mail to the address stated herein, or to any
      other address that the Company informs the Trustee of in writing, or by
      transmission by facsimile or by courier and any such notice or demand will
      be considered as having been received by the Company: (1) in the case of
      sending by registered mail – three business days from the day of mailing
      thereof; (2) in the case of transmission by facsimile (along with a
      telephone check of receipt thereof) – one business day from the day of its
      transmission; (3) and in the case of sending by courier – upon its
      delivery by the courier to the addressee or the offering thereof to the
      addressee for receipt, as relevant.

                
	 	 	 
	 
      	
                  24.2

                	
                  Any
      notice or demand from the
      Company to the Trustee may be given by a letter that is sent by registered
      mail to the address stated herein, or to another address that the Trustee
      informs the Company of in writing, or by transmission by facsimile or by
      electronic mail (“email”) or by courier and any such notice or demand will
      be considered as having been received by the Trustee: (1) in the case of
      sending by registered mail – three business days from the day of mailing
      thereof; (2) in the case of transmission by facsimile or email (along with
      a telephone check of receipt thereof) or of sending by courier – upon its
      delivery by the courier to the addressee or the offering thereof to the
      addressee for receipt, as relevant.

                
	 	 	 
	 
      	
                  24.3

                	
                  Copies
      of notices and invitations that the Company gives to the Debenture Holders
      will also be sent by the Company in an Immediate Report, a copy of which
      will be given to the Trustee.

                

        

        

        
          	
                  25.

                	
                  Waiver; Settlement;
      and Changes in the Terms of the Deed of Trust

                
	 	 	 
	 
      	
                  25.1

                	
                  Subject to the provisions
      of the Law and the regulations promulgated and/or that will
      be  promulgated thereby, the Trustee shall be allowed, from time
      to time and at any time, if it is convinced that this does not in its
      opinion infringe upon the rights of the Debenture Holders, to waive any
      violation or non-fulfillment of any of the terms hereof
  

                

        

         

        
          
            
            

          

          
            -29-

            
              

            

          

          
            
            

          

        

         

        
          	 	 	by the Company, as
      long as these do not relate to the terms of repayment of the Debentures
      and the grounds for calling for immediate repayment as specified in
      Section 7 hereof.
	 	 	 
	 
      	
                  25.2

                	
                  Subject
      to the provisions of the Law and the regulations promulgated and/or that
      will be promulgated thereby, the Trustee is allowed, whether before or
      after the principal of the Debentures is called for immediate repayment,
      to settle with the Company concerning any right or claim of the Debenture
      Holders and agree with the Company to any arrangement concerning the
      rights of the Debenture Holders, including waiving any right or claim of
      the Debenture Holders towards the Company hereby. If the Trustee settles
      with the Company after having received prior approval of the Debenture
      Holders as stated above, the Trustee shall be exempt of liability for this
      action, as approved by the general Meeting. The foregoing does not exempt
      the Trustee from responsibility for its actions until the date of making a
      decision of the Meeting of the Holders and/or its actions concerning its
      application.

                
	 	 	 
	 
      	
                  25.3

                	
                  Subject
      to the provisions of the Law and the regulations promulgated and/or to be
      promulgated thereby, the Trustee and the Company may, whether before or
      after the principal of the Debentures is called for immediate repayment,
      change the Deed of Trust (including a change in the conditions of the
      Debentures), if one of the following is
  fulfilled:

                

        

        

        
          	 
      	 
      	
                  25.3.1

                	
                  The
      Trustee is satisfied that the change does not adversely affect the
      Debenture Holders.

                
	 	 	 	 
	 
      	 
      	
                  25.3.2

                	
                  The
      Debenture Holders have agreed to the proposed change, by a special
      decision as specified in Sections 2.4 and 2.10 of the second addendum
      hereinafter.

                

        

        

        
          	 
      	
                  25.4

                	
                  The
      Trustee shall be entitled, at the request of the Company from time to
      time, to make changes in the Deed of Trust and/or in the Debentures, as
      required by a Securities Authority and/or the Stock Exchange and/or any
      other governmental authority, for the purpose of listing the Debentures
      for trade on the Stock Exchange, as long as the Trustee is satisfied that
      the change does not cause a material adverse effect to the Debenture
      Holders.

                
	 	 	 
	 
      	
                  25.5

                	
                  The
      Company shall give the Debenture Holders a notice of any such change, in
      accordance with Section 24 hereof, as soon as possible after its
      execution.

                
	 	 	 
	 
      	
                  25.6

                	
                  The
      general meetings as stated in this section above will be convened, as
      stated in the second addendum hereto.

                
	 	 	 
	 
      	
                  25.7

                	
                  In
      any case of use of the right of the Trustee in accordance with this
      section above, the Trustee shall be entitled to demand that the Debenture
      Holders give to it or to the 

                

        

         

        
          
            
            

          

          
            -30-

            
              

            

          

          
            
            

          

        

        
          	
                	 	 
	 
      	
                   

                	
                  Company
      their certificates, for noting a comment concerning any such settlement,
      waiver, change or amendment and according to the demand of the Trustee,
      the Company shall note such a comment in the certificates that are given
      to it. In any case of use of the right of the Trustee pursuant to this
      section, the Trustee shall announce this, within a reasonable time, in
      writing, to the Debenture Holders.

                

           

        

        
          	
                  26.

                	
                  Register of Debenture
      Holders and Transfer of Debentures

                
	 	 
	 
      	 
      	
                  26.1.1

                	
                  The
      Company shall keep and maintain in its Registered office a register of the
      Debenture Holders, listing the names of the Debentures Holders, their
      addresses and the number and par value of the Debentures registered to
      their name. The register will also list any transfer of title to the
      Debentures. The Trustee and any Debenture Holder will be entitled, at any
      reasonable time, to inspect this Register. The Company is entitled to
      close the register from time to time or for a period or periods that do
      not exceed an aggregate of thirty (30) days a year.

                
	 	 	 	 
	 
      	 
      	
                  26.1.2

                	
                  The
      Company will not be required to note in the Registers of Debenture Holder
      any notice concerning explicit, implicit or putative Trust, or
      hypothecation or pledging of any kind or any equity, claim or offset right
      or any other right, concerning the Debentures. The Company will only
      recognize the ownership by the person whose name the Debentures are listed
      under, as long as the legal heirs, administrators of estate or executors
      of the will of the registered owner or any person who will be entitled to
      the Debentures due to the bankruptcy of any registered owner (and in the
      case of a corporation - due to the liquidation thereof) will be entitled
      to register as the Holders thereof, after giving evidence that in the
      opinion of the Company is satisfactory for proving the right of any of the
      above to be registered as the Holder
thereof.

                

        

        

        
          	
                  27.

                	
                  Release

                
	 	 
	 
      	
                  Once
      it is proved to the satisfaction of the Trustee that all of the Debentures
      have been paid up, redeemed or when the Company deposits in the trust of
      the Trustee sums of money that are enough for redeeming all of the
      Debentures, and once it is proved to the satisfaction of the Trustee that
      all of the undertakings and expenses made or sustained by the Trustee
      concerning the Deed of Trust and the instructions thereof have been fully
      paid up, the Trustee shall be required, upon the first demand of the
      Company, to act with the sums that have been deposited for Debentures
      whose redemption is not required according to the conditions stated
      herein.

                
	 	 
	
                  28.

                	
                  Appointment of a New
      Trustee and Expiry of the Tenure of the
  Trustee

                

        

        
           

          
            	 	
                    28.1

                  	
                    The
      provisions of the Securities Law will apply to the tenure of the Trustee
      and the expiration thereof and the appointment of a new Trustee. Subject
      to the provisions of the Law, the Trustee and any Trustee replacing it
      will be entitled to resign from their

                  

          

           

           

        

        
          
            
            

          

          
            -31-

            
              

            

          

          
            
            

          

        

         

        
          	 	 	functions as
      Trustees after giving written notice to the Company three (3) months in
      advance, elaborating the reasons for resignation.
	 	 	 
	 	
                  28.2

                	
                  The
      resignation will take effect only after it is confirmed by the court, from
      the day established in the confirmation. In the case of such resignation
      or in the case of expiry of the tenure of the Trustee, the court is
      entitled to appoint another Trustee instead of the Trustee, for a period
      and under conditions as it deems fit.

                
	 	 	 
	 	
                  28.3

                	
                  The
      court will be entitled to dismiss a Trustee if it does not fulfill its
      duty properly or if the court finds another reason for the dismissal
      thereof.

                
	 	 	 
	 	
                  28.4

                	
                  The
      Holders of ten percent (10%) of the unsettled balance of the Debentures
      are entitled to call a general meeting of the Debenture certificate
      Holders owners. Each Meeting thus convened is allowed to decide, according
      to a vote of Holders of at least fifty percent (50%) of the unsettled
      balance of the Debentures, for the transfer of Trustee from its
      duty.

                
	 	 	 
	 	
                  28.5

                	
                  The
      Securities Authority is allowed to apply to the Court with a motion to
      conclude the tenure of the Trustee, in accordance with Section 35 N of the
      Law.

                
	 	 	 
	 	
                  28.6

                	
                  The
      Trustee and the Company will submit an immediate report to the Securities
      Authority of any such event in this section, concerning the tenure of the
      Trustee.

                
	 	 	 
	 	
                  28.7

                	
                  Each
      new trustee will have the same powers, authorities and other
      authorizations and may act in all senses as though appointed as the
      Trustee from the outset, subject to the provisions of Section 35 N of the
      Law.

                
	 	 	 
	 	
                  28.8

                	
                  The
      Trustee shall transfer to the new Trustee all of its records concerning
      the Debenture Holders, if there are any, information about the payments
      made by the Trustee through to that time, if such were effected, any
      report and any information given hereby and any information that is
      reasonably required for the new Trustee, and the Trustee shall transfer to
      the new Trustee any sum that will be held thereby at that time concerning
      the Debentures.

                

        

         

        
          	
                  29.

                	
                  Meeting of Debenture
      Holders

                
	 	 
	 
      	
                  Meetings
      of the Debenture Holders will be managed, as stated in the second addendum
      hereto.

                
	 	 
	
                  30.

                	
                  Investments of
      Funds

                
	 	 
	
                  30.1

                	
                  All
      sums that the
      Trustee is allowed to invest hereby will be invested thereby in bank/s, in
      its name or to its order, in investments that the laws of the State of
      Israel permit investing trust funds in, as it deems suitable, subject to
      the terms hereof and the provisions of the law, as long as any investment
      in securities will be in securities that have been given a rating of not
      less than AA. If the Trustee has done so, it will not
  owe

                

        

         

        
          
            
            

          

          
            -32-

            
              

            

          

          
            
            

          

        

        
          	
                   

                	
                  the
      beneficiaries of these sums other than the remuneration received from
      realizing the investments less the expenses related to this investment and
      managing the trust accounts, the commissions, after deducting the
      mandatory payments imposed on the trust account. Out of these sums, the
      Trustee shall transfer sums to the Debenture Holders that are entitled
      thereto, as soon as possible after the Trustee is provided proof and
      confirmations of their right to these sums to the full satisfaction of the
      Trustee, after deducting its expenses and commission at the rate that is
      generally employed thereby at that
time.

                

        

        
          	 	 
	
                  31.

                	
                  Applicability of the
      Law

                
	 	 
	 
      	
                  This
      Deed and the Debentures are subject to Israeli law. On any matter that has
      not been mentioned herein and in any case of a contradiction between the
      provisions of the law and this Deed, the parties will act in accordance
      with the provisions of Israeli law. In any case of a contradiction between
      the provisions described in the Prospectus concerning this Deed and/or the
      Debentures, the provisions hereof will take precedence.

                
	 	 
	
                  32.

                	
                  Exclusive
      Jurisdiction

                
	 	 
	 
      	
                  The
      only court that will be authorized for hearing matters related hereto and
      to the Debentures attached as an appendix hereto will be competent court
      in Tel Aviv Yaffo.

                
	 	 
	
                  33.

                	
                  General

                
	 	 
	 
      	
                  Without
      derogating from the other provisions hereof and of the Debentures, any
      waiver, extension, accommodation, silence, abstention from action (“waiver”) on the part of
      the Trustee concerning the non-fulfillment or partial or incorrect
      fulfillment of any of the undertakings towards the Trustee hereby and in
      accordance with the Debenture will not be considered as a waiver by the
      Trustee of any right but as limited consent for the particular instance on
      which it has been given. Without derogating from the other provisions
      hereof and the Debenture, any change in the undertakings to the Trustee
      necessitates receipt of the prior written consent of the Trustee. Any
      other consent, whether oral or by waiver or abstention from action or in
      any way that is not in writing, will not be considered as any consent. The
      rights of the Trustee hereby are independent and unconditional of each
      other and are in addition to any right that the Trustee has and/or will
      have by law and/or agreement (including this Deed and the
      Debenture).

                
	 	 
	
                  34.

                	
                  Addresses

                
	 	 
	 
      	
                  The
      addresses of the parties will be as specified in the preamble hereto, or
      any other address for which an appropriate written notice is given to the
      counterparty.

                
	 	 
	
                  35.

                	
                  Certification for
      MAGNA

                
	 	 
	 
      	
                  In
      accordance with the provisions of the Securities Regulations (Signing and
      Electronic 

                

        

         

        
          
            
            

          

          
            -33-

            
              

            

          

          
            
            

          

        

         

        Reporting) 5763 2003, the
Trustee hereby approves that the competent party of the Company report
electronically to the Securities Authority of this Deed of Trust.

         

        In witness whereof the
parties have set their hands hereunto

         

        
          	 	 	 	 	 
	
                   

                	 	 	
                   

                	 
	
                  Cellcom
      Israel Ltd.    

                	 	 	
                  Hermetic Trust (1975)
      Ltd.

                	 
	
                   

                	 	 	
                   

                	 

        

      

    

     

    I,
the undersigned, Tamar Enav, Adv., confirm that this Deed of Trust has been
signed by Cellcom Israel Ltd. by Messrs. Tal Raz and Liat Menachemi Stadler and
that their signature binds the Company concerning this Deed of
Trust.

     

    
       

      
        	 	 	 	 	 
	
                 

              	 	 	
                 

              	 
	
                Tamar Enav, Adv.

              	 	 	
                 

              	 
	
                 

              	 	 	
                 

              	 

      

       

      
        
          
          

        

        
          -34-

          
            

          

        

        
          
          

        

      

    

     

    
      

       

      Cellcom
Israel Ltd.

      First
Addendum

       

      Certificate
of Debentures (Series E through I) and Debentures (Series 1 through
2)

       

      Issued
hereby is a Debenture that is repayable in __* annual installments in the years
____ to _____* (inclusive) and bears annual interest and linkage differences as
stated below.

       

       

      Registered
to name Debentures

       

      Certificate
No. ______________

       

      Annual
interest rate ____%

       

      Part
value of this Debenture: NIS ______________

       

       

      
        	
                 
      

              	
                This
      certificate attests that Cellcom Israel Ltd. (hereinafter: “the Company”) shall pay
      on [date_______*/ dates_______*] in each of the years _____* through
      _____* (inclusive) __% of the par value of this Debenture to the Debenture
      Holder on the determinant date for such payment, all subject to the terms
      listed in the overleaf and in the Deed of
Trust.

              

      

       

       

      
        	
                1.

              	
                This
      Debenture bears interest at the annual interest rate specified above and
      is payable on the dates, all subject to the terms listed in the overleaf.
      The Debenture will be [linked/unlinked], all subject to the terms listed
      in the overleaf.

              

      

       

       

      
        	
                2.

              	
                The
      last installment will be made against delivery of the Debenture to the
      Company at its registered office or anywhere else as advised by the
      Company, not later than five (5) Business Days before the payment becomes
      due under the terms of the
Debentures.

              

      

       

       

      
        	
                3.

              	
                This
      Debenture is issued as part of a Series of Debentures under terms that are
      identical to the terms of this Debenture, which is issued pursuant to the
      Deed of Trust (hereinafter: the “Deed of Trust”) from
      March 31, 2009 that has been signed between the Company and Hermetic
      Trust (1975). It is clarified that the provisions of the Deed of Trust
      will form and integral part of the provisions of this Debenture and will
      be binding to the Company and to the Holder of Debentures included in said
      Series.

              

      

       

       

      
        	
                4.

              	
                The
      Debentures in this Series will have an equal degree of security among each
      other (pari
      passu) concerning the undertakings of the Company pursuant to the
      Debenture, without a preferential right or priority over one
      another.

              

      

       

       

      
        	
                5.

              	
                This
      Debenture is issued subject to the conditions listed in the overleaf, the
      conditions listed in the Deed of Trust, the Prospectus and the Shelf Offer
      Report.

              

      

       

       

      
        	
                 
      

              	
                _____________________________

              

      

       

      
        	
                 
      

              	
                Cellcom
      Israel Ltd.

              

      

       

      
        	
                 
      

              	
                Date:
      _____________________

              

      

       

       

      
        
          
          

        

        
          -35-

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                   
      

                	
                  The
      Terms Listed in the Overleaf

                

        

         

      

      
        	
                1.

              	
                General

              

      

       

       

      The terms
listed in the overleaf will apply separately to each of the Series of Debentures
(as defined below) and the Debentures in each of the Series of Debentures shall
be hereinafter referred to as “the Debentures”, all - unless
otherwise stated or implied by the context.

       

      In this
Debenture (Series __), the following expressions will have the following
meaning, unless another intention is implied by the context of the
statements:

       

      
        	 	
                “The Company”
      and/or "the
      Issuer"

              	
                –

              	
                Cellcom
      Israel Ltd.

              
	 	 	 	 
	 	
                The “Deed of
      Trust”

              	
                –

              	
                The
      Deed of Trust that was signed between the Company and the Trustee on
      March 31, 2009, including the appendices attached thereto, which
      constitute an integral part thereof;

              
	 	 	 	 
	 	
                The “Prospectus” or “the Shelf
      Prospectus”

              	
                –

              	
                The
      shelf prospectus of the Company that is due to be published, inter alia, for the
      issue of the Debentures;

              
	 	 	 	 
	 	
                The “Shelf Offer Report”
      or “the Offer
      Report”

              	
                –

              	
                The
      shelf offer reports that will be published under the Shelf Prospectus, in
      accordance with the provisions of Section 23A(f) of the Securities
      Law, 5728 – 1968, wherein all the details that are specific to such offer
      will be completed, including the composition of the offered units, under
      the provisions of any law and in accordance with the Code and guidelines
      of the Tel Aviv Stock Exchange, prevailing at such
time;

              
	 	 	 	 
	 	
                The
      “Series of Debentures”

              	
                –

              	
                Series
      that would be titled series E through I and/or series 1 through 2 of
      debentures, registered to name, the terms of each would be determined in
      accordance with the Debenture Certificate, as defined below, of that
      series and the initial offer report of the debentures in that series, as
      shall be issued from time to time by the Company at its sole
      discretion;

              
	 	 	 	 
	 	
                The
      “Trustee”

              	
                –

              	
                Hermetic
      Trust (1975) Ltd. and/or any party serving from time to time as a trustee
      of the Debenture Holders pursuant to the Deed of
  Trust;

              

      

       

      
        
          
          

        

        
          -36-

          
            

          

        

        
          
          

        

      

       

      
        	 	
                “Register”

              	
                –

              	
                Register
      of the Debenture Holders as stated in Section 26 of the Deed of
      Trust;

              
	 	 	 	 
	 	
                The “Debenture Holders”
      and/or the “Debenture
      Owners”

              	
                –

              	
                Anyone
      holding the Debentures;

              
	 	 	 	 
	 	
                The
      “Debenture Certificate”

              	
                –

              	
                A
      Debenture certificate whose form appears as the first addendum to this
      deed;

              
	 	 	 	 
	 	
                The “Law” or “the Securities
      Law”

              	
                –

              	
                The
      Securities Law, 5728 – 1968 and the regulations thereby, as effective from
      time to time;

              
	 	 	 	 
	 	
                “Principal”

              	
                –

              	
                The
      outstanding par value of the Debentures in the relevant
      series;

              
	 	 	 	 
	 	
                The
      “Consumer Price Index” (“the Index”)

              	
                –

              	
                The
      price index known by the name of “the Consumer Price Index’, which
      includes fruit and vegetables, as published by the Central Bureau of
      Statistics and Economic Research, including that index even if published
      by another official body or institute, and including any official index
      that replaces it, whether composed of the same data as the existing index
      or not. If it is replaced by another index that is published by such a
      body or institute, and that body or institute did not determine the ratio
      between it and the index thus replaced, the ratio will be determined by
      the Central Bureau of Statistics, and in the case of such a ratio not
      being determined, it will be determined by the Trustee for the relevant
      series, following consultation with economic experts of his
      choice;

              
	 	 	 	 
	 	
                The
      “Known Index”

              	
                –

              	
                The
      last known consumer price index;

              
	 	 	 	 
	 	
                The
      “Basic Index”

              	
                –

              	
                The
      index known on a given date, which would be published in the offer report
      under which any Series of Debentures is initially
  offered;

              
	 	 	 	 
	 	
                The
      “Payment Index”

              	
                –

              	
                The
      consumer price index known on the date of making any payment on the
      account of the principal and/or the

              

      

       

      
        
          
          

        

        
          -37-

          
            

          

        

        
          
          

        

      

      
        	 	
                 

              	
                 

              	
                interest.

                 

                The
      initial offer report of the debentures in the relevant series, which are
      linked to the index, will specify whether the principal and/or the
      interest of the debentures is secured (i.e. in the event that the known
      index on the date scheduled for the relevant payment is less than the
      basic index, the payment index shall be the basic index) or unsecured
      (i.e. the payment index shall be the known index on the date scheduled for
      the relevant payment, even if this index is less than the basic
      index);

              

      

       

      
        	 	
                “Business day” or “Banking Business
      Day”

              	
                –

              	
                A
      day on which most of the banks in Israel are open for conducting
      transactions;

              
	 	 	 	 
	 	
                The
      “Stock Exchange”

              	
                –

              	
                The
      Tel Aviv Stock Exchange Ltd.

              
	 	 	 	 
	 	
                “Trade
      Day”

              	
                –

              	
                A
      day on which transactions are made on the Stock
  Exchange;

              
	 	 	 	 
	 	
                “Meeting”

              	
                –

              	
                A
      meeting of the Debenture Holders, including a class
    meeting.

              
	 	 	 	 
	 	
                “Class
      meeting”

              	
                –

              	
                A
      meeting of the Debenture Holders, who have an interest that is materially
      different from the interest of other Debenture Holders on the matter that
      is being discussed in the meeting.

              
	 	 	 	 
	 	
                The
      “Nominee Company”

              	
                –

              	
                The
      Israel Discount Bank Nominees Ltd.

              
	 	 	 	 
	 	
                “Foreign
      Currency”

              	
                –

              	
                Not
      more than one currency per each series of debentures, as shall be
      specified in the initial offer report of the debentures in the relevant
      series;

              
	 	 	 	 
	 	
                “Foreign
      Currency Exchange Rate”

              	
                –

              	
                The
      representative exchange rate of the foreign currency published by the Bank
      of Israel, or any official exchange rate of the foreign currency in
      relation to Israeli currency that shall supersede the aforesaid
      representative exchange rate and that shall be applicable at such time
      with respect to government bonds that are linked to the
  

              

      

       

      
        
          
          

        

        
          -38-

          
            

          

        

        
          
          

        

         

      

      
        	 	 	 	exchange rate of the
      foreign currency;
	 	 	 	 
	 	
                The “Known Exchange
      Rate” on any date

              	
                –

              	
                The
      latest exchange rate determined by the Bank of Israel prior to such date.
      However, during a period in which the Bank of Israel does not customarily
      determine a representative exchange rate, the known exchange rate shall be
      the rate most recently determined by the Minister of Finance together with
      the Governor of the Bank of Israel for government bonds that are linked to
      the exchange rate of the foreign currency.

              
	 	 	 	 
	 	
                The
      “Basic Exchange Rate”

              	
                –

              	
                The
      known exchange rate on a given date, which shall be determined in the
      initial offer report of the debentures in the relevant
    series;

              
	 	 	 	 
	 	
                The
      “Payment Exchange Rate”

              	
                –

              	
                The
      known exchange rate on the actual date of payment;

              
	 	 	 	 
	 	
                “Prime Interest Rate” on
      any given date

              	
                –

              	
                The
      interest rate derived from the average of the basic debit interest rate
      offered at such date by the four (4) major banks in
  Israel.

              
	 	 	 	 
	 	
                “Telbor Interest Rate”
      on any given date

              	
                –

              	
                Tel
      Aviv Interbank Offered Rate - The interest rate for interbank loans, which
      is calculated based on interest bids submitted by several banks in Israel,
      for a period that shall be determined in the initial offer report of the
      debentures in the relevant series, and that appears on the Reuters data
      distribution system on Mondays through Thursdays at 13:00 or shortly
      thereafter and on Fridays at 12:00 or shortly thereafter or on any other
      source of information that shall be specified in the initial offer report
      of the debentures in the relevant series.

              
	 	 	 	 
	 	
                “Libor Interest Rate” on
      any given date

              	
                –

              	
                The
      interest rate offered on such date on the interbank market in London for
      dollar deposits for a period that shall be determined in the initial offer
      report of the debentures in the relevant series (week, month, six months
      etc.), as quoted at 11:00 London time or shortly thereafter on the Libor01
      Page published by the Reuters News Agency or, if this Page is replaced, as
      quoted at 

              

      

       

      
        
          
          

        

        
          -39-

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	such time or shortly
      thereafter on the replacement page.
	 	 	 	 
	 	
                “Euribor Interest Rate”
      on any given date

              	
                –

              	
                Euro
      Interbank Offered Rate - The interest rate offered on such date on the
      interbank market for euro deposits for a period that shall be determined
      in the initial offer report of the debentures in the relevant series, as
      quoted at 11:00 London time or shortly thereafter on the Euribor01 Page
      published by the Reuters News Agency or, if this Page is replaced, as
      quoted at such time or shortly thereafter on the replacement page, or on
      any other source of information that shall be specified in the initial
      offer report of the debentures in the relevant series.

              
	 	 	 	 
	 	
                The “Basic Interest Rate”
      on any given date

              	
                –

              	
                The
      Libor or the Telbor or the Euribor or the Prime or any other basic
      interest rate that may be selected by the Company, as shall be determined
      in the initial offer report of the debentures in the relevant
      series.

              

      

       

      This
Debenture is one of a series of registered to name Debentures (Series E through
I) with a total par value of up to NIS _______________ or registered to
name Debentures (Series 1 through 2) with a total par value of up to
NIS _______________. The Debentures of these series will have an equal,
pari passu degree of
security among each other concerning the undertakings of the Company pursuant to
the Debentures, without a right of preference or priority of one over
another.

       

      This
Debenture is repayable in __* [annual/semi-annual] installments, consecutive and
equal (with the exception of the first or the last installment, that may be set
at a different rate), which shall be paid on [___*] in each of the years ____*
to ____*, as specified in Section 3 below, and bears interest at the annual
rate stipulated in Section 4 below. The principal of the Debenture and the
interest thereon are [linked to the Index/linked to the dollar/unlinked] as
described in Section 3 below.

       

      2.           Securing the
Debentures

       

       

      
        	
                 
      

              	
                2.1

              	
                The
      Debentures may or may not be secured by collateral, any pledge or
      otherwise. Information concerning the Debentures’ securing mechanism, to
      the extent that they are secured by collateral, any pledge or otherwise,
      will be provided in the Initial Shelf Offer Report for each of the
      relevant Series of Debentures.

              

      

       

      
        	
                
                

              	
                2.2

              	
                Unless
      otherwise stated in the Initial Shelf Offer Report for each of the
      relevant Series of Debentures, the Company will be
      allowed to pledge its assets, in part or in full,
  by

              

      

    

     

    
      
        
        

      

      
        -40-

        
          

        

      

      
        
        

      

    

    
       

      
        	
                 
      

              	
                any
      pledge and in any way, to the benefit of any third party, without the need
      for any consent from the Trustee and/or the Debenture Holdersfrom each of
      the Series. In
      addition, the
      Company will be allowed to sell, lease, assign, deliver or transfer in any
      other way its assets, in part or in full, in any way, for benefit of any
      third party, without the need for any consent of the Trustee and/or the
      Debenture Holders in each of the
Series.

              

      

       

       

      
        	
                 
      

              	
                2.3

              	
                For
      the removal of doubt, it is clarified that the Trustee has no duty to
      examine, and in fact the Trustee has not examined, the need for providing
      collateral for securing the payments to the Debenture Holders. In its
      entering the engagement in this Deed of Trust, and with the consent of the
      Trustee to serve as the trustee for the Debenture Holders, the Trustee
      does not express its opinion, implicitly or explicitly, as to the ability
      of the Company to fulfill its undertakings towards the Debenture Holders
      of each of the Series.

              

      

       

      For the
removal of doubt it is clarified that if the Company’s undertakings towards the
Debenture Holders are secured by any collateral, the Trustee has no duty to
examine, and in fact the Trustee will not examine, the value of the collateral.
In its entering the engagement in this Deed of Trust, and with the consent of
the Trustee to serve as the trustee for the Debenture Holders, the Trustee does
not express its opinion, implicitly or explicitly, as to the value of the
collateral, to the extent that collateral is provided, or as to the ability of
the Company to fulfill its undertakings towards the Debenture Holders in any of
the Series. In the event that the Debentures are secured by any collateral, the
fee of the Trustee shall be increased as shall be agreed between the Company and
the Trustee.

       

      The
Trustee has not been requested to perform, and in fact has not performed a
financial, accounting or legal due diligence as to the state of affairs of the
Company or the subsidiaries and will not perform such due diligence when a
series is taken off the shelf.

       

      The
foregoing does not derogate from the duty of the Trustee by law and/or Deed of
Trust, nor does it derogate from the duty of the Trustee (to the extent that
this duty applies to the Trustee according to any law) to examine the effect of
changes in the Company from the date of the Prospectus onwards, to the extent
that these may adversely affect the ability of the Company to fulfill its
undertakings to the Debenture Holders in any of the Series.

       

      
        	
                 
      

              	
                2.4

              	
                The
      Debentures in any of the Series will be in an equal pari passu degree of
      security among themselves concerning the undertakings of the Company
      pursuant to the Debentures of the same Series, without precedence or
      preference over each other.

              

      

       

      
        
          
          

        

        
          -41-

          
            

          

        

        
          
          

        

      

       

      3.           The principal of the
Debentures and its linkage bases

       

      The
principal of the Debentures in the relevant Series will be repayable in a number
of installments that shall not fall below one and shall not exceed ten (10)
annual installments, or that shall not fall below one and shall not exceed
twenty (20) semi-annual installments that shall be consecutive and equal (with
the exception of the first or the last installment, that may be set at a
different rate) and shall be payable on the dates stipulated in the Initial
Offer Report for the relevant Series and subject to the linkage terms specified
in this section below.

       

      The
principal of the Debentures may be linked to any of the linkage bases listed
below or unlinked, all as shall be specified in the Initial Offer Report of the
Debentures in that Series, with reference to the definitions of the linkage
bases provided below:

       

      
        	
                 
      

              	
                3.1

              	
                Linkage
      to the Index

              

      

       

      If the
terms of the relevant Series of Debentures stipulate the linkage of the
principal and interest of the Debentures in that Series to the Index, then the
linkage to the Index of the principal and interest will be such that, if on any
date of payment on account of the principal and/or interest of said Debentures
the Payment Index exceeds the Basic Index, the Company’s principal and/or
interest payment on such date would be increased in proportion to the rate of
increase in the Payment Index over the Basic Index. In case the Payment Index is
less than the Basic Index, the Company may stipulate in the Initial Offer Report
of the Debentures in that Series that the principal and/or interest of the
Debentures are to be secured (i.e. if the Payment Index is less than the Basic
Index, the Payment Index shall be the Basic Index) or unsecured (i.e. the
Payment Index shall be the Known Index on the date of payment, even if such
index is less than the Basic Index). The securing against a decrease in the
index where the Payment Index is less than the Basic Index is to be provided for
in the Initial Offer Report, as described above.

       

      The
interest payable on the Debentures in that Series will be at a fixed rate as
described in Section 4.1.1 below, or at a variable rate (Prime Interest or
Telbor Interest or any other basic interest, as shall be determined in the
Initial Offer Report of the Debentures in the relevant Series, with the addition
or less a margin that would be specified in the Initial Offer Report or
determined in a bid) as described in Section 4.1.2 below.

       

      
        	
                 
      

              	
                3.2

              	
                Linkage
      to foreign currency

              

      

       

      If the
terms of the relevant Series of Debentures stipulate the linkage of the
principal and interest of the Debentures in that Series to foreign currency,
then their linkage to foreign currency will be such that, if on any date of
payment on account of the principal and/or interest of said Debentures the
Payment Exchange Rate exceeds the Basic Exchange Rate, the Company’s
principal/interest payment on such date would be 

       

      
        
          
          

        

        
          -42-

          
            

          

        

        
          
          

        

      

       

      increased
in proportion to the rate of increase in the Payment Exchange Rate over the
Basic Exchange Rate. In case the Payment Exchange Rate is less than the Basic
Exchange Rate, the Company may stipulate in the Initial Offer Report of the
Debentures in that Series that the principal and/or interest of the Debentures
are to be secured (i.e. if the Payment Exchange Rate is less than the Basic
Exchange Rate, the Payment Exchange Rate shall be the Basic Exchange Rate) or
unsecured (i.e. the Payment Exchange Rate shall be the Known Exchange Rate on
the date of payment, even if such Exchange Rate is less than the Basic Exchange
Rate). The securing against a decrease in the Foreign Currency Exchange Rate
where the Payment Exchange Rate is less than the Basic Exchange Rate is to be
provided for in the aforesaid Initial Offer Report.

       

      The
interest payable on the Debentures in that Series will be at a fixed rate as
described in Section 4.3.1 below, or at a variable rate (Libor Interest or
Euribor Interest or any other basic interest, as shall be determined in the
Initial Offer Report of the Debentures in the relevant Series, with the addition
or less a margin that would be specified in the Initial Offer Report or
determined in a bid) as described in Section 4.3.2 below.

       

      
        	
                 
      

              	
                3.3

              	
                Unlinked
      Debentures

              

      

       

      If the
terms of the relevant Series of Debentures do not stipulate any linkage basis
for the principal of the Debentures in that Series, the principal will be
denominated in NIS and would not be linked to any Index or Foreign Currency. In
this case, the interest on the Debentures would also not be linked to any Index
or Foreign Currency.

       

      The
interest payable on the Debentures in that Series will be at a fixed rate as
described in Section 4.2.1 below, or at a variable rate (Prime Interest or
Telbor Interest or any other basic interest, as shall be determined in the
Initial Offer Report of the Debentures in the relevant Series, with the addition
or less a margin that would be specified in the Initial Offer Report or
determined in a bid) as described in Section 4.2.2 below.

       

      
        	
                 
      

              	
                3.4

              	
                Subject
      to the stated in the Code and Guidelines of the Stock Exchange, the
      linkage method will not be changed throughout the period of the Debentures
      and no more than one linkage basis will be assigned to each of the Series
      of Debentures.

              

      

       

      
        	
                4.

              	
                The
      Interest

              

      

       

      The
principal of the Debentures in the relevant Series will bear annual interest at
a rate that will be determined in the Initial Offer Report of the Debentures in
that Series, and based on one of the interest calculation mechanisms described
below, as shall be determined in the aforesaid Initial Offer Report , in
reference to the interest calculation mechanisms described below:

       

      
        	
                 
      

              	
                4.1

              	
                Interest
      on index-linked principal

              

      

       

      
        
          
          

        

        
          -43-

          
            

          

        

        
          
          

        

      

       

      The
principal of the Debentures, if these are linked to the Consumer Price Index,
will bear linked interest as aforesaid, at a fixed or a variable rate, as
described below:

       

      
        	
                 
      

              	
                4.1.1

              	
                Interest
      at a fixed rate - interest at a fixed rate, as shall be stipulated in the
      Initial Offer Report of the Debenture in the relevant Series and/or
      determined in a bid carried out under said Offer
  Report.

              

      

       

      
        	
                 
      

              	
                4.1.2

              	
                Interest
      at a variable rate, for which the margin above or below the Basic Interest
      is specified in the Initial Offer Report of the Debentures or determined
      in a bid thereunder, if the Basic Interest is the Prime - the interest
      rate for the full interest period would be determined according to the
      Basic Interest Rate specified in the Initial Offer Report of the
      Debentures, as quoted on the Banking Business Day that takes place two (2)
      Business Days prior to the first day of the interest period (“the Sample Date”). The
      Company will submit an immediate report on the interest rate determined as
      above within four (4) days of the Sample
Date.

              

      

       

      
        	
                 
      

              	
                4.2

              	
                Interest
      on unlinked principal

              

      

       

      The
principal of the Debentures, if not linked to any index or currency, will bear
interest at a fixed or variable rate, as described below:

       

      
        	
                 
      

              	
                4.2.1

              	
                Fixed
      NIS interest - interest at a fixed rate, as shall be stipulated in the
      Initial Offer Report of the Debenture in the relevant Series and/or
      determined in a bid carried out under such Offer
  Report.

              

      

       

      
        	
                 
      

              	
                4.2.2

              	
                Interest
      at a variable rate, for which the margin above or below the Basic Interest
      is specified in the Initial Offer Report of the Debentures or determined
      in a bid thereunder, if the Basic Interest is the Prime or the Telbor, or
      any other Basic Interest determined in the Initial Offer Report of the
      Debentures -the interest rate for the full interest period would be
      determined according to the rate of the Prime, the Telbor or any other
      Basic Interest, as quoted on the Banking Business Day that takes place two
      (2) Business Days prior to the first day of the interest period (“the Sample Date”). The
      Company will submit an immediate report on the interest rate determined as
      above within four (4) days of the Sample
Date.

              

      

       

      
        	
                 
      

              	
                4.3

              	
                Interest
      on principal linked to foreign
currency

              

      

       

      The
principal of the Debentures, if these are linked to a foreign currency, will
bear interest at a fixed or a variable rate, as described below:

       

      
        	
                 
      

              	
                4.3.1

              	
                Fixed
      interest linked to foreign currency - interest that is linked to a foreign
      currency, the fixed rate of which would be determined in the Initial Offer
      

              

      

       

      
        
          
          

        

        
          -44-

          
            

          

        

        
          
          

        

         

        Report of the Debentures
in the relevant Series and/or in a bid conducted under such Offer
Report.

         

      

      
        	
                 
      

              	
                4.3.2

              	
                Interest
      at a variable rate, for which the margin above or below the Basic Interest
      is specified in the Initial Offer Report of the Debentures or determined
      in a bid thereunder,if the Basic Interest is the Libor, the Euribor or any
      other Basic Interest determined in the Initial Offer Report of the
      Debentures, the interest rate for the full interest period would be
      determined according to the rate of the Libor, the Euribor or any other
      Basic Interest, as quoted on the Banking Business Day that takes place two
      (2) Business Days prior to the first day of the interest period (“the Sample Date”). The
      Company will submit an immediate report on the interest rate determined as
      above within four (4) days of the Sample
Date.

              

      

       

      
        	
                 
      

              	
                4.4

              	
                The
      interest rate for the first interest period of the Debentures in the
      relevant Series will be specified in the Initial Offer Report of the
      Debenture in that Series and/or in a report that will be published by the
      Company with respect to the results of the bid that would be conducted by
      the Company, as appropriate.

              

      

       

      
        	
                 
      

              	
                4.5

              	
                It
      is clarified that, for Debentures that bear a variable interest rate, as
      described in Sections 4.1.2, 4.2.2 and 4.3.2 above, the interest rate
      paid in each interest period will vary, as stated
  above.

              

      

       

      
        	
                 
      

              	
                4.6

              	
                The
      interest rate determined for each relevant Series will be an annual
      rate.

              

      

       

      
        	
                 
      

              	
                4.7

              	
                The
      interest on the Debentures in the relevant Series will be payable every
      year in one annual installment or in two semi-annual installments or in
      four quarterly installments, as shall be stipulated in the Initial Offer
      Report of the Debentures in the relevant Series (the “Interest Periods”)
      in respect of the interest period ended on the last day prior to the date
      of payment. The first interest period of the Debentures in the relevant
      Series will commence on the first Trade Day following the date of closing
      of the list of signatures, as specified in the Initial Offer Report of the
      Debentures in the relevant Series, and end on the last day prior to the
      first date of payment. Any subsequent interest period of the Debentures in
      the relevant Series will commence on the first day following the end of
      the preceding interest period and end on the last day prior to the date of
      payment closest after to its date of commencement. The interest for the
      first interest period will be calculated according to the number of days
      in this period based on a 365-day
year.

              

      

       

      
        	
                 
      

              	
                4.8

              	
                The
      interest on the principal of the Debentures in the relevant Series will be
      calculated starting from the date of clearing (the first Trade Day
      following the date of closing of the list of signatures, as specified in
      the Initial Offer Report of the Debentures in the
  

              

      

       

      
        
          
          

        

        
          -45-

          
            

          

        

        
          
          

        

      

       

      relevant Series). On the
date of clearing, the Company will submit an immediate report specifying the
rate of interest that shall be payable in respect of the first interest period,
calculated as above.

       

      
        	
                 
      

              	
                4.9

              	
                The
      last installment of interest on the principal of the Debentures in the
      relevant Series will be paid together with the last installment on account
      of the principal of the Debentures in that Series, against the delivery of
      the Debenture Certificates of the Series to the
  Company.

              

      

       

      
        	
                 
      

              	
                4.10

              	
                Income
      tax (see Section 2.11 of the Prospectus) will be deducted from each
      payment of interest for the Debentures, according to the
    law.

              

      

       

      
        	
                5.

              	
                The right for
      Conversion of Debentures (Series 1 through 2) into shares (“the
      Convertible Debentures”)

              

      

       

      
        	
                 
      

              	
                5.1

              	
                Terms of
      conversion

              

      

       

      
        	
                 
      

              	
                5.1.1

              	
                On
      every Trade Day, commencing on the first-time listing of each of the
      Series of Convertible Debentures for trade on the Stock Exchange until
      several days prior to the end of the period of the Debentures in the
      relevant Series, in accordance with the guidelines of the Stock Exchange
      as of the date of the Initial Offer Report of the Debentures in that
      Series and as shall be provided for in the aforesaid Offer Report (“the Conversion
      Period”, and each Trade Day as aforesaid shall be hereinafter
      referred to as “the Date
      of Conversion”, and the final date of the Conversion Period shall
      be hereinafter referred to as “the End of the Conversion
      Period”), with the exception of several days prior to the
      determinant date for partial redemption in accordance with the Code and
      guidelines of the Stock Exchange as of the date of the aforesaid Initial
      Offer Report through to the date of execution of the partial redemption,
      the balance of the principal of the Convertible Debentures in that Series
      that are in circulation on such date will be convertible into fully paid
      ordinary shares of the Company, registered to name, outstanding in the
      Company’s equity on the date of the Offer Report (“the Conversion
      Shares”), at a conversion rate that shall not be less than the par
      value of the Company’s ordinary shares as of the date of said Offer Report
      (“the Conversion
      Rate”), subject to adjustments as specified below, and in the
      manner and under the terms, all as shall be stipulated in the aforesaid
      Offer Report.

              

      

       

      
        	
                 
      

              	
                5.1.2

              	
                Any
      Holder of Convertible Debentures in any Series looking to convert the par
      value balance of the principal of Convertible Debentures in the Series
      held by him into Conversion Shares (“the Converter”) will submit to the
      Company, directly at its registered office (if the Debentures are
      registered to the name of 

              

      

       

      
        
          
          

        

        
          -46-

          
            

          

        

        
          
          

        

         

        the Converter in the
Register of that Series) or through a member of the Stock Exchange (if the
Debentures are held by the Converter through the member of the Stock Exchange),
on the Dates of Conversion and in all events before the End of the Conversion
Period with respect to said Series, a written application to this effect in the
format that shall be determined by the Company, together with the Certificates
of the Convertible Debentures to which the application relates (“the
Conversion Notice”).

      

       

      
        	
                 
      

              	
                5.1.3

              	
                Within
      a single Conversion Notice, the conversion of the par value balance of the
      number of Convertible Debentures of the same Series that are registered to
      the name of one Holder may be requested and must be accompanied by all the
      Certificates of the Convertible Debentures to which the Conversion Notice
      relates.

              

      

       

      
        	
                 
      

              	
                5.1.4

              	
                In
      the event of conversion of Convertible Debentures into shares pursuant to
      this section that relates only to part of the par value sum of Convertible
      Debentures registered in the same Certificate, the Certificate of
      Convertible Debentures must first be split into the appropriate number of
      Debenture Certificates, such that the sum of all the par value amounts of
      the Debentures registered therein is equal to the par value sum of the
      Debenture Certificate divided up as
aforesaid.

              

      

       

      
        	
                 
      

              	
                5.1.5

              	
                The
      Conversion Notice forms are available at the registered office of the
      Company as well as in any other location advised by the
      Company.

              

      

       

      
        	
                 
      

              	
                5.1.6

              	
                The
      Converter will, at any time, sign any document that may be required under
      any law and pursuant to the Company’s directives for the allocation of the
      Conversion Shares. The date on which the Company receives a Conversion
      Notice directly from the Converter (with respect to directly held
      Debentures), or the Stock Exchange Clearing House receives a notice of the
      conversion of the Convertible Debentures from a member of the Stock
      Exchange (with respect to Debentures held through the Nominee Company),
      that fully complies with all the terms stipulated in this Prospectus, as
      appropriate, will be deemed as the date of conversion (“the Conversion
      Date”).

              

      

       

      
        	
                 
      

              	
                5.1.7

              	
                In
      the event that the Converter does not fully comply with the terms for the
      conversion of the Convertible Debentures, the Conversion Notice will be
      deemed as void and the Certificates of the Convertible Debentures will be
      returned to the applicant.

              

      

       

      
        	
                 
      

              	
                5.1.8

              	
                A
      Conversion Notice submitted to the Company may not be cancelled or
      altered.

              

      

       

      
        
          
          

        

        
          -47-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                5.1.9

              	
                The
      Converter will not be entitled to the allocation of a part of a single
      Conversion Share, however any fractions of Conversion Shares that arise
      upon conversion, if any, will be sold on the Stock Exchange by a trustee
      that would be appointed by the Company for this purpose, within thirty
      (30) days of the accrual of such fractions into whole shares in a quantity
      that is reasonable for sale on the Stock Exchange, taking into
      consideration the costs involve, and the net consideration from the sale
      will be proportionately divided between the beneficiaries within fifteen
      (15) days of the selling date. A check will not be issued to any of the
      beneficiaries for an amount less than NIS 50; such amounts may be
      collected at the offices of the
Company.

              

      

       

      
        	
                 
      

              	
                5.1.10

              	
                Conversion
      Shares will confer upon their holders full participation rights in any
      dividend and other distribution the determinant date for entitlement
      thereto is the Conversion Date or a later date, and will be equal in
      rights in all respects to the ordinary shares outstanding in the Company’s
      equity on such date.

              

      

       

      
        	
                 
      

              	
                5.1.11

              	
                Any
      Convertible Debentures that are converted will be removed from circulation
      on their Conversion Date and will be fully cancelled, with retroactive
      effect to the Conversion Date, from the date of allotment of Conversion
      Shares in their respect, and will not confer any right to any interest
      subsequent to the final date of payment of interest thereon, with respect
      to which the determinant date precedes the Conversion date, and will not
      confer any right to linkage differences accrued on the balance of the
      principal under the terms of linkage as stated in Section 3 above
      (and which would have been payable together with the principal of the
      Debentures had the applicant not exercised his right to convert the
      Convertible Debentures into shares as
  aforesaid).

              

      

       

      
        	
                 
      

              	
                5.1.12

              	
                Any
      part of the Convertible Debentures of any Series that is not converted
      until the End of the Conversion Period of such Series will no longer
      confer upon its Holder any right to convert it into Conversion Shares, and
      the related conversion right will be null and void subsequent to said
      date.

              

      

       

      
        	
                 
      

              	
                5.2

              	
                Timetables for the
      conversion

              

      

       

      The
bylaws of the Stock Exchange clearing House known as of the date of publication
of the Shelf Prospectus with respect to the timetable for the execution of an
order for the conversion of the Convertible Debentures that are held through
members of the Stock Exchange stipulate as follows:

       

      
        	
                 
      

              	
                5.2.1

              	
                The
      notification by a client of a conversion that is received by 12:00 noon at
      the offices of the member of the Stock Exchange will be transmitted by
      that

              

      

       

      
        
          
          

        

        
          -48-

          
            

          

        

        
          
          

        

      

       

      member
of the Stock Exchange to the Clearing House not later than 12:00 noon on the
following Trade Day.

       

      
        	
                 
      

              	
                5.2.2

              	
                Having
      received a notification of a conversion from a member of the Stock
      Exchange by 12:00 noon, the Clearing House will debit the member of the
      Stock Exchange and credit the Nominee Company accordingly, this not later
      than 12:00 noon on the following Trade
Day.

              

      

       

      
        	
                 
      

              	
                5.2.3

              	
                Having
      received a credit notification pursuant to Section 5.2.2 above by
      12:00 noon, the Nominee Company will transmit the Conversion Notice to the
      offices of the issuing company not later than 12:00 noon on the following
      Trade Day.

              

      

       

      
        	
                 
      

              	
                5.2.4

              	
                Any
      notification from the parties mentioned in Sections 5.2.1 through
      5.2.3 above that is received after 12:00 noon on any Trade Date will be
      deemed as having been received by 12:00 noon of the following Trade
      Day.

              

      

       

      
        	
                 
      

              	
                5.2.5

              	
                Notwithstanding
      the said above, on the last Conversion Date preceding final redemption or
      preceding an ex partial redemption date, as applicable, the members of the
      Stock Exchange are required to transmit to the Clearing House the final
      conversion applications by 12:00 noon. The conversion will be executed on
      the same date. Any member of the Stock Exchange that does not submit an
      application by said time will be deemed as not having exercised its
      right.

              

      

       

      
        	
                 
      

              	
                5.2.6

              	
                In
      the event that the final date for the conversion of the Convertible
      Debentures of any Series or the final date for conversion prior to partial
      redemption falls on a day that is not a Trade Day, such date will be
      deferred to the following Trade
Day.

              

      

       

      It is
hereby emphasized that the conversions of the Convertible Debentures shall be
subject to the bylaws of the Stock Exchange Clearing House existing on the
actual date of conversion.

       

      Within
one Trade Day of the Conversion Date, the Company will allot each Converter
certificates in respect of the Conversion Shares due to him, and after approval
is received for the listing for trade of the allotted Conversion Shares, the
Company will take action to list the Conversion Shares for trade on the Stock
Exchange within three (3) days of said date.

       

      
        	
                 
      

              	
                5.3

              	
                Directives for the
      protection of the Holders of Convertible Debentures during the Conversion
      Period

              

      

       

      
        	
                 
      

              	
                5.3.1

              	
                Distribution of bonus
      shares

              

      

       

      In the
event of the distribution of bonus shares by the Company between the

       

      
        
          
          

        

        
          -49-

          
            

          

        

        
          
          

        

      

       

      date of
the Initial Offer Report of any of the Series of Convertible Debentures through
to the End of the Conversion Period of such Series, the rights of the Holders of
Convertible Debenture in said Series will be protected as follows:

       

      
        	
                 
      

              	
                5.3.1.1

              	
                Subsequent
      to the determinant date for the entitlement to participate in such
      distribution, the number of Conversion Shares receivable by the Holder of
      Convertible Debentures in such Series upon their conversion would be
      increased by adding the number of shares to which the Holder would have
      been entitled as bonus shares had he converted the Convertible Debentures
      immediately before the aforesaid determinant
  date.

              

      

       

      
        	
                 
      

              	
                5.3.1.2

              	
                The
      Holder of the Convertible Debentures will not be entitled to the
      allocation of a part of a bonus share as above, however any fractions of
      bonus shares that arise upon allotment, if any, will be sold on the Stock
      Exchange by a trustee that would be appointed by the Company for this
      purpose, within thirty (30) days of the aforesaid date of allotment, and
      the net consideration (less selling costs and compulsory payments and
      fees) will be divided between the beneficiaries within fifteen (15) days
      of the selling date. A check will not be issued to one beneficiary for an
      amount less than NIS 50; such amounts may be collected at the offices
      of the Company.

              

      

       

      
        	
                 
      

              	
                5.3.1.3

              	
                Subject
      to the stated in the Code and guidelines of the Stock Exchange, the
      adjustment method may not be
altered.

              

      

       

      
        	
                 
      

              	
                5.3.2

              	
                Issuance of
      rights

              

      

       

      In the
event that, between date of the Initial Offer Report of any of the Series of
Convertible Debentures through to the End of the Conversion Period of such
Series, the Company should offer to its shareholders securities of any kind by
way of the issuance of rights, the number of Conversion Shares receivable upon
conversion of the Convertible Debentures in such Series that have not yet been
converted into ordinary shares of the Company on the determinant date based will
be adjusted according to the benefit component of the rights, as reflected in
the ratio of the quoted price of the Company’s share on the Stock Exchange on
the determinant date to the basic “ex rights” price. Subject to the stated in
the Code and guidelines of the Stock Exchange, the adjustment method may not be
altered.

       

      
        	
                 
      

              	
                5.3.3

              	
                Adjustment with
      respect to dividend
distribution

              

      

       

      Should
the Company carry out a dividend distribution, as defined in the

       

      
        
          
          

        

        
          -50-

          
            

          

        

        
          
          

        

      

       

      Companies
Law (“the distribution”), the determinant date for the entitlement thereto (“the
determinant date for distribution”) falls before the End of the Conversion
Period, one of the provisions stipulated in subsections (1) and (2) below shall
apply, all as shall be determined by the Company in the Initial Offer Report of
the Convertible Debentures under the Shelf Prospectus. The Company will publish
in detail in the aforesaid Offer Report the manner of adjustment of the
Conversion Rate and/or the Conversion Ratio following a distribution, to the
extent that such is carried out, based on its selection of one of the following
alternatives:

       

      
        	
                 
      

              	
                5.3.3.1

              	
                The
      Conversion Rate and/or the Conversion Ratio will not be adjusted as a
      result of a distribution by the
Company.

              

      

       

      
        	
                 
      

              	
                5.3.3.2

              	
                Commencing
      on the first Trade Day on which the Company’s shares are traded subsequent
      to the determinant date for distribution (ex dividend), the Conversion
      Ratio of the Convertible Debentures in circulation will be adjusted by its
      multiplication by the ratio of the price of the Company’s share on the
      Stock Exchange, as determined by the Stock Exchange, adjusted for the
      distribution (ex dividend price), to the closing price determined for the
      Company’s share by the Stock Exchange on the determinant date for
      distribution). The Company will announce the adjustment of the Conversion
      Ratio, as above, in an immediate report not later than the date on which
      the Company’s shares are traded “ex
dividend”.

              

      

       

      The
Company will act in accordance with the stated in Section 5.3.3.1 above,
this without derogating from the Company’s right, as aforesaid, to change the
adjustment of the Conversion Rate and/or the Conversion Ratio following a
distribution by way of the issuance of a notice within the framework of the
Initial Offer Report of the Debentures in the relevant Series.

       

      
        	
                 
      

              	
                5.4

              	
                Additional directives
      for the protection of the Holders of Convertible Debentures during the
      Conversion Period

              

      

       

      Commencing
on the date of publication of the Offer Report for any Series of Convertible
Debentures until all of the Convertible Debenture in that Series are converted,
but in no event later than the End of the Conversion Period of the Series, the
following directives shall apply:

       

      
        	
                 
      

              	
                5.4.1

              	
                The
      Company will maintain a sufficient amount of ordinary shares in its
      authorized share capital, to secure the allotment of all of the shares
      that may result from the conversion of all of the Convertible Debentures
      in a given Series 

              

      

       

      
        
          
          

        

        
          -51-

          
            

          

        

        
          
          

        

         

      

      that are in circulation
from time to time, and if necessary will cause the increase of its authorized
share capital accordingly.

       

      
        	
                 
      

              	
                5.4.2

              	
                Should
      the Company consolidate the ordinary shares in its issued share capital
      into shares with a greater par value or subdivide them into shares with a
      lesser par value - the number of Conversion Shares for allotment
      following the conversion of the Convertible Debentures in the relevant
      Series would be consequently reduced or increased, as appropriate. In such
      case, the provisions of this Section 5.4 must be followed, mutatis
      mutandis.

              

      

       

      
        	
                 
      

              	
                5.4.3

              	
                Within
      ten (10) days of any adjustment to the Conversion Rate or to the number of
      Conversion Shares in relation to the aforesaid Series of Convertible
      Debentures, the Company will publish a notice in two (2) widely
      distributed daily newspapers that are published in Israel in Hebrew,
      concerning the entitlement of the Holders of Convertible Debentures in
      said Series to convert them into shares, specifying the Conversion Period,
      the Conversion Rate and the number of Conversion Shares to which the
      Holder of Convertible Shares would be entitled following a conversion at
      such time, all in relation to the abovementioned
  Series.

              

      

       

      
        	
                 
      

              	
                5.4.4

              	
                In
      addition to said notice, not later than three (3) weeks and not earlier
      than four (4) weeks before the End of the Conversion Period in respect of
      said Series, the Company will publish a notice in two (2) widely
      distributed daily newspapers that are published in Israel in Hebrew, and
      will issue a written notice, with copies to the Stock Exchange and the
      Trustee of the Series, to the Holders registered in the Register of the
      Holders of Convertible Debentures in that Series, one month prior to the
      End of the Conversion Period, as aforesaid, concerning the final date for
      the conversion of the Convertible Debentures in that Series. Such notice
      will specify the Conversion Rate, the number of Conversion Shares and the
      number of bonus shares to which the Holder of Convertible Shares would be
      entitled following a conversion at such time, all in relation to the
      abovementioned Series.

              

      

       

      
        	
                 
      

              	
                5.4.5

              	
                The
      Company will not distribute nor offer to the holders of ordinary shares a
      cash dividend or bonus shares or an offer of rights in any securities,
      unless the determinant date for their receipt is at least ten (10) days
      after the publication of the Company’s notice concerning the distribution
      or offer of rights, as appropriate.

              

      

       

      
        	
                 
      

              	
                5.4.6

              	
                The
      Company will refrain from any action, including the distribution of bonus
      shares, which may result in the reduction of the price of a Conversion
      Share below its par value.

              

      

       

      
        
          
          

        

        
          -52-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                5.4.7

              	
                In
      accordance with the Code and guidelines of the Stock Exchange, the terms
      of the Convertible Debentures with respect to the Conversion Rate, the
      conversion dates and the linkage method cannot be changed; nevertheless,
      the Company is allowed to change the Conversion Period and/or the
      Conversion Rate provided that such change is effected within the framework
      of an arrangement or settlement that has been approved by Court, under
      Section 350 of the Companies Law. Additionally, in accordance with
      the Code and guidelines of the Stock Exchange, the Company may change the
      Conversion Rate as part of a procedure for the split of the Company or a
      procedure for the merger of the Company, provided that the change includes
      only those adjustments that are essential to such
    procedure.

              

      

       

      In
accordance with the Code and guidelines of the Stock Exchange, the “split
procedure” for this purpose signifies - a procedure whereunder the Company
transfers to its shareholders shares that it holds in another company, or a
procedure whereunder the Company transfers assets and liabilities to a new
company that was established for the purpose of the split and the shareholders
in the new company are also shareholders in the company that transfers the
assets and liabilities, all conditional upon the split procedure being carried
out pari passu for all
shareholders of the Company. In accordance with the Code and guidelines of the
Stock Exchange, the “merger procedure” for this purpose signifies - a procedure
whereunder all the shares of the Company are transferred to the possession of a
new company or to the possession of another registered company whose shares are
listed for trade on the Stock Exchange or a procedure whereunder the Company
transfers all of its assets and liabilities to another company as above, all
conditional upon the securities of the Company whose shares or assets are to be
transferred as aforesaid being delisted from trade on the Stock Exchange and
upon the merger procedure being carried out pari passu for all
shareholders of the Company.

       

      Notwithstanding
the above, in accordance with the Code and guidelines of the Stock Exchange, the
Company may change the Conversion Rate, provided that such change is effected as
part of a procedure for an offering by way of rights in the Company or as part
of a procedure for the distribution of a bonus shares in the Company or as part
of a procedure for the distribution of dividend in the Company, and provided
that the change includes only those adjustments that are essential to such
procedure, as described in Section 5.3 above.

       

      In the
event that the Code and guidelines of the Stock Exchange relating to the
alteration of the terms of the Convertible Debentures are amended, the amended

       

      
        
          
          

        

        
          -53-

          
            

          

        

        
          
          

        

      

       

      provisions
shall apply.

       

      
        	
                 
      

              	
                5.5

              	
                Voluntary
      liquidation

              

      

       

      
        	
                 
      

              	
                5.5.1

              	
                In
      the event that a resolution is passed for the voluntary liquidation of the
      Company, the Company will issue a written notice to this effect to all the
      Holders of Convertible Debentures in circulation at the time, that are
      registered in the Register of the relevant Series of Convertible
      Debentures, and will additionally publish a notice in this regard in two
      (2) widely distributed daily newspapers that are published in Israel in
      Hebrew. Every Holder of Convertible Debentures shall be entitled, at his
      choice, to be considered as having exercised the conversion right
      pertaining to the Debentures shortly before the resolution was passed,
      provided that he notifies the Company of his choice within three (3)
      months of the said notice by the
Company.

              

      

       

      
        	
                 
      

              	
                5.5.2

              	
                In
      such case, the Holder of the Convertible Debentures shall be entitled to
      participate in the distribution of the excess assets of the Company upon
      liquidation (following the settlement of all its debts) between its
      shareholders, this in the amount that he would have received upon the
      liquidation of the Company had he been a shareholder in the Company
      shortly before the passing of the liquidation resolution by virtue of the
      conversion of the Convertible Debentures that are in his possession, with
      respect to which he had notified the Company as aforesaid, less the amount
      of interest that was paid for such Convertible Debentures on the date of
      the resolution or shortly thereafter (with the exception of interest that
      falls due prior to the date of the resolution, even if paid on the date of
      the resolution or thereafter); and the Holder of the Convertible
      debentures will not be entitled to any payment under the Debentures that
      falls due subsequent to the date of the
  resolution.

              

      

       

      6.           Payments of the Principal
and the Interest of the Debentures

       

       

      
        	
                 
      

              	
                6.1

              	
                The
      payments on account of the interest and/or the principal of the Debentures
      will be paid to the persons whose names are listed in the Register of
      Debenture Holders of the relevant Series on the dates that will be
      specified in the Initial Offer Report of the Debentures in such Series in
      accordance with the guidelines of the Stock Exchange Code on such date
      (the “Determinant Day for the
      Relevant Series”), with the exception of the last installment of
      the principal and the interest, which will be paid against delivery of the
      Debentures Certificates to the Company, at its registered office or
      anywhere else as advised by the Company, by no later than five (5)
      Business Days before the day stated for payment of the last
      installment.

              

      

       

      It is
clarified that any person not registered in the Company’s Register of Debenture

       

      
        
          
          

        

        
          -54-

          
            

          

        

        
          
          

        

      

       

      Holders
of the relevant Series on the Determinant Day for the Relevant Series will not
be entitled to the payment of interest in respect of the interest period that
had commenced prior to the said date.

       

      
        	
                 
      

              	
                6.2

              	
                In
      any case of the date of payment on account of principal and/or interest
      falls on a day that is not a Business Day, the payment date will be
      deferred to the first Business Day thereafter without additional payment,
      interest or linkage.

              

      

       

      
        	
                 
      

              	
                6.3

              	
                The
      payment of principal and interest will be subject to the linkage terms
      stipulated in Section 3 above, as
  appropriate.

              

      

       

      
        	
                 
      

              	
                6.4

              	
                Payment
      to beneficiaries will be made by checks or by bank transfer to the credit
      of the bank account of the persons whose names are listed in the Register
      of the Debenture Holders and that is indicated in the details that they
      give to the Company in writing in advance, in accordance with the
      provisions of subsection 6.5 below. If the Company cannot, for any reason
      that does not depend thereupon, pay any sum to the beneficiaries, the
      provisions of Section 7 below will
apply.

              

      

       

      
        	
                 
      

              	
                6.5

              	
                A
      Debenture Holder that will be interested in informing the Company of the
      details of the bank account for crediting it with payments pursuant to the
      Debentures as stated above, or change these account detail or instructions
      concerning the mode of payment, may do so by notice to the company by
      registered letter. However, the Company will fulfill the instruction only
      if it reaches its registered office at least thirty (30) days before the
      determining Date for payment of any installment pursuant to the
      Debenture.

              

      

       

      
        	
                 
      

              	
                In
      the case of the notice being received by the Company belatedly, the
      Company shall act thereby only concerning installments whose Determinant
      Payment Date  is after the date of payment  which is
      near to the day of receipt of the
notice.

              

      

       

      
        	
                 
      

              	
                6.6

              	
                If
      a Debenture Holder who is entitled to such a payment has not given the
      Company in advance details concerning its bank account, any installment on
      the account of the principal and interest will be made out by a check that
      will be sent by registered mail to its last address listed in the Register
      of the Debenture Holders. Sending of a check to a beneficiary by
      registered mail as stated above will be considered, for all intents and
      purposes, as payment of the sum specified therein on the date of its
      mailing, as long as it is duly paid upon its presentation for
      collection.

              

      

       

      7.           Abstention from Payment for
a Reason that does not Depend on the Company

       

      
        	
                 
      

              	
                7.1

              	
                Any
      sum that is due to the debenture Holder that is not actually paid for a
      reason that does not depend on the Company, while the company was prepared
      to pay it, will cease to bear interest and linkage differences from the
      date stated for its payment, whereas the Debenture Holder will be entitled
      only to the sums that it would have been entitled to on the date stated
      for repayment of that sum on the account of the principal, the
      

              

      

       

      
        
          
          

        

        
          -55-

          
            

          

        

        
          
          

        

      

       

      linkage differences or the
interest.

       

      
        	
                 
      

              	
                7.2

              	
                The
      Company will deposit with the Trustee by no later than 14 business days
      from the date stated for that payment, the sum of the payment that has not
      been paid for a reason that does not depend on the Company, and such a
      deposit will be considered as settlement of that payment, and in the case
      of settlement of all dues pursuant to the Debenture, as redemption of the
      Debenture.

              

      

       

      
        	
                 
      

              	
                7.3

              	
                The
      Trustee shall deposit in a bank the sums that will be transferred thereto
      as stated in Section 7.2 above, to the credit of those Debenture Holders
      and will invest it in investments permitted hereby that are securities of
      he State of Israel or other securities that the laws of the State of
      Israel permit investment of the trust money in, as the Trustee deems fit
      and subject to the provisions of the law. Should the Trustee do so, it
      will not owe the beneficiaries for sums other than the remuneration that
      is received from realizing the investments less the expenses, commissions
      and mandatory payments, if any that are related to the said investment in
      managing the trust account less its
fee.

              

      

       

      
        	
                 
      

              	
                7.4

              	
                The
      Trustee shall transfer to each Debenture Holder for which sums and/or
      funds due to the Debenture Holders have been deposited with the Trustee,
      out of sums thus deposited, less all expenses, commissions, the mandatory
      payments and its fee, against presentation of the proof that is required
      by the Trustee, to the full satisfaction
  thereof.

              

      

       

      
        	
                 
      

              	
                7.5

              	
                The
      Trustee shall keep these sums and invest them in the above mentioned
      manner until one year elapses from the final redemption date of the
      Debentures. After this date, the Trustee shall transfer to the Company
      these sums, including profits that result from their investment, less its
      expenses and other expenses incurred in accordance with the provisions of
      this Deed of Trust (such as service provider fees, etc.) to the extent
      that these remain in its possession on that date. The Company shall keep
      these sums in trust for an additional year from the day of their transfer
      thereto by the Trustee, for the Debenture Holders that are entitled to
      those sums, and with regard to the sums that are transferred thereto by
      the Trustee as stated above, the provisions of Section 7.3 of this Deed of
      Trust will apply, mutatis mutandis. Upon
      the transfer of the sums from the Trustee to the Company, to the
      satisfaction of the Trustee, the Trustee shall be exempt from payment of
      such sums to the entitled Debenture Holders. The Company shall approve to
      the Trustee in writing the holding of the sums and the receipt thereof in
      trust for the said Debenture Holders, and will indemnify the Trustee for
      any claim and/or expense and/or damage of any type that it sustains due to
      and for the said money transfer, as long as the Trustee has acted
      reasonably. The Company shall keep these sums in trust for the Debenture
      Holders that are entitled to these sums for an additional year from the
      day of their transfer to it from the Trustee. Sums that are not demanded
      

                 

              

      

       

      
        
          
          

        

        
          -56-

          
            

          

        

        
          
          

        

         

      

      
        from the
Company by a Debenture Holder two years from the final repayment date of the
Debentures will be transferred to the Company, which will be entitled to use the
remaining sums for any purpose.

         

      

      8.           The register of the
Debenture Holders and transfer of Debentures

       

      
        	
                 
      

              	
                8.1

              	
                The
      Company shall keep and maintain in its registered office a Register of the
      Debenture Holders, listing the names of the Debentures Holders, their
      addresses and the number and par value of the Debentures registered to
      their name. The register will also list any transfer of title to the
      Debentures. The Trustee and any Debenture Holder will be entitled, at any
      reasonable time, to review this Register. The Company is entitled to close
      the Register from time to time or for a period or periods that do not
      exceed an aggregate of thirty (30) days a
year.

              

      

       

      
        	
                 
      

              	
                8.2

              	
                The
      Company will not be required to note in the Debenture Holder registers any
      notice concerning explicit, implicit or putative Trust, or hypothecation
      or pledging of any kind or any equity, claim or offset right or any other
      right, concerning the Debentures. The Company shall only recognize the
      ownership of the person whose name the Debentures are listed under, as
      long as the legal heirs, administrators of estate or executors of the will
      of the registered owner or any person who will be entitled to the
      Debentures due to the bankruptcy of any registered owner (and in the case
      of a corporation - due to the liquidation thereof) will be entitled to
      register as the Holders thereof, after giving evidence that in the opinion
      of the Company is satisfactory for proving the right of any of the above
      to be registered as their Holder
thereof.

              

      

       

      9.           The Debenture Certificates,
their Split and Transfer

       

      
        	
                 
      

              	
                9.1

              	
                For
      the Debentures that are listed to one Holder, one certificate will be
      issued, or at its request, a number of certificates will be issued (the
      certificates referred to in this section will be referred to hereinafter
      as: the “Certificates”).

              

      

       

      
        	
                 
      

              	
                9.2

              	
                Each
      Certificate may be split into certificates whose total principal equals
      the sum of the par value of the Debentures that have been included in a
      Certificate whose split has been requested, as long as the new Debenture
      Certificates that are issued will be to par value sums in whole New
      Israeli Shekels, in accordance with a split request that has been signed
      by the registered owner of that Debenture Certificate, against the
      provision of that Debenture Certificate to the Company at its registered
      office for effecting the split. The split shall be made within seven (7)
      days of the end of the month on which the Certificate along with its split
      request were provided at the registered office of the Company. All of the
      expenses and commissions involved in the split, including stamp tax and
      other duties, if any, will apply to the party requesting the
      split.

              

      

       

      
        	
                 
      

              	
                9.3

              	
                The
      foregoing will apply accordingly to allocation letters, as long as they
      have not been 

              

      

       

      
        
          
          

        

        
          -57-

          
            

          

        

        
          
          

        

      

       

      replaced with
Certificates.

       

      
        	
                 
      

              	
                9.4

              	
                The
      Debentures may be transferred concerning any par value sum, as long as it
      is in whole New Israeli Shekels. Any transfer of the Debentures that is
      not performed through the trading system of the Stock Exchange will be
      made out according to a transfer deed that is made out in a generally
      accepted format for transferring shares, duly signed by the registered
      owner or the legal representatives thereof, and by the transferee or the
      legal representatives thereof, which will be delivered to the Company at
      its registered office along with any other proof that is required by the
      Company for proving the right of the transferor to their transfer and the
      identity thereof. If any stamp tax or other mandatory payment applies to
      the deed of transfer of the Debentures, the company will be given proof of
      their payment by the requester of the transfer, which will be to the
      satisfaction of the Company.

              

      

       

      
        	
                 
      

              	
                9.5

              	
                It
      is clarified hereby that all of the expenses and commissions involved in
      the transfer, including stamp tax and other mandatory payments and duties,
      if any, will be borne by the party requesting the transfer only. The
      Company shall be allowed to keep the deed of
  transfer.

              

      

       

      
        	
                 
      

              	
                9.6

              	
                In
      the case of a transfer of only part of the sum of the specified principal
      of the Debentures in the Certificate, the Certificate will be split first
      as specified in Section 9.2 above into a number of Debenture Certificates
      as required thereby, in such a manner that the total sums of the principal
      specified therein is equal to the sum of the specified principal of the
      said Debenture Certificate.

              

      

       

      
        	
                 
      

              	
                9.7

              	
                After
      fulfillment of all of the conditions stated above, the transfer will be
      registered in the Register of the Debenture
  Holders.

              

      

       

      
        	
                10.

              	
                Early
      redemption

              

      

       

      
        	
                 
      

              	
                10.1

              	
                Early
      redemption initiated by the Stock Exchange - In the event that the Stock
      Exchange decides to delist from trade therein the Debentures in any of the
      Series E through I in circulation by reason of the value of the Series
      falling below the minimum amount stipulated in the Code and guidelines of
      the Stock Exchange with respect to the delisting from trade therein and/or
      in the event that the Stock Exchange decides to delist from trade therein
      the Convertible Debentures in any of the Series 1 through 2 in circulation
      by reason of the public’s holdings therein falling below the minimum
      amount stipulated in the Code and guidelines of the Stock Exchange with
      respect to the delisting from trade therein, the Company will not allow
      such early redemption of the Series due to the delisting from trade as
      aforesaid, unless otherwise notified by the Company in the Shelf Offer
      Report under which the Series of Debentures is initially
      issued.

              

      

       

      
        
          
          

        

        
          -58-

          
            

          

        

        
          
          

        

      

       

      Should
the Company choose to allow early redemption of the Debentures as aforesaid, the
Company will take the following actions:

       

      
        	
                 
      

              	
                10.1.1

              	
                Within
      forty five (45) days of the decision of the Stock Exchange on the
      delisting from trade therein, the Company will announce a date for the
      early redemption, on which the Debenture Holder would be allowed to redeem
      the Debentures. The announcement of the date of early redemption will be
      published in two (2) widely distributed daily newspapers that are
      published in Israel in Hebrew.

              

      

       

      
        	
                 
      

              	
                10.1.2

              	
                The
      date of early redemption of the Debentures in Series E through I with
      respect to which a delisting decision has been made as aforesaid, shall
      not be earlier than seventeen (17) days from the date of publication of
      the announcement or later than forty five (45) days of the said date, but
      shall not fall in the period between the determinant date for the payment
      of interest and the date of its actual
payment.

              

      

       

      
        	
                 
      

              	
                10.1.3

              	
                The
      date of early redemption of the Convertible Debentures in Series 1 through
      2 with respect to which a delisting decision has been made as aforesaid,
      shall not be earlier than thirty (30) days from the date of publication of
      the announcement or later than forty five (45) days of the said date, but
      shall not fall in the period between the determinant date for the payment
      of interest and the date of its actual
payment.

              

      

       

      
        	
                 
      

              	
                10.1.4

              	
                On
      the date of early redemption, the Company will redeem the Debentures from
      the Series in which the Holders have requested the redemption of the
      Debentures, at their par value, with the addition of linkage differences,
      if any, and the interest accrued on the principal, with the interest being
      calculated in proportion to the period from the last date for which
      interest has been paid to the aforesaid actual date of early redemption
      (the calculation of interest for a part of a year will be based on a
      365-day year).

              

      

       

      
        	
                 
      

              	
                10.1.5

              	
                The
      scheduling of a date of early redemption, as above, does note derogate
      from the redemption rights provided for in the Debentures of the same
      Series, of any of the Debenture Holders that do not redeem them on the
      date of early redemption as above, and in the case of Convertible
      Debentures, does not derogate from the conversion rights provided for
      therein, but the Debentures will be delisted from trade on the Stock
      Exchange and shall be, inter alia, subject to the consequent tax
      implications.

              

      

       

      
        	
                 
      

              	
                10.1.6

              	
                The
      early redemption of the Debentures as aforesaid will not confer upon the
      Holder of Debentures of the same Series redeemed as above the right to
      receive 

              

      

       

      
        
          
          

        

        
          -59-

          
            

          

        

        
          
          

        

         

      

      interest in respect of the
period subsequent to the date of redemption.

       

      
        	
                 
      

              	
                10.2

              	
                Early
      redemption initiated by the Company - The Company will be allowed to call
      for the early redemption of the Debentures in Series E through I and 1
      through to 2 offered under the Offer Report in accordance with the Shelf
      Prospectus, under the terms and according to the price, mechanism,
      schedules and the other terms stipulated by the Code and guidelines of the
      Stock Exchange prevailing at such time, as shall be determined in the
      Initial Offer Report of the Debentures in the relevant
    Series.

              

      

       

      11.           Purchase of the Debentures
by the Company and/or by a subsidiary

       

      
        	
                 
      

              	
                11.1

              	
                The
      Company reserves the right to purchase at any time, within or without the
      Stock Exchange, Debentures at any price of its choosing, without prejudice
      to the obligation of repayment of the Debentures remaining in circulation
      as specified above. The Debentures that will be purchased by the Company
      will be cancelled and delisted from trade on the Stock Exchange, and the
      Company will not be allowed to re-issue them. If the purchase of the
      Debentures by the Company is carried out as part of the trade on the Stock
      Exchange, the Company will apply to the Stock Exchange Clearing House to
      withdraw the relevant Debenture
Certificates.

              

      

       

      
        	
                 
      

              	
                11.2

              	
                A
      subsidiary of the Company and/or the controlling shareholder and/or
      companies under the control of the controlling shareholder of the Company
      (“Affiliated
      Company”) are allowed to purchase and/or sell from time to time
      within or without the Stock Exchange, including by way of issuance by the
      Company, Debentures at any price of their choosing and sell them
      accordingly. The Debentures thus held by the allied corporation will be
      considered as an asset of the affiliated company, and if they are listed
      for trading, they will not be delisted from trade on the Stock Exchange
      other than subject to the rules of the Stock
  Exchange.

              

      

       

      
        	
                 
      

              	
                On
      the matter of holding Meetings of Holders of Debentures, the provisions of
      Section 2.19 of the second addendum to this Deed will
    apply.

              

      

       

      
        	
                 
      

              	
                11.3

              	
                The
      Company is allowed, at any time and from time
      to time, without needing the consent of the Debenture Holders or the
      Trustee, to issue, including to an affiliated company, Debentures of a
      different type and/or of different series and/or other securities, whether
      secured or unsecured, whether granting a right of conversion into shares
      of the Company or not granting such right, whether by public offering, by
      a private placement or under a Shelf Offer Report or otherwise, under
      terms of redemption, interest, linkage, discounting, repayment rate in the
      case of liquidation and other conditions, as the Company sees fit, whether
      they are preferable to the terms of the Debentures issued pursuant to the
      Prospectus, equal to them or inferior to
them.

              

      

       

      
        	
                 
      

              	
                11.4

              	
                Without
      derogating from the foregoing, the Company is allowed, at any time and
      from 

              

      

       

      
        
          
          

        

        
          -60-

          
            

          

        

        
          
          

        

         

      

      time
to time, without needing the consent of the Debenture Holders or the Trustee of
Each Series, to issue, including to an affiliated company, additional Debentures
from the Series offered under the Shelf Prospectus. The additional Debentures
that will be issued, to the extent issued, including their conditions and
resulting rights, will be identical and as the existing Debentures in the same
Series, and will together constitute one series for all purposes (it is
clarified that in the case of such issuance, the offerees to whom additional
Debentures will be issued will not be entitled to payment of principal and/or
interest whose determinant payment date preceded the issuance date). The
provisions of the Deed of Trust of the relevant Series will apply to these
additional Debentures. The Company shall publish an immediate statement on such
an issuance of additional Debentures and will apply to the Stock Exchange in an
application to list these additional Debentures for trading these additional
Debentures therein. In the case of expansion of the series of the Debentures as
above, the fee of the Trustee shall be increased in proportion to the increase
of the size of the series.

       

      The
Company shall inform the Trustee and the Debenture Holders of the issue of these
additional Debentures.

       

      This
right of the Company does not exempt the Trustee from examining such an
issuance, to the extent that such a duty is imposed on the Trustee by law, and
it does not derogate from the rights of the Trustee and of the Meeting of the
Debenture Holders according to the Deed of Trust, including their right to make
the Debentures immediately payable as stated in Section 16 below.

       

      
        	
                 
      

              	
                11.5

              	
                The
      Company reserves the right to allocate the Debentures following an
      expansion of the series at a different discount rate (higher or lower)
      than the discount rate of the Debentures then in circulation (including
      due to issuance at a price that reflects a different discount rate). The
      discounted allocation of the Debentures originating from expansion of the
      series of the Debentures at a rate exceeding the discount rate established
      for the Debentures before the expansion may adversely affect the state of
      the Debenture Holders.

              

      

       

      
        	
                 
      

              	
                11.6

              	
                The
      provisions of this Section 11 above itself do not bind the Company or the
      Debenture Holders to purchase Debentures or sell the Debentures in their
      possession.

              

      

       

      
        	
                 
      

              	
                11.7

              	
                Wherever
      the rules of the Stock Exchange apply or will apply to any action
      according to this Deed of Trust, they will have preference over the
      provisions hereof, and the dates of such an action will be determined in
      accordance with the rules of the Stock
Exchange.

              

      

       

      12.           Waiver; Settlement and
Changes in the Terms of the Debentures

       

      
        	
                 
      

              	
                12.1

              	
                Subject to the provisions
      of the Law and the regulations promulgated and/or that will
    

              

      

       

      
        
          
          

        

        
          -61-

          
            

          

        

        
          
          

        

        
           

          
            	
                     
      

                  	
                     

                  	
                    promulgated
      thereby, the Trustee shall be allowed, from time to time and at any time,
      if it is convinced that this does not in its opinion infringe upon the
      rights of the Debenture Holders, to waive any violation or non-fulfillment
      of any of the terms hereof by the Company, as long as these do not relate
      to the terms of repayment of the Debentures and the grounds for calling
      for immediate repayment as specified in Section 16
  below.

                  

          

           

        

      

      
        	
                 
      

              	
                12.2

              	
                Subject
      to the provisions of the Law and the regulations promulgated and/or that
      will be promulgated thereby, the Trustee is allowed, whether before or
      after the principal of the Debentures is called for immediate repayment,
      to settle with the Company concerning any right or claim of the Debenture
      Holders and agree with the Company to any arrangement concerning the
      rights of the Debenture Holders, including waiving any right or claim of
      the Debenture Holders towards the Company hereby. If the Trustee settles
      with the Company after having received prior approval of the Debenture
      Holders as stated above, the Trustee shall be exempt of liability for this
      action, as approved by the general Meeting. The foregoing does not exempt
      the Trustee from responsibility for its actions until the date of making a
      decision of the Meeting of the Holders and/or its actions concerning its
      application.

              

      

       

      
        	
                 
      

              	
                12.3

              	
                Subject
      to the provisions of the Law and the regulations promulgated and/or to be
      promulgated thereby, the Trustee and the Company may, whether before or
      after the principal of the Debentures is called for immediate repayment,
      change the Deed of Trust (including a change in the conditions of the
      Debentures), if one of the following is
  fulfilled:

              

      

       

      
        	
                 
      

              	
                12.3.1

              	
                The
      Trustee is satisfied that the change does not adversely affect the
      Debenture Holders.

              

      

       

      
        	
                 
      

              	
                12.3.2

              	
                The
      Debenture Holders have agreed to the proposed change, by a special
      decision as specified in Sections 2.4 and 2.10 of the second addendum
      hereinafter.

              

      

       

      
        	
                 
      

              	
                12.4

              	
                The
      Trustee shall be entitled, at the request of the Company from time to
      time, to make changes in the Deed of Trust and/or in the Debentures, as
      required by a Securities Authority and/or the Stock Exchange and/or any
      other governmental authority, for the purpose of listing the Debentures
      for trade on the Stock Exchange, as long as the Trustee is satisfied that
      the change does not cause a material adverse effect to the Debenture
      Holders.

              

      

       

      
        	
                 
      

              	
                12.5

              	
                The
      Company will give the Debenture Holders a notice of any such change, in
      accordance with Section 17 hereof, as soon as possible after its
      execution.

              

      

       

      
        	
                 
      

              	
                12.6

              	
                The
      general meetings as stated in this section above will be convened, as
      stated in the

              

      

       

      
        
          
          

        

        
          -62-

          
            

          

        

        
          
          

        

        
           

          
            	
                     
      

                  	
                     

                  	
                    second
      addendum of the Deed of Trust.

                  

          

           

        

      

      
        	
                 
      

              	
                12.7

              	
                In
      any case of use of the right of the Trustee in accordance with this
      section above, the Trustee shall be entitled to demand that the Debenture
      Holders give to it or to the Company their certificates, for noting a
      comment concerning any such settlement, waiver, change or amendment and
      according to the demand of the Trustee, the Company will note such a
      comment in the certificates that are given to it. In any case of use of
      the right of the Trustee pursuant to this section, the Trustee shall
      announce this, within a reasonable time, in writing, to the Debenture
      Holders.

              

      

       

      
        	
                13.

              	
                Meetings of Debenture
      Holders

              

      

       

      General
meetings of the Debenture Holders will be convened and managed, as stated in the
second addendum to the Deed of Trust.

       

      14.           Receipts as
proof

       

      
        	
                 
      

              	
                14.1

              	
                A receipt from the
      Debenture Holder for the sums of the principal, the interest and the
      linkage differences that have been paid thereto by the Trustee for that
      Debenture will release the Trustee categorically in all matters related to
      payment of the sums stated on the
receipt.

              

      

       

      
        	
                 
      

              	
                14.2

              	
                Until
      the end of the period specified in Section 7.5 above, a receipt from the
      Trustee concerning the deposit of the sums of the principal, the interest
      and the linkage differences in its possession to the benefit of the
      Debenture Holders as stated in this Deed will be considered as a receipt
      from the Debenture Holders for the sums specified
  therein.

              

      

       

      
        	
                 
      

              	
                14.3

              	
                The
      sums distributed as stated in Sections 7 and 14 hereof will be considered
      as payment on the account of the repayment of the
    Debentures.

              

      

       

      
        	
                15.

              	
                Replacement of
      Debenture Certificates

              

      

       

      In the
case of a Debenture Certificate wearing out, being lost or destroyed, the
Company shall be entitled to issue in its place a new Certificate of the
Debentures, under the same conditions concerning proof, indemnification and
coverage of the expenses sustained by the Company for inquiring as to the right
of ownership of the Debentures that the certificate thus replaced relates to, as
the Company deems fit,  provided that in the case of wear, the worn
out Debenture certificate will be returned to the Company before the new
Certificate is issued. Taxes, duties and other expenses involved in the issue of
the new Certificate will be borne by the party requesting this
Certificate.

       

      
        	
                16.

              	
                Immediate
      Repayment

              

      

       

      
        	
                 
      

              	
                16.1

              	
                In
      one or more of the events enumerated
below:

              

      

       

      
        
          
          

        

        
          -63-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                16.1.1

              	
                If
      the Company does not repay any sum that is due from it connection to the
      Debentures within 45 days of the maturity of that
  sum.

              

      

       

      
        	
                 
      

              	
                16.1.2

              	
                If
      a temporary liquidator has been appointed by a court, or if a valid
      resolution has been adopted to liquidate the Company (other than
      liquidation for merging with another company and/or restructuring of the
      Company) and this appointment or resolution is not cancelled within 30
      Business Days of being given.

              

      

       

      
        	
                 
      

              	
                16.1.3

              	
                If
      an attachment is imposed on some or all of the material assets of the
      Company and the attachment is not removed within 60
  days.

              

      

       

      
        	
                 
      

              	
                16.1.4

              	
                An
      execution action is carried out against a material asset of the Company,
      in part or in full, and the action is not cancelled within 90
      days.

              

      

       

      
        	
                 
      

              	
                16.1.5

              	
                If
      a receiver is appointed for the Company and/or some or all of its material
      assets, and the appointment is not cancelled within 90
    days.

              

      

       

      
        	
                 
      

              	
                16.1.6

              	
                If
      the Company ceases the payments of the Debentures and/or announces its
      intent to cease the payments of the
Debentures.

              

      

       

      
        	
                 
      

              	
                16.1.7

              	
                If
      the Company discontinues its business affairs or managing its business
      affairs, as they are from time to time, and/or announces its intent to
      cease in engaging in or managing its business affairs as shall be from
      time to time.

              

      

       

      
        	
                 
      

              	
                16.1.8

              	
                If
      another series of Debentures that the Company has issued is called for
      immediate repayment other than according to a resolution of the
      Company.

              

      

       

      
        	
                 
      

              	
                16.1.9

              	
                If
      an order for staying of proceedings is given or if a motion has been filed
      concerning the Company to make an arrangement with the creditors of the
      Company pursuant to Section 350 of the Companies Law (other than for
      merging with another company and/or restructuring of the Company) against
      the Company and this order or motion is not cancelled within 90 days of
      commencement thereof.

              

      

       

      
        	
                 
      

              	
                16.1.10

              	
                If
      the Company is wound up or struck for any
  reason.

              

      

       

      
        	
                 
      

              	
                16.1.11

              	
                A
      fundamental breach of the terms of the Debentures and the Deed of Trust,
      including if it is found that the undertakings of the Company in the
      Debentures or herein are incorrect and/or incomplete, provided a notice
      has been given to the Company to rectify the violation and the Company
      does not correct such a violation within 14 Business Days of issue of the
      notice, and provided that the payments to the Debenture Holders and/or the
      rights thereof are infringed or may be infringed as a
    result.

              

      

       

      
        	
                 
      

              	
                16.1.12

              	
                If
      there is material concern that the Company will discontinue the payments
      of the 

              

      

       

      
        
          
          

        

        
          -64-

          
            

          

        

        
          
          

        

         

      

      Debentures and/or there is
material concern that it will cease in managing its business affairs as shall be
from time to time.

       

      
        	
                 
      

              	
                16.1.13

              	
                In
      the occurrence of any other event that constitutes material infringement
      and/or may cause material infringement of the rights of the Debenture
      Holders.

              

      

       

      For the
purposes of this entire section, "Material Asset" is an asset whose value in the
books of the Company exceeds 20% of the income of the Company according to its
last (audited) consolidated annual statements on the date of the
event.

       

      
        	
                 
      

              	
                16.2

              	
                In
      the occurrence of any of the events listed in Section 6.1 above, the
      following provisions will apply:

              

      

       

      
        	
                 
      

              	
                16.2.1

              	
                (A)

              	
                In
      the case of any of the events in Sections 16.1.1 to 16.1.10 (inclusive)
      above, the Trustee will be required to call a Meeting of the Debenture
      Holders; or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                In
      the case of any of the events in Sections 16.1.11 to 16.1.13 (inclusive)
      above, the Trustee will be allowed (but not required) to call a meeting of
      the Debenture Holders, but the Trustee will be required to call a meeting
      of Holders by a written request of Holders of at least ten percent (10%)
      of the par value of the unsettled balance of the principal of the
      Debentures in circulation, as specified in Section 1.1 of the second
      addendum hereto.

              

      

       

      
        	
                 
      

              	
                16.2.2

              	
                The
      date of convening the Meeting, which will be called in accordance with the
      provisions of Section 16.2.1 A or B above, will be 30 days after the date
      of its calling (or a shorter term in accordance with the provisions of
      Section 16.2.5 below), whose agenda will have a resolution concerning
      calling for immediate repayment the entire unsettled balance of the
      Debentures, due to the occurrence of any of the events specified in
      Section 16.1 above, as relevant.

              

      

       

      
        	
                 
      

              	
                16.2.3

              	
                In
      the case that until the date of convening of the Meeting, none of the
      events specified in Section 16.1 above has been canceled or removed, and
      the Meeting of the Debenture Holders as stated resolve to call all of the
      unsettled balance of the Debentures for immediate repayment as a Special
      resolution (as defined in the second addendum hereto), the Trustee will be
      required, within a reasonable time, to call all of the unsettled balance
      of the Debentures for immediate repayment, as long as it has given the
      Company at least 15 days written warning of its intent to do so and the
      event for which the resolution was adopted has not been canceled or
      removed within this period.

              

      

       

      
        
          
          

        

        
          -65-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                16.2.4

              	
                A
      copy of the
      notice for calling the Meeting will be sent by the Trustee to the Company
      as soon as the notice is published and will constitute advance written
      warning to the Company of the intent to act to call the Debentures for
      immediate repayment.

              

      

       

      
        	
                 
      

              	
                16.2.5

              	
                The
      Trustee is entitled, at its discretion, to reduce the count of 30 days (in
      Section 16.2.2 above) and/or the said 15 days of warning (in Section
      16.2.3) in the case of the Trustee opining that any deferral in calling
      the debt of the Company for repayment endangers the rights of the
      Debenture Holders, but in any case the Trustee shall not do so without
      first applying to the Company in writing 7 Business Days before the date
      of the meeting, indicating the reasons for reducing the time, at the
      discretion of the Trustee in the circumstances at
  hand.

              

      

       

      
        	
                 
      

              	
                16.2.6

              	
                The Trustee will be
      responsible for reporting to the Debenture Holders of the occurrence of
      any of the events specified in Sections 16.1.11 to 16.1.13 (inclusive)
      above, whether pursuant to publications that the Company has made or
      according to a notice of the Company that will be sent to it according to
      the provisions of Section 17 below, soon after it being brought to its
      attention or delivered to it.

              

      

       

      
        	
                17.

              	
                Notices

              

      

       

       

      
        	
                 
      

              	
                17.1

              	
                Any
      notice from the Company and/or the Trustee to the Debenture Holders, as
      relevant, shall be given as
follows:

              

      

       

      
        	
                 
      

              	
                17.1.1

              	
                By
      reporting in the MAGNA system of the Securities Authority; the Trustee is
      allowed to instruct the Company and the Company will be required to report
      forthwith in the MAGNA system on behalf of the Trustee any report in the
      format as forwarded in writing by the Trustee to the Company); and
      by

              

      

       

      
        	
                 
      

              	
                17.1.2

              	
                A
      notice that will be published in two widely distributed daily newspapers
      that are published in Israel in
Hebrew;

              

      

       

      
        	
                 
      

              	
                Any
      notice or demand from the Trustee to the Company may be given by a letter
      that is sent by registered mail to the address stated herein, or to any
      other address that the Company informs the Trustee of in writing, or by
      transmission by facsimile or by courier and any such notice or demand will
      be considered as having been received by the Company: (1) in the case of
      sending by registered mail – three business days from the day of mailing
      thereof; (2) in the case of transmission by facsimile (along with a
      telephone check of receipt thereof) – one business day from the day of its
      transmission; (3) and in the case of sending by courier – upon its
      delivery by the courier to 

              

      

       

      
        
          
          

        

        
          -66-

          
            

          

        

        
          
          

        

      

       

      the
addressee or the offering thereof to the addressee for receipt, as
relevant.

       

      
        	
                 
      

              	
                17.2

              	
                Any
      notice or demand from the
      Company to the Trustee may be given by a letter that is sent by registered
      mail to the address stated herein, or to another address that the Trustee
      informs the Company of in writing, or by transmission by facsimile or by
      electronic mail (“email”) or by courier
      and any such notice or demand will be considered as having been received
      by the Trustee: (1) in the case of sending by registered mail – three
      business days from the day of mailing thereof; (2) in the case of
      transmission by facsimile or by email (along with a telephone check of
      receipt thereof) or sending by courier – upon its delivery by the courier
      to the addressee or the offering thereof to the addressee for receipt, as
      relevant.

              

      

       

      
        	
                 
      

              	
                17.3

              	
                Copies
      of notices and invitations that the Company gives to the Debenture Holders
      will also be sent by the Company in an Immediate Report, a copy of which
      will be given to the Trustee.

              

      

       

      
        
          
          

        

        
          -67-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                Cellcom
      Israel Ltd.

              

      

      
        	
                 
      

              	
                Second
      Addendum

              

      

       

      
        	
                 
      

              	
                Meetings
      of the Debenture Holders

              

      

       

      The
following provisions will apply separately to each of the Series of Debentures E
through I and 1 through 2 (in this addendum, the Debentures in each of the
aforesaid Series will be hereinafter referred to as “the
Debentures”).

       

      
        	
                1.

              	
                Calling
      of Meetings of the Debenture
Holders:

              

      

       

      
        	
                 
      

              	
                1.1

              	
                The
      Trustee or the Company may call a Meeting of the Debenture Holders. If the
      Trustee and/or the Company calls such a Meeting, they must send
      immediately a written notice to the Trustee and/or the Company, as
      relevant, regarding the site, the day and the time on which the Meeting
      will be held and on the matters to be brought for discussion therein, and
      the Trustee or the Company, as the case may be, or a representative
      thereof, will be entitled to participate in such a Meeting without them
      having a voting right. The Company will be required to call a general
      meeting by written request of the Trustee or of the Debenture Holders
      holding at least ten percent 10%) of the unsettled balance of the
      principal of the Debentures in circulation, as relevant. The Trustee shall
      be required to call such a Meeting, at the written request of the Holders
      of at least ten percent (10%) of the par value of the unsettled balance of
      the principal of the Debentures in circulation. If the parties asking to
      call the Meeting are the Debenture Holders, the Company and/or the
      Trustee, as relevant, are entitled to demand from the requesting parties
      indemnification for the reasonable expenses involved
    therein.

              

      

       

      
        	
                 
      

              	
                1.2

              	
                Fourteen
      (14) days advance notice will be given of each Meeting of the Debenture
      Holders, which will elaborate the place, the day and the time of the
      Meeting, and will indicate in general the subjects that will be discussed
      in the meeting. The Trustee is allowed, at its discretion, to shorten the
      duration of the advance notice if it sees that a deferral in calling the
      Meeting will cause infringement of the rights of the Debenture
      Holders.

              

      

       

      
        	
                 
      

              	
                1.3

              	
                In
      case of the purpose of the Meeting being a discussion and adopting a
      special resolution as defined in Section 2.4 and 2.10 of this addendum
      hereinafter, the notice will elaborate, in addition to the foregoing, the
      principle of the proposed decision. No resolution that has been duly
      adopted in a Meeting thus called will be disqualified if notice is not
      given, erroneously to all of the Debenture Holders, or if such notice has
      not been received by all of the Debenture
  Holders.

              

      

       

      
        	
                 
      

              	
                1.4

              	
                Any
      such notice from the Company and/or the Trustee to the Debenture Holders
      will be given by a notice that is published in two (2) widely distributed
      daily newspapers 

              

      

       

      
        
          
          

        

        
          -68-

          
            

          

        

        
          
          

        

         

      

      that
are published in Israel in Hebrew. In addition, an immediate report will be
given by the Company. Any notice that is published as stated above will be
considered as having been given to the Debenture Holders on the day of its
publication as above.

       

      
        	
                2.

              	
                Meetings
      of the Debenture Holders:

              

      

       

      
        	
                 
      

              	
                2.1

              	
                The
      chairman of the Meeting will be a person who will be appointed by the
      Trustee. If the Trustee has not appointed a chairman or he is absent from
      the Meeting for half an hour from the determinant time for holding the
      Meeting, the attending Debenture Holders will choose a chairmen from among
      their number.

              

      

       

      
        	
                 
      

              	
                2.2

              	
                A
      Meeting of the Debenture Holders will be opened after it is proved that
      there is the legal quorum for starting the discussion
    present.

              

      

       

      
        	
                 
      

              	
                2.3

              	
                Subject
      to the legal quorum that is required in a Meeting that is convened for
      adopting a special resolution, and subject to the legal quorum that is
      required for the dismissal of a trustee pursuant to the Securities Law,
      two Debenture Holders who are attending by themselves or by proxy and
      together holding or representing at least a tenth (1/10) of the unsettled
      balance of the Debentures in circulation at that time will constitute a
      legal quorum.

              

      

       

      
        	
                 
      

              	
                2.4

              	
                A
      special resolution of the Debenture Holder Meeting will be required on the
      following issues (“Special
      Resolution”):

              

      

       

      
        	
                 
      

              	
                2.4.1

              	
                A
      change and/or amendment to the Deed of Trust, in the case of this
      requiring a resolution of a general Meeting pursuant to the Deed of
      Trust

              

      

       

      
        	
                 
      

              	
                2.4.2

              	
                Any
      amendment, change and/or arrangement of rights of the Debenture Holders,
      whether these rights result from the Debenture, the Deed of Trust or
      otherwise, or any settlement or waiver concerning these rights, in the
      case of a decision of a general meeting being required for this purpose
      pursuant to the Deed of Trust.

              

      

       

      
        	
                 
      

              	
                2.4.3

              	
                Calling
      the Debentures for immediate repayment, in accordance with the terms of
      the Deed of Trust.

              

      

       

      
        	
                 
      

              	
                2.5

              	
                In
      a meeting that is called for adopting a Special Resolution a legal quorum
      will be constituted – if Holders of at least fifty percent (50%) of the
      unsettled balance of the Debentures in circulation at that time are
      present in the general meeting, or in a deferred meeting, if Holders of at
      least ten percent (10%) of the said balance are
  present.

              

      

       

      
        	
                 
      

              	
                2.6

              	
                If
      within an half an hour of the time set for starting a Meeting, no legal
      quorum is present, the Meeting will be deferred to the same day in the
      following week (and in the case of this day not being a Business Day to
      the Business Day immediately following

              

      

       

      
        
          
          

        

        
          -69-

          
            

          

        

        
          
          

        

      

      
         

        
          	
                   
      

                	
                   

                	
                  it)
      to the same place and time, without there being a duty to announce this to
      the Debenture Holders, or to another day, place and time, as chosen by the
      inviting party, which it will announce to the Debenture Holders at least
      three (3) days in advance. If no legal quorum is found in a Meeting thus
      deferred, half an hour after the time established for starting the
      Meeting, two (2) Debenture Holders attending by themselves or by proxy,
      regardless of the par value held thereby, will constitute a legal quorum,
      and other than the legal quorum required for adopting a special
      resolution, provided that the instruction determining the legal quorum as
      above is published within the notice of the original Meeting, provided
      that the notice to the Debenture Holders of the holding of the deferred
      Meeting is announced in accordance with the provisions of Section 1.4
      hereto above, by no later than seven (7) days before the date of holding
      the deferred Meeting. Such a notice may be published within the notice of
      the original meeting (the general Meeting that was
    deferred).

                

        

         

      

      
        	
                 
      

              	
                2.7

              	
                Other
      than the foregoing, a Debenture Holder will not be entitled to receive any
      notice of a deferred Meeting and/or of matters that will be discussed in
      the deferred Meeting. Only matters that may be discussed in a Meeting will
      be discussed in a deferred Meeting.

              

      

       

      
        	
                 
      

              	
                2.8

              	
                With
      the consent of a majority in a Meeting in which a legal quorum has
      attended, the chairman is allowed, and at the demand of the Meeting is
      compelled, to defer the continuation of the Meeting from time to time and
      from place to place, as the Meeting decides. If the continuation of the
      Meeting is deferred by ten (10) days or more, a notice of the continued
      Meeting will be given by way of publishing an immediate report in the
      MAGNA system only.

              

      

       

      
        	
                 
      

              	
                2.9

              	
                In
      the vote, each Holder who is present in person or by proxy will have one
      vote for each NIS 1 par value of the total specified unpaid principal of
      the Debentures by which he may
vote.

              

      

       

      
        	
                 
      

              	
                2.10

              	
                Each
      resolution will be adopted by a counting of votes. The majority that is
      required for a regular resolution is a regular majority of the number of
      votes represented in the vote of the Meeting (except abstainers). The
      majority that is required for a Special resolution in such a Meeting is a
      majority of not less than 75% of the number of votes represented in such a
      vote (except abstainers).

              

      

       

      
        	
                 
      

              	
                2.11

              	
                An
      appointment letter that appoints a proxy will be in writing and will be
      signed by the appointer or by the proxy thereof who is duly authorized to
      do so in writing. If the appointer is a corporation, the appointment will
      be made in writing and will be signed by the stamp of the corporation,
      along with the signature of the secretary of the corporation or the
      advocate of the corporation who has the authority to do so. The
      appointment letter of a proxy will be made out in any generally accepted
      form. A proxy 

                 

              

      

       

      
        
          
          

        

        
          -70-

          
            

          

        

        
          
          

        

      

      
         

        
          	
                   
      

                	
                   

                	
                  is
      not required to be a Debenture Holder by himself. The appointment letter
      and the power of attorney or the other certificate by which the
      appointment letter is made out or an approved copy of such a power of
      attorney will be deposited in the registered office of the Company or at
      another address that the Company announces not less than forty eight (48)
      hours before the time of the Meeting for which the power of attorney has
      been given, unless otherwise determined in the notice calling the Meeting.
      The appointment letter will also be valid concerning any deferred Meeting
      of a Meeting that the appointment letter relates to, unless stated
      otherwise in the appointment letter. A vote that is made in accordance
      with the terms in the document appointing a proxy will also be valid if
      the appointer has passed away or been declared legally incompetent or if
      the appointment letter is cancelled or the Debenture that the vote has
      been given for is transferred prior to the vote, unless a written notice
      of the death, decisions of legal incompetence, cancellation or transfer,
      as relevant, received at the registered office of the Company before the
      Meeting.

                

        

         

      

      
        	
                 
      

              	
                2.12

              	
                Any
      corporation that owns a Debenture may, by duly signed written
      authorization, empower a person as it deems fit to act as its
      representative in any Meeting of the Debenture Holders, and the person who
      has been authorized will be allowed to act on behalf of the corporation
      that he represents.

              

      

       

      
        	
                 
      

              	
                2.13

              	
                Any
      proposal for a resolution that is put to the vote in a Meeting of Holders
      will be decided by a show of hands, unless a vote using a ballot box is
      demanded by the chairman or by at least two (2) Debenture Holders, who are
      present by themselves or by their proxy, whether a vote was made
      previously with a raise of hands or thereafter and the vote by ballot box
      will prevail. In the case of joint Holders, only the vote of the more
      senior Holder wishing to vote will be accepted, whether by himself or by
      his proxy, for which purpose seniority will be determined by the order in
      which the names are listed in the Register of
  Holders.

              

      

       

      
        	
                 
      

              	
                2.14

              	
                The
      Trustee shall not have a right to vote in a Meeting of the Debenture
      Holder.

              

      

       

      
        	
                 
      

              	
                2.15

              	
                In
      a vote, a Debenture Holder or the proxy thereof is allowed to vote with
      some of its votes in favor of a proposal that is being discussed, and with
      some against the proposal, as it deems
fit.

              

      

       

      
        	
                 
      

              	
                2.16

              	
                Declaration
      of the chairman of the Meeting concerning adopting or rejecting a
      resolution and recording of this matter in the minutes book will serve as
      prima facie
      evidence of this fact.

              

      

       

      
        	
                 
      

              	
                2.17

              	
                The
      chairman of the meeting will have a minute of the Meeting of the Debenture
      Holders prepared which shall be written in the book of minutes. Each such
      minutes will be signed by the chairman of the meeting or by the chairman
      of the Meeting held 

              

      

       

      
        
          
          

        

        
          -71-

          
            

          

        

        
          
          

        

      

      
         

        
          	
                   
      

                	
                   

                	
                  thereafter,
      and all minutes thus signed will serve as conclusive testimony of the
      proceedings in the Meeting, and as long as it is not proved otherwise, any
      resolution adopted in such a Meeting will be considered as having been
      duly adopted.

                

        

         

      

      
        	
                 
      

              	
                2.18

              	
                A
      person or persons who are appointed by the Trustee, the secretary of the
      Company and any other person or persons authorized by the Company will be
      allowed to be present in Meetings of the Debenture Holders without a
      voting right. In case that, at the discretion of the Trustee, part of the
      meeting requires a discussion without the presence of the Company or
      anyone acting on its behalf, then that part of the discussion will be held
      without the participation of the Company or anyone acting on its
      behalf.

              

      

       

      
        	
                
                

              	
                2.19

              	
                Debentures
      held by an Affiliated Company will not grant their Holders a voting right
      in the general meeting of the Debenture Holders, but they will be
      considered for determining the legal quorum in the general meeting, except
      Debentures that will be held by an Affiliated Company that is an investor
      that is one of the investors listed in the first addendum to the
      Securities Law (concerning Section 15A(B)(1) of the Law) that is not
      investing for itself (an "Affiliated Institutional Investor”), which will
      grant voting rights in a meeting of the Debenture Holders. At the time of
      holding the Meeting of the Debenture Holders, the Trustee shall check for
      conflicting interests among the Debenture Holders in accordance with the
      circumstances at hand and the need for calling Class Meetings in cases in
      which there are differing interests among the Debenture Holders, in
      accordance with the circumstances at hand. The Company and the Trustee
      shall act to call Class Meetings of the Debenture Holders in accordance
      with the provisions of the law, the provisions of the Securities Law and
      the Regulations and promulgated there under. In the case of holding Class
      Meetings, approval of a resolution requires approval in each of the Class
      Meetings that are called, and in the Meeting of all of the Holders
      Debentures, with the majority that is required by the provisions of the
      Deed of Trust and the appendices thereof. At the decision of the Trustee,
      a certain class of interest holders may not be invited and their consent
      will not be required for the passing of a certain
    resolution.

              

      

    

     

    -72-Exhibit 4.8

       

       

       

      General
license for Cellcom Israel Ltd. for the provision
of mobile radio telephone services by the cellular method (cellular)
Combined
Version, as at July 28, 2009

       

      
        
           

          
            	
                    
                       

                      TRANSLATION
      FROM HEBREW

                      THE
      BINDING VERSION IS THE HEBREW VERSION

                       

                    

                  

          

           

        

         

        

         

      

      

      State
of Israel

      Ministry
of Communications

      

      

      General
License to Cellcom Israel Ltd.

      for
the Provision of mobile radio telephone services by the cellular method
(cellular)

      

      Combined
Version, as at July 28, 2009

       

       

      
        
          
          

        

        
          I

          
            

          

        

        
          
          

        

      

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

        Combined
Version, as at July 28, 2009

      

      
 

      Table
of Contents

       

       

      
        
          	
                  General   License   for

                	
                  1

                
	
                  CHAPTER
      A: GENERAL

                	
                  2

                
	
                  PART
      A: DEFINITIONS AND INTERPRETATION:

                	
                  2

                
	
                  1.

                	
                  Definitions

                	
                  2

                
	
                  2.

                	
                  Clause
      headings

                	
                  13

                
	
                  3.

                	
                  Blue
      pencil principle

                	
                  13

                
	
                  PART
      B – LEGAL PROVISIONS AND ADMINISTRATIVE PROVISIONS

                	
                  14

                
	
                  4.

                	
                  Upholding
      laws and provisions

                	
                  14

                
	
                  5.

                	
                  Permit
      obligation pursuant to any other law

                	
                  14

                
	
                  6.

                	
                  Contradiction
      in the License provisions

                	
                  14

                
	
                  PART
      A – SCOPE AND PERIOD OF THE LICENSE

                	
                  15

                
	
                  7.

                	
                  Scope
      of the License

                	
                  15

                
	
                  8.

                	
                  Absence of
      exclusivity A16

                	
                  15

                
	
                  9.

                	
                  The
      License period

                	
                  16

                
	
                  10.

                	
                  Extension
      of the License Period

                	
                  16

                
	
                  11.

                	
                  Renewal
      of the License

                	
                  18

                
	
                  12.

                	
                  Termination
      of the License Period

                	
                  19

                
	
                  PART
      B – CHANGE IN CONDITIONS AND CANCELLATION OF THE
      LICENSE

                	
                  20

                
	
                  13.

                	
                  Change
      in the License conditions

                	
                  20

                
	
                  14.

                	
                  Cancellation
      of the License

                	
                  20

                
	
                  15.

                	
                  Other
      remedies

                	
                  23

                
	
                  CHAPTER
      C: OWNERSHIP, ASSETS AND MEANS OF CONTROL

                	
                  25

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

                	
                  25

                
	
                  16.

                	
                  Prohibition
      on transfer of the license

                	
                  25

                
	
                  17.

                	
                  Ownership
      of the Cellular System

                	
                  25

                
	
                  18.

                	
                  Restrictions
      on transfer of the License assets

                	
                  25

                
	
                  19.

                	
                  Engagement
      with another

                	
                  26

                
	
                  Part
      B: Means of Control – Changes and Limitations

                	
                  27

                
	
                  20.

                	
                  Particulars
      of Licensee

                	
                  27

                
	
                  21.

                	
                  Transfer
      of Means of Control

                	
                  27

                
	
                  22.

                	
                  Encumbrance
      of Means of Control

                	
                  29

                
	
                  22A.

                	
                  Israeli
      Nationality and Holdings of Founding Shareholders or Their
      Substitutes

                	
                  30

                
	
                  Part
      C: Cross-Ownership and Conflict of Interest

                	
                  32

                
	
                  23.

                	
                  Prohibition
      on Cross-Ownership

                	
                  32

                
	
                  24.

                	
                  Prohibition
      on a Conflict of Interest

                	
                  32

                
	
                  Chapter
      D: Setup and Operation of Cellular system

                	
                  34

                
	
                  Part
      A: Setting Up the System

                	
                  34

                
	
                  25.

                	
                  Definition

                	
                  34

                
	
                  26.

                	
                  Setup
      according to Plans and Specifications

                	
                  34

                
	
                  27.

                	
                  Execution
      Stages and Timetable

                	
                  34

                
	
                  29.

                	
                  Utilization
      and Construction of Infrastructures

                	
                  35

                
	
                  30.

                	
                  Obligation
      of Interconnection

                	
                  36

                
	
                  30A.

                	
                  Rules
      Concerning the Implementation of Interconnection

                	
                  36

                
	
                  30B.

                	
                  Payment
      for Traffic Completion and Interconnection

                	
                  38

                
	
                  30C.

                	
                  Prohibition
      on Delaying Interconnection

                	
                  38

                
	
                  30D.

                	
                  Providing
      the Possibility of Utilization

                	
                  38

                
	
                  30E.

                	
                  Infrastructure
      Services for an Interested Company

                	
                  38

                
	
                  30F.

                	
                  Numbering
      Program

                	
                  39

                
	
                  31.

                	
                  Reports
      on the Setup Works

                	
                  40

                
	
                  32.

                	
                  Handover
      of Information and Documents

                	
                  40

                

        

         

         

        
          
            
            

          

          
            II

            
              

            

          

          
            
            

          

        

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

          Combined
Version, as at July 28, 2009

        

         

         

        
          	
                  33.

                	
                  Supervision
      of Setup Works

                	
                  40

                
	
                  34.

                	
                  Correction
      of Deficiencies and Defects

                	
                  40

                
	
                  35.

                	
                  Safety
      Precautions and Prevention of Hazards

                	
                  41

                
	
                  36.

                	
                  Void.

                	
                  41

                
	
                  37.

                	
                  Intersections
      with Electricity and Telecommunications Lines

                	
                  41

                
	
                  38.

                	
                  Discovery
      of Antiquities and Site Preservation

                	
                  41

                
	
                  39.

                	
                  Land-Related
      Powers

                	
                  41

                
	
                  Part
      B: Equipment Checks and Installation Certifications

                	
                  43

                
	
                  40.

                	
                  Compliance
      Check

                	
                  43

                
	
                  41.

                	
                  Responsibility
      for Compliance

                	
                  43

                
	
                  42.

                	
                  Performance
      Testing Program and Its Approval

                	
                  43

                
	
                  43.

                	
                  Notice
      of Setup Completion

                	
                  43

                
	
                  44.

                	
                  Terms
      of Fitness and Operation

                	
                  43

                
	
                  Part
      C: Use of Frequencies

                	
                  45

                
	
                  45.

                	
                  Allocation
      of Frequencies

                	
                  45

                
	
                  46.

                	
                  Restriction
      on Use of Frequencies

                	
                  45

                
	
                  47.

                	
                  Prevention
      of Interferences

                	
                  45

                
	
                  48.

                	
                  Cellphone
      Activity in Emergencies

                	
                  46

                
	
                  Part
      D: Inspections and MaintenanceA43)

                	
                  48

                
	
                  49.

                	
                  Definitions

                	
                  48

                
	
                  50.

                	
                  Performance
      of Inspections

                	
                  48

                
	
                  51.

                	
                  Inspections,
      Malfunctions and Maintenance Log

                	
                  48

                
	
                  52.

                	
                  Repair
      of Deficiencies and Defects

                	
                  49

                
	
                  Chapter
      E: Providing Cellular Services to Subscribers

                	
                  50

                
	
                  Part
      A: Entering into an Agreement with Subscribers

                	
                  50

                
	
                  55.A43)

                	
                  The
      Contract

                	
                  50

                
	
                  56. A43)

                	
                  Modification
      of Contract

                	
                  51

                
	
                  59.

                	
                  Obligation
      of Connecting Applicants and Prohibition on
    Stipulation

                	
                  52

                
	
                  Part
      B: Service Level for Subscribers

                	
                  53

                
	
                  60.

                	
                  Obligation
      of Maintaining the Service

                	
                  53

                
	
                  62.

                	
                  Obligation
      of Maintenance

                	
                  54

                
	
                  63.

                	
                  Repair
      of Malfunctions

                	
                  55

                
	
                  64.

                	
                  End-user
      equipment – Selling and Renting

                	
                  55

                
	
                  65.

                	
                  Public
      Emergency Services

                	
                  56

                
	
                  65A

                	
                  Blocking
      Service to a Nuisance Subscriber

                	
                  57

                
	
                  66.

                	
                  Protecting
      Subscriber Privacy

                	
                  59

                
	
                  66A.

                	
                  Special
      Services for the Security Forces

                	
                  59

                
	
                  66B.

                	
                  Security
      Provisions

                	
                  60

                
	
                  67.

                	
                  Bills
      to Subscribers

                	
                  60

                
	
                  67A.

                	
                  Information
      Service for Clarifying Telephone Numbers

                	
                  62

                
	
                  67B.43

                	
                  Void.

                	
                  64

                
	
                  67C.

                	
                  Service
      Dossier

                	
                  64

                
	
                  67D.

                	
                  Erotic
      Service

                	
                  66

                
	
                  Part
      C: Termination, Delay or Restriction of Service

                	
                  67

                
	
                  68.

                	
                  Definitions

                	
                  67

                
	
                  69.

                	
                  Prohibition
      on the Termination or Disconnection of Service

                	
                  67

                
	
                  70.

                	
                  Disconnection
      of Service at Subscriber's Request

                	
                  67

                
	
                  71.

                	
                  Termination
      of Service at the Subscriber's Request

                	
                  67

                
	
                  72.

                	
                  Termination
      or Disconnection of Service Due to Breach of
    Agreement

                	
                  71

                
	
                  73.

                	
                  Disconnection
      of Service Due to Maintenance Operations

                	
                  75

                
	
                  CHAPTER
      F – PAYMENT FOR SERVICES

                	
                  76

                
	
                  Part
      A – General

                	
                  76

                

        

         

         

        
          
            
            

          

          
            III

            
              

            

          

          
            
            

          

        

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

          Combined
Version, as at July 28, 2009

        

         

        
          	
                  73A.

                	
                  Definitions

                	
                  76

                
	
                  74.

                	
                  Payment
      Categories

                	
                  76

                
	
                  Part
      B – Setting and Publication of Rates

                	
                  78

                
	
                  75.

                	
                  Setting
      the Rates and Their Amount

                	
                  78

                
	
                  75A.

                	
                  Completion
      of a Call in Another Public Telecommunications
    Network

                	
                  81

                
	
                  75B.

                	
                  Completion
      of an SMS on Another Public Telecommunications
    Network

                	
                  81

                
	
                  75C.

                	
                  Temporary
      Order

                	
                  81

                
	
                  76.

                	
                  Publication
      of Rates

                	
                  82

                
	
                  77.

                	
                  VoidA43)

                	
                  82

                
	
                  77A.

                	
                  Fraud
      Prevention

                	
                  82

                
	
                  Part
      C – Changes in the Rates

                	
                  83

                
	
                  78.A43)

                	
                  Change
      in the Rates

                	
                  83

                
	
                  79.

                	
                  Start
      of an Increase or Reduction in a Rate

                	
                  83

                
	
                  80.

                	
                  Arrears
      in Payment

                	
                  83

                
	
                  Part
      D – Miscellaneous

                	
                  84

                
	
                  81.

                	
                  Onetime
      Debit for Connection Fee

                	
                  84

                
	
                  82.

                	
                  Collection
      of Subscription Fee in Installments

                	
                  84

                
	
                  83.

                	
                  Harm
      to Competition or to Consumers

                	
                  84

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

                	
                  85

                
	
                  Part
      A – Royalties and Payments

                	
                  85

                
	
                  84.

                	
                  Royalties

                	
                  85

                
	
                  85.

                	
                  Arrears
      in the Payment of Royalties

                	
                  85

                
	
                  86.

                	
                  Payment
      Method

                	
                  85

                
	
                  87.

                	
                  Other
      Mandatory Payments

                	
                  85

                
	
                  Part
      B – Liability and Insurance

                	
                  86

                
	
                  88.

                	
                  Definition
      of Scope of Insurance

                	
                  86

                
	
                  89.

                	
                  Licensee’s
      Liability

                	
                  86

                
	
                  90.

                	
                  Immunity
      from Liability

                	
                  86

                
	
                  91.

                	
                  Making
      an Insurance Contract

                	
                  86

                
	
                  92.

                	
                  Conditions
      in the Insurance Contract

                	
                  88

                
	
                  93.

                	
                  Remedy
      for Breach of Conditions with Respect to Insurance

                	
                  88

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

                	
                  89

                
	
                  94.

                	
                  The
      Guarantee and Its Purpose

                	
                  89

                
	
                  95.

                	
                  Exercise
      of the Guarantee

                	
                  89

                
	
                  96.

                	
                  Manner
      of Exercise of the Guarantee

                	
                  90

                
	
                  97.

                	
                  Term
      of Validity of the Guarantee

                	
                  90

                
	
                  98.

                	
                  Preservation
      of Remedies

                	
                  92

                
	
                  CHAPTER
      EIGHT – SUPERVISION AND REPORTING

                	
                  93

                
	
                  Part
      A: Supervision of Licensee’s Activities

                	
                  93

                
	
                  99.

                	
                  Supervisory
      Power

                	
                  93

                
	
                  100.

                	
                  Preservation
      of Confidentiality

                	
                  93

                
	
                  101.

                	
                  Entry
      to Premises and Inspection of Documents

                	
                  93

                
	
                  102.

                	
                  Cooperation

                	
                  93

                
	
                  Part
      B: Reporting and Correction of Defects

                	
                  94

                
	
                  103.A43)

                	
                  Duty
      of Submission of Reports

                	
                  94

                
	
                  104.A43)

                	
                  Types
      of Reports

                	
                  94

                
	
                  105.A43)

                	
                  Notice
      Concerning a Defect

                	
                  96

                
	
                  106.A43)

                	
                  Void.

                	
                  96

                
	
                  CHAPTER
      I – MISCELLANEOUS

                	
                  97

                
	
                  107.

                	
                  The
      License as an Exhaustive Document

                	
                  97

                
	
                  108.

                	
                  Keeping
      the License Document and Returning the License

                	
                  97

                
	
                  109.

                	
                  Postponement
      of Deadline

                	
                  97

                

        

         

         

        
          
            
            

          

          
            IV

            
              

            

          

          
            
            

          

        

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

          Combined
Version, as at July 28, 2009

        

         

         

        
          	
                  110.

                	
                  Reserving
      of Liability

                	
                  98

                
	
                  111.

                	
                  Notices

                	
                  98

                
	
                  First
      Schedule

                	
                  1

                
	
                  Second
      Schedule – List of Appendices

                	
                  2

                
	
                  Appendix
      D – Uniform Engagement Agreement – Not Attached

                	
                  1

                
	
                  Appendix
      J –Accessibility to International Telecommunications
      Services

                	
                  1

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

                	
                  1

                
	
                  Appendix
      O – Erotic Services

                	
                  1

                

        

      

       

       

       

       

      
        
          
          

        

        
          V

          
            

          

        

        
          
          

        

      

       

       

      

      

      

      

      

      

      General   License   for

      

      

      Cellcom Israel
Ltd.

      

      

      Award
of license

      

      

      

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

      

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

       

       

       

       

      

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      

      

      CHAPTER A:
GENERAL

      

      PART
A: DEFINITIONS AND INTERPRETATION:

      

       

      1.      
     Definitions

      
        	
                1.1

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

              

      

      

      
        	
                "
      Type Approval"

              	
                -

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

              
	 	 	 
	
                "Means
      of Control"

              	
                -

              	
                In
      a corporation – any one of the following:

                 

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

                 

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

                 

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

                 

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

              
	 	 	 
	
                "Telecommunications"

              	
                -

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

              
	 	 	 
	
                "Franchisee"A16

              	
                -

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

              
	 	 	 
	
                "Interested
      Party"

              	
                -

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

              
	 	 	 
	
                "Licensee"

              	
                -

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

              
	 	 	 
	
                "General Licensee"
      A16

              	
                -

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

              
	 	 	 
	
                "Broadcasting Licensee"
      A16

              	
                -

              	
                As
      defined in the Law;

              
	 	 	 
	
                "Accessibility
      Fees"

              	
                -

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

              
	 	 	 
	
                "Technical
      Requirements and Service Quality"

              	
                -

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

              
	 	 	 
	
                “Contract”A43

              	
                -

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

              
	 	 	 
	
                the
      "Proposal"

              	
                -

              	
                The
      Licensee’s Proposal in the Tender;

              
	 	 	 
	
                the
      "Bezeq Corp."

              	
                -

              	
                Bezeq
      Israel Telecommunication Corp. Ltd.;

              
	 	 	 
	
                the
      “Law"

              	
                -

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

              

      

      

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

                                                          

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

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

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                "Holding"
      A16

              	
                -

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

              
	 	 	 
	
                "Transfer"
      A16

              	
                -

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

              
	 	 	 
	
                "In Concert With
      Others"
      A16

              	
                -

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

              
	 	 	 
	
                "Security
      Forces"

              	
                -

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

              
	 	 	 
	
                "Index"

              	
                -

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

              
	 	 	 
	
                “Cellular
      Radio Center"

              	
                -

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

              
	 	 	 
	
                "Interface"

              	
                -

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

              
	 	 	 
	
                "Telecommunications
      Facility"

              	
                -

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

              
	 	 	 
	
                "Tender No. 1/01"
      A16

              	
                -

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

              
	 	 	 
	
                the
      "Tender"

              	
                -

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

              
	 	 	 
	
                the
      "Director"

              	
                -

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

              
	 	 	 
	
                "Subscriber"
      A43

              	
                -

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

              
	 	 	 
	
                "Dormant
      subscriber"T48)

              	 
    	
                A
      subscriber in respect of which all of the conditions set out below are
      fulfilled:

                 

                (a)
        He did not receive or use cellular services
  

              

      

       

      ________________

      
        T48)
Amendment No. 48 (Inception: This amendment will come into force on October 2,
2008).

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	
                during
      a minimum of one year, starting from January 1, 2008;

              
	 	 	 
	 	 	
                (b)
        He does not pay the Licensee any fixed payment;

                 

                (c)
        He is not bound with the Licensee by any plan that includes a
      commitment period.

              
	 	 	 
	
                "Business
      subscriber"T47)

              	 
    	
                -A
      subscriber who is any of the following:

                 

                (a)
        A corporation, as defined in the Interpretation Law,
      5741-1981;

                 

                (b)
        Government offices and auxiliary government bodies;

                 

                (c) 
       A licensed dealer excluding an exempt dealer;

                 

                (d) 
       An entity established by or pursuant to a law.

                 

              
	
                “Private
      Subscriber”
      T52

              	 
    	
                Non-Business
      Subscriber

              
	 	 	 
	
                "International
      Telecommunications System"

              	
                -

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

              

      

                                                          

      A16
Amendment No. 16

      T47)
Amendment No. 47.

      T52)
Amendment No. 52.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      

        A16
Amendment No. 16

        
          A16
Amendment No. 16

          
            A16
Amendment No. 16

            
              A16
Amendment No. 16

              
                A16
Amendment No. 16

                
                  A16
Amendment No. 16

                  
                    A16
Amendment No. 16

                  

                

              

            

          

        

      

       

       

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

       

       

      
        	
                "Mobile
      Radio Telephone System" (Cellular System)

              	
                -

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

              
	 	 	 
	
                "NDO (National Domestic
      Operator)"
      A16

              	
                -

              	
                A
      General Licensee for the provision of landline domestic Telecommunications
      services

              
	 	 	 
	
                "Cellular
      Operator"

              	
                -

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

              
	 	 	 
	
                "Another
      Cellular Operator"

              	
                -

              	
                A
      Cellular Operator that is not the Licensee.

              
	 	 	 
	
                "Switchboard"

              	
                -

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

              
	 	 	 
	
                the
      "Ministry"

              	
                -

              	
                The
      Ministry of Communications

              
	 	 	 
	
                "Transit Switch"A16

              	
                -

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

              
	 	 	 
	
                "Officer"A16

              	
                -

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

              
	 	 	 
	
                "Appendices"
      A16

              	
                -

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

              
	 	 	 
	
                "NEP
      (Network End-Point)"

              	
                -

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

              
	 	 	 
	
                "International
      NEP"

              	
                -

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

              
	 	 	 
	
                "Telecommunications
      operation"

              	
                -

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

              
	 	 	 
	
                the
      "Ordinance"

              	
                -

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

              
	 	 	 
	
                "End-User
      Equipment"

              	
                -

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

              

      

                                                          

      A16
Amendment No. 16

       

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

       

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      
 

      
        	
                "Cellular
      End-User Equipment"

              	
                -

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

              
	 	 	 
	
                "Interconnection"
      A16

              	
                -

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

              
	 	 	 
	
                "Relative"

              	
                -

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

              
	 	 	 
	
                the
      "License"

              	
                -

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

              
	 	 	 
	
                the “Network"
      A16

              	
                -

              	
                The
      Cellular System of the Licensee;

              
	 	 	 
	
                the
      “Minister"

              	
                -

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

              
	 	 	 
	
                "Public
      Telecommunications Network"

              	
                -

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

              
	 	 	 
	
                "Public
      Telecommunications Landline Network"

              	
                -

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

              
	 	 	 
	
                "Access Network"
      A16

              	
                -

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

              
	 	 	 
	
                "Bezeq
      Network"

              	
                -

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

              
	 	 	 
	
                "Use"
      A16

              	
                -

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

              
	 	 	 
	
                "Telecommunications
      Service"

              	
                -

              	
                The
      performance of Telecommunications operations for
others;

              
	 	 	 
	
                "Basic
      Telephone Service"

              	
                -

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

              
	 	 	 
	
                "Telephony Service"
      A16

              	
                -

              	
                Basic
      telephone service and services related to this
  service;

              

      

                                                          

      A16
Amendment No. 16

      A16
Amendment No. 16

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

       

       

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                "International
      Telephone Service (ITMS)"

              	
                -

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

              
	 	 	 
	
                "Roaming Service"
      A16

              	
                -

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

              
	 	 	 
	
                "Related
      Service"

              	
                -

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

              
	 	 	 
	
                "Value Added
      Service"
      A16

              	
                -

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

              
	 	 	 
	
                "infrastructure
      Service"

              	
                -

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

              
	 	 	 
	
                "Domestic Telecommunications
      Landline Service"
      A16

              	
                -

              	
                Infrastructure,
      transmissions, communication of data and landline
    telephony;

              
	 	 	 
	
                "Licensee
      Services"

              	
                -

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

              
	 	 	 
	
                "Cellular
      Services"

              	
                -

              	
                Telecommunications
      services provided by means of the Cellular System;

              
	 	 	 
	
                "Control"

              	
                -

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

              
	 	 	 
	
                "the
      Minister"

              	
                -

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

              
	 	 	 
	
                "Engineering
      Plan"

              	
                -

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

              
	 	 	 
	
                "Numbering Plan"
      A16

              	
                -

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

              

      

      

                                                          

      A16
Amendment No. 16

      A16
Amendment No. 16

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

       

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

       

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      
 

      

      
        	
                1.2

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

              

      

      

       

      2.      
     Clause
headings

      

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

      

       

      3.    
       Blue pencil
principle

      

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

      

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

       

      PART
B – LEGAL PROVISIONS AND ADMINISTRATIVE PROVISIONS

      

       

      4.    
       Upholding laws and
provisions

      

      
        	
                4.1

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

              

      

      

      
        	
                 
      

              	
                (1)

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

              

      

      

      
        	
                 
      

              	
                (2)

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

              

      

      

      
        	
                 
      

              	
                (3)

              	
                administrative
      provisions;

              

      

      

      
        	
                 
      

              	
                (4)

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

              

      

      

      
        	
                 
      

              	
                (5)

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

              

      

      

      
        	
                4.2

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

              

      

      

      

      5.   
        Permit obligation pursuant
to any other law

      

      
        	
                5.1

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

              

      

      

      

      6.   
        Contradiction in the License
provisions

      

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

      
 

                                                          

      A2
Amendment No. 2

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

       

      CHAPTER B: THE LICENSE –
SCOPE, VALIDITY AND CANCELLATION

      

      PART
A – SCOPE AND PERIOD OF THE LICENSE

      

       

      7.     
      Scope of the
License

      

      
        	
                7.1

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

              

      

      

      
        	
                 
      

              	
                (1)

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

              

      

      
        	
                 
      

              	
                (2)

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

              

      

      
        	
                 
      

              	
                (3)

              	
                To
      connect the cellular System to the international Telecommunications
      system;

              

      

      
        	
                 
      

              	
                (4)

              	
                To
      connect its cellular System to another cellular
  System;

              

      

      
        	
                 
      

              	
                (5)

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

              

      

      
        	
                 
      

              	
                (6)

              	
                To
      provide Subscribers with cellular End-User
  Equipment;

              

      

      
        	
                 
      

              	
                (7)

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

              

      

      
        	
                 
      

              	
                (8)

              	
                To
      provide Subscribers with the following
services:

              

      

      
        	
                 
      

              	
                (A)

              	
                Basic
      mobile wireless telephone service;

              

      

      
        	
                 
      

              	
                (B)

              	
                Related
      services as set forth in the first
addendum;

              

      

      
        	
                 
      

              	
                (C)

              	
                Roaming
      service;
      A16

              

      

      
        	
                 
      

              	
                (D)

              	
                Any
      other cellular service permitted pursuant to this License.A16

              

      

      

      
        	
                7.2

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

              

      

      

       

      8.    
       Absence of
exclusivity
A16

      

      
        	
                8.1

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

              

      

      

      
        	
                8.2

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

              

      

      

      
        	
                8.3

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

              

      

                                                          

      A16
Amendment No. 16

      A16
Amendment No. 16

      A16
Amendment No. 16

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

       

      9.           The License
period

      

      
        	
                9.1

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

              

      

      

      
        	
                9.2

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

              

      

      

      
        	
                9.3

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

              

      

      

      
        	
                9.4

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

              

      

      

      
        	
                9.5A15

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

              

      

      

       

      10.           Extension of the License
Period

      

      
        	
                10.1

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

              

      

      

      
        	
                 
      

              	
                (A)

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

              

      

      
        	
                 
      

              	
                (B)

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

              

      

      
        	
                 
      

              	
                (C)

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

              

      

      

      
        	
                10.2

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

              

      

      

      
        	
                10.3

              	
                The
      Licensee must attach the following to its
  request:

              

      

      
        	
                 
      

              	
                (A)

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

              

      

      
        	
                 
      

              	
                (B)

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

              

      

      
        	
                 
      

              	
                (C)

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

              

      

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                10.4

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

              

      

      

      
 

                                                          

      A15
Amendment No. 15

      A16
Amendment No. 16

       

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

       

      
        	
                10.5

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

              

      

      
        	
                 
      

              	
                (A)

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

              

      

      
        	
                 
      

              	
                (B)

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

              

      

      
        	
                 
      

              	
                (C)

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

              

      

      

      
        	
                10.6

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

              

      

      

      
        	
                10.7

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

              

      

      

      
        	
                10.8

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

              

      

      

      
        	
                10.9

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

              

      

      

      
        	
                10.10

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

              

      

      

       

      11.           Renewal of the
License

      

      
        	
                11.1

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

              

      

      

      
        	
                11.2

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

              

      

      

      
        	
                11.3

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

              

      

      

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

       

      12.           Termination of the License
Period

      

      
        	
                12.1

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

              

      

      

      
        	
                12.2

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

              

      

      

      

                                                          

      A2
Amendment No. 16

      

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

       

      PART
B – CHANGE IN CONDITIONS AND CANCELLATION OF THE LICENSE

      

       

      13.           Change in the License
conditions

      

      
        	
                13.1

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

              

      

      

      
        	
                 
      

              	
                (A)

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

              

      

      
        	
                 
      

              	
                (B)

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

              

      

      
        	
                 
      

              	
                (C)

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

              

      

      
        	
                 
      

              	
                (D)

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

              

      

      

      
        	
                13.2

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

              

      

      

      
        	
                13.3

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

              

      

      

      

      14.           Cancellation of the
License

      

      
        	
                14.1

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

              

      

      

      
        	
                 
      

              	
                (A)

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

              

      

      
        	
                (B)A2

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

              

      

      
        	
                 
      

              	
                (C)

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

              

      

      
        	
                 
      

              	
                (D)

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

              

      

      
        	
                 
      

              	
                (1)

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

              

      

      
        	
                 
      

              	
                (2)

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

              

      

      
        	
                 
      

              	
                (3)

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

              

      

      
        	
                 
      

              	
                (E)

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

              

      

      

      

      

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      

                                                          

      A2
Amendment No. 2

       

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

       

       

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

      
        	
                 
      

              	
                (1)

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

              

      

      
        	
                 
      

              	
                (2)

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

              

      

      
        	
                 
      

              	
                (3)

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

              

      

      
        	
                 
      

              	
                (4)

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

              

      

      
        	
                 
      

              	
                (5)

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

              

      

      
        	
                 
      

              	
                (6)

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

              

      

      
        	
                 
      

              	
                (7)

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

              

      

      
        	
                 
      

              	
                (8)

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

              

      

      
        	
                 
      

              	
                -

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

              

      

      

      
        	
                 
      

              	
                -

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

              

      

      

      
        	
                 
      

              	
                -

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

              

      

      
        	
                 
      

              	
                (G)

              	
                Void
      A2

              

      

      

      
        	
                 
      

              	
                (H)

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

              

      

      

                                                         

      A16
Amendment No. 16

      A2
Amendment No. 2

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (I)

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

              

      

      
        	
                 
      

              	
                (J)

              	
                Void
      A2)

              

      

      (K)
         The Licensee requested
cancellation of the License;

      

      
        	
                14.1.1A2

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

              

      

       

      
        	
                14.2

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

              

      

       

      
        	
                14.3

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

              

      

       

      
        	
                14.4

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

              

      

       

      
        	
                14.5

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

              

      

       

      
        	
                14.6

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

              

      

       

      
        	
                14.7

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

              

      

       

      
        	
                14.8

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

              

      

       

       

      15.          Other
remedies

      

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

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

       

       

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

       

                                                          

      A2
Amendment No. 2

      A2
Amendment No. 2

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

       

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

       

      CHAPTER C: OWNERSHIP, ASSETS
AND MEANS OF CONTROL

      

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

      

       

      16.          Prohibition on transfer of
the license

      

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

       

      17.          Ownership of the Cellular
System

      

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

      

      
        	
                17.2

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

              

      

       

      18.          Restrictions on transfer of
the License assets

      

      
        	
                18.1

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

              

      

      

      
        	
                18.2

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

              

      

      

      
        	
                18.3
      A2

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

              

      

      

      
        	
                18.4
      A2

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

              

      

      

                                                          

      A16
Amendment No. 16

      A2
Amendment No. 2

      A2
Amendment No. 2

      

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

       

      19.          Engagement with
another

      

      
        	
                19.1

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

              

      

      

      
        	
                19.2

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

              

      

      

      
        	
                19.3

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

              

      

      

      

      

                                                          

      A2
Amendment No. 2

      

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

       

      Part
B: Means of Control – Changes and Limitations

      

       

      20.          Particulars of
Licensee

      

      
        	
                20.1A43)

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

              

      

      

      
        	
                20.2  

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

              

      

      

       

      21.          Transfer of Means of
Control

      

      
        	
                21.1  

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

              

      

      

      
        	
                21.2

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

              

      

      

      
        	
                21.3

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

              

      

      

      
        	
                21.4

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

              

      

      
        	 	 
	
                21.5

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

              

      

       

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      

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

         

      

      
        	
                21.6

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

              

      

       

      
        	
                21.7

              	
                (A)

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

              
	 	 	 
	
                 
      

              	
                (B)

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

              

      

      

      
        	
                 
      

              	
                (C)

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

              

      

      

      
        	
                 
      

              	
                (D)

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

              

      

      

      
        	
                 
      

              	
                (E)

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

              

      

      

      
        	
                21.8

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

              

      

       

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      
 

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

      

       

      
        	
                 
      

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

              

      

      

      
        	
                21.9

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

              

      

      

       

      22.           Encumbrance of Means of
Control

       

      
        	
                 
      

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

              

      

      

       

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

       

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

      

      
        	
                22A.1

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

              

      

      

      
        	
                22A.2

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

              

      

      

      
        	
                 
      

              	
                In
      this section –

              

      

      

      
        	
                 
      

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

              

      

      

      
        	
                22A.3

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

              

      

      

      
        	
                22A.4

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

              

      

      

      
        	
                 
      

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

              

      

       

       

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

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

              

      

      

      
        	
                22A.5

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

              

      

      

      
        	
                 
      

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

              

      

      

      
        	
                22A.6

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

              

      

      

      
        	
                22A.7

              	
                (A)

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

              

      

      

      
        	
                 
      

              	
                (B)

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

              

      

      

      
        	
                 
      

              	
                (C)

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

              

      

      
        	
                 
      

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

              

      

       

       

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (D)

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

              

      

      

      
        	
                 
      

              	
                (E)

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

              

      

      

      
        	
                 
      

              	
                (F)

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

              

      

      

      Part
C: Cross-Ownership and Conflict of Interest

      

      

       

      23.           Prohibition on
Cross-Ownership

      

      
        	
                23.1

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

              

      

      

      
        	
                23.2

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

              

      

      

      
        	
                (A)  

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

              

      

      

      
        	
                (B)  

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

              

      

      

      
        	
                23.3

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

              

      

      

      

       

      24.           Prohibition on a Conflict of
Interest

      
        	
                 
      

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

              

      

      

       

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      
 

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

       

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

       

      Chapter D: Setup and
Operation of Cellular system

      

      Part
A: Setting Up the System

      

      

      25.          Definition

       

      
        	
                 
      

              	
                In
      this part –

              

      

      
        	
                 
      

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

              

      

      

       

      26.          Setup according to Plans and
Specifications

       

      
        	
                26.1

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

              

      

      

      
        	
                26.2  

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

              

      

      

       

      27.          Execution Stages and
Timetable

      

      
        	
                27.1  

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

              

      

      

      
        	
                27.2

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

              

      

      

      
        	
                27.2.1  

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

              

      

      

      
        	
                27.3

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

              

      

      

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                28.

              	
                Modification of Plans
      during Setup

              

      

      

      
        	
                28.1

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

              

      

      

      
        	
                28.2

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

              

      

      

      
        	
                28.3  

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

              

      

      

      

      29.          Utilization and Construction
of Infrastructures

      

      
        	
                29.1  

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

              

      

      

      
        	
                (A)  

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

              

      

      

      
        	
                (B)  

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

              

      

      

      
        	
                (C)  

              	
                Connection
      between all the cellular exchanges;

              

      

      

      
        	
                (D)  

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

              

      

      

      
        	
                29.2

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

              

      

      

      
        	
                29.3

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

              

      

      

      

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

       

      30.A16)   Obligation
of Interconnection

      

      
        	
                30.1

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

              

      

      

      
        	
                30.2

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

              

      

      
        	
                 
      

              	
                (A)

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

              

      

      

      
        	
                (B)  

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

              

      

      

      
        	
                30.3

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

              

      

      

      
        	
                30.4

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

              

      

      

      
        	
                30.5

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

              

      

      

       

      30A.A16)   Rules
Concerning the Implementation of Interconnection

      

      
        	
                 
      

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

              

      

      

      
        	
                (A)

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

              

      

      

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (B)

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

              

      

      

      
        	
                (1)  

              	
                Supply
      of infrastructure facilities and network linkup
  services;

              

      

      
        	
                (2)  

              	
                Availability
      of linkup facilities;

              

      

      
        	
                (3)  

              	
                Linkup
      method, quality and survival;

              

      

      
        	
                (4)  

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

              

      

      
        	
                (5)  

              	
                Payments
      for interconnection;

              

      

      
        	
                (6)  

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

              

      

      
        	
                (7)  

              	
                Commercial
      terms for effecting
interconnection;

              

      

      
        	
                (8)  

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

              

      

      

      
        	
                (C)

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

              

      

      

      
        	
                (D)

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

              

      

      

      
        	
                (E)

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

              

      

      

      
        	
                (F)

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

              

      

       

      
        	
                (G)

              	
                (1)

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

              
	
                 
      

              	
                (2)

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

              

      

      
        	
                 
      

              	
                (3)

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

              

      

       

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                (H)

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

              

      

      

      
        	
                (I)

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

              

      

      

      
        	
                (J)

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

              

      

      

      

      30B.A16)   Payment
for Traffic Completion and Interconnection

      

      
        	
                 
      

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

              

      

      

       

      30C.A16)   Prohibition
on Delaying Interconnection

      

      
        	
                 
      

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

              

      

      

       

      30D.A16)   Providing
the Possibility of Utilization

      

      
        	
                30.1D

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

              

      

      

      
        	
                30.2D

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

              

      

      

      
        	
                30.3D

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

              

      

      

       

      30E.A16)    Infrastructure
Services for an Interested Company

      

      
        	
                30.1E

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

              

      

       

       

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      
 

      
        	
                30.2E

              	
                (A)

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

              

      

      
        	
                 
      

              	
                (1)

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

              

      

      
        	
                 
      

              	
                (2)

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

              

      

      

      
        	
                (B)  

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

              

      

      

      
        	
                (C)  

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

              

      

      

      
        	
                30.3E

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

              

      

      

       

      30F.A16)    Numbering
Program

      

      
        	
                30.1F

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

              

      

      

      
        	
                30.2F

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

              

      

      

       

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

       

      31.          Reports on the Setup
Works

      

      
        	
                31.1

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

              

      

      

      
        	
                31.2

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

              

      

      

      
        	
                31.3

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

              

      

      

      
        	
                31.4

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

              

      

      

      

      32.          Handover of Information and
Documents

       

      
        	
                 
      

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

              

      

      

      

      33.          Supervision of Setup
Works

      

      
        	
                33.1

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

              

      

      

      
        	
                33.2

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

              

      

      

      

      34.          Correction of Deficiencies
and Defects

      

      
        	
                34.1

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

              

      

       

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                34.2  

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

              

      

      

      

      35.          Safety Precautions and
Prevention of Hazards

      

      
        	
                35.1

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

              

      

      

      
        	
                35.2

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

              

      

      

       

      36.          Void.A2A2)

      

       

      37.          Intersections with
Electricity and Telecommunications Lines

      

      
        	
                 
      

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

              

      

      

      

      38.           Discovery of Antiquities and
Site Preservation

      

      
        	
                38.1

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

              

      

      

      
        	
                38.2

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

              

      

      

      
        	
                38.3

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

              

      

      

      
        	
                38.4

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

              

      

      

      

      39.           Land-Related
Powers

       

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                39.1

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

              

      

      

      
        	
                39.2

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

              

      

      

      
        	
                39.3

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

              

      

      

      

      

      

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

       

      Part
B: Equipment Checks and Installation Certifications

      

      

      40.          Compliance
Check

       

      
        	
                 
      

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

              

      

      

       

      41.          Responsibility for
Compliance

       

      
        	
                 
      

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

              

      

      

       

      42.          Performance Testing Program
and Its Approval

      

      
        	
                42.1

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

              

      

      

      
        	
                42.2

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

              

      

      

       

      43.          Notice of Setup
Completion

       

      
        	
                 
      

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

              

      

      

       

      44.          Terms of Fitness and
Operation

      

      
        	
                44.1

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

              

      

      

      
        	
                (A)  

              	
                Entering
      into an Agreement with an Equipment
Manufacturer

              

      

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

      
        	
                 
      

              	
                (1)

              	
                Know-how
      agreement;

              

      

      
        	
                 
      

              	
                (2)

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

              

      

      
        	
                 
      

              	
                (3)

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

              

      

       

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                (B)  

              	
                Lab
      and Testing Equipment

              

      

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

      

      (C)  
    Parts

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

      

      
        	
                 
      

              	
                (D)

              	
                Maintenance
      System

              

      

      
        	
                 
      

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

              

      

      

      
        	
                (E)  

              	
                Communication
      Means

              

      

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

      

      
        	
                44.2

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

              

      

      

      

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

       

      Part
C: Use of Frequencies

      

       

      45.          Allocation
of FrequenciesA16)

      

      
        	
                45.1

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

              

      

      

      
        	
                (A)  

              	
                A35)
      835 to 845 MHz and corresponding range 880 to 890
  MHz;

              

      

      

      (A1)
A35)
1710 to 1712 MHz and corresponding range 1805 to 1807 MHz;

      
        	
                 
      

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

              
	 	 
	
                (B) 

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

              

      

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

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

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

      

      
        	
                 
      

              	
                  
      (C)

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

              

      

      
        	
                 
      

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

              

      

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                as
      well as the frequency range 1905 to 1910
MHz.

              

      

      

      
        	
                 
      

              	
                (C1)
      A2A26)
      Starting from April 4, 2004 the following frequency bands will be
      allocated:

              

      

      
        	
                 
      

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

              

      

      

      
        	
                 
      

              	
                (D)

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

              

      

      

      
        	
                45.2

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

              

      

      

      
        	
                45.3

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

              

      

      

       

      46.           Restriction on Use of
Frequencies

      
        	
                 
      

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

              

      

      

       

      47.           Prevention of
Interferences

      

      
        	
                47.1

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

              

      

       

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

       

      

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

         

      

      
        	
                47.2

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

              

      

      

      
        	
                47.3

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

              

      

      

      
        	
                47.4

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

              

      

      

      
        	
                47.5

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

              

      

      

      

      48.           Cellphone Activity in
Emergencies

      

      
        	
                48.1

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

              

      

      

      
        	
                48.2  

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

              

      

      

      
        	
                48.3

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

              

      

      
        	
                (A)

              	
                In
      terms of the frequency profile;

              

      

      
        	
                 
      

              	
                (B)     
      In terms of the geographical
profile;

              

      

       

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                (D)

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

              

      

      

      
        	
                48.4

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

              

      

      

      
        	
                48.5

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

              

      

      

      

      

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       

       

      Part
D: Inspections and MaintenanceA43)

      

       

      49.          Definitions

      

      
        	
                 
      

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

              

      

      

      
        	
                 
      

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

              

      

      

      
        	
                 
      

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

              

      

      

      

      50.          Performance of
Inspections

      

      
        	
                50.1

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

              

      

      

      
        	
                50.2

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

              

      

      

      
        	
                50.3

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

              

      

      

      
        	
                50.4

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

              

      

      

      
        	
                50.5

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

              

      

      

      

      51.          Inspections, Malfunctions
and Maintenance Log

      

      
        	
                51.1

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

              

      

       

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                51.2

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

              

      

      

      

      52.          Repair of Deficiencies and
Defects

      

      
        	
                52.1

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

              

      

      

      
        	
                52.2

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

              

      

      

      
        	
                52.3

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

              

      

      

      
        	
                53.

              	
                Void.

              

      

      

      
        	
                54.

              	
                Void.

              

      

      

       

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       

       

      Chapter E: Providing
Cellular Services to Subscribers

      

      Part
A: Entering into an Agreement with Subscribers

      

       

      55.A43)   The
Contract

      

      
        	
                55.1

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

              

      

      

      
        	
                55.2

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

              

      

      

      
        	
                55.3

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

              

      

      
        	
                 
      

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

              

      

      

      
        	
                55.4

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

              

      

      

      
        	
                 
      

              	
                (a)

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

              

      

      

      
        	
                 
      

              	
                (b)

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

              

      

      

      
        	
                 
      

              	
                (c)

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

              

      

      

      
        	
                 
      

              	
                (d)

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

              

      

      

      
        	
                 
      

              	
                (e)

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

              

      

      

      
        	
                 
      

              	
                (f)

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

              

      

      

      
        	
                 
      

              	
                (g)

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

              

      

      

      
        	
                 
      

              	
                (h)

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

              

      

      

      
        	
                55.5

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

              

      

      

      

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

       

       

      56. A43) 
 Modification
of Contract

      

      
        	
                56.1

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

              

      

      

      
        	
                56.2

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

              

      

      

      
        	
                56.3

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

              

      

      

       

      
        	
                56A.T47)

              	
                Period
      of Commitment under a Contract

              

      

       

      
        	
                56A.1

              	
                Where
      the Licensee entered with a subscriber who is not a business subscriber
      into a contract that includes a commitment, the period of the commitment
      may not exceed eighteen (18)
months.

              

      

       

      
        	
                 
      

              	
                In
      this regard, "commitment," – the
      subscriber's commitment to comply with conditions relating to the scope of
      consumption of services, the amount of the payment or the payment terms,
      during a defined period, where noncompliance with such conditions during
      such period entails a payment, including the return of a benefit or an
      exit fee.

              

      

       

      
        	
                56A.2

              	
                Where
      the Licensee proposed to a subscriber who is not a business subscriber to
      enter into a contract that includes a commitment, the Licensee will
      present to such subscriber a proposal to enter into a contract that does
      not include a commitment, as a reasonable alternative to contracts that
      include a commitment. In this regard, a contract containing a "prepaid"
      plan will not be deemed a reasonable alternative to a plan that includes a
      commitment.

              

      

       

      
        	
                56A.3

              	
                If
      the Director finds that the Licensee has violated Section 56A.2, he may
      direct the Licensee to modify conditions in a contract that does not
      include a commitment, without thereby derogating from any other power
      established in the License or in any law. In this regard, the Director
      will consider, inter
      alia, the number of subscribers of the Licensee who are signed on
      contracts that do not include a
commitment.

              

      

       

       

      
        	
                57.
      A43)

              	
                Void.

              

      

      

      

      
        	
                58.
      A43)

              	
                Void.

              

      

      

      ___________________

      
        T47)
Amendment No. 47.

         

         

      

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

       

       

      59.          Obligation of Connecting
Applicants and Prohibition on Stipulation

      

      
        	
                59.1

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

              

      

      

      
        	
                59.2

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

              

      

      

      
        	
                 
      

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

              

      

      

      
        	
                 
      

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

              

      

      

      
        	
                 
      

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

              

      

      

      59.3         Void.
A1)

      

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

       

       

      Part
B: Service Level for Subscribers

      

       

      60.A16)   Obligation
of Maintaining the Service

      

      
        	
                60.1

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

              

      

      

      
        	
                60.2

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

              

      

      

      
        	
                60.3

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

              

      

      

      
        	
                60.4

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

              

      

      

      
        	
                60.5

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

              

      

      

      
        	
                60.6A43)

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

              

      

      
        	
                 
      

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

              

      

      

      

      61.A43)   Public
Ombudsman

      

      
        	
                61.1

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

              

      

      

      
        	
                 
      

              	
                (a)

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

              

      

       

       

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (b)

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

              

      

      

      
        	
                 
      

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

              

      

      

      
        	
                61.2

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

              

      

      

      
        	
                61.3

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

              

      

      

      
        	
                61.4

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

              

      

      

       

      
        61A.
A43) Umpiring
of Disputes

      

      

      
        	
                61A.1

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

              

      

      

      
        	
                61A.2

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

              

      

      

      
        	
                 
      

              	
                (a)

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

              

      

      

      
        	
                 
      

              	
                (b)

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

              

      

      

       

      62.          Obligation of
Maintenance

      

      
        	
                62.1

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

              

      

      

      
        	
                62.2

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

              

      

      

      
        	
                 
      

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

              

      

      

      

       

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

       

       

      63.          Repair of
Malfunctions

      

      
        	
                63.1  

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

              

      

      

      
        	
                63.2  

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

              

      

      

      
        	
                63.3  

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

              

      

      

      
        	
                63.4  

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

              

      

      

      
        	
                63.5  

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

              

      

      

      
        	
                63.6  

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

              

      

      

      

      64.          End-user equipment – Selling
and Renting

       

      
        	
                 
      

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

              

      

      

      
        	
                 
      

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

              

      

      

      
        	
                 
      

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

              

      

      

       

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

      
 

      
        	
                64A. T53

              	
                Grant
      of Benefit to Subscriber

              

      

      

      
        	
                64A.1 T53

              	
                The
      licensee shall not create any link between any benefit whatsoever for
      mobile radio-telephone services it granted to a subscriber, including any
      credit, discount, special tariff program, basket of services etc.
      (hereinafter referred to in this section as “Benefit”) and the fact
      that the mobile radio-telephone terminal equipment in the subscriber’s
      possession was purchased, hired or received from the licensee or any other
      marketer on its behalf. As part of this, the licensee shall offer an
      identical Benefit to that offered by it at the time the subscriber
      receives, purchases or hires from it a specific model of mobile
      radio-telephone terminal equipment for each subscriber using mobile
      radio-telephone terminal equipment with similar characteristics to the
      aforesaid model and which shall be granted to the subscriber in the course
      of a period of not less than the period in which a monetary credit was
      granted to the subscriber purchasing terminal equipment from the licensee,
      pursuant to the following rules:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                To
      the extent that the model of the terminal equipment in the subscriber’s
      possession is identical to the model marketed by the licensee at the time
      the subscriber approaches the licensee, the licensee shall offer the
      subscriber an identical Benefit to that granted by it to any person
      purchasing from it the aforesaid model, in reliance on the confirmation of
      purchase presented to it by the
subscriber;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                To
      the extent that the model of the terminal equipment in the subscriber’s
      possession is not marketed by the licensee at the time the subscriber
      approaches the licensee, the licensee shall grant the subscriber a Benefit
      according to the terminal equipment classification determined in advance
      by the licensee and in reliance on the confirmation of purchase presented
      to it by the subscriber;

              

      

      

      In this
subsection -

      

      “Terminal equipment
classification” means the division of terminal equipment models not
marketed by the licensee into no more than six categories, and determination of
the amount and the terms and conditions of the Benefit to be granted in relation
to each of the categories; this is according to the amount and terms and
conditions of the Benefit granted by the licensee in relation to terminal
equipment models marketed by it which are models of devices having similar
characteristics;

      

      
        	
                 
      

              	
                (c)

              	
                At
      the time of calculating the period in which the Benefit will be granted
      under subsections (a) or (b), the licensee may take into account the date
      on 

              

      

       

      ____________________

      
        T53)
Amendment No. 53.

        T53)
Amendment No. 53.

           

           

        

      

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

       

      
        which the
terminal equipment was purchased by the subscriber, as appears in the
confirmation of purchase.
 

      In this
section, “confirmation of
purchase” means any certificate attesting to purchase of the terminal
equipment, including, inter
alia, the date of purchase and the amount paid.

      

      
        	
                64A.2 T53

              	
                The
      licensee shall present updated information on its website about the
      terminal equipment classification made by
it.”

              

      

       

      

      65.           Public Emergency
Services

      

      
        	
                65.1A21)

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

              

      

      

      
        	
                65.2A42)

              	
                Starting
      from April 5, 2007 (“the inception day”) the Licensee will enable the call
      centers of the public emergency systems1 to identify the
      telephone number of a subscriber calling them2, anytime and at no
      charge, including a subscriber with a confidential telephone number, a
      subscriber who blocked his number before the call and a subscriber calling
      from a private exchange.

              

      

      

      
        	
                 
      

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

              

      

      

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                 

              

      

       

      65AA21)  Blocking
Service to a Nuisance Subscriber

      

      
        	
                65.1A

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

              

      

      

      
        	
                65.2A

              	
                A
      notice regarding a nuisance subscriber will be submitted in writing to the
      Licensee by a senior employee in the public emergency service (hereinafter
      – the employee) and will be 

              

      

       

      _____________________

      
        
          T53)
Amendment No. 53.

        

        a Israel
Police – 100, Magen David Adom – 101, Fire Station - 102

        b
Excluding a subscriber that his end user equipment permits dialing only to the
call centers of the public emergency systems, such as a non SIM card cellphone
in a GSM network

           

        

      

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

       

      

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

         

      

      
        	
                65.3A

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

              

      

      

      
        	
                A.  

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

              

      

      

      
        	
                B.  

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

              

      

      

      
        	
                C.  

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

              

      

      

      
        	
                65.4A

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

              

      

      

      
        	
                65.5A

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

              

      

      

      
        	
                65.6A

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

              

      

      

      
        	
                65.7A

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

              

      

      

      
        	
                65.8A

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

              

      

      

      
        	
                65.9A

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

              

      

      

      

       

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

       

       

      66.A16)   Protecting
Subscriber Privacy

      

      
        	
                66.1

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

              

      

      

      
        	
                66.2

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

              

      

      

      
        	
                66.3

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

              

      

      

      
        	
                (A)  

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

              

      

      

      
        	
                (B)  

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

              

      

      

       

      66A.T3)   Special
Services for the Security Forces

      

      
        	
                (A)  

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

              

      

      

      
        	
                 
      

              	
                (A1)A12)
      The Licensee will enable the security forces, regarding which the Director
      informed in writing, to realize, subject to any law, their powers with
      respect to any telecommunications activity in the framework of the
      license, and will be responsible for the maintenance, proper functioning,
      and technological adaptation of the equipment and infrastructure required
      for realizing said execution capability, all in coordination with the
      security forces, as detailed in Addenda I and L. The security forces will
      bear the payment under the provisions of Section 13 of the
      Law.

              

      

      

      
        	
                (B)  

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

              

      

      

      
        	
                (C)  

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

              

      

      

      _____________________

      
        
          T3)  Amendment No.
3

        

        
        

         

      

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

       

       

      66B.A12) Security
Provisions

      

      
        	
                (A)  

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

              

      

      

      
        	
                (B)  

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

              

      

      

      
        	
                 
      

              	
                (1)

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

              

      

      

      
        	
                 
      

              	
                (2)

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

              

      

      

      
        	
                (C)  

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

              

      

      

      
        	
                (D)  

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

              

      

      

      

      67.          Bills to
Subscribers

      

      
        	
                67.1A16)

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

              

      

      

      
        	
                67.2  

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

              

      

      

      
        	
                67.3  

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

              

      

      

      
        	
                 67.4A34)

              	
                (A)

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

              

      

      

      
        	
                 
      

              	
                (B)

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

              

      

       

       

      
        
          
          

        

        
          60

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                 
      

              	
                (C)

              	
                Notwithstanding
      that stated in subsection (A) -

              

      

      

      
        	
                 
      

              	
                (1)

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

              

      

      

      
        	
                 
      

              	
                (a)

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

              

      

      

      
        	
                 
      

              	
                (b)

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

              

      

      

      
        	
                 
      

              	
                (2)

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

              

      

      

      
        	
                 
      

              	
                (3)

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

              

      

      

      
        	
                 
      

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

              

      

      

      
        	
                 
      

              	
                (4)

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

              

      

      

      
        	
                 
      

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

              

      

      

      
        (D)     
(1)      
Chapter B
in the Standard concerning due disclosure in telephone bills will come into
effect no later than Friday, October 14, 2005.

      

      

      
        	
                 
      

              	
                (2)

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

              

      

      

      67.5 T52

       

      ____________________

      
        T52)
Amendment No. 52.

      

       

      
        
          
          

        

        
          61

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                A
      bill submitted to a private subscriber shall also be drawn up according to
      the provisions of Appendix E 1 (hereinafter referred to in this section as
      the “Private Subscriber
      Billing Format”).

              

      

      

      67.6 T52

      
        	
                 
      

              	
                A
      business subscriber may request that the licensee furnish him with a
      telephone bill in Private Subscriber Billing Format (hereinafter referred
      to in this section as a “Request”). Where a
      subscriber has requested as aforesaid, the licensee shall begin to send
      him the bill according to the aforesaid format by no later than the
      expiration of two billing periods after the date of the Request. The
      licensee shall publish once every six months a notice in the telephone
      bill submitted to the business subscriber according to which the business
      subscriber may demand that the licensee draw up the telephone bill
      submitted to him according to the Private Subscriber Billing
      Format.

              

      

      

      67.7 T52

      
        	
                 
      

              	
                The
      bill shall be sent to the address registered at the licensee or any other
      address delivered by the subscriber to the licensee or by any other means,
      if the subscriber has granted his express prior consent thereto; the
      licensee may demand any payment whatsoever for the issue and mailing of
      the bill to the subscriber. The licensee may demand reasonable payment for
      “Call Details” sent to the subscriber at his
  demand.”

              

      

      

       

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

      

      
        	
                67.1A

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

              

      

      

      
        	
                (A)  

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

              

      

      
        	
                (B)  

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

              

      

      
        	
                (C)  

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

              

      

      

      
        	
                67.2A

              	
                Without
      derogating from that stated in Section 67.1A, the Licensee will provide to
      the general public and at no charge, by itself or through another, an
      information service for clarifying the telephone number of any subscriber,
      excluding an ID-restricted subscriber, via a phone center, the access to
      which will be effected by means of a national access code set by the
      Director.

              

      

       

      ________________________

      
        
          T52)
Amendment No. 52.

        

        T52)
Amendment No. 52.

        A39) Amendment
No. 39

           

        

      

       

      
        
          
          

        

        
          62

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                67.3A

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

              

      

      

      
        	
                67.4A

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

              

      

      
        	
                 
      

              	
                (A)

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

              

      

      

      
        	
                 
      

              	
                (B)

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

              

      

      

      
        	
                 
      

              	
                (C)

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

              

      

      

      As regards this section –

      
        	
                 
      

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

              

      

      

      
        	
                67.5A

              	
                (A)

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

              

      

      

      
        	
                 
      

              	
                (B)

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

              

      

      
        	
                 
      

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

              

      

      

      
        	
                67.6A

              	
                (A)

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

              

      

      

      
        	
                 
      

              	
                (B)

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

              

      

      

      
        	
                 
      

              	
                (C)

              	
                An
      information service for clarifying telephone numbers as stated in Section
      67.1A(B) and an information service using a phone center, the access to
      which is effected by means of a national access code as stated in Section
      67.3A, will comply with the service indexes specified
    below:

              

      

       

       

      
        
          
          

        

        
          63

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                (1)  

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

              

      

      
        	
                (2)  

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

              

      

      
        	
                (3)  

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

              

      

      

      
        	
                67.7A

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

              

      

      

      
        	
                67.8A

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

              

      

      

      
        	
                 
      

              	
                (A)

              	
                The
      Licensee's website;

              

      

      

      
        	
                 
      

              	
                (B)

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

              

      

      

      
        	
                 
      

              	
                (C)

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

              

      

      

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

      

       

      67B.A43)Void.

      

       

      67C.A16)Service
Dossier

      

      
        	
                67C.1

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

              

      

       

      
        
          
            
            
_______________________  

        

        
          6   Busy
Hour Call Attempts

        

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

          
 

        

      

      
        
          
          

        

        
          64

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                67C.2

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

              

      

      

      
        	
                67C.3

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

              

      

      

      
        	
                67C.4

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

              

      

      

      
        	
                67C.5

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

              

      

      

      
        	
                67C.6

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

              

      

      

      
        	
                67C.7

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

              

      

      

      
        	
                67C.8

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

              

      

      

      
        	
                67C.9

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

              

      

      

      
        	
                67C.10

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

              

      

      

      
        	
                67C.11

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

              

      

       

       

      
        
          
            
            

          

        

        
           

        

      

      

      
        
          
          

        

        
          65

          
            

          

        

        
          
          

        

      

      

       

      67D.A24) Erotic
Service

       

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                As
      regards this section –

              

      

      
        	
                 
      

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

              

      

      

      

      

      
        
          
          

        

        
          66

          
            

          

        

        
          
          

        

      

      
 

       

      Part
C: Termination, Delay or Restriction of Service

      

       

      68.          Definitions

      

      
        	
                 
      

              	
                In
      this part –

              

      

      
        	
                 
      

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

              

      

      
        	
                 
      

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

              

      

      

       

      69.          Prohibition on the
Termination or Disconnection of Service

       

      
        	
                 
      

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

              

      

      

       

      70.    
     Disconnection of Service at
Subscriber's Request

      

      
        	
                70.1

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

              

      

      

      
        	
                70.2

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

              

      

      

      
        	
                70.3  

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

              

      

      

      

       

      71.           Termination of Service at
the Subscriber's Request

       

      
        	
                71.

              	
                Discontinuation
      of Service at a Subscriber's
Request

              

      

       

      
        	
                71.1

              	
                A
      subscriber may request the Licensee to discontinue service to the cellular
      end-user equipment in his possession. For this purpose, a subscriber may
      communicate with the Licensee in writing, including by fax or by
      email T48).

              

      

       

      
        	
                71.2

              	
                The
      Licensee will discontinue the provision of cellular services to the
      cellular end-user equipment in the subscriber's possession not later than
      the workday after the date specified by the subscriber in his notice. If
      the subscriber did not 

              

      

       

      _____________________

      
        T48)
Amendment No. 48 (inception: this amendment will come into force on October 2,
2008).

         

         

      

      
        
          
          

        

        
          67

          
            

          

        

        
          
          

        

      

       

      
        specify a
date, the service will be discontinued not later than the workday after the date
of delivery of the notice to the Licensee T48).

         

      

      
        	
                71.3T48)

              	
                The
      Licensee will publish on its website, and in the bill sent by it to the
      subscriber, the fax number and the email address through which the
      subscriber may request the Licensee to discontinue a
    service.

              

      

       

      
        	
                (A)  

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

              

      

      

      
        	
                (B)  

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

              

      

      

      
        	
                (C)  

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

              

      

      

       

      
        	
                71A.T48)

              	
                Blocking
      of Cellular End-User Equipment

              

      

       

      
        	
                71A.1

              	
                The
      Licensee will register the identification number of a subscriber's
      cellular end-user equipment, excluding cellular end-user equipment
      operating by the IDEN technology (hereinafter in this section "cellular end-user
      equipment"):

              

      

       

      
        	
                 
      

              	
                (a)

              	
                On
      the date of delivery of the cellular end-user equipment to the subscriber,
      on the date of contracting with the subscriber or on the date of renewal
      of the contract, including on the date of replacement, upgrading or repair
      of the cellular end-user equipment.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                In
      the case of cellular end-user equipment that was not provided to the
      subscriber by the Licensee, the Licensee will make reasonable efforts to
      bring to the subscriber's attention the possibility available to him of
      registering with the Licensee the identification number of such aforesaid
      cellular end-user equipment.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                At
      the subscriber's request from the Licensee; the subscriber's request may
      be via the telephone, after the Licensee has verified the reliability of
      the request.

              

      

       

      
        
          __________________________________

          T48)
Amendment No. 48 (inception: this amendment will come into force on October 2,
2008).  

        

        
          T48)
Amendment No. 48 (inception: this amendment will come into force on October 2,
2008).  

        

        
          T48)
Amendment No. 48 (inception: this amendment will come into force on October 2,
2008).

        

      

       

       

      
        
          
          

        

        
          68

          
            

          

        

        
          
          

        

      

       

       

      
        	
                71A.2

              	
                If
      a subscriber notifies the Licensee that his end-user equipment has been
      stolen or lost, the Licensee will block the end-user equipment of a
      subscriber who was registered as stated in Section 71A.1, free of charge,
      not later than thirty (30) days after it has verified the reliability of
      the subscriber's request. For purposes of this section, "blocking" – elimination
      of the possibility that the cellular end-user equipment will receive
      cellular services.

              

      

       

      
        	
                71A.3

              	
                The
      Licensee will provide details of end-user equipment that was blocked by it
      to any other cellular licensee, not later than the workday after
      implementing that stated in Section
71A.2.

              

      

       

      
        	
                71A.4

              	
                (a)T50)

              	
                The
      Licensee may not provide cellular services to end-user equipment that was
      blocked by it or by another cellular
licensee.

              

      

       

      
        	
                 
      

              	
                (b)T50)

              	
                Notwithstanding
      that stated in Section 71A.2 and Subsection (a), if it is found that
      blocking the identification number will cause the discontinuation of
      service to other end-user equipment having the same identification number,
      the Licensee may abstain from implementing the block as
      stated.

              

      

       

      
        	
                71A.5

              	
                The
      Licensee will remove the block on end-user equipment that was blocked by
      it, after receiving a request T50)
      from the subscriber. Removal of the block will be done not later than one
      workday after the Licensee has verified the reliability of the request,
      unless the subscriber has specified a later date in his request T50).

              

      

       

      
        	
                71A.6

              	
                The
      Licensee will publish to all its subscribers its obligations with respect
      to the possibility of blocking cellular end-user equipment, the procedure
      for registration of the identification number of cellular end-user
      equipment with the Licensee and the ways of communicating with it for the
      purpose of implementing the block. The publication will be made in at
      least the following ways:

              

      

       

      
        	
                (a)

              	
                In
      the contract;

              

      

       

      
        	
                (b)

              	
                On
      the Licensee's website;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                In
      a separate information sheet to be enclosed with the bill submitted to the
      subscriber, by January 30, 2009T50).

              

      

       

      
        	
                71A.7T50)

              	
                The
      Licensee will detail, in a half yearly report, the number of
      identification numbers that were blocked and the number of identification
      numbers in respect of which such block was removed, as well as the number
      of 

              

      

      
______________________  

      
        T50)
Amendment No. 50.  

      

      
        T50)
Amendment No. 50  

      

      
        T50)
Amendment No. 50  

      

      
        T50)
Amendment No. 50  

      

      
        T50)
Amendment No. 50  

      

      
        T50)
Amendment No. 50

      

      

       

      
        
          
          

        

        
          69

          
            

          

        

        
          
          

        

      

       

       

       

      
        identification
numbers that were not blocked pursuant to this section and the reasons
therefor.

      

       

       

       

       

      
        
          
          

        

        
          70

          
            

          

        

        
          
          

        

      

       

       

       

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

      

      
        	
                72.1

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

              

      

      

      
        	
                 
      

              	
                (A)

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

              

      

      

      
        	
                 
      

              	
                (B)

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

              

      

      

      
        	
                 
      

              	
                (C)

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

              

      

      

      
        	
                72.2

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

              

      

       

      
        	
                72.3T2)

              	
                Notwithstanding
      that stated in Section 72.2, the Licensee may disconnect service to a
      subscriber without prior notice, if one of the following is
      fulfilled:

              

      

       

      
        	
                 
      

              	
                (a)

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

              

      

       

      
        	
                 
      

              	
                (b)

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

              

      

       

      
        	
                 
      

              	
                (c)

              	
                The
      Licensee found that the subscriber used the cellular services in an
      unusual amount for that type of subscriber, and after the Licensee's
      service center contacted the subscriber in a phone call placed to the
      end-user equipment.

              

      

       

      
        	
                72A.4T2)

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

              

      

       

      ______________________

      
        T2)
Amendment No. 2 (due to a clerical error in the amendment, appeared as Section
71.3 instead of 72.3).  

        
          T2)
Amendment No. 2 (due to a clerical error in the amendment, appeared as Section
71.4 instead of 72.4).

           

        

      

       

      
        
          
          

        

        
          71

          
            

          

        

        
          
          

        

      

       

       

      
        opportunity,
within an amount of time to be set in the notice, to repair the end-user
equipment in such manner as to prevent said interference.

         

      

      
        	
                72A.T48)

              	
                Discontinuation of Service to a
      Dormant Subscriber

              

      

       

      
        	
                72A.1

              	
                If
      the Licensee wishes to discontinue service to a dormant subscriber, it
      must give the dormant subscriber prior notice of such intention, in the
      manner set out below (hereinafter in this section "the notice"). The time
      of discontinuation of the service may not be less than thirty (30) days
      after the date of sending of the
notice.

              

      

       

      
        	
                72A.2

              	
                The
      Licensee will specify in the notice the telephone number in respect of
      which it intends to discontinue the
service.

              

      

       

      
        	
                72A.3

              	
                The
      sending of a notice to a dormant subscriber will be
  done:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                With
      respect to a subscriber whose name and address are known to the Licensee,
      in each of the following ways:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                By
      a letter via regular post;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                By
      two SMS messages to be sent to the dormant subscriber at a difference of
      at least two weeks between the
messages.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                With
      respect to a subscriber whose name and address are not known to the
      Licensee – by four SMS messages to be sent at a difference of at least one
      week between the messages.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Notwithstanding
      that stated in Subsections (a)(2) and (b), if the subscriber's end-user
      equipment does not support the receipt of SMS messages, the Licensee will
      send the subscriber voice messages instead of SMS messages, insofar as the
      subscriber's end-user equipment supports the receipt of voice
      messages.

              

      

       

      
        	
                72A.4

              	
                The
      Licensee may not discontinue service to a dormant subscriber to whom a
      notice was sent, where the dormant subscriber has notified the Licensee
      that he does not wish the service to be discontinued. The subscriber may
      deliver such a message via the telephone or in writing, including by fax
      or by email.

              

      

       

      
        	
                 
      

              	
                Notwithstanding
      the aforesaid, the Licensee may discontinue service to a dormant
      subscriber who has notified it that he does not wish the service to be
      discontinued, after the subscriber was sent at least two notices, as
      stated in Section 72A.3 and 72A.5, and where in the second notice the
      Licensee has notified the subscriber that if within one year from the date
      of the second notice the subscriber does not make use of the cellular
      service, the subscription to the service will be discontinued, without
      delivery of further notice to the
subscriber.

              

      

       

      ______________________  

      
        T48)
Amendment No. 48 (inception: this amendment will come into force on October 2,
2008).

      

       

       

       

      
        
          
          

        

        
          72

          
            

          

        

        
          
          

        

      

       

       

       

       

       

       

      
        
          
          

        

        
          73

          
            

          

        

        
          
          

        

      

       

       

      
        	
                72A.5

              	
                The
      Licensee may not send the subscriber further notice concerning its wish to
      discontinue the service after one year has passed from the date on which
      the subscriber was sent the previous notice in that
  regard.

              

      

       

      
        	
                72A.6

              	
                The
      Licensee will keep the telephone number of a dormant subscriber to whom
      service was discontinued, during at least three months from the date of
      discontinuation of the service, before the number is returned to the pool
      of telephone numbers of the Licensee itself or to another cellular
      licensee who originally allocated the number to the dormant subscriber. If
      during this period a written request is received from the subscriber to
      renew the service, the Licensee will renew the service upon the same terms
      as those that applied prior to the discontinuation of the service, free of
      charge.

              

      

       

      
        	
                72A.7

              	
                Where
      service was discontinued to a dormant prepaid subscriber who has a balance
      of the payment remaining to his credit, the Licensee will refund the
      appropriate balance within 30 days after receiving a written request from
      the subscriber who has proven that he is the owner of the line to which
      the service was discontinued, provided such request is received by the
      Licensee not later than six months after the date of discontinuation of
      the service.

              

      

      

       

       

       

      
        
          
          

        

        
          74

          
            

          

        

        
          
          

        

      

       

       

      73.          Disconnection of Service Due
to Maintenance Operations

      

      
        	
                73.1

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

              

      

      
        	
                (A)  

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

              

      

      
        	
                (B)  

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

              

      

      
        	
                (C)  

              	
                Void.A2)

              

      

      

      
        	
                73.2  

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

              

      

      

      
        	
                73.3  

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

              

      

      

      
        	
                73.4  

              	
                Void.
      A2)

              

      

      

      
        	
                73.5  

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

              

      

      

      
        	
                73.6  

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

              

      

      
        	
                (A)  

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

              

      

      
        	
                (B)  

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

              

      

      

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

       

       

      
        
          
          

        

        
          75

          
            

          

        

        
          
          

        

      

       

       

      CHAPTER F
– PAYMENT FOR SERVICESA8)

      

      Part
A – General

      

       

      73A.       Definitions

       

      In this
chapter –

       

      
        	
                “Licensee” 

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

              
	 	 	 	 
	
                “Airtime” 

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

              
	 	 	 	 
	
                “Airtime unit”A31A31)

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

              
	 	 	 	 
	
                “Package of
      services” 

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

              
	 	 	 	 
	
                “Public
      telecommunications network”

              	 	-	
                Including
      an international telecommunications system.

              
	 	 	 	 
	
                “Payment for
      completion of
      a call”

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

              

      

       

      74.          Payment
Categories

       

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

       

      
        	
                 
      

              	
                (a)

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

              

      

       

      
        	
                 
      

              	
                (b)

              	
                A
      fixed payment;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Payment
      for airtime as specified in section
75A;

              

      

       

      
        	
                 
      

              	
                (d)

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

              

      

       

       

      
        
          
          

        

        
          76

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                 
      

              	
                (e)

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

              

      

       

       

       

      
        
          
          

        

        
          77

          
            

          

        

        
          
          

        

      

       

       

      Part
B – Setting and Publication of Rates

       

       

      75.          Setting the Rates and Their
Amount

       

      
        	
                75.1

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

              

      

       

      
        	
                75.2

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

              

      

       

      
        	
                75.3

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

              

      

       

      
        	
                75.4

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

              

      

       

      
        	
                75.5T49)

              	
                If
      the Licensee contracts with the subscriber in regard to a certain service
      or package of services, and the contract includes a commitment as defined
      in Section 56A.1 ("commitment period"),
      the following provisions will apply, with the exception of a business
      subscriber:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                The
      terms of the contract, excluding the contract rates, will be final, known
      and fixed in advance for the entire commitment
  period.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                The
      rate for each service will be fixed on the date of the contract and will
      be uniform and specified in shekels for the entire commitment
      period.

              

      

       

      
        	
                 
      

              	
                For
      purposes of this section, "uniform" – any rate
      before VAT which the subscriber is required to pay, as determined on the
      date of the contract, may not be increased during the commitment
      period.

              

      

       

      
        	
                 
      

              	
                Notwithstanding
      the aforesaid, the Licensee may provide its subscriber services at lower
      rates than those fixed in advance in the contract, during a limited time
      period, to all the subscribers or to a certain type of
      subscriber.

              
	 	 
	
                (c)

              	
                The
      Licensee will include provisions as stated above in the contract with the
      subscriber.

              

      

       

      ___________________

      
        T49)
Amendment No. 49 (Inception: This amendment will come into force on December 31,
2008).

      

       

       

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

       

       

      
        	
                75.6

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

              

      

       

      
        	
                75.7

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

              

      

       

      
        	
                75.8

              	
                (a)

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

              
	 	 	 
	
                 
      

              	
                (b)

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

              

      

       

      
        	
                 
      

              	
                (1)

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

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Collect
      call to which the subscriber has given his
  agreement;

              

      

       

      
        	
                 
      

              	
                (3)

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

              

      

       

      
        	
                 
      

              	
                (4)

              	
                VoidA51

              

      

       

      
        	
                 
      

              	
                (c)

              	
                The
      licensee may collect from a subscriber initiating a call by dialing the
      following services or access codes, payment not exceeding the tariff
      collected by the licensee from a subscriber for a call whose destination
      is on a domestic operator network: A51

              

      

       

      (1)    
 Split charge call service1;

       

      
        	
                 
      

              	
                 
      (2)       Short number service for
      businesses2;

              

      

       

      
        75.9A18) Inception

      

       

      
        	
                 
      

              	
                (a)

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

              

      

       

       

      _____________________ 

        
          A51
Amendment No. 51 (Inception: This amendment will come into force on March 31,
2009)  

        

        
          A51
Amendment No. 51 (Inception: This amendment will come into force on March 31,
2009)  

        

        
          1  Pursuant
to the "split charge call" service file (1-700 service). 

        

        
          2  Pursuant
to the Administration Direction on "Short Form Dial for Businesses - Star 
(*) Plus Four Digits" dated May 4, 2008  

        

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

           

        

      

       

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

      

       

       

      
        Licensee
and the other licensee, and in the absence of such agreement – does not exceed
the amount set by the Minister2.

         

      

      
        	
                 
      

              	
                (b)

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

              

      

       

      
        75.10     
 The
payment for airtime will be determined in the manner set out
below:

      

       

      
        	
                 
      

              	
                (a)

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

              

      

       

      
        	
                 
      

              	
                (b)

              	
                VoidA46).

              

      

       

      
        	
                 
      

              	
                (c)

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

              

      

       

      
        	
                 
      

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

              

      

       

      
        	
                 
      

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

              

      

       

      
        	
                 
      

              	
                (d)

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

              

      

       

      
        	
                 
      

              	
                The
      wording of the message will be: “The call is being transferred to a voice
      mailbox,” and it will be articulated clearly and at a reasonable speed. In
      this

              

      

      

      ____________________

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

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

           

        

      

       

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

       

       

      
        subsection,
“call transferred to a voice
mailbox” – excluding a call originating in an international
telecommunications system.

      

       

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

       

      
        	
                 
      

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

              

      

      

       

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

       

      
        	
                 
      

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

              

      

       

      
        	
                 
      

              	
                For
      purposes of this section –

              

      

       

      
        	
                 
      

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

              

      

      

       

      75C.       A27)Temporary
Order

       

      
        	
                 
      

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

              

      

       

      
        	
                 
      

              	
                (a)

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

              

      

       

      ____________________

      
        8 The 0.7%
reduction is based on a report received from some  cellular operators
concerning the rate of inter-network SMS messages that did not reach their
destination. Section 75C was enacted as an temporary order, with
the  cellular operators to make the necessary adjustments in
the  cellular systems and in the interconnection arrangements between
them to enable full implementation of section 75B of their license. To remove
doubt, it is clarified that this temporary order was enacted only for a limited
time,  owing to difficulties that were pointed out by
the  cellular operators concerning the possibility of receiving
information about non-completion of an SMS on another  cellular
network; However, beyond this, nothing 

         

      

       

      
        
          
          

        

        
          81

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (b)

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

              

      

      

       

      76.          Publication of
Rates

       

      
        	
                76.1

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

              

      

       

      
        	
                76.2

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

              

      

       

      
        	
                76.3

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

              

      

      

       

      77.          VoidA43)

      

       

      77A.       Fraud
Prevention

       

      
        	
                77A.1

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

              

      

       

      
        	
                77A.2

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

              

      

       

      
        	
                77A.3

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

              

      

       

      _______________________

      
        may be
inferred from this temporary arrangement concerning permission to collect
payment for an SMS that was not transferred to its destination, and said
arrangement does not detract from the Ministry’s basic position according to
which, in general, no payment may be collected for a telecommunications service
that was not realized.

      

       

       

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

       

       

      Part
C – Changes in the Rates

       

      78.A43)   Change in the
Rates

       

      
        	
                 
      

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

              

      

       

      
        	
                 
      

              	
                (a)

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

              

      

       

      
        	
                 
      

              	
                (b)

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

              

      

       

      
        	
                 

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

              

      

       

      79.          Start of an Increase or
Reduction in a Rate

       

      
        	
                 
      

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

              

      

       

      80.          Arrears in
Payment

       

      
        	
                80.1

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

              

      

       

      
        	
                80.2

              	
                VoidA43)

              

      

       

      
        	
                80.3

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

              

      

       

      
        	
                80.4

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

              

      

       

       

      
        
          
          

        

        
          83

          
            

          

        

        
          
          

        

      

       

       

      Part
D – Miscellaneous

       

      81.          Onetime Debit for Connection
Fee

       

      
        	
                 
      

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

              

      

       

      82.          Collection of Subscription
Fee in Installments

       

      
        	
                 
      

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

              

      

       

      83.          Harm to Competition or to
Consumers

       

      
        	
                 
      

              	
                (a)

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

              

      

       

      
        	
                 
      

              	
                (b)

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

              

      

       

      

       

      
        
          
          

        

        
          84

          
            

          

        

        
          
          

        

      

       

       

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

      

      Part A – Royalties and
PaymentsA16)

      

       

      84.          Royalties

       

      
        	
                84.1

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

              

      

       

      
        	
                84.2

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

              

      

       

      
        	
                84.3

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

              

      

       

      
        	
                84.4

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

              

      

       

      
        	
                84.5

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

              

      

       

      85.          Arrears in the Payment of
Royalties

       

      
        	
                 
      

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

              

      

       

      86.          Payment
Method

       

      
        	
                 
      

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

              

      

       

      87.          Other Mandatory
Payments

       

      
        	
                 
      

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

              

      

       

       

      
        
          
          

        

        
          85

          
            

          

        

        
          
          

        

      

       

       

      Part
B – Liability and Insurance

      

       

      88.          Definition of Scope of
Insurance

       

      
        	
                 
      

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

              

      

       

      89.          Licensee’s
Liability

       

      
        	
                89.1

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

              

      

       

      
        	
                89.2

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

              

      

       

      
        	
                 
      

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

              

      

       

      90.          Immunity from
Liability

       

      
        	
                90.1

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

              

      

       

      
        	
                90.2

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

              

      

       

      
        	
                90.3

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

              

      

       

      91.          Making an Insurance
Contract

       

      
        	
                91.1

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

              

      

       

      
        	
                91.2

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

              

      

       

      
        	
                91.3

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

              

      

       

      
        	
                91.4

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

              

      

       

       

      
        
          
          

        

        
          86

          
            

          

        

        
          
          

        

      

       

       

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

         

      

       

       

      
        
          
          

        

        
          87

          
            

          

        

        
          
          

        

      

       

       

      92.          Conditions in the Insurance
Contract

       

      
        	
                92.1

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

              

      

       

      
        	
                92.2

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

              

      

       

      
        	
                92.3

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

              

      

       

      
        	
                92.4

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

              

      

       

      
        	
                92.5

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

              

      

       

      
        	
                92.6

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

              

      

       

      93.          Remedy for Breach of
Conditions with Respect to Insurance

       

      
        	
                 
      

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

              

      

       

      

       

      
        
          
          

        

        
          88

          
            

          

        

        
          
          

        

      

       

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

      

       

      94.          The Guarantee and Its
Purpose

       

      
        	
                94.1

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

              

      

       

      
        	
                94.2

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

              

      

       

      95.          Exercise of the
Guarantee

       

      
        	
                95.1

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

              

      

       

      
        	
                 
      

              	
                (a)

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

              

      

       

      
        	
                 
      

              	
                (1)

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

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Discontinuation,
      suspension or restriction of
services;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Restriction
      or suspension of the license;

              

      

       

      
        	
                 
      

              	
                (b)

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

              

      

       

      
        	
                 
      

              	
                (c)

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

              

      

       

      
        	
                 
      

              	
                (d)

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

              

      

       

      
        	
                 
      

              	
                (e)

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

              

      

       

      
        	
                 
      

              	
                (f)

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

              

      

       

      
        	
                 
      

              	
                (g)

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

              

      

       

       

      
        
          
          

        

        
          89

          
            

          

        

        
          
          

        

      

       

      
         

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

         

      

      
        	
                 
      

              	
                (h)

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

              

      

       

      
        	
                 
      

              	
                (i)

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

              

      

       

      
        	
                 
      

              	
                (j)

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

              

      

       

      
        	
                 
      

              	
                (k)

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

              

      

       

      
        	
                 
      

              	
                (l)

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

              

      

       

      
        	
                95.2

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

              

      

       

      96.          Manner of Exercise of the
Guarantee

       

      
        	
                96.1

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

              

      

       

      
        	
                96.2

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

              

      

       

      
        	
                96.3

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

              

      

       

      97.          Term of Validity of the
Guarantee

       

      
        	
                97.1

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

              

      

       

      
        	
                97.2

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

              

      

       

       

      
        
          
          

        

        
          90

          
            

          

        

        
          
          

        

      

       

      
         

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

         

      

      
        	
                97.3

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

              

      

       

       

       

       

      
        
          
          

        

        
          91

          
            

          

        

        
          
          

        

      

       

       

      98.          Preservation of
Remedies

       

      
        	
                98.1

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

              

      

       

      
        	
                98.2

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

              

      

       

      
        	
                98.3

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

              

      

       

       

       

      
        
          
          

        

        
          92

          
            

          

        

        
          
          

        

      

       

       

      CHAPTER EIGHT – SUPERVISION
AND REPORTING

      

      Part
A: Supervision of Licensee’s Activities

      

       

      99.          Supervisory
Power

       

      
        	
                 
      

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

              

      

       

      100.        Preservation of
Confidentiality

       

      
        	
                 
      

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

              

      

       

      101.        Entry to Premises and
Inspection of Documents

       

      
        	
                 
      

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

              

      

       

      
        	
                 
      

              	
                (a)

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

              

      

       

      
        	
                 
      

              	
                (b)

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

              

      

       

      102.        Cooperation

       

      
        	
                 
      

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

              

      

       

       

      
        
          
          

        

        
          93

          
            

          

        

        
          
          

        

      

       

       

      Part
B: Reporting and Correction of Defects

      

       

      103.A43) Duty of Submission of
Reports

       

      
        	
                103.1

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

              

      

       

      
        	
                103.2

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

              

      

       

      
        	
                103.3

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

              

      

       

      
        	
                103.4

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

              

      

       

      104.A43) Types of
Reports

       

      
        	
                 
      

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

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Financial
      statement audited and signed by an
accountant;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Subscribers
      report, including the following
data:

              

      

       

      
        	
                 
      

              	
                (1)

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

              

      

       

      
        	
                 
      

              	
                (2)

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

              

      

       

      
        	
                 
      

              	
                (c)

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

              

      

       

      
        	
                 
      

              	
                (d)

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

              

      

       

      
        	
                104.2

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

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Unaudited
      quarterly financial statement signed by an
  accountant;

              

      

       

      
        	
                 
      

              	
                (b)

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

              

      

       

      
        	
                 
      

              	
                (c)

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

              

      

       

       

      
        
          
          

        

        
          94

          
            

          

        

        
          
          

        

      

       

       

      
        	
                104.3

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

              

      

       

      
        	
                104.4

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

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Report
      concerning development works of the
network;

              

      

       

      
        	
                 
      

              	
                (b)

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

              

      

       

      
        	
                 
      

              	
                (c)

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

              

      

       

      
        	
                 
      

              	
                (d)

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

              

      

       

      
        	
                 
      

              	
                (e)

              	
                List
      of the Licensee’s rates;

              

      

       

      
        	
                 
      

              	
                (f)

              	
                Updated
      engineering program;

              

      

       

      
        	
                 
      

              	
                (g)

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

              

      

       

      
        	
                 
      

              	
                (h)

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

              

      

       

      
        	
                 
      

              	
                (i)

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

              

      

       

      
        	
                 
      

              	
                (j)

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

              

      

       

      
        	
                104.5

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

              

      

       

       

      
        
          
          

        

        
          95

          
            

          

        

        
          
          

        

      

       

       

      105.A43) Notice Concerning a
Defect

       

      
        	
                105.1

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

              

      

       

      
        	
                105.2

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

              

      

       

      106.A43) Void.

       

      

       

       

      
        
          
          

        

        
          96

          
            

          

        

        
          
          

        

      

       

       

      CHAPTER I –
MISCELLANEOUS

       

      107.        The License as an Exhaustive
Document

       

      
        	
                107.1

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

              

      

       

      
        	
                107.2

              	
                Void.A2)

              

      

       

      108.        Keeping the License Document
and Returning the License

       

      
        	
                108.1

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

              

      

       

      
        	
                108.2

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

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Appendix
      A – Details of the Licensee;

              

      

      
        	
                 
      

              	
                (b)

              	
                Appendix
      B – Engineering program;

              

      

      
        	
                 
      

              	
                (c)

              	
                VoidA43);

              

      

      
        	
                 
      

              	
                (d)

              	
                Appendix
      G – Insurance contract;

              

      

      
        	
                 
      

              	
                (e)

              	
                Appendix
      H – Bank guarantee;

              

      

      
        	
                 
      

              	
                (f)

              	
                Appendix
      I – Special services for the security
forces;

              

      

      
        	
                 
      

              	
                (g)

              	
                Appendix
      L – Special services for the security forces – security addendum
      (confidential);

              

      

      
        	
                 
      

              	
                (h)

              	
                Appendix
      M – Security directives;

              

      

      
        	
                 
      

              	
                (i)

              	
                Appendix
      N – Letters of undertaking.

              

      

       

      
        	
                108.3

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

              

      

       

      
        	
                108.4

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

              

      

       

      
        	
                108.5

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

              

      

       

      109.        Postponement of
Deadline

       

      
        	
                109.1

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

              

      

       

      
        	
                109.2

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

              

      

       

       

      
        
          
          

        

        
          97

          
            

          

        

        
          
          

        

      

       

       

      110.        Reserving of
Liability

       

      
        	
                 
      

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

              

      

       

      111.        Notices

       

      
        	
                111.1

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

              

      

       

      
        	
                111.2

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

              

      

       

      
        	
                111.3

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

              

      

       

       

      
        
          
          

        

        
          98

          
            

          

        

        
          
          

        

      

       

       

      First Schedule

      List of Services and
Measures for Quality of ServiceA16)

      

      

      
        	
                1.  

              	
                General

              

      

      
        	
                1.1.  

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

              

      

      

      
        	
                1.2.  

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

              

      

      

      
        	
                1.3.  

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

              

      

      

      
        	
                1.4.

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

              

      

      

      
        	
                a.  

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

              

      

       

      
        	
                b.  

              	
                Detailed description of the
      service: Among other
things  –

              

      

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

      Manner of
operating the service;

      Date on
which provision of the service is to commence;

      Availability
and measures for quality of service;

      Support
centers;

      Price of
the service;

      Target
audience of the service;

      How to
order the service;

      Process
of connecting to the service;

      Implications
or effects of this service on other services.

       

      
        	
                c.  

              	
                Engineering
      description:

              

      

      Description
and block diagram of the system;

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

       

      
        	
                d.  

              	
                Miscellaneous:

              

      

      The need
for numbering;

      Required
coordination with other licensees or entities.

      

       

      
        
          
          

        

        
          First
Schedule - 1

          
            

          

        

        
          
          

        

      

       

       

      
        	
                2.  

              	
                List of
      Services

              

      

      

      
        	
              	
                2.1.  

              	
                Basic
      Telephone Services 

              

      

      

      
        	
                No.

              	
                Name
      of Service

              	
                Description
      of Service

              	
                Date
      provided

              	
                Measures
      for quality of service

              	
                Remarks

              
	
                1.

              	
                Cellular
      Calls

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

              	
                Existing
      service

              	
                98%
      availability

              	 
    
	
                2.

              	
                Emergency
      Calls

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

              	
                Existing
      service

              	
                98%
      availability

              	
                According
      to the Director’s  rules

              

      

      

      

      
        	
              	
                2.2.  

              	
                Related
      Services

              

      

      

      
        
          	
                  No.

                	
                  Name
      of Service

                	
                  Description
      of Service

                	
                  Date
      provided

                	
                  Measures
      for quality of service

                	
                  Remarks

                
	
                  1.

                	
                  Call
      Waiting

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

                	
                  Existing
      service

                	
                  99.9%
      availability

                	 
    
	
                  2.

                	
                  Selective
      Call Waiting

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

                	
                  Future
      service

                	
                  99.9%
      availability

                	 
    
	
                  3.

                	
                  Call
      Forwarding

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

                   

                  Always

                	
                  Existing
      service

                	
                  99.9%
      availability

                   

                	 
    
	
                  When
      busy

                
	
                  When
      call is not answered

                
	
                  When
      subscriber unavailable

                

        

         

        
          
            
            

          

          
            First
Schedule - 2

            
              

            

          

          
            
            

          

        

         

        
          	
                  4.

                	
                  Selective
      Call Forwarding

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

                  · Always

                  · When
      call is not answered

                  · When
      busy

                   

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
    
	
                  5.

                	
                  Call
      Transfer

                	
                  Subscriber
      may transfer call to another telephone number

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
    
	
                  6.

                	
                  Hunting
      Group

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

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
    
	
                  7.

                	
                  Caller
      ID

                	
                  Caller’s
      number will appear on the screen

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	
                  Depends
      on caller's end  device

                
	
                  8.

                	
                  Calling
      ID Restriction

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

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
    
	
                  9.

                	
                  Caller
      Name Announcement

                	
                  Option
      of identification of caller by voice signature

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
    
	
                  10.

                	
                  Conference
      Call

                	
                  Establishing
      a call for a number of subscribers simultaneously

                	
                  Existing
      Service

                	
                  98%
      availability

                	 
    
	
                  11.

                	
                  Closed
      User Group

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

                	
                  Existing
      Service

                	
                  98%
      availability

                	
                  GSM
      network only

                
	
                  12.

                	
                  Voice
      Mail

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

                	
                  Existing
      Service

                	
                  99%
      availability

                	 
    

        

         

        
          
            
            

          

          
            First
Schedule - 3

            
              

            

          

          
            
            

          

        

         

        
          	
                  13.

                	
                  Advanced
      Voice Mail

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

                	
                  Existing
      Service

                	
                  98%
      availability

                	 
    
	
                  14.

                	
                  Voice
      Mail Notification

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

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
    
	
                  15.

                	
                  Voice
      Activated Service

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

                	
                  Partialy
      existing, Future Service expansion.

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

                	 
    
	
                  16.

                	
                  Call
      Tracking

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

                	
                  Future
      Service

                	
                  99.9%
      availability

                	
                  Subject
      to law

                
	
                  17.

                	
                  Virtual
      Private Network (VPN)

                	
                  Allows
      short dialing according to a private numbering program

                	
                  Existing
      Service

                	
                  99.9%
      availability

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

                
	
                  18.

                	
                  Centrex

                	
                  Allows
      maintaining a private network while using network
resources

                	
                  Future
      Service

                	 
    	 
    
	
                  19.

                	
                  Facsimile
      Services

                	
                  Allows
      receiving, storing and extracting facsimile messages via
    phone

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
    
	
                  20.

                	
                  Roaming

                	
                  Allows
      receiving, extracting and blocking messages abroad

                	
                  Existing
      Service

                	
                  99.9%
      availability

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

                

        

         

        
          
            
            

          

          
            First
Schedule - 4

            
              

            

          

          
            
            

          

        

         

        
          	
                  21.

                	
                  GPRS
      Roaming

                	
                  Allows
      using certain communications data services while using roaming
      services

                	
                  Future
      Service

                	
                  99.9%
      availability

                	
                  Subject
      to operator availability

                
	
                  22.

                	
                  Toll
      Free Call

                  (1-800)

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

                	
                  Future
      Service

                	 
    	
                  According
      to numbering program and Director’s rules

                
	
                  23.

                	
                  Void A51

                	 
    	 
    	 
    	 
    
	
                  24.

                	
                  Call
      Screening

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

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
    
	
                  25.

                	
                  Talk
      Two

                	
                  One
      number for two end user equipment units.

                	
                  Existing
      Service

                	
                  99%
      availability

                	 
    
	
                  26.

                	
                  One
      number for two SIM cards

                	
                  cellular
      services for two or more telephones in one number

                	
                  Future
      Service

                	
                  99%
      availability

                	 
    
	
                  27.

                	
                  Two
      numbers for one SIM card

                	
                  Defining
      two telephone numbers for the same SIM card

                	
                  Future
      Service

                	
                  99%
      availability

                	 
    
	
                  28.

                	
                  Change
      of number announcement

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

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	
                  GSM
      network only

                
	
                  29.

                	
                  Wake-up
      Service

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

                	
                  Future
      Service

                	
                  Precision
      of service approx. 5 minutes. 99.9% availability

                	 
    

        

         

        
          
            
            

          

          
            First
Schedule - 5

            
              

            

          

          
            
            

          

        

         

        
          	
                  30.

                	
                  Camp
      on busy line

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

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
    
	
                  31.

                	
                  Personal
      Number Service

                	
                  Allows
      subscriber to define calls to a certain number be forwarded to various
      destinations according to parameters set by subscriber.

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
    
	
                  32.

                	
                  Collect
      Call

                	
                  Cost
      of call to be paid by subscriber receiver, after
    confirmation.

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	
                  Between
      licensed  subscribers only

                
	
                  33.

                	
                  Message
      Distribution

                	
                  Distribution
      of messages to a list of addressees, using various
    platforms

                	
                  Future
      Service

                	
                  99.9%
      availability

                	 
    
	
                  34.

                	
                  Hot
      Billing

                	
                  Provides
      updated information to subscriber regarding his bill with the applicant
      via various platforms

                	
                  Future
      Service

                	
                  99%
      availability

                	 
    
	
                  35.

                	
                  Over
      the Air Services (OTA)

                	
                  Update
      of data and applications on SIM card via SMS by the applicant. Running
      applications from SIM card will be performed by subscriber, using end
      device.

                	
                  Future
      Service

                	
                  99%
      availability

                	 
    
	
                  36.

                	
                  Account
      Code Billing

                	
                  Splitting
      charge for one phone number into separate accounts. Subscriber’s
      instructions regarding the account to be billed will be performed by
      punching a code at the beginning or during a call.

                	
                  Future
      Service

                	
                  99%
      availability

                	 
    
	
                  37.

                	
                  Star
      Services

                	
                  Allows
      establishing a connection by dialing a short access code according to
      applicant’s internal numbering program.

                	
                  Existing
      Service

                	
                  99.9%
      availability

                	 
    
	
                  38.

                	
                  Short
      Messages Service (SMS)

                	
                  Allow
      receiving and sending written messages via phone

                	
                  Existing
      Service

                	
                  99%
      availability

                	
                  Depends  on
      end user equipment

                
	
                  39.

                	
                  Circuit
      Switch Data (CSD)/High speed circuit switch data (HSCSD)

                	
                  Access
      to data service using a dial-up modem on phone or independent dial
      modem

                	
                  Existing
      Service

                	
                  98%
      availability

                	
                  Depends  on
      end user equipment

                

        

         

        
          
            
            

          

          
            First
Schedule - 6

            
              

            

          

          
            
            

          

        

         

        
          	
                  40.

                	
                  Data
      communications in Packet Switch

                	
                  Subscriber
      connection via phone or independent  modem to TCP/UDP/IP
      communications for broadcastung using packet switch

                	
                  Existing
      Service

                	
                  98%
      availability on best effort basis

                	
                  Depends  on
      end user equipment

                
	
                  41.

                	
                  Discontinuation
      of Service

                	
                  Discontinuation
      of service  upon subscriber's request

                	
                  Existing
      Service

                	
                  Will
      be performed  no later than the next business day after
      subscriber's request

                	 
    
	
                  42.

                	
                  POC
      (Push to Talk Over Cellular)

                	
                  Call
      made by pressing a button on cellular end user equipment

                  Call
      may be private (between subscriber and subscriber) or group on data
      communications network

                	
                  Service
      Exists (just started)

                	
                  According
      to service file

                	
                  According
      to temp. provision

                

        

         

      

      

      
        	
                Temporary
      Provision

              	 	
                The
      Licensee will allow operation of Push to Talk Over Cellular services
      (hereinafter: the Service) to any subscriber who is a legal entity
      (individual or corporation), provided the number of users (number of
      cellular end user equipment units permitted use of this service,
      hereinafter – end user equipments) in the possession of such subscriber
      does not exceed 20 during the first year starting on the date service
      begins. Notwithstanding the aforesaid, should there be any considerable
      changes in the cellular sector influencing provision of such service, the
      Ministry will consider a shorter period.

                 

              
	
                Application

              	 	
                This
      service will not begin before Sunday, the 29th
      day of Tamuz, 5764 (July 18, 2004)

              
	
                 

                *
      availability of service
      is the percentage of time the service is available, not including
      availability of basic
services.

              

      

       

      
        
          
          

        

        
          First
Schedule - 7

          
            

          

        

        
          
          

        

      

      

 

      
        	
              	
                2.3.  

              	
                Value Added
      Services

              

      

      

      
        	
                No.

              	
                Name
      of Service

              	
                Description
      of Service

              	
                Date
      provided

              	
                Measures
      for quality of service

              	
                Remarks

              
	
                1.

              	
                Speaking
      Clock

              	
                Notice
      of time

              	
                Future
      Service

              	
                99.9%
      availability

              	 
    
	
                2.

              	
                Directory
      Assistance

              	
                Allows
      receiving information on phone numbers and automatic establishment of
      calling number so given.

              	
                Future
      service

              	
                99.9%
      availability

              	 
    
	
                3.

              	
                Connectivity
      to Information and Entertainment Services

              	
                Allows
      subscriber to connect to information, entertainment, applications and
      content services, whether interactive or noniteractive, whether by
      download, by upload, or by various means of access.

              	
                Existing
      service

              	
                99.9%
      availability

                 

              	
                Depends
      on end user equipment. Subject to Director’s rules

              
	
                4.

              	
                Access
      to Internet Provider Services

              	
                Allows
      subscriber access to internet provider.

              	
                Future
      Service

              	 
    	 
    
	
                5.

              	
                Location
      Based Information & Tracking

              	
                Receiving
      and sending information depending on location of phone, subject to
      law.

              	
                Future
      Service

              	 
    	 
    
	
                6.

              	
                M-Commerce

              	
                Connection
      via end user equipment for performing transactions

              	
                Existing
      Service

              	 
    	
                Depends
      on end user equipment. Subject to Director’s rules

              
	
                7.

              	
                Unified
      Messaging

              	
                Allows
      subscriber to receive and send voice messages, speaking messages, faxes,
      SMS, E-mail messages, application messages and multimedia files, to and
      from unified cell, allowing the convertion of the data received from one
      format to another, as well as access to data from various means of
      access.

              	
                Future
      Service

              	
                 99.9%
      availability

              	
                Depends
      on end  device

              

      

       

      
        
          
          

        

        
          First
Schedule - 8

          
            

          

        

        
          
          

        

      

       

      
        	
                8.

              	
                Telemetry
      Command and Control

              	
                Use
      of phone or cellular modem for receiving indication and sending orders
      concerning various device operation (for example: alarm systems, inventory
      systems, traffic lights, controllers, etc.)

              	
                Existing
      Service

              	
                99.9%
      availability

              	 
    
	
                9.

              	
                Sponsored
      Call

              	
                Connection
      during which subscriber will be exposed to commercial information and
      advertisements

              	
                Future
      Service

              	 
    	
                Subject
      to law

              
	
                10.

              	
                Video
      Conference

              	
                Allows
      visual and audio communication between a number of users.

              	
                Future
      Service

              	 
    	
                Depends
      on end  device

              
	
                11.

              	
                Instant
      Messaging

              	
                Message
      transfer service between “community” participants, organizations, groups
      of friends, groups of people with same interests. Subscriber notifies he
      is on network and ready to receive messages. Service notifies subscriber
      members of group who are in geographic proximity.

              	
                Future
      Service

              	 
    	 
    
	
                12.

              	
                Surf
      & Talk

              	
                Allows
      subscriber to receive an indication of call waiting and reply while
      connected to internet

              	
                Existing
      Service

              	
                99%
      availability

              	
                Depends
      on end user equipment. GSM network only

              
	
                13.

              	
                Personal
      Information Management

              	
                Access
      and synchronization via end user equipment to personal data
      base.

              	
                Existing
      Service

              	 
    	
                Depends
      on end user equipment.

              

      

      

      
        	
                ·  

              	
                availability
      of service is the percentage of time the service is available, not
      including availability of basic
services.

              

      

      
      

      

 

      
        
          
          

        

        
          First
Schedule - 9

          
            

          

        

        
          
          

        

      

      
        Second
Schedule for Cellcom Israel Ltd. Company’s General License for Cellular
Telephone Network (Cellular) 

        Services.
Consolidated Version as of July 28, 2009

        Second Schedule – List of
Appendices

        

      

      Second Schedule – List of
Appendices

      

      
        	
                Appendix
      A

              	
                Particulars
      of Licensee – not available to public;

              
	
                Appendix
      BA16

              	
                Engineering
      Plan - not available to public;

              
	
                Appendix
      C

              	
                Maintenance
      Scheme - not available to public;

              
	
                Appendix
      D

              	
                Uniform
      Engagement Agreement – not attached;

              
	
                Appendix
      EA16

              	
                Level
      of Subscriber Services;

              
	
                Appendix
      FA8

              	
                Void;

              
	
                Appendix
      G

              	
                Insurance
      Contract - not available to public;

              
	
                Appendix
      HA16

              	
                Bank
      Guarantee - not available to public;

              
	
                Appendix
      It3t5

              	
                Special
      Services for security forces - not available to public;

              
	
                Appendix
      JA6

              	
                Access
      to International Communications Services;

              
	
                Appendix
      KA7

              	
                Discontinuation
      of Services for cellular end user equipments of IS-54
  type;

              
	
                Appendix
      LA12

              	
                Special
      Services for security forces - not available to public;

              
	
                Appendix
      MA12

              	
                Security
      Instructions - not available to public;

              
	
                Appendix
      NA16

              	
                Letters
      of Undertaking - not available to public;

              
	
                Appendix
      OA24

              	
                Erotic
      Services

              

      

      

      
 

      _____________________ 

        A3
Amendment no.3  

      

      
        A5
Amendment no. 5

      

       

       

      
        
          
          

        

        
          Second
Schedule - 2

          
            

          

        

        
          
          

        

      

       

       

       

      
        Appendix
D

      Appendix D – Uniform
Engagement Agreement – Not Attached

      

      Not
Attached

       

       

      
        
          
          

        

        
          Second
Schedule—Appendix
D-1

          
            

          

        

        
          
          

        

      

       

       

       

      
        Appendix
E

      Appendix E – Minimum Requirements and Level of
Subscriber ServicesA16)

      

      
        	
                1.  

              	
                System
      Performance

              

      

      

      
        	
                1.1.  

              	
                The
      system and its services will fulfill performances, qualities and measures
      defined in the Engineering Plan – Appendix
B.

              

      

      

      
        	
                1.2.  

              	
                The
      system performance and services will not fall, in any event, from the
      following minimum requirements:

              

      

      

      
        	
                1.2.1.  

              	
                Digital Technology: the
      system and the services under the extension of the license will be
      operated using digital technologies, according to relevant international
      standards.

              

      

      

      
        	
                1.2.2.  

              	
                Service Coverage:
      

              

      

      Subject
to the provisions of section 60.5 of the license, all services will be provided
in the entire coverage area of the system, keeping up minimum requirements in
the matter of quality of service, for twenty four (24) months from the date on
which the service for pay commences.

      

      
        	
                1.2.3.  

              	
                Quality of
      Service:

              

      

      

      
        	
                (A)  

              	
                In
      this section:

              

      

      

      
        	
                (1)  

              	
                “Blocked Calls”: calls
      that cannot be established or messages that cannot be sent immediately
      upon entering the order to connect because of non-availability of cellular
      system resources or resources for connection between the cellular system
      and other systems;

              

      

      

      
        	
                (2)  

              	
                “Dropped Calls” – calls
      stopped not by the initiative of the subscriber caller/connector or that
      of the receiving subscriber;

              

      

       

      
        	
                (B)  

              	
                Quality
      of service in cellular system will not be less than the
      following:

              

      

      

      
        	
                (1)  

              	
                the
      amount of blocked calls during hours of maximum use will not exceed two
      percent (2%);

              

      

      

      
        	
                (2)  

              	
                The
      amount of dropped calls during hours of maximum use will not exceed two
      percent (2%);

              

      

       

      
        	
                (C)  

              	
                The
      system will uphold the requirements set out in sub-sections (A) and (B)
      ninety-nine percent (99%) of the time during maximum use
      hours;

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E-1

          
            

          

        

        
          
          

        

      

       

      
        Appendix
E
 

      
        	
                (D)  

              	
                Subject
      to the provisions of section 60.5 of the license, the system will reach
      the level of requirements set out above by no later than twenty four (24)
      months from the date of start of provision of such services for pay; from
      that time, said quality of service will be upheld in all the system’s
      coverage areas;

              

      

      

      
        	
                (E)  

              	
                The
      number of blocked and dropped calls will be measured as
      follows:

              

      

      

      
        	
                (1)  

              	
                measure
      will relate to the time span of one
hour;

              

      

      
        	
                (2)  

              	
                the
      maximum use hour to which the measure will refer will be the busiest hour
      of the system, on the day the measure is
taken;

              

      

      
        	
                (3)  

              	
                The
      measure will be taken at the maximum use hours on each of five (5)
      consecutive work days as stated;

              

      

      
        	
                (4)  

              	
                The
      final number indicating the likelihood of blocked and dropped calls will
      refer to the average of the five (5) measured over the five (5) said
      consecutive work days, and for each type of service provided by the
      system;

              

      

      

      
        	
                (F)  

              	
                Measurement
      and calculation will be performed for each cell separately, for each
      switch separately, and for the entire system; notwithstanding the
      aforesaid, at the written request of the Licensee, the Director may allow
      exceptions to the provisions of section 1.2.3, after having been satisfied
      that there is a true difficulty in performing the measure and calculations
      as stated, provided an alternative measuring and calculation system is
      proposed.

              

      

      

      
        	
                2.  

              	
                Customer and
      Subscriber Services Quality
Measures

              

      

      

      
        	
                2.1.  

              	
                Services for provision of
      information to customers and subscribers: will be given by referral
      to call centers, at service centers, at the internet site, by e- mail, by
      telephone and by facsimile.

              

      

      

      
        	
                2.2.  

              	
                Standards for
      accessibility and provision of
  information:

              

      

      

      
        	
                (A)  

              	
                A
      call center will be available twenty four (24) hours a day, all days of
      the week except on Yom Kippur.

              

      

      

      
        	
                (B)  

              	
                The
      call center will be manned at least thirteen (13) hours a day Sundays
      through Fridays, and five (5) hours a day on Fridays and eves of
      holidays.

              

      

       

      
        	
                (C)  

              	
                The
      reply at the call center will be within a reasonable time. Should the
      Director observe that the waiting time at the call center is not
      reasonable, he may set measures for response
  time.

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E-2

          
            

          

        

        
          
          

        

      

      
         

        Appendix
E
 

      

      
        	
                (D)  

              	
                A
      caller to a call center during unmanned hours will be referred to a
      message box to leave a message, and will receive a reply on the following
      day.

              

      

      

      
        	
                (E)  

              	
                The
      Licensee will operate additional channel allowing subscribers to contact
      it for provision of information and for queries, such
  as:

              

      

      
        	
                -  

              	
                Computerized
      voice system IVR;

              

      

      
        	
                -  

              	
                queries
      via post;

              

      

      
        	
                -  

              	
                queries
      via fax;

              

      

      
        	
                -  

              	
                queries
      via e mail.

              

      

      

      
        	
                (F)  

              	
                The
      Licensee will publish its service office address and telephone number of
      the call center in the following ways, among
  others:

              

      

      
        	
                -  

              	
                In
      the engagement agreement with the
subscriber;

              

      

      
        	
                -  

              	
                In
      the bills sent to the subscriber;

              

      

      
        	
                -  

              	
                In
      any document sent on behalf of the Licensee to the subscriber in a matter
      relating to customer services;

              

      

      
        	
                -  

              	
                In
      telephone directories and in telephone information
  centers.

              

      

      

      
        	
                2.3.  

              	
                Bills to
      Subscribers

              

      

      

      
        	
                (A)  

              	
                Bills
      to subscribers will set out the relevant details for such bill, out of the
      following:

              

      

      

      
        	
                (1)   

              	
                monthly
      charge (fixed charge)

              

      

      
        	
                (2) 
       

              	
                duration
      of calls or air time (minutes,
seconds)

              

      

      
        	
                (3)
        

              	
                volume
      of data use (MB,kB) – if the service provided is charge by volume of data
      transmitted.

              

      

      
        	
                (4)
        

              	
                Other
      charges (such as for receipt of data, SMS transmission, mobile electronic
      commerce).

              

      

      
        	
                (5)
        

              	
                Combination
      of the above charge methods.

              

      

      

      
        	
                (B)  

              	
                Structure of the
      Bill

              

      

      

      Bills
will be sent in a fixed form, as follows:

      

      (1)  
Following payment; the bill will serve as a receipt, including:

      the
amount for payment not including VAT, rate of VAT and total for payment
including VAT. In this section, the identifying particulars of the Licensee will
be specified, and the identifying particulars of the subscriber.

      

      
        	
                (3) 
       

              	
                The
      Licensee may include information regarding deals and personal notices to
      the subscriber.

              

      

      

      
        	
                (C)  

              	
                Production and
      delivery of bills

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E-3

          
            

          

        

        
          
          

        

      

       

      
        Appendix
E
 

      
        	
                (1)
        

              	
                The
      Licensee will produce monthly bills for its subscribers or at any other
      time with subscriber’s consent.

              

      

      

      
        	
                (2)
        

              	
                A
      subscriber wishing to disengage with the Licensee will receive a final
      bill on the closest date possible, and no later than two months from the
      date of disengagement.

              

      

      

      
        	
                (3)
        

              	
                Void T52

              

      

      

      
        	
                2.4.  

              	
                A43)Measures for Handling
      Public’s Applications

              

      

       

      
        	
                (A)  

              	
                Level
      of handling a written complaint – The response times for complaints will
      be up to 14 workdays; the response for 5% of complaints will be within a
      month.

              

      

       

      
        	
                (B)  

              	
                Measures
      for quality of service of the service centers
–

              

      

      
        	
                -  

              	
                90%
      of applications will be handled directly by the service representatives,
      up to completion.

              

      

      
        	
                -  

              	
                Not
      more than 10% of applications, some due to escalation of complaints, will
      be referred to more senior levels.

              

      

       

      
        	
                (C)  

              	
                Applications
      clarified by the senior level – In any case where the Public Ombudsman’s
      reply to a complaint does not satisfy the applicant, the application will
      be passed on to the managerial level, which will examine the it again and
      reply directly to the applicant. In any event, the applicant will receive
      a response within 30 days from the day of his
  application.

              

      

      
______________________

      T52)
Amendment No. 52.

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E-4

          
            

          

        

        
          
          

        

      

       

       

      Appendix
E1

       

      
        Appendix
E1 T52 - Fair
Disclosure in Telephone Bills

      

      

      General

      

      For the
purpose of this Appendix, “telephone bill” means a bill
submitted by a licensee to a subscriber for services it provided to the
subscriber itself or for services provided to the subscriber by any other
licensee or service provider using the collection services of the licensee for
the purpose of collection of payment from the subscriber.

      

      
        	
                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.

              

      

      

      
        	
                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
      

              

      

       

       

      ______________________

      
        T53)
Amendment No. 52.

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 1

          
            

          

        

        
          
          

        

      

      
        Appendix
E1

      

       

      
        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.

              

      

       

      
        	
                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;

              

      

       

      
        	
                 
      

              	
                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;

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 2

          
            

          

        

        
          
          

        

      

      
        Appendix
E1

      

       

      
        	
                 
      

              	
                B.

              	
                Licensee
      Details -

              

      

       

      
        	
                 
      

              	
                1)

              	
                Company
      name;

              

      

       

      
        	
                 
      

              	
                2)

              	
                Company
      management address;

              

      

       

      
        	
                 
      

              	
                3)

              	
                Customer
      service telephone and facsimile
numbers;

              

      

       

      
        	
                 
      

              	
                4)

              	
                Company
      website address.

              

      

       

      
        	
                 
      

              	
                C.

              	
                Dates
      -

              

      

       

      
        	
                 
      

              	
                1)

              	
                Billing
      date;

              

      

       

      
        	
                 
      

              	
                2)

              	
                Billing
      period;

              

      

       

      
        	
                 
      

              	
                3)

              	
                Last
      date for payment of Bill - 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 licensee’s public complaints
      commissioner, about his powers and the ways of contacting him. To the
      extent that the licensee is not obligated under the provisions of its
      license to notify every subscriber about the option of filing a complaint
      with the licensee’s public complaints commissioner on the telephone bill,
      the licensee shall present a notice on the option of filing a complaint
      with the licensee’s telephone call center and about the ways of contacting
      it.

              

      

       

      
        	
                 
      

              	
                2)

              	
                The
      licensee’s address, telephone number, facsimile number and email address
      by means of which the subscriber may request the licensee to stop the
      service or deliver the licensee a notice of cancellation, within the
      meaning in section 13D of the Consumer Protection Law, 5741-1981. To the
      extent that the licensee is not obligated under the provisions of its
      license to provide for the sending of a request to stop the service by
      email, it is not obligated to present such email
  address.

              

      

       

      
        	
                 
      

              	
                3)

              	
                Information
      on offers and personal notices to the subscriber, at the decision of the
      licensee.

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 3

          
            

          

        

        
          
          

        

      

      
        Appendix
E1

      

       

      
        	
                 
      

              	
                E.

              	
                Billing
      charge exclusive 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)

              	
                Credits,
      such as credit for return of old terminal equipment, credit for a subsidy
      on terminal equipment, etc. (hereinafter referred to in this Appendix as
      “Credits”);

              

      

       

      
        	
                 
      

              	
                5)

              	
                Financial
      reimbursements for surplus charges (hereinafter referred to in this
      Appendix as “Reimbursements”).

              

      

       

      
        	
                 
      

              	
                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:

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 4

          
            

          

        

        
          
          

        

      

      
        Appendix
E1

      

       

      
        	
                 
      

              	
                A.

              	
                “Billing
      Details” will include general information on the tariffs plan according to
      the terms of which the subscriber is charged, including details of its
      main tariffs, inclusive of VAT. Details of the main tariffs will be
      presented exclusive of VAT for business
  subscribers.

              

      

       

      
        	
                 
      

              	
                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)

              	
                To
      the extent that payment of the Exit Fee also includes payment for
      subsidizing terminal equipment, the aforesaid payment shall be presented
      separately. In the event that such payment amount is variable throughout
      the Subsequent Billing Period, the time point of reference will be the
      middle of the Subsequent Billing Period (see Example
  1).

              

      

       

      
        	
                 
      

              	
                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 public complaints
commissioner.

              

      

       

      
        	
                 
      

              	
                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:

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 5

          
            

          

        

        
          
          

        

      

      
        Appendix
E1

      

       

      
        	
                 
      

              	
                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;
      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;
      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). 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).

              

      

       

      
        	
                 
      

              	
                4)

              	
                The
      charge amount; the charge amount will be calculated by multiplying the
      quantity by the tariff and it will be identical to the charge amount
      appearing in the “Call Details” in the “Subtotal Row”; the charge in the
      “Subtotal Row” in the “Call Details” of each segment of a “Call at a
      Variable Tariff in the Course of a Call” will be included in the “Account
      Details” within the scope of the appropriate category of service (see
      Example 5 - Version B).

              

      

       

      
        	
                 
      

              	
                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).

              

      

       

      

       

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 6

          
            

          

        

        
          
          

        

      

      
        Appendix
E1

      

       

       

      
        	
                 
      

              	
                E.

              	
                The
      “Fixed Charges”, “One-Time charges”, “Credits” and “Reimbursements” 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
      “Reimbursement” or 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 customer complaints commissioner (see
      Examples 3 and 5).

              

      

       

      
        	
                 
      

              	
                G.

              	
                Charges
      may also be noted in the “Billing Details” for sale of terminal equipment
      and charges for services which are not telecommunication
      services.

              

      

       

      
        	
                 
      

              	
                H.

              	
                The
      “Billing Details” shall include subtotals of charge amounts exclusive of
      VAT, for fixed charges, variable charges, One-Time Charges, Credits and
      Reimbursements (“Subtotal
      Row”).

              

      

       

      
        	
                 
      

              	
                I.

              	
                The
      final charge amount will be presented exclusive of VAT, and alongside such
      amount will be presented the charge amount inclusive of
    VAT.

              

      

       

      
        	
                 
      

              	
                J.

              	
                The
      licensee must note in the “Billing Details” a comment whereby to the
      extent that there is a difference between the charge amount and the
      subtotal of charge amounts set forth in the Subtotal Rows of the “Billing
      Details”, they originate in the fact that the charge amount was calculated
      according to tariffs to a higher degree of accuracy than that determined
      in the provisions of the license and the
  Standard.

              

      

       

      
        	
                 
      

              	
                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 point, unless expressly determined
      otherwise.

              

      

       

      
        	
                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;

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 7

          
            

          

        

        
          
          

        

      

      Appendix
E1

       

       

      
        	
                 
      

              	
                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.

              

      

       

      
        	
                 
      

              	
                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 performance of call or text message or internet
  surfing;

              

      

       

      
        	
                 
      

              	
                2)

              	
                Time
      (hh:mm:ss);

              

      

       

      
        	
                 
      

              	
                3)

              	
                Call
      destination (if any);

              

      

       

      
        	
                 
      

              	
                4)

              	
                Quantity;

              

      

       

      
        	
                 
      

              	
                5)

              	
                Tariff
      exclusive of VAT, to a decimal number in New Israeli Shekels to a degree
      of accuracy of at least 3 digits after the decimal
  point.

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 8

          
            

          

        

        
          
          

        

      

      
        Appendix
E1

      

       

      
        	
                 
      

              	
                6)

              	
                Charge
      amount exclusive of VAT, to a decimal number in New Israeli Shekels to a
      degree of accuracy of at least 3 digits after the decimal
      point.

              

      

       

      
        	
                 
      

              	
                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.

              

      

       

      
        	
                 
      

              	
                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 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.

              

      

       

      
        	
                 
      

              	
                I.

              	
                Any
      “Category of Service” appearing in the “Call Details” will include a
      summary row in which will be set forth the total quantity for which the
      subscriber is charged and the total charge amount in respect of such
      “Category of Service” exclusive of VAT (hereinafter referred to in this
      Appendix as the “Subtotal
      Row”).

              

      

       

      
        	
                 
      

              	
                J.

              	
                Any
      charge amount appearing in the “Subtotal Row” will be presented in the
      “Billing Details” as a decimal number to a degree of accuracy of two
      digits after the decimal point, with the quantity presented
      alongside.

              

      

       

      
        	
                 
      

              	
                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

              

      

       

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 9

          
            

          

        

        
          
          

        

      

      
        Appendix
E1

      

       

      
        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).

              

      

       

       

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
E1 - 10

          
            

          

        

        
          
          

        

      

       

      Appendix
J

       

      Appendix
J –Accessibility to International Telecommunications Services A6)

    

    
      

      
        	
                1.  

              	
                Definitions

              

      

      

      
        	
                1.1  

              	
                In
      this document, the following words and terms will have the definitions
      noted at their sides, unless otherwise deriving from the language or
      context:

              

      

       

      
        	
                Bezeq
      International  -

              	 	
                The
      Bezeq International Company Ltd. ;

                 

              
	
                Barak
      -

              	 	
                Barak
      I.T.C. (1995) Company for International Telecommunications
      Services;

                 

              
	
                Chance
      caller -

              	 	
                A
      Licensee subscriber, calling abroad using an international operator, using
      a three digit dialing code, as set out in section 2;

                 

              
	
                Subscriber
      number (or telephone number) -

              	 	
                A
      group of numbers in a certain order, including area code, the dialing of
      which should create a telecommunication’s connection between the reading
      subscriber’s end user equipment and the reader subscriber’s end user
      equipment; a reader subscriber number may be a subscriber number of a
      number to a call answering center of a subscriber or a number to a call
      answering center of a licensee2

                 

              
	
                International
      operator -

              	 	
                Anyone
      providing international telecommunications services to the public in
      Israel under a general license from the Director;

                 

              
	
                Chosen
      operator -

              	 	
                An
      international operator chosen by appointment, under the provisions of
      section 43

              
	 	 	 
	
                Access
      code -

              	 	
                A
      group of numbers in a certain order, the dialing of which allows access to
      a certain telecommunications service of a certain operator; dialing
      additional codes, as needed, and the subscriber number, should create a
      telecommunication connection to the subscriber’s end user equipment4 ; if the access
      code is a manned call center, the service is given via the
      operator.

              

      

       

      
        _______________________ 

          2 The
phone number is determined by the licensee, according to rules and directives
prescribed by the Director.  

        

        
          3 A chosen
operator may be Bezeq International, Barak or Golden Lines. 

        

        
          4 for
example: dialing an access code for international services, and after a country
code, area code in that country and telephone number of the designated
subscriber abroad

        

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
J - 1

          
            

          

        

        
          
          

        

      

      
        Appendix
J

      

       

      
        	
                 

                Short
      dialing code -

              	 	
                 

                “00”
      ” and “188” access code, designated to receive international
      telecommunications services, by direct dialing, or via an operator, as
      explained in section 2;

                 

              
	
                Golden
      Lines -

              	 	
                The
      Golden Lines International Communications Services Company;

                 

              
	
                Subscriber
      ascription

              	 	
                The
      technically defining action an internal operator performs in his switch so
      that his subscriber’s calls, performed through a shortened dialing code,
      are channeled into the chosen operator’s switch;

                 

              
	
                Outgoing
      ITMS calls -

              	 	
                 Transferring
      a verbal message or facsimile message via an international
      telecommunications service, initiated by a Licensee
      subscriber;

                 

              
	
                Ingoing
      ITMS calls -

              	 	
                Transferring
      a verbal message or facsimile message via an international
      telecommunications service, initiated by an international
      caller;

                 

              
	
                International
      Telecommunications Services -

              	 	
                Telecommunications
      services given to the public in Israel, under license from the Director,
      via an international operator’s international telecommunication
      services;

                 

              
	
                 ITMS
      service

              	 	
                International
      telecommunications message service, that is, two-directional simultaneous
      transfer of talk and simultaneous transfer of facsimile messages, in an
      international telecommunications system.

                 

              

      

      

      
        	
                1.2  

              	
                Words
      and expressions in this document not defined above shall have the meaning
      as defined in the Law, regulations enacted by virtue thereof, in the
      Interpretation Law, 5741 – 1981, or as set out in the appropriate places
      in the Licensee’s general license and in the International Operators’
      licenses, unless otherwise deriving from the language or
      context.

              

      

      

      

      
        	
                2.  

              	
                Allocation of Access
      Code

              

      

      

      
        	
                2.1  

              	
                A
      Licensee will channel subscriber dialing, to the international operators’
      switches, for access to international telecommunications’ services, using
      the following codes:

              

      

      

      
        	
                (A)  

              	
                double-digit access code
      – the ‘00’ access code, which will serve as short access code for
      international telecommunications services provided by
  a

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
J - 2

          
            

          

        

        
          
          

        

      

      
        Appendix
J

      

      

        chosen
operator; the Licensee will channel a subscriber dialing the prefix ‘00’ to the
chosen operator;

         

      

      
        	
                (B)  

              	
                triple-digit access code
      – an access code of ‘01X’ type, which will serve as an access code
      for international telecommunications services provided to a chance user;
      the Licensee will channel any subscriber dialing the prefix ‘01X’ code to
      the international operator according to the X digit; the X digit is the
      international operator’s code, according to the
  following:

              

      

      

      
        	
                1.  

              	
                ‘2’
      – code for Golden Lines’ services;

              

      

      
        	
                2.  

              	
                ‘3’
      – code for Barak services;

              

      

      
        	
                3.  

              	
                ‘4’
      – code for Bezeq International
services;

              

      

      

      
        	
                (C)  

              	
                ‘188’ access code – that
      will serve as a number for operator services ; any subscriber dialing
      ‘188’ will be channeled by the Licensee to the chosen operator’s operator
      services;

              

      

      

      
        	
                (D)  

              	
                four-digit access code –
      numbers of the ‘18XY’ type, that will serve as an access code for various
      international telecommunications services of any and all international
      operators; any subscriber dialing ‘18XY’ will be channeled by the Licensee
      to the international operator according to the X digit; the X digit is the
      code of the international operator under section 2.1(B); the Y digit is
      any number from 1 to 9 and the 0 digit; the use of the Y digit will be
      determined by the Director, under advisement with the international
      operators, in order to ensure uniformity and fair competition; each
      international operator will be allocated ten (10) such four digit numbers/
      these numbers will be accessible for both the chosen operator’s
      subscribers and for chance callers.

              

      

      

      
        	
                2.2  

              	
                If
      the Licensee allows its subscriber the use of another short dial code
      (such as +), instead of the “00” dial code (hereinafter: a special code),
      all the provisions and rules applicable to the short “00” dial code will
      apply to the special code as well.

              

      

      

      
        	
                2.3  

              	
                Dial
      by pre-paid program for unidentified subscribers who are not blocked for
      outgoing ITMS calls will be possible only using three-digit access codes
      of the 01X type, and four-digit access codes of the 18XY type; upon
      dialing a short access code or a special access code, a voice announcement
      will be heard referring the customer to dial via said access codes
      available to him.

              

      

      

      2A. A23 
 Subscriber
Access to Outgoing ITMS Calls :

      

      
        	
                2A.1

              	
                The
      Licensee will allow subscribers to act as follows, with regard to outgoing
      ITMS calls:

              

      

      

      
        	
                (D)  

              	
                as
      an ascribed subscriber.

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
J - 3

          
            

          

        

        
          
          

        

      

      
        Appendix
J

      

       

       

      
        	
                (E)  

              	
                As
      blocked

              

      

      
        	
                (F)  

              	
                As
      a chance caller only.

              

      

      

      

      
        	
                3.  

              	
                Blocking Outgoing
      International Calls and Removal of the
  Blocking

              

      

      

      
        	
                3.1

              	
                The
      Licensee will block outgoing ITMS calls, and may also block collect
      incoming ITMS calls for any subscriber requesting to block access to
      international services or subscribers for whom the international service
      for outgoing ITMS calls has been stopped or cut off, in accordance with
      the conditions of the License; the licensee may not block incoming ITMS
      calls except collect calls.

              

      

      

      
        	
                3.2  

              	
                If
      a block for outgoing ITMS calls has been implemented at a subscriber’s
      request, the Licensee will remove the block as follows: A23

              

      

      

      
        	
                (A)  

              	
                If
      the subscriber has asked to join, he will indicate his choice
      international operator who shall serve as his “chosen operator”, by his
      signature on the appropriate form; notice given by means of
      facsimile  will be deemed notice in writing given to by the
      subscriber in this matter.

              

      

      

      
        	
                (B)  

              	
                If
      the subscriber has asked to be a chance caller, he will notify the
      Licensee of such; if the notice is verbal, the Licensee will verify the
      requesting party’s identity.

              

      

      

      
        	
                3.3  

              	
                The
      Licensee will perform the block for ITMS or removal thereof, performed in
      accordance with the subscriber’s request, according to the
      following:

              

      

      

      
        	
                (A)  

              	
                70%
      - Within one working day of receipt of notice; requests received after
      1500 hours will be deemed having been received on the following work
      day;

              

      

      

      
        	
                (B)  

              	
                20%
      - within two working days of receipt of
notice;

              

      

      

      
        	
                (C)  

              	
                the
      rest – within 5 working days.

              

      

      

      
        	
                3.4  

              	
                The
      Licensee will ensure that a subscriber who has blocked his outgoing ITMS
      calls cannot make outgoing calls using ‘00’ dialing code, ‘01X’ dialing
      code, ‘188’ or ‘18XY’ dialing codes, or using any other code that may come
      in place thereof A23
      .

              

      

       

      
        	
                3.5  

              	
                The
      Licensee may collect reasonable payment for performance of a block for
      outgoing ITMS calls or for removal of the
block.

              

      

      

      
        	
                3.6  

              	
                Notwithstanding
      that stated in section 3., the Licensee will allow all its subscribers to
      block outgoing ITMS calls before initiation of services for such
      subscriber, free of charge.

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
J - 4

          
            

          

        

        
          
          

        

      

      Appendix
J

      
 

      
        	
                3.7  

              	
                The
      Licensee will verify that all subscribers whose access to outgoing ITMS
      calls has been blocked receive appropriate voice message when dialing
      access codes or telephone numbers for international
    services.

              

      

      

      
        	
                3.8  

              	
                If
      a subscriber who has chosen a chosen operator asks to block outgoing ITMS
      calls, the Licensee shall notify such to the chosen operator, within seven
      (7) working days of the date of performance of the
  block.

              

      

      

      

      
        	
                4.  

              	
                Choosing a Chosen
      Operator

              

      

      

      
        	
                4.1  

              	
                A
      Licensee’s subscriber may notify the international operator in writing, on
      a signed form approved by the Director, regarding his choice of a chosen
      operator through whom such wishes to receive international
      telecommunications services using ‘00’ or ‘188’ access codes; the form
      will including the particulars of the subscriber – first name, last name
      or name of corporation, ID number of ID number of the corporation, address
      and telephone numbers the subscriber asks to define the international
      operator as the chosen operator for, and the date and time when
      instruction regarding the appointment was given. The form will explain
      that any phone number may have one chosen operator only, and such will
      fulfill the requirements prescribed in this matter in the international
      operator’s license7 (hereinafter: the
      ascription form).

              

      

      

      
        	
                4.2  

              	
                Subscribers
      may change the chosen operator at any time by written notice on the
      ascription form; for initial ascription made at the subscriber’s request,
      the subscriber will not be asked to pay anything, however the subscriber
      may be charged a reasonable fee for any change in the
      ascription.

              

      

      

      
        	
                4.3  

              	
                The
      chosen operator will send the Licensee notice regarding the subscriber’s
      having chosen him as the chosen operator (hereinafter: ascription notice);
      ascription notice will include the subscriber’s particulars - first name
      and last name, address and telephone numbers the subscriber asked to
      define the international operator as the chosen operator for, and the date
      and time of the ascription form on which the subscriber signed; the chosen
      operator will give ascription notice to the Licensee in accordance with
      the ascription forms signed by him; ascription notice will be given via
      magnetic media files, or in any other manner agreed upon between the
      Licensee and the international operators. If two or more ascription
      notices are given to the Licensee, relating to the same telephone number,
      the sc will act in accordance with the ascription notice with the later
      date and hour.

              

      

      

      
        	
                4.4  

              	
                If
      a person has asked to become a new Licensee subscriber, he must make note,
      in the request to the international operator of his choice to engage with
      as a chosen operator; the Licensee will allow any new subscriber to choose
      a chosen operator for himself or to block the outgoing ITMS calls, or will
      allow the subscriber to receive ITMS services as a chance caller only;
      ascription services to a chosen operator or

              

      

       

      _______________________

      
        7
Attention is called to section 52.3 of the Bezeq license, and section 56.4 to
the Golden Lines and Barak license.

         

         

      

      
        
          
          

        

        
          Second Schedule—Appendix
J - 5

          
            

          

        

        
          
          

        

      

      
        Appendix
J
 

      
        connection
as a chance caller, and blocking outgoing ITMS calls will be given to new
subscribers, at the time of initial registration, free of charge A23
..

      

       

      
        	
                4.5  

              	
                In
      order to choose a chosen operator, and without derogating from the
      aforesaid, the Licensee will act as
follows:

              

      

      

      
        	
                (A)  

              	
                the
      Licensee will allow all subscribers having a subscriber line number to
      choose one  chosen operator will be for certain subscriber
      lines, and another for other subscriber
lines;

              

      

      

      
        	
                (B)  

              	
                VoidA2A23
      .

              

      

      

      
        	
                (C)  

              	
                the
      Licensee will perform ascription of a subscriber within one working day of
      receipt of ascription notice form the chosen operator A2A23.

              

      

      

      
        	
                (D)  

              	
                The
      Licensee will report to the international operator regarding completion of
      said subscriber ascription as stated in sub-clause (C) above, including
      change of ascription at the time and under such plan as agreed upon
      between the Licensee and the international operator; the report will
      include particulars of the subscriber – first name, last name or name of
      corporation, address and telephone numbers the subscriber asked to ascribe
      to the international operator.

              

      

      

      
        	
                (E)  

              	
                A20
      The Licensee will send a daily modification file of subscriber ascription
      to all international operators (hereinafter: the modification file),
      containing the particulars of the subscribers who ascribed to the
      international operator or who unsubscribed on that day. The modification
      file will be handed over at the time and under such procedure as shall be
      agreed upon between the Licensee and the international operator. The file
      will include the particulars of the subscriber, including at least the
      first name, last name or name of corporation, ID number of ID number of
      the corporation, address and telephone numbers the subscriber asks to
      define the international operator as the chosen operator for.  effect

              

      

      

      
        	
                (F)  

              	
                The
      Licensee may request that the Director allow in certain cases, all the
      prescription of rules and limitations on the matter
      of  subscriber ascription, the Licensee will set out the
      technical or operational reasons on which such request is based; if the
      Director consents to the Licensee’s said request, at his professional
      discretion, the Director will prescribe the time frame for the
      applicability of said rules and
limitation;

              

      

      

      
        	
                (G)  

              	
                The
      Licensee will submit a written quarterly report to the Director, by the
      15th
      of the month following the end of the quarter; the information in the
      report will be correct as of the last day of the calendar quarter
      preceding the date of the report, and will include the
      following:

              

      

       

      _______________________

      
        effect
This amendment will go into effect by no later than Thursday, the 29th of
Nissan, 5763 (May 1, 2003)

         

      

       

      
        
          
          

        

        
          Second Schedule—Appendix
J - 6

          
            

          

        

        
          
          

        

      

      
        Appendix
J

        
 

      

      
        	
                (1)  

              	
                The
      number of subscribers blocked form international telecommunications
      services;

              

      

      

      
        	
                (2)  

              	
                The
      number of subscriber engaged for international services using short
      dialing codes or using special codes, for each of the international
      operators;

              

      

      

      
        	
                (3)  

              	
                A23
      The number of subscribers engaged for international services as chance
      dialers only.

              

      

      

      
        	
                (H)  

              	
                If
      there should be any disputes between the international operator or between
      the Licensee and the international operator on the matter of a subscribers
      choosing a chosen operator, the matter will resolved by the Director, or
      resolved by an independent arbitrator appointed by the Director, at his
      exclusive discretion.

              

      

      

      
        	
                4.6  

              	
                The
      Licensee will channel any subscriber dialing using the ‘00’ prefix or any
      other special prefix for access to international telecommunications
      services, or channeling a call to a Licensee’s subscriber located abroad
      using an international operator (follow-me subscriber service) to the
      chosen operator.

              

      

      

      
        	
                5.  

              	
                Void A23

              

      

      

      
        	
                6.  

              	
                Block for short
      dialing code

              

      

      

      
        	
                6.1  

              	
                Subject
      to the provisions of this appendix, the Licensee will perform a block for
      short dialing code for any subscriber so requestingA23
      .

              

      

      
        	
                6.2  

              	
                The
      Licensee will perform the block for short dialing code as follows: the
      Licensee will channel the subscriber’s calls using the double-digit ‘00’
      prefix and the ‘188’ prefix to an announcer playing a recorded
      announcement stating the following in Hebrew, English, Arabic and Russian:
      “This service is blocked, for further details please dial ___ (a telephone
      number of the announcer under the provisions of section 6.7)A23
      .

              

      

      

      
        	
                6.3  

              	
                Void
      A23

              

      

      

      
        	
                6.4  

              	
                Void
      A23

              

      

      

      
        	
                6.5  

              	
                Void
      A23

              

      

      

      
        	
                6.6  

              	
                Void
      A23

              

      

      

      
        	
                6.7  

              	
                The
      Licensee will operate the voice announcement  24 hours a day,
      including Saturdays and holidays, using such method and wording allowing a
      subscriber to receive an explanation regarding the ascription and overseas
      dialing, in Hebrew, English, Arabic and Russian; the explanation will
      include the following matters:

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
J - 7

          
            

          

        

        
          
          

        

      

      Appendix
J

      
 

      
        	
                (A)  

              	
                Performance
      of ascription – the ascription process and where to call in order to
      request the ascription form;

              

      

      

      
        	
                (B)  

              	
                How
      one may make an international call when the subscription is blocked for
      short dialing codes;

              

      

      

      
        	
                (C)  

              	
                The
      option of blocking overseas dialing and the option of removing such
      block;

              

      

      

      
        	
                (D)  

              	
                Where
      one may call in order to find out about additional matters – telephone
      numbers of international operators.

              

      

      

      
        	
                7.  

              	
                Interconnection

              

      

      

      
        	
                7.1  

              	
                The
      Licensee will connect its system to all international telecommunications
      system, directly or indirectly, according to the terms of its license, in
      a manner allowing provision of international telecommunications services
      to all subscribers through the international telecommunications services
      of all international operators, including outgoing and incoming ITMS
      calls, direct dialing, dialing through an operator (‘188’ service, as
      stated in section 2.2(A)), “Direct Israel” services, collect service (from
      abroad to Israel, from Israel abroad), international 1-800 service
      (incoming and outgoing), calling card services, from any destination
      abroad and to any destination
abroad.

              

      

      

      
        	
                7.2  

              	
                The
      technical, operational and commercial arrangements between the Licensee
      and any international operator will allow the provision of the following
      to all subscribers:

              

      

      

      
        	
                (A)  

              	
                Quality
      service, including service quality control and means for investigating and
      dealing with subscriber’s complaints regarding quality of
      service;

              

      

      

      
        	
                (B)  

              	
                Accurate
      and precise billing of subscriber, including control over the billing and
      means for investigating and dealing with subscriber’s complaints regarding
      incorrect billing and tools and means of identification and prevention of
      fraud and deception;

              

      

      

      
        	
                (C)  

              	
                Consumer
      response to subscriber’s queries and questions, including tools and means
      of providing an itemized bill for subscribers, and for investigating
      subscriber’s queries in all matters related to receipt of international
      services.

              

      

      

      
        	
                7.3  

              	
                In
      order to implement the provisions of this appendix, the Licensee will act,
      inter alia, as follows:

              

      

      

      
        	
                (A)  

              	
                Allow
      any subscriber who has not blocked outgoing international ITMS calls to
      make international calls at any time via his chosen international operator
      or as a chance caller, using dialing methods set out in section
      2;

              

      

       

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
J - 8

          
            

          

        

        
          
          

        

      

      
        Appendix
J

         

      

      
        	
                (B)  

              	
                Allow
      all subscribers to change their chosen operators; this service will be
      given in return for a reasonable
charge,

              

      

      

      
        	
                (C)  

              	
                Take
      reasonable measures to prevent subscriber ascription to a chosen operator
      without his knowledge or against the subscriber’s wishes (“slamming”);
      these measures will include identification of the subscriber and
      verification of the subscriber’s right to receive
  service;

              

      

      

      
        	
                (D)  

              	
                Give
      all subscribers, free of charge, service allowing them to identify the
      name of their chosen operators;

              

      

      

      
        	
                (E)  

              	
                The
      Licensee will offer non-discriminatory conditions to all international
      operators, including in all matters regarding the commercial conditions,
      billing and collections arrangements, availability of connection
      installations and quality of service; without derogating from the
      generality of the aforesaid, the Licensee will provide service for all
      international operators under equal conditions including in the matter of
      interconnection, provision of infrastructure installations and connection
      services to the network, performance of changes in switching, in
      installations, protocols and network
interface;

              

      

      

      
        	
                (F)  

              	
                The
      conditions for interconnection between the Licensee’s system and the
      international operator’s international telecommunications system will be
      reasonable and non-discriminatory; if the parties have not reached any
      agreement, the Minister will determine matters between
    them;

              

      

      

      
        	
                (G)  

              	
                A
      copy of any agreement between the Licensee and international operator in
      the matter of interconnection will be delivered to the
      Director;

              

      

      

      
        	
                (H)  

              	
                Any
      international operator requesting the particulars of a subscriber refusing
      to make payments to the Licensee designated for the international operator
      for services used via the international operator’s international
      telecommunications system will be given over, whether such subscriber was
      an ascription subscriber or a chance caller; these particulars will
      include the first name, last name or name of corporation, ID number of ID
      number of the corporation, address and telephone
  number.

              

      

      

      
        	
                (I)  

              	
                A22
      Allow international operators to collect payment directly for services
      from   subscribers ascribed to such international operator,
      and who have chosen to receive billing and collections services directly;
      the Licensee will have any vital   information required by
      the international operator at his disposal allowing the international
      operator to provide billing and collection services for such aforesaid
      ascribed subscribers;

              

      

      

      
        	
                (J)  

              	
                A22
      Provide services under equal and non-discriminatory conditions and for
      such charge not discriminating against an ascribed subscriber who has
      chosen to receive billing and collection services from the international
      operator.

              

      

       

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
J - 9

          
            

          

        

        
          
          

        

      

      
        Appendix
J

      

      
 

      
        	
                7.4  

              	
                The
      international operators will bear the costs of implementation of the
      interconnection including the process of survey and blocking short dialing
      codes, and, if so required, for a subscriber’s initial ascription to a
      chosen operator; the rate of payments, as stated, will be determined under
      negotiation between the Licensee and the international operator; the
      Licensee’s shared expenses that cannot be ascribed to a particular
      international operator will be divided equally between all international
      operators; if the parties have not come to an arrangement, the Minister
      will prescribe instructions in these matters, after giving the parties a
      fair opportunity to argue their claims before
  him.

              

      

      

      First
Schedule – Void A23

      

      Second
Schedule – Void A23

       

       

       

      
        
          
          

        

        
          Second Schedule—Appendix
J - 10

          
            

          

        

        
          
          

        

      

       

      Appendix
K

      

       

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

      

      
 

      Definitions       1. In this appendix
-

      

      
        	
                “Old
      technology phone” –

                 

              	 	
                A
      cellular phone operating on IS-54 format;

              
	
                “New
      technology phone” -

              	 	
                A
      cellular phone operating on IS-136 format;

              
	
                 

                “Upgradeable
      telephone”  -

              	 	
                 

                An
      old technology phone that may be upgraded to a new technology
      phone;

              
	
                 

                “Date
      of cessation of service” -

              	 	
                 

                The
      date on which the Licensee ceases to provide cellular services to an old
      technology phone owner.

              
	
                 

                “Eligible
      customer” -

              	 	
                 

                The
      Licensee’s subscriber or customer who has lawfully purchased an old
      technology telephone and has not exchanged or upgraded it to a new
      technology phone;

              
	
                 

                “Telephone
      Number” -

              	 	
                 

                The
      number of the cellular telephone given to a subscriber or customer who
      lawfully purchased an old technology phone and connected to the Licensee’s
      network;

              
	
                 

                “Upgrade”
      -

              	 	
                 

                Exchanging
      the software version of the telephone  upgrades the telephone,
      wherein it becomes a new technology
phone.

              

      

      

      

      
        	
                Discontinuation
      of service

                 

              	
                2.

              	
                Notwithstanding
      the aforesaid in section C of chapter E of the General License, the
      Licensee may discontinue provision of cellular services to eligible
      customers, provided all the following provisions apply:

                 

              
	
                Publication

              	
                3.

              	
                (A)   
       The Licensee will publish an appropriate notice under these
      provisions in three of the largest newspapers in Israel, one of which is
      published in Arabic, on the closest Friday to the date 30 days before the
      date of cessation of service.

                (B)    
       The Licensee will publish an appropriate notice under these
      provisions in three of the largest newspapers in Israel, one of
      

                 

              

      

       

      ___________________

      
        t7
Amendment 7

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix K
- 1

          
            

          

        

        
          
          

        

      

      
        Appendix
K

      

       

      
        	 	 	
                which
      is published in Arabic, on the closest Friday to the date 30 days earlier
      than the end of six months from the date of cessation of
      service.

              
	 	 	 
	
                Exchange
      of telephone

              	
                4.

              	
                The
      Licensee will exchange an old technology telephone including all
      accessories thereto, including a hands-off device, for a new technology
      telephone, including all accessories thereto, for any eligible customer,
      on the basis of accessory for accessory, including the installation
      thereof, provided the new technology telephone is of no lesser features
      than the new technology telephone’s features, free of any direct or
      indirect charge to the customer.

                 

              
	
                Upgrade

              	
                5.

              	
                The
      Licensee will upgrade an eligible customer’s upgradeable telephone, free
      of any direct or indirect charge to the customer.

                 

              
	
                Telephone
      number

              	
                6.

              	
                The
      Licensee will keep the telephone number allocated to any eligible customer
      before the date of cessation of service for a period of six months from
      the date of cessation of service; after this period the Licensee may
      exchange the telephone number of an eligible customer who did not exchange
      the old technology telephone to a new technology telephone or did not
      upgrade an upgradeable phone during that period.

                 

              
	
                Notice
      of Application

                 

              	
                7.

              	
                The
      Licensee shall inform the Director in advance and in writing of the day of
      Discontinuation of Service and of the days of Publication as detailed in
      sub-sections 3(A) and (B) above and shall furnish the Director with copies
      of the notices as published.

              
	
                Period

              	
                8.

              	
                The
      Licensee will fulfill the provisions of sections 4 and 5 above starting on
      the date of publication prescribed in sub-section 3(A) above for a period
      of 7 years from the date of cessation of service.

                 

              
	
                Conditions
      of service

              	
                9.

              	
                The
      provisions of sections 4, 5 and 6 will be deemed a condition of service,
      as defined in section 37B.(A)(1) of the Telecommunications
      Law.

              

      

       

       

      
        
          
          

        

        
          Second Schedule—Appendix K
- 2

          
            

          

        

        
          
          

        

      

       

      Appendix
O

       

      
        Appendix
O – Erotic Servicest36 effect

      

      
 

      1.
Definitions

      

      1.1 In this appendix
–

      

      
        	
                Licensee
      -

              	 	
                One
      who has been given a general license by the Minister for provision of NDO
      or cellular services;

                 

              
	
                Telephone
      bill -

              	 	
                A
      bill given to the subscriber by the Licensee for services
      provided;

                 

              
	
                Writing
      -

              	 	
                Including
      via facsimile or electronic mail;

                 

              
	
                Service
      number -

              	 	
                A
      number of digits allocated to an erotic services provider by the Licensee,
      given by dialing a telephone number, subject to the provisions of the
      numbering program and administrative provisions in this matter, the
      dialing of which, following a dialed prefix, allows the subscriber access
      to the service;

                 

              
	
                Services
      provider -

              	 	
                One
      who provides erotic services via the network, and payment for the service
      is made through the telephone bill; in the matter of erotic services
      provided through dialing a telephone number, access to the services is
      achieved through a service number;

                 

              
	
                Erotic
      promo

              	 	
                Broadcast
      or presentation of an audio or visual message with sexual content,
      including a recorded message, given via a telecommunications facility,
      directly or indirectly, and such message is intended to provide
      information on a service following or to encourage the use thereof,
      provided the broadcast of the message or presentation are made without
      additional charge beyond the charge for a telephone call collected via the
      telephone bill;

                In
      this matter, “indirectly” – including by way of creating a connection from
      the subscriber’s end user equipment as a condition of providing the erotic
      promo.

                 

              
	
                Area
      code

              	 	
                A
      national area code in such model as prescribed by the Ministry for erotic
      services;

                 

              
	
                The
      network -

              	 	
                The
      Licensee’s public telecommunications network.

                 

              
	
                Erotic
      services -

              	 	
                Audio
      broadcast or presentation of an audio or visual message with sexual
      content, including recorded messages, given via a telecommunications
      facility, directly or indirectly, including services
      for  dating, chats, or sending messages between chance callers,
      designated or serving, even in part, for sexual purposes,
  

              

      

       

      ______________________

      
        A36
Amendment no. 36  

        
          effect
This amendment will go into effect  on the 1st of
Nissan, 5766(March 30, 2006)

        

      

       

       

      
        
          
          

        

        
          Appendix O - 1

          
            

          

        

        
          
          

        

      

      
        Appendix
O

      

       

      
        	 	 	
                which
      are any of the following:

                 

                (1) 
       A
      service provided through the dialing of a telephone number given by a
      service provider;

                (2) 
       An
      access service to a closed data base of contents including multimedia
      files, held by the Licensee or by another provider of the service with the
      Licensee’s consent (hereinafter: the “cellular
      portal”).

                 

                In
      this matter, “indirectly” – including by way of creating a connection from
      the subscriber’s end user equipment as a condition of providing the
      service or for charging for it;

              
	 	 	 
	
                Payment
      regulations -

              	 	
                The
      Communications Law (Telecommunications and Broadcasts) (Payment for
      Telecommunications’ Services), 5765 – 2005;

              
	 	 	 
	
                Special
      payment -

              	 	
                 A
      price fixed as stated in section 6, which the subscriber is required to
      pay for erotic services in addition to the regular payment;

                 

              
	
                Payment
      Per time -

              	 	
                A
      special payment, the rate of which is determined by the amount of time the
      subscriber used the erotic service;

                 

              
	
                Regular
      payment -

              	 	
                One
      of the following:

                 

                (A)
       For
      a call within the network – a payment that does not exceed the fixed
      charge according to the rate agreement between the subscriber and the
      Licensee regarding a call to another subscriber in the same
      network;

                (B)
       For
      a call from one cellular network to another cellular network or to a
      NDONDO network – payment as set out in sub-section (A) plus a payment that
      does not exceed NIS 0.50 per minute (including VAT);

                (C)
       For
      a call from the Bezeq company network to a cellular network – a charge
      that does not exceed that prescribed by the letter D in table A in the
      First Schedule of the Payment Regulations, plus NIS 0.50 per minute
      (including VAT);

                (D)
       For
      a call from a NDONDO network, except the Bezeq company network, to a
      cellular network – a charge that does not exceed the fixed charge
      according to the rate agreement between NDO subscribers and NDO, with
      respect to another subscriber number within the same network, plus NIS
      0.50 per minute.

                (E) 
       For
      erotic services given via the cellular portal – a charge that does not
      exceed the fixed charge according to the rate agreement between the
      subscriber and the Licensee with regard to access service to the cellular
      portal.

              
	 
    	 	 
    

      

      2.          
 Access
through Dialing

      

      
        	
                2.1  

              	
                Subject
      to the provisions of section 4, access to erotic services given through
      dial-up will be made available to subscribers via an area code and service
      number.

              

      

       

       

      
        
          
          

        

        
          Appendix O - 2

          
            

          

        

        
          
          

        

      

      
        Appendix
O

      

      
 

      
        	
                3.  

              	
                Allocation of Service
      Number

              

      

      

      
        	
                3.1.  

              	
                In
      the matter of erotic services provided by dial-up, the Licensee may
      allocate a service number to a service provider; in such case, the
      Licensee will allow the service provider to provide services to both the
      Licensee’s subscribers as well as subscriber to other
      licensees.

              

      

      

      
        	
                4.  

              	
                Blocking
      Access

              

      

      

      
        	
                4.1.  

              	
                A.
      A38
      A Licensee will block access to erotic services from all end-user
      equipments connected to the network; without derogating from the
      aforesaid, for the purpose of blocking access to erotic services given
      though the cellular portal, the Licensee may make use of a means of
      blocking, including content filtering programs, provided they efficiently
      block access to said service.

              

      

      

      
        	
                 
      

              	
                B.
      A38
      Should the Ministry of Communications notify the Licensee that an erotic
      promo is being given through the Licensee’s telephone line or network,
      without access through a service number, the Licensee will cut off said
      line, or block the line from receiving incoming
  calls;

              

      

      

      
        	
                4.2  

              	
                A
      subscriber 18 years of age or more may request the Licensee remove a block
      imposed as described in section 4.1AA38
      from his end user equipment.

              

      

      

      
        	
                4.3  

              	
                A
      request for such removal of a block will be made in writing, or verbally,
      provided the Licensee has prescribed a procedure allowing accurate
      identification of the requesting
subscriber.

              

      

      
        	
                4.4  

              	
                If
      a subscriber has so requested a block removed, the Licensee will remove
      the block within a reasonable time, in a manner allowing the subscriber
      access to erotic services via the end user equipment in his
      possession.

              

      

      

      
        	
                4.5  

              	
                If
      a block has been removed for erotic services as stated, and the subscriber
      requests that his end user equipment again be blocked for such services,
      the Licensee shall perform the block at the soonest possible opportunity,
      and by no later than 2 work days from the date of receipt of the
      subscriber’s request.

              

      

      

      
        	
                4.6  

              	
                The
      first removal of a block against erotic services, made at the subscriber’s
      request as stated in sections 4.2 and 4.3 will be made free of charge; the
      Licensee may charge the subscriber a reasonable fee for any additional
      blocking access to erotic services or for additional removal of such
      block, made at the subscriber’s
request.

              

      

      

      

      
        	
                5.  

              	
                Early
      Registration

              

      

      

      
        	
                
                  5.1

                

              	
                Notwithstanding
      that stated in section 4 above, the Licensee may establish a duty of early
      subscriber registration for receipt of a password, a submission of which
      will be a precondition for receipt of erotic services. The provisions of
      this section do not derogate from the provisions of
      sections  4.2 and 4.3
above.

              

      

      

      

      
        	
                6.  

              	
                 Special
      Payment

              

      

      

      
        	
                6.1  

              	
                If
      special payment is prescribed for erotic services, the rate shall be fixed
      by the Licensee or in agreement between the Licensee and the services
      provider.

              

      

       

       

      
        
          
          

        

        
          Appendix O - 3

          
            

          

        

        
          
          

        

      

      Appendix
O

      
 

      
        	
                7.  

              	
                Charging the
      Subscriber

              

      

      

      
        	
                7.1.  

              	
                If
      special payment is prescribed for erotic services, the Licensee’s phone
      bill will show the payment for the service separately from charges for the
      Licensee’s other services, unless the subscriber has requested
      otherwise.

              

      

      

      
        	
                7.2.  

              	
                The
      Licensee shall provide the subscriber, upon demand and within ten (10)
      working days, details of the special payment for erotic services as
      follows:

              

      

      

      
        	
                (A)  

              	
                The
      service number the service
allocated;

              

      

      

      
        	
                (B)  

              	
                The
      date and time service was provided;

              

      

       

      
        	
                (C)  

              	
                Billing
      time units – when charging per time – the number of time units charged or
      the total amount of the special payment; in the case of a charge according
      to traffic volume (such as MB, KB), the number of volume units
      transferred;

              

      

      

      
        	
                (D)  

              	
                The
      sum charged for the service.

              

      

      

      The
Licensee may collect a reasonable fee for specification of the special
payment.

      

      
        	
                8.  

              	
                Mandatory
      Tender

              

      

      

      
        	
                8.1

              	
                If
      a special payment has been fixed for erotic services provided through the
      network, the Licensee, either himself or via the services provider, will
      play a recorded message at the beginning of the call, containing the
      following details:

              

      

      

      
        	
                A.  

              	
                The
      essence of the service;

              

      

      

      
        	
                B.  

              	
                Rate
      of special payment for the service, according to payment per time or per
      traffic volume, as the case may be;

              

      

      

      
        	
                C.  

              	
                The
      option to discontinue the service, without charge, before the signal is
      heard, as stated in section 8.4.

              

      

      

      
        	
                8.2  

              	
                The
      recorded message will be played in the language in which the erotic
      service is provided, in comprehensible language, at a reasonable pace and
      without recording defects.

              

      

      

      
        	
                8.3  

              	
                At
      the start of erotic services provided in a language not Hebrew, a message
      will be played announcing the language in which the service is provided,
      and after, the recorded message will be played, as stated in sections 8.1
      and 8.2, in the language in which the service is
  provided.

              

      

      

      
        	
                8.4  

              	
                Upon
      completion of the recorded message, as stated in section 8.1, the caller
      will have a 5 second interval, at the end of which a signal indicating the
      start of the erotic services; if the caller disconnected the call before
      the signal was heard, he will not be charged the special payment.
      Alternatively, the caller will be asked to press a certain key on his end
      user equipment in order to confirm that he desires to accept the service,
      and will be charged the special payment only from the moment he so
      acts.

              

      

       

       

      
        
          
          

        

        
          Appendix O - 4

          
            

          

        

        
          
          

        

      

      
        Appendix
O

      

      
 

      
        	
                8.5  

              	
                If
      a special payment is fixed for erotic services provided by access to the
      cellular portal, the Licensee will notify subscribers regarding the price
      of the service in an obvious and clear manner, providing the subscriber
      the option to disconnect from the service without being charged the
      special payment.

              

      

      

      
        	
                9.  

              	
                Licensee –Services
      Provider Relations

              

      

      

      
        	
                9.1  

              	
                The
      Licensee may allow a services provider to perform
      telecommunications  operations via its installations in order to
      provide erotic services; the services provider will be exempt from the
      duty of obtaining a license for telecommunications services, under the
      provisions of section 3(5) of the
Law.

              

      

      

      
        	
                9.2  

              	
                The
      Licensee will include the provisions of this appendix, mutatis mutandis,
      in the agreement between the Licensee and the services provider, in such
      manner that the services provider will be obligated to fulfill said
      provisions.

              

      

      

      
        	
                9.3  

              	
                The
      Licensee will provide the Director with any agreement between such and a
      services provider, upon demand.

              

      

      

      
        	
                10.  

              	
                Interconnection

              

      

      

      
        	
                10.1  

              	
                The
      conditions for interconnection between the network and the Licensee’s
      public telecommunications network, in all matters relating to provision of
      billing and collection services by one Licensee to another licensee, for
      purposes of provision of erotic services given via the network to another
      licensee’s subscriber, will be formalized in an agreement between the
      Licensee and the other licensee; if the parties cannot reach an agreement,
      the Minister will decide on the
matter.

              

      

      

      
        	
                10.2  

              	
                The
      Licensee will, upon demand, provide the Director with a signed copy of all
      agreement it has with other licensees in the matter of said
      interconnection.

              

      

      

      
        	
                11.  

              	
                General

              

      

      

      
        	
                11.1  

              	
                The
      Licensee will be responsible to handle all erotic services customer
      complaints, in all matters relating to subscriber access to the service,
      and problems of billing and collection in connection with the service, and
      will establish a mechanism for dealing with customer queries for such
      purpose; the services provider will be responsible to deal with subscriber
      complaints in regard to service content. If the Licensee himself provides
      the erotic services, the Licensee will be responsible to handle erotic
      services customer complaints regarding the service content as
      well.

              

      

      

      
        	
                11.2  

              	
                The
      Licensee may not disconnect, stop or harm the basic telephone services of
      a subscriber who has used erotic services and refuses to pay for such,
      however, the Licensee may disconnect such subscriber from continued use of
      the erotic services.

              

      

      

      
        	
                11.3  

              	
                The
      Licensee may not provide a subscriber’s particulars to another services
      provider or to others, without the subscriber’s written consent , and only
      after verification of the authenticity of such
  consent.

              

      

      

      
        	
                11.4  

              	
                A
      Licensee shall, within three (3) working days, provide any subscriber so
      requesting the following particulars regarding the services provider,
      without charge:

              

      

       

       

       

       

      
        
          
          

        

        
          Appendix O - 5

          
            

          

        

        
          
          

        

      

      
        Appendix
O

      

      
 

      
        	
                A.  

              	
                The
      name and address of the provider;

              

      

      
        	
                B.  

              	
                The
      telephone number at which such provider may be
  reached.

              

      

      

      
        	
                11.5  

              	
                The
      provisions of this appendix will apply, mutatis mutandis, to provision of
      erotic services provided as a network service to the Licensee’s
      subscribers only.

              

      

      
        	
                11.6  

              	
                The
      Licensee may himself provide erotic services, and the provisions of this
      appendix will apply thereto, mutatis
mutandis.

              

      

       

       

      Appendix O – 6

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