Document:

Exhibit 4.10

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

INDENTURE FOR SERIES L DEBENTURES

 

Made and executed in Tel Aviv, on January 21, 2018

 

Between

 

Cellcom Israel Ltd. and Strauss Lazar Trust Company (1992) Ltd.

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Table of Contents

 

 

	
1.

	
Interpretation and Definitions

	
- 5 -

	
2.

	
General

	
- 8 -

	
3.

	
Issuance of the Debentures

	
- 8 -

	
4.

	
Appointment of the Trustee; Duties of the Trustee

	
- 9 -

	
5.

	
Expansion of the Debenture Series and Issuance and Allocation of Additional Debentures and Securities

	
- 9 -

	
6.

	
Negative Pledge Undertaking

	
- 11 -

	
7.

	
Limitations on Distributions

	
- 14 -

	
8.

	
Purchase of Debentures by the Company and/or by a Subsidiary of the Company and/or by a Corporation Controlled by the Company

	
- 15 -

	
9.

	
Early Redemption of Debentures

	
- 16 -

	
10.

	
Acceleration

	
- 19 -

	
11.

	
Claims and Proceedings by the Trustee

	
- 26 -

	
12.

	
Trust for the Proceeds

	
- 27 -

	
13.

	
Authority to Withhold Distribution of Funds

	
- 28 -

	
14.

	
Notice of Distribution

	
- 29 -

	
15.

	
Refrainment from Payment for a Reason which is Beyond the Company's Control

	
- 29 -

	
16.

	
Receipt from the Debenture Holders

	
- 30 -

	
17.

	
Application of the Securities Law

	
- 30 -

	
18.

	
Investment of Funds

	
- 31 -

	
19.

	
The Company’s Undertakings vis-à-vis the Trustee

	
- 31 -

	
20.

	
Additional Undertakings

	
- 32 -

	
21.

	
Other Agreements

	
- 33 -

	
22.

	
Trustee’s Fees

	
- 33 -

	
23.

	
Special Authorities

	
- 34 -

	
24.

	
Trustee’s Authority to Engage Proxies

	
- 36 -

	
25.

	
Indemnification of the Trustee

	
- 36 -

	
26.

	
Reports and Notices

	
- 41 -

	
27.

	
Waivers, Compromises and/or Changes in the Indenture

	
- 43 -

	
28.

	
The Debenture Holders’ Register

	
- 44 -

	
29.

	
Appointment of a New Trustee and Expiry of the Trustee’s Office

	
- 45 -

 

2

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
30.

	
Holders’ Meetings

	
- 45 -

	
31.

	
Reporting to the Trustee

	
- 45 -

	
32.

	
Rating

	
- 47 -

	
33.

	
Applicable Law and Jurisdiction

	
- 47 -

	
34.

	
Liability of the Trustee

	
- 48 -

	
35.

	
Additional Provisions

	
- 48 -

	
36.

	
Authorization for MAGNA

	
- 48 -

	
First Schedule

	
- 50 -

	
Series L Debenture Certificate

	
- 50 -

	
The Terms and Conditions Overleaf

	
- 51 -

	
1.

	
General

	
- 51 -

	
2.

	
The Debentures

	
- 51 -

	
3.

	
Payments of the Principal and Interest of the Debentures

	
- 55 -

	
4.

	
Refrainment from Payment for a Reason which is Beyond the Company's Control

	
- 56 -

	
5.

	
The Debenture Holders' Register

	
- 56 -

	
6.

	
Transfer and Split of Debentures

	
- 56 -

	
7.

	
Early Redemption

	
- 57 -

	
8.

	
Waivers, Compromises and/or Changes in the Indenture

	
- 57 -

	
9.

	
Debenture Holders’ Meetings

	
- 58 -

	
10.

	
Replacement of Debenture Certificates

	
- 58 -

	
11.

	
Applicable Law and Jurisdiction

	
- 58 -

	
12.

	
Notices

	
- 58 -

	
13.

	
Urgent Representative Body of the Debenture Holders

	
- 58 -

	
Second Schedule

	
- 63 -

	
Debenture Holders’ Meetings

	
- 63 -

3

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

I N D E N T U R E

 

Made and executed in Tel Aviv, on January 21, 2018

 

	
Between:

	 	 	 
	 	
Cellcom Israel Ltd.

	 	 
	 	
of 10 HaGavish St., Netanya

	 	 
	 	
Telephone: 052-9989595

	 	 
	 	
Fax: 09-8607986

	 	 
	 	
(the “Company” or “Cellcom”)

	 	
of the First Part;

	 	 	 	 
	
And:

	 	 	 
	 	
Strauss Lazar Trust Company (1992) Ltd.

	 	 
	 	
of 17 Yitzhak Sadeh St., Tel Aviv

	 	 
	 	
Telephone: 03-6237777

	 	 
	 	
Fax: 03-5613824

	 	 
	 	
(the “Trustee”)

	 	 
	 	 	 	
of the Second Part;

 

	Whereas	
On August 9, 2017, the Company published a shelf prospectus (the “Prospectus” or the “Shelf Prospectus”), whereby the Company might issue, in the framework of Shelf Offering Reports, inter alia, series of debentures that are not convertible into shares of the Company; and

 

	Whereas	
The Trustee represents that it is a private company that is limited in shares, incorporated in Israel, the main purpose of which is to engage in trusts, and that it complies with all of the requirements and terms of qualification under any law, including under the Securities Law, 5728-1968, to act as a trustee for the Debentures contemplated by this Indenture; and

 

	Whereas	
The Trustee declares that it is under no impediment according to any law or agreement by which it is bound against in its engagement with the Company in this Indenture, including in respect to conflicts of interests which prevent its engagement with the Company as aforesaid; and the Company represents that there is no impediment under any law or agreement against effecting an issuance of the Debentures and/or against its engagement with the Trustee in this Indenture; and

 

	Whereas	
On December 24, 2017, the Debentures were rated (as defined in Section 1.7 below) with the rating ilA+  by Standard &Poor's Maalot Ltd.; and

 

	Whereas	
The Company has no personal interest in the Trustee and the Trustee has no personal interest in the Company; and

 

	Whereas	
The Company received all the required authorizations to perform said issuance, in accordance with any law and/or agreement and there is no hindrance to the Company performing the issuance in accordance with any law and/or agreement.

 

4

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	Whereas	
The Trustee has agreed to operate as a trustee of the Holders of the Debentures contemplated by this Indenture, according to the terms and conditions of the trust specified in this Indenture below;

 

NOW, THEREFORE, it has been agreed, declared and stipulated between the parties as follows:

 

	1.	
Interpretation and Definitions

 

		1.1.	
The preamble of this Indenture and the schedules thereto constitute an integral part hereof.

 

		1.2.	
The division of this Indenture into sections as well as the provision of headings to sections, were done for purposes of convenience and as reference only, and may not be used for interpretation.

 

		1.3.	
Anywhere in this Indenture stating “subject to any law” (or a similar expression), the intention is it being subject to any mandatory law.

 

		1.4.	
Anything stated in this Indenture in the plural shall also imply the singular and vice versa, and anything stated in the masculine shall also imply the feminine and vice versa, and anything referring to a person, shall also imply to a corporation, and all when there is no other explicit or implicit provision herein or if the content of matters or context thereof does not mandate otherwise.

 

		1.5.	
The Company undertakes that the Series L Debentures which shall be initially issued by virtue of the shelf offering report pursuant to which the Series L Debentures shall be initially offered, shall be registered for trade on TASE.

 

		1.6.	
In any matter not mentioned in this Indenture and in any event of a discrepancy between the provisions of Israeli law that cannot be deviated from and this Indenture, the parties shall act in accordance with the provisions of Israeli law. In any case of a discrepancy between the provisions described in the Prospectus and/or the Shelf Offering Report whereby the Series L Debentures will be issued for the first time in connection with this Indenture and the accompanying documents thereto, the provisions of this Indenture shall prevail.

 

		1.7.	
The terms specified below shall have in this Indenture the meaning stated alongside them, unless another intention is implicated from the content of matters or the context thereof, or if explicitly stated otherwise:

 

5

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
This or the “Indenture” -

	 	
This Indenture, including the schedules attached thereto, constituting an integral part thereof, in their form as amended from time to time.

	 	 	 
	
The “Series L Debentures” or the “Debentures” -

	 	
Registered Series L Debentures of the Company, the terms of which will be according to the Debenture Certificate (the form of which is attached in the First Schedule hereof), which shall be issued from time to time by the Company, according to its sole discretion.

	 	 	 
	
The “Trustee” -

	 	
Strauss Lazar Trust Company (1992) Ltd. and/or anyone who shall serve from time to time as a trustee of the Debenture Holders pursuant to this Indenture.

	 	 	 
	
The “Register” -

	 	
The register of the Debenture Holders, as set forth in Section 28 of this Indenture.

	 	 	 
	
“Debenture Certificate” -

	 	
A debenture certificate, the form of which appears in the First Schedule of this Indenture and which shall be issued according to the terms of this Indenture.

	 	 	 
	
The “Law” or the “Securities Law” -

	 	
The Securities Law, 5728-1968 and the regulations promulgated thereunder, as in effect from time to time.

	 	 	 
	
“TASE” -

	 	
The Tel Aviv Stock Exchange Ltd.

	 	 	 
	
“TASE Clearinghouse” -

	 	
The Tel Aviv Stock Exchange Clearing House Ltd.

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

	 	
Shall bear the meaning ascribed to the terms “Holder” and “Holder of Certificates of Indebtedness” in Section 35A of the Securities Law.

	 	 	 
	
“Business Day” -

	 	
Any day on which the TASE Clearinghouse and most of the banks in Israel are open for the performance of transactions.

6

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
“Trading Day” -

	 	
Any day on which trade is carried out on the Tel Aviv Stock Exchange Ltd.

	 	 	 
	
“Special Resolution” -

	 	
A resolution adopted at a general meeting of the Debenture Holders, in which a legal quorum was present as specified in Section 14 of the Second Schedule of the Indenture, and which was adopted (whether in the original meeting or the adjourned meeting) by a majority of at least seventy five percent (75%) of the overall votes of the participants counted in the vote, not including abstainers.

	 	 	 
	
“TASE Directives”

	 	
The provisions of the TASE rules, the regulations thereunder and bylaws of the TASE Clearinghouse (as applicable).

 

It is clarified, that the Debentures, their terms and the terms of this Indenture, shall be subject to the TASE Directives in their form as in effect from time to time, for as long as the Debentures are traded on TASE.

	 	 	 
	
The “Companies Law”

	 	
The Companies Law, 5759-1999, in its form as in effect from time to time.

	 	 	 
	
The “Transfer Agent”

	 	
Israel Discount Bank Nominees Ltd. or any other nominee company with which the Company shall engage, at its sole direction, provided that all of the Company’s series of securities shall be registered in the name of the same nominee company

	 	 	 
	
“Rating Agency”

	 	
Means as such term is defined in the Securities Regulations (Details of the Prospectus and Draft Prospectus – Structure and Form), 5729-1969, and which was approved by the Capital Market Commissioner.

 

7

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	2.	
General

 

		2.1.	
The Trustee’s execution of this Indenture shall not constitute an expression of its opinion as to the quality of the Series L Debentures or the advisability of investment therein.

 

		2.2.	
The Series L Debentures shall equally rank, pari passu, among themselves in respect of the Company’s undertakings pursuant to the Debentures and without any preference or priority of one over the other.

 

	3.	
Issuance of the Debentures

 

The Company:

 

		3.1.	
Shall issue Registered Series L Debentures, which will mature (principal) as provided in the Terms and Conditions Overleaf, to the First Schedule of this Debenture. The principal of the Debentures shall bear an interest at a fixed rate which shall be determined in a tender with the initial offering of the Debentures. The interest on the principal of the Debentures shall be paid on each of the dates, as provided in the Terms and Conditions Overleaf to the First Schedule of this Debenture. The Debentures shall not be linked (principal and interest) to any index or currency whatsoever.

 

		3.2.	
For additional details, including in respect of an adjustment mechanism of the interest rate as a result of a change in rating of the Debentures, see Sections 2 and 3 of the Terms and Conditions Overleaf. For details regarding the Company’s entitlement to effect an early redemption and regarding an early redemption initiated by TASE of the Debentures, see Section 9 below.

 

If after the date of the initial issuance of the Debentures, the Debentures Series shall be expanded by the Company, the Holders of Series L Debentures which will be issued within the framework of the expansion of such series, shall not be entitled to receive payment on account of principal and/or interest, for the Debentures in respect of which the effective date for payment shall occur prior to their date of issuance as aforesaid.

 

		3.3.	
The Company hereby undertakes to pay all of the amounts of the principal, interest (including arrears interest, and adjusted interest in the event of a downgrade beyond the Downgraded Rating as defined in Section 2.7 to the Terms and Conditions Overleaf to the First Schedule, to the extent applicable, and including the arrears interest, to the extent applicable) and to comply with all of the other conditions and undertakings imposed thereon pursuant to the terms of the Debentures and this Indenture.

 

8

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	4.	
Appointment of the Trustee; Duties of the Trustee

 

		4.1.	
The Company hereby appoints the Trustee as a first trustee for the Holders of the Debentures, in accordance with the provisions of Section 35B of the Securities Law.

 

		4.2.	
The term of appointment of the first trustee and its reappointment or the appointment of another trustee upon its termination thereof, shall be in accordance with the provisions of the law. Should the first trustee be replaced, the provisions of Sections 29.2 to 29.4 below shall apply; all – subject to the provisions of any law.

 

		4.3.	
The duties of the Trustee shall be in accordance with any law and this Indenture.

 

	5.	
Expansion of the Debenture Series and Issuance and Allocation of Additional Debentures and Securities

 

		5.1.	
The Company shall be entitled, from time to time, without requiring an approval from the Trustee and/or the Holders of the Series L Debentures existing at the time, to expand the Debentures and to issue additional Debentures (whether through a private offering, through the framework of a Prospectus, according to a Shelf Offering Report or otherwise), including to an Affiliated Holder as defined in Section 8 below, at any price and in any manner that the Company shall deem fit, including at a discount or a premium rate (including with no discount or premium) different than those that prevailed (if any) in other issuances which were carried out for Debentures, if any were made, provided that it shall provide prior notice to the Trustee in respect thereof. The Trustee shall serve, subject to the provisions of any law and the Indenture, as a trustee for the Debentures, as they shall be from time to time in circulation, also in the case of an expansion of a series and the consent of the Trustee to the service as aforesaid for the expanded series, will not be required. Series L Debentures which will be in circulation and additional Series L Debentures, which will be issued (if any) as stated in this Section above, shall constitute (commencing on the date of issuance thereof) one series for all intents and purposes, and this Indenture shall apply also in respect of all of such additional Series L Debentures. It shall be clarified that in any event of an expansion of a Debenture Series, should the discount rate that shall be determined in the context of a Debenture issuance be higher than the series’ discount rate immediately prior to the expansion thereof (including without discount), there may be cases where tax shall be withheld for discount fees at a rate that is higher than the discount fees determined for the Debenture Holder prior to the expansion of the Series, whether or not the approval of the Tax Authority for the determination of a uniform discount rate for the series shall have been obtained.

 

 

9

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Should the discount rate that shall be determined for the Series L Debentures due to an expansion of the series be different to the discount rate of the Series L Debentures existing in circulation at such time, the Company shall file a request, prior to the expansion of the series, to the Tax Authority in order to receive its approval whereby in respect of the tax withholding from the discount fees for the Debentures, a uniform discount rate shall be determined for the Debentures, according to a weighted formula taking into account the various discount rates of the same series, if any. In case such approval is obtained, the Company shall calculate the weighted discount rate for all of the Debentures prior to the date of expansion of the series, and shall publish the uniform weighted discount rate for the entire Series in an immediate report, prior to the expansion of the series as aforesaid, and shall withhold tax at the maturity dates of the Debentures according to such weighted discount rate and pursuant to the provisions of the law. Should such approval not be obtained, the Company shall announce in an immediate report, prior to the issuance of the Debentures as a result of the expansion of the series of the failure to obtain such approval, and that the uniform discount rate shall be the highest discount rate created for the series. The Company shall withhold tax upon the maturity of the Debentures, according to the discount rate that shall be reported as aforesaid. Therefore, there may be cases where the Company shall withhold tax for discount fees at a rate higher than the discount fees determined for a Debenture Holder prior to the expansion of the Series. In such event, a Holder holding the Debentures prior to the expansion of the series and until the maturity of the Debentures, shall be entitled to file a tax report with the Tax Authority and be refunded for the tax withheld from the discount fees, to the extent he is entitled to such refund under law.

 

Notwithstanding the foregoing, an additional issuance of additional Debentures by way of expansion of a series, shall be effected subject to the following: (1) the additional issuance of such Debentures in itself (and not any other reason or circumstance existing prior to such issuance) shall not derogate from the rating of such Debenture Series prior to the expansion. In any event of such additional issuance, the Company shall inform the Trustee in writing, prior to the additional issuance as aforesaid, that such additional issuance complies with said condition. The Company shall attach the notice of the Rating Agency to the notice to the Trustee. The Trustee shall rely on the notice of the Rating Agency and shall not be required to perform additional examinations. It is clarified that the Company’s undertaking as set forth in this Section shall apply only to additional issuances of Series L Debentures by way of a series expansion, and not in respect of the issuance of other series of debentures existing in circulation at such time by way of a series expansion, nor in respect of the issuance of other new securities, whether rated or not; (2) at the date of the additional issuance the Company shall comply with the financial covenant specified in Sections 10.1.17 and 10.1.18 of this Indenture in accordance with its financial statements last published prior to the date of the additional issuance, and after the effectuation of the additional issuance; (3) on the date of expansion no cause for acceleration of the Debenture exists.   In addition, the Company shall provide the Trustee, at least 7 days prior to the actual effectuation of the additional issuance, with a written approval, signed by the senior financial officer at the Company, that the Company shall comply with the financial covenant, and that no cause for acceleration exists, as aforesaid.

 

10

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		5.2.	
In addition and without derogating from the aforesaid, the Company reserves the right to issue at any time additional series of debentures and/or other securities, of any type and kind whatsoever, without requiring the approval from the Trustee and/or the Holders existing at the time, whether or not they shall confer a conversion right in the Company’s securities, and under terms of maturity, interest, linkage, collateral and other terms as it shall deem fit, whether they are preferable to the terms of the Debentures in circulation, equal thereto or inferior thereof.

 

		5.3.	
The Company undertakes not to issue series of new debentures having a preferred maturity rank to that of the Series L Debentures (including upon dissolution of the Company), other than debentures series which shall be secured by way of a specific pledge or as specified in Section 6.1 and 6.2 below.

 

		5.4.	
Nothing stated in this Section above shall derogate from any rights of the Trustee and/or the Holders of Debentures pursuant to this Indenture, if any.

 

	6.	
Negative Pledge Undertaking

 

		6.1.	
Subject to Section 6.2 below, as long as the Debentures are yet to be fully discharged, the Company shall not create and shall not agree to create in favor of any third party whatsoever, any pledges of any type and kind whatsoever at any rank, on its assets and rights, for securing any debt or undertaking whatsoever, unless it shall address the Trustee in writing prior to the creation of the pledge and inform it thereof, and in addition to such notice: (1) shall obtain the prior consent of the Debenture Holders, by Special Resolution, permitting the Company to create the pledge in favor of the third party; or, alternatively – (2) the Company shall create, in coordination with the Trustee, in favor of the Debenture Holders, concurrently with the creation of the pledge in favor of the third party, a pledge of the same kind, on the same asset and ranking equally, pari passu, with the third party for securing the full debt toward the Holders, and that such pledge shall be in force and effect for as long as the Debentures are yet to be fully discharged, or the pledge towards the third party is removed,  the earliest of both. The Company shall provide the Trustee with an original attorney certification whereby the pledge that the Company intends to create in favor of the Debenture Holders complies with said condition. The Company’s undertaking specified in this Section above shall be referred to as the “Negative Pledge Undertaking”.

 

11

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		6.2.	
Notwithstanding the foregoing, it is clarified, that the Negative Pledge Undertaking shall not apply to each of the following actions and pledges:

 

		6.2.1.	
Creation of a fixed pledge on assets that shall be purchased by the Company after the initial issuance of the Series L Debentures (“Said Assets”), if the undertakings which are secured by such pledges were created for the purpose of purchasing Said Assets and/or for securing loans and/or credit received thereby for the discharge of loans or credit received for the purpose of purchasing Said Assets, provided that no pledges on additional assets over and above Said Assets be created as a result thereof.

 

		6.2.2.	
Creation of a fixed pledge on those parts of the Company’s assets that shall be expanded for the purpose of securing loans or credit received for the purpose of expansion of such assets.

 

		6.2.3.	
Pledge of assets or rights that were purchased (or that shall be purchased) under a pledge that was created prior to the purchase thereof.

 

		6.2.4.	
Rights of set-off, lien, collateral provided in the context of financial assets (derivatives etc.), that are provided to banks or financial institutions in the ordinary course of business therewith, and transfers for exposure hedging regulated under the Financial Asset Agreement Law, 5766-2006.

 

		6.2.5.	
A symbolic pledge (such as a deposit pledged at a nominal amount for securing debentures).

 

		6.2.6.	
A pledge or lien created by virtue of the law.

 

		6.2.7.	
Pledge of assets which were sold by the Company and were fully paid for prior to the date of creation of the pledge, but the registration of the change of ownership therein in the name of the purchaser is yet to be completed.

 

		6.3.	
In the context of the quarterly report to be delivered to the Trustee as specified in Section 31.3 below, the Company shall declare that it has complied with the undertaking set forth in Section 6.1 above, such affidavit bearing the signature of the senior financial officer at the Company, while specifying relevant explanations (to the extent necessary), and shall attach an updated pledge printout of the Company. The Trustee shall rely on the Company’s confirmation and shall not be required to perform any further examination.

 

12

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		6.4.	
Whenever the Company shall create a pledge in favor of the Holders as set forth in sub-section (2) of Section 6.1 above, and such pledge requires registration in the pledge register maintained with the Registrar of Companies or any other register maintained under any law, including for the purpose of perfecting the pledge, the pledge shall be deemed duly registered only after the Company have provided the Trustee with all of the following documents: (1) a pledge document whereby the pledge was registered in favor of the Trustee, bearing the Company’s original signature and originally stamped as “received” by the official stamp of the bureau of the Registrar of Companies or any other bureau or registrar as shall be required under any law, bearing a date which is no later than twenty one (21) days of the date of execution of the pledge document; (2) details of mortgages and pledges notice (Form 10), originally stamped as “received” by the bureau of the Registrar of Companies or any other bureau or registrar as shall be required under any law, bearing a date which is no later than twenty one (21) days of the date of creation of the notice; (3) an original certificate of pledge registration from the Registrar of Companies or any other bureau or registrar as shall be required under any law; (4) a pledges printout from the Registrar of Companies or any other bureau or registrar as shall be required under any law under which the aforesaid pledge was registered; (5) an affidavit by a senior officer of the Company whereby there is no pledge contradicting or conflicting with the Company’s undertakings toward third parties, all in a form which shall be acceptable to the Trustee pursuant to its reasonable discretion; (6) a legal opinion issued by the Company’s legal advisor, inter alia, in respect of the nature of the rights of the pledger in the pledged asset, the manner of registration of the pledge, its validity, creditor priority, legality and the fact that it is exercisable and enforceable against the pledging entity under the law applying in Israel, in a form acceptable to the Trustee, pursuant to its reasonable discretion.

 

Unless expressly provided otherwise in this Indenture, the Company shall be entitled to sell, lease, deliver and/or transfer in any other manner, its property, in whole or in part, in any manner whatsoever, in favor of whom it deems fit, without requiring any consent by the Trustee and/or Debenture Holders.

 

Other than the Negating Pledge Undertaking specified above, Debentures are not secured by any collateral, pledge or otherwise.

13

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

For the avoidance of doubt, it is clarified, that the Trustee is not obligated to examine, and de-facto the Trustee did not examine and will not examine, the need to provide collateral for securing the payments to the Holders of Debentures. The Trustee was not requested to perform and de-facto did not perform and will not perform, a financial, accounting or legal due diligence review as to the financial position of the Company or its subsidiaries. By engaging in this Indenture, and by the Trustee’s consent to serve as trustee for the Holders of Debentures, the Trustee does not opine, whether expressly or implicitly, as to the Company’s ability to fulfill its undertakings towards the Holders of Debentures. The foregoing shall not derogate from the Trustee’s duties under any law and/or the Indenture, and in such context shall not derogate from the Trustee’s duty (to the extent that such duty applies to the Trustee under any law) to examine the influence of changes in the Company from the date of issuance of the Debentures onwards, to the extent that they may adversely affect the Company’s ability to fulfill its undertakings towards the Holders of Debentures.

 

	7.	
Limitations on Distributions

 

The Company undertakes, that as long as the Series L Debentures are yet to be fully discharged, it shall not be entitled to effect a distribution (as such term is defined in the Companies Law), including a distribution of a dividend to its shareholders, in an amount exceeding 95% of the Company’s amount of profit, as defined in Section 302 of the Companies Law (the “Maximal Distribution Rate”) at the date of the resolution of the board of directors in respect of such distribution. Notwithstanding the foregoing, if the Debt to EBITDA Ratio (as such term is defined in Section 10.1.17 below) shall exceed 3.5, the Maximal Distribution Rate shall be 85% of the Company’s amount of profit, as defined in Section 302 of the Companies Law, and if the Debt to EBITDA Ratio (as such term is defined in Section 10.1.17 of the Indenture) shall exceed 4, the Maximal Distribution Rate shall be 70% of the Company’s amount of profit, as defined in Section 302 of the Companies Law.

 

The distribution of a dividend shall be conditional upon the Company's compliance with the financial covenant described in Sections 10.1.17 and 10.1.18 of this Indenture and also that the effectuation of the distribution shall not result in a breach of such financial covenant at the date of the distribution. It is clarified, that an increase in the Debt to EBITDA Ratio causing a change in the Maximal Distribution Rate, shall not prevent the Company from distributing dividends and it will be entitled to carry out the distribution up to the Maximal Distribution Rate.

 

It is clarified that as of the date of execution hereof, other than its aforesaid undertaking, the Company is not subject to any limitation whatsoever on effecting a distribution (as such term is defined in Section 302 of the Companies Law) other than as specified below: (1) limitations similar to the limitations set forth in this Section 7 as aforementioned, which were included in indentures by virtue of which the Company’s Debentures were issued as well as in financing agreements with institutional entities; (2) limitations applying to the Company by virtue of the Companies Law in respect of the effectuation of a distribution; (3) limitations originating from the Company’s license to provide cellular communication services as specified in the Company’s 2016 Annual Report which was filed on Form F-20 (which was submitted to the Israel Securities Authority on March 20, 2017 (reference No. 2017-02-025950)) under Item 8 - Dividend Policy.

14

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

It shall be clarified that the afore-described limitations are limitations applying to the Company in connection with a distribution, as of the date of execution of this Indenture. In such context it shall be noted that the scope of limitations applying to the Company as aforesaid, including the foregoing limitations, may be updated and/or may change from time to time and the Company does not undertake to individually update the Debenture Holders and/or the Trustee in specific respect of any such update or change. It shall be further clarified that the description of such limitations as aforesaid shall not create an undertaking of the Company toward the Debenture Holders in any manner whatsoever.

 

Not later than two Business Days after the approval of a distribution as stated by the Company's board of directors, the Company shall provide the Trustee, with a written approval, signed by the senior financial officer at the Company, confirming as follows: (1) that the Company meets all the limitations on distributions as stated above; (2) to the best of its knowledge the Company does not breach its material undertakings to the Holders of the Debentures; (3) the distribution does not harm the ability to repay the Debenture; and (4) to the best of its knowledge no cause of acceleration exists.

 

	8.	
Purchase of Series L Debentures by the Company and/or by a Subsidiary of the Company and/or by a Corporation Controlled by the Company

 

		8.1.	
The Company reserves, subject to any provision of law, the right to purchase at any time and at any price and terms it deems fit (on TASE and/or outside thereof) Series L Debentures that will be in circulation from time to time, without derogating from the discharge obligation by which it is bound  and subject to any law, from sellers who shall be elected according to its discretion and without a duty of approaching all of the Series L Debenture Holders. The Company shall announce any such purchase by the Company in an immediate report. Series L Debentures that were purchased by the Company shall be cancelled and delisted from trade on TASE (to the extent they are registered for trade thereon) and the Company shall not be entitled to re-issue them. In case that the Series L Debentures will be purchased in the framework of their trading on TASE, the Company shall apply to the TASE Clearinghouse with an application to withdraw the Debenture Certificates thereof. The foregoing shall not derogate from the Company’s right for early redemption of the Series L Debentures in the cases stated in this Indenture.

 

15

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		8.2.	
A subsidiary of the Company, a corporation controlled by the Company, a controlling shareholder of the Company, its relative (as such term is defined in the Securities Law) and/or a corporation controlled by any one of them (but other than a company to which the provisions of Section 8.1 above shall apply) (an “Affiliated Holder”), may purchase and/or sell from time to time on TASE or outside thereof (including in case of an issuance by the Company), Series L Debentures according to their discretion and at any price they may deem fit (subject to any law). The Series L Debentures which will be so held by an Affiliated Holder, will be deemed as its assets, will not be delisted from trade on TASE and will also be transferrable as the other Series L Debentures. The Debentures that will be held by an Affiliated Holder shall not be counted for the purpose of determining the existence of a legal quorum at Holders’ meeting and shall not confer the Affiliated Holder with voting rights at such meetings.

 

		8.3.	
Nothing stated in this Section above shall derogate from the provisions of any law (including directives of the Israel Securities Authority) which apply to the Company, including in connection with the approvals required for effecting transactions with controlling shareholders (or in which the controlling shareholder has a personal interest) and/or in connection with the sale of securities to a subsidiary of the Company and public distribution thereof.

 

	9.	
Early Redemption of Debentures

 

		9.1.	
Early Redemption Initiated by TASE

 

In the event that the TASE shall decide on the delisting from trade of a Series L Debentures in circulation, because the value of the series of Debentures had decreased below the amount prescribed in the TASE Directives regarding the delisting from trade of such Debenture Series, the Company shall effect an early redemption of such Debenture Series, as follows:

 

		(a)	
Within forty five (45) days from the date of the resolution of the board of directors of TASE regarding the delisting from trade as aforesaid, the Company shall announce an early redemption date on which a Holder of Debentures may redeem such Debentures. The notice of the early redemption date will be published in an immediate report and in two (2) daily newspapers with a wide distribution, published in Israel in Hebrew.

 

		(b)	
The early redemption date shall occur no earlier than seventeen (17) days from the date of publication of the notice and no later than forty five (45) days after such date, but not in the period between the effective date for payment of interest and the date of actual payment thereof.

 

16

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(c)	
On the early redemption date the Company shall redeem the Debentures which the Holders had sought to redeem. The redemption consideration shall not be less than the nominal value of the Debentures and interest accrued until the date of actual payment, as set forth in the terms of the Debentures.

 

		(d)	
Determination of an early redemption date as aforesaid shall not prejudice the redemption rights prescribed in the Debentures of any of the Debenture Holders who shall not redeem them on the early redemption date as aforesaid, but such Debentures shall be delisted from the trade on TASE and, inter alia, the tax implications deriving therefrom shall apply to such Debentures.

 

		(e)	
Early redemption of the Debentures as aforesaid, shall not confer upon a Holder of Debentures which shall be so redeemed, the right to payment of principal and/or interest for the period after the redemption date.

 

		9.2.	
Early Redemption Initiated by the Company

 

The Company may, but shall not be obligated, according to its sole discretion, exercise an early redemption of Series L Debentures, in full or in part, and in such case the following provisions shall apply, all subject to the directives of the Israel Securities Authority and the TASE Directives, as in effect at the relevant date.

 

The frequency of early redemptions shall not exceed one redemption per quarter. In the event that an early redemption is scheduled for a quarter during which an interest payment date or a partial redemption payment date or a final redemption payment date is also scheduled, the early redemption shall be effected on the date prescribed for such payment. For such purpose, a “quarter”, means any of the following periods: January-March, April-June, July-September, October-December.

 

The minimal scope of each early redemption shall not be less than NIS 1 million. Notwithstanding the foregoing, the Company may effect an early redemption at a scope lower than NIS 1 million, provided that the frequency of redemptions shall not exceed one redemption per year. Any amount discharged by way of early redemption by the Company, shall be discharged in respect of all of the Debenture Holders, pro rata, according to the nominal value of the held Debentures.  In is hereby noted that in the event of partial early redemption, to the extent preformed, the Company shall pay the Holders of the Debentures on the date of partial early redemption, the interest accumulated only for the part to be redeemed in the partial redemption and not for all the unpaid balance.

 

Upon the adoption of a resolution by the Company’s board of directors in respect of the effectuation of an early redemption as aforesaid, the Company shall issue an immediate report of the early redemption to the Debenture Holders, in which the effective date for the effectuation thereof shall be determined in the immediate report and shall take place no less than seventeen (17) days and no more than forty five (45) days prior to the early redemption date.

 

17

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

The early redemption date shall not take place in the period between the effective date for payment of interest for the Debentures and the date of actual payment thereof. In the immediate report as aforesaid, the Company shall publish the amount of the principal to be discharged through early redemption as well as the interest accrued in respect of the said amount of principal until the early redemption date, according to the provisions below.

 

Early redemption for part of the Debenture Series shall not be effected if the amount of the last redemption was less than NIS 3.2 million. On a partial early redemption date, if any, the Company shall announce in an immediate report: (1) the rate of partial redemption in terms of the unpaid balance; (2) the rate of the partial redemption in terms of the original series; (3) the interest rate on the redeemed part in the partial redemption; (4) the interest rate to be paid in the partial redemption, calculated in respect of the unpaid balance; (5) an update of the partial redemption rates remaining, in terms of the original series; (6) the effective date for entitlement to receive the early redemption of the Debenture principal, which will take place six (6) days prior to the date scheduled for the early redemption.

 

The amount which will be paid to the Holders of Debentures in case of an early redemption initiated by the Company, will be the highest amount among the following: (1) the market value of the balance of the Debentures that are subject to early redemption, which will be determined according to the average closing price of the Debentures in the thirty (30) Trading Days preceding the adoption date of the board resolution regarding effectuation of the early redemption; (2) the liability value of the Debentures that are subject to early redemption, namely, principal plus interest, until the actual early redemption date; (3) the cash flow balance of the Debentures subject to early redemption (principal plus interest)which is discounted according to the Government Debentures Yield (as defined below) plus interest at a rate of 1%. The discounting of Debentures that are subject to early redemption will be calculated commencing from the early redemption date until the last discharge date determined in respect of the Debentures that are subject to early redemption.

18

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

For such purpose: the “Government Debentures Yield” means the average weighted of return for redemption (gross), during a period of 7 Business Days, ending 2 Business Days prior to the date of announcement of the early redemption, of 2 series of non-index linked government debentures at a fixed interest rate and of which average lifetime is the closest to the average lifetime of the Debentures on the relevant date, namely one series with a closest higher average duration than the average duration of the Series L Debentures on the relevant date, and one series with a closest lower average duration than the average duration of the Series L Debentures on the relevant date and whose weighting will reflect the average duration of the Debentures at the relevant date.

 

For example, if the average duration of government debentures A is 4 years, the average duration of government debentures B is 2 years and the average duration of the balance of the loan is 3.5 years, the yield will be calculated as follows:

 

4x + 2(1-x) = 3.5

 

X = the yield weight of government debentures A

 

1-X = the yield weight of government debentures B

 

According to the calculation, the annual yield of government debentures A will be weighted at a rate of seventy-five percent (75%) from the “yield” and the annual yield of government debentures B will be weighted at a rate of 25 percent (25%) from the “yield”.

 

The Company will transfer to the Trustee an approval signed by the senior officer in the finance area, detailing the amount at the early redemption, together with calculations, all in the version to the satisfaction of the Trustee.

 

	10.	
Acceleration

 

		10.1.	
Upon the occurrence of one or more of the events specified below, the provisions of Section 10.2 below shall apply:

 

		10.1.1.	
If a material deterioration occurred in the Company’s business compared to its condition at the issuance date of the Debentures, and there is a real concern that the Company will not be able to repay the Debentures when due.

 

		10.1.2.	
If the Company failed to discharge any amount due therefrom to the Debenture Holders pursuant to the terms of the Debentures or pursuant to this Indenture.

 

		10.1.3.	
If the Company materially breached terms of the Debentures or the Indenture or if a material undertaking in favor of the Holders was not fulfilled, provided that the Trustee notified the Company thereof and demanded its rectification and the Company failed to rectify such breach within fourteen (14) days of the provision of the notice or if it is found that a material representation of the Company in the Debenture documents or in the Indenture is false and/or partial.

 

19

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		10.1.4.	
The Company failed to publish a financial report which it is obligated to publish under any law, within 30 days of the last date on which it is obligated to publish such report.

 

		10.1.5.	
If a temporary liquidator had been appointed to the Company by a Court or a temporary liquidation order was issued or if the Company shall adopt a resolution for dissolution of the Company (except for dissolution for reasons of merger, as defined below, with another company and/or a restructuring of the Company), and such appointment or order or resolution had not been revoked within  forty five (45) days  from the date of appointment or order or resolution, as the case may be and if a permanent liquidator was appointed for the Company by the Court, or if a permanent liquidation order was issued. For such purpose – a “merger” means – a merger executed after receipt of a prior approval of the Debenture Holders by simple majority, unless the Company or the surviving entity, as applicable, has declared toward the Debenture Holders, including through the Trustee, at least ten (10) Business Days prior to the merger date, that there is no reasonable concern that due to such merger the Company or the surviving company, as applicable, will be unable to fulfill its undertakings toward the Debenture Holders or in the event of a merger between companies included in the Cellcom Group, as such term is defined in Section 10.1.10 below, including the Company, whereas in such event no such declaration or prior approval of the Debenture Holders be required. It is hereby clarified that no grace period shall be afforded in respect of motions and/or orders and/or resolutions submitted or issued by the Company or at its consent.

 

		10.1.6.	
If an attachment shall be imposed, a pledge be exercised or execution actions be carried out, all on a Majority of the Company’s Assets, and such attachment or exercise had not been removed or the action have not been canceled within forty five (45) days, after the attachment had been imposed or the pledge was exercised or the action was carried out. It is hereby clarified that no grace period shall be afforded in respect of motions and/or orders submitted or issued by the Company or at its consent.

 

20

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		10.1.7.	
If a motion or an appointment of a temporary receiver for a Majority of the Company’s Assets, which had not been dismissed or removed within forty five (45) days from the date of their filing or issuance, as the case may be, or if an order for the appointment of a permanent receiver of a Majority of the Company’s Assets was issued, which had not been not revoked within seven (7) days of the date of the appointment thereof. It is hereby clarified that no grace period shall be afforded in respect of motions and/or orders submitted or issued by the Company or at its consent.

 

		10.1.8.	
If the Company shall cease or shall announce its intention to cease the payment of debts thereof.

 

		10.1.9.	
If the Company shall cease to continue its business and/or to conduct its business as it shall be from time to time and/or shall notify the Trustee of its intention to cease from continuing to engage in the business thereof as it shall be from time to time and/or to conduct it and/or shall intend to cease from continuing in its business, as it shall be from time to time.

 

		10.1.10.	
If a third party that is a lender of the Company (except for a supplier of the Company) has accelerated the Company’s debts toward itself and the demand for acceleration has not been removed or delayed or settled within 35 days of the date of acceleration thereof. The foregoing in this sub-section shall not apply if the aggregate amount of debt in respect of which an acceleration right was created and triggered, is equal to NIS 150 million or less, other than Debenture Series issued by the Company and accelerated by the Trustee or by a Holders’ meeting in accordance with a resolution as specified in Section 10.2 below, in respect of which such limitation shall not apply.

 

For such matter it shall be clarified that non-recourse loans shall not be deemed as debt of the Company as set forth in this Section.

 

		10.1.11.	
If the Cellcom Group ceased to engage in the field of cellular communication and/or ceased to hold a license for the provision of cellular communication services for a period exceeding 60 (sixty) days. For such purpose – the “Cellcom Group” means – the Company and the companies held thereby.

 

		10.1.12.	
If trade of the Debentures was suspended by TASE pursuant to the provisions of Part Four of the TASE Rules, except for suspension in the cause of uncertainty as specified in the provisions of Part Four of the TASE Rules and forty five (45) days had passed since the suspension date, during which the cause for the suspension of trade was not rectified or removed, or if the Debentures were delisted from trade on TASE.

 

21

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		10.1.13.	
If the Company shall carry out a distribution (as defined in the Companies Law) which does not comply with the conditions of Section 7 above.

 

		10.1.14.	
If for a period of 60 consecutive days, the Debentures are not rated by any Rating Agency, provided that at least one Rating Agency is active in Israel at such time, and that the rating was terminated due to reasons and/or circumstances that were  controlled by the Company.

 

		10.1.15.	
If the Company shall file a motion for a stay of proceedings or if such order is issued at the Company’s request or if the Company shall file a motion for a compromise or arrangement with its creditors pursuant to Section 350 of the Companies Law, or if the Company shall otherwise propose such compromise or settlement to its creditors, on the background of the Company’s inability to fulfill its undertakings when due (other than for the purpose of a merger (as such term is defined in Section 10.1.5 above) with another company and/or a restructuring of the Company or a split that are not prohibited under the terms of this Indenture, and other than arrangements between the Company and its shareholders which are not prohibited under the terms of this Indenture and which do not affect the Company’s ability to discharge the Debentures or – if a motion pursuant to Section 350 of the Companies Law be filed against the Company (without its consent) which had not been dismissed or removed within  45 days  from the filing date thereof.

 

		10.1.16.	
If a Majority of the Company’s Assets was Sold to Another, as such terms are defined below, and the prior written consent of the Trustee for such sale was not obtained, which shall be provided after receipt of the consent of the Debenture Holders; but except for a sale the consideration therefrom was used or is expected to be used by the Company (according to its notice) for the purchase of an asset or other assets having characteristics befitting the Company’s fields of activity, as being at the date of such sale.

 

For such purpose, a “Sale to Another” means a sale to any third party whatsoever (including the Company’s controlling shareholders and/or corporations controlled thereby) but except for corporations included in the Cellcom Group (as such term is defined in Section 10.1.11 above) and provided that in the event of a sale to corporations included in the Cellcom Group (as such term is defined in Section 10.1.11 above) the Company has declared toward the Debenture Holders, including through the Trustee, at least ten (10) Business Days prior to the date of the sale, that there is no reasonable concern that due to such sale the Company shall be unable to fulfill its undertakings toward the Debenture Holders.

 

22

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		10.1.17.	
If the net debt to EBITDA ratio, excluding one-time effects (the “Debt to EBITDA Ratio”) shall exceed 5.

 

For such purpose: “net debt” means credit from banks and others and loans from banks and others and liabilities for the Debentures excluding cash and cash equivalents and current investments in tradable securities; and “EBITDA” – shall mean, in respect of the 12 month period preceding the Company’s latest consolidated financial statements - as income before depreciation and amortization, other net expenses/revenues, net financing expenses/revenues and taxes.

 

Within three (3) Business Days of the date of publication of the Company’s financial statements, the Company shall provide the Trustee with a certification signed by the senior financial officer of the Company, in which it shall indicate the net Debt to EBITDA Ratio, based on such financial statements. The Trustee shall rely on the Company’s certification and shall not be required to further examine such matter.

 

		10.1.18.	
If the Company shall not comply with the Debt to EBITDA Ratio (as such term is defined in Section 10.1.17 above) which shall not exceed 4.5 during four consecutive quarters.

 

		10.1.19.	
If a merger was effected without receipt of the prior approval of the Debenture Holders, unless the Company or the surviving entity, as applicable, has declared toward the Debenture Holders, including through the Trustee, at least ten (10) Business Days prior to the merger date, that there is no reasonable concern that due to such merger the Company or the surviving company, as applicable, will be unable to fulfill its undertakings toward the Debenture Holders.

 

For the purpose of this Section 10.1.19:

“merger” within its meaning in the Companies law, other than a merger between companies included in the Cellcom Group, as such term is defined in Section 10.1.11 above, including the Company, whereas in such event no declaration of the Company or of the surviving company as aforesaid or a prior approval of the Debenture Holders as aforesaid be required.

 

		10.1.20.	
If the Company breached its Negative Pledge Undertaking as set forth in Section 6.1 above and has not cancelled the pledges registered under such breach, within 30 days of the date of receipt of a warning thereof by the Trustee.

 

23

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		10.1.21.	
There is a real concern that the Company shall not fulfill its material undertakings toward the Debenture Holders.

 

		10.1.22.	
A “going concern” note was recorded in the Company’s financial statements for a period of two consecutive quarters.

 

		10.1.23.	
If the Company issued additional Debentures through a series expansion while breaching its undertaking regarding series expansions set forth in Section 5.1 above.

 

		10.1.24.	
If the rating of the Debenture will be lower than the (BBB-) rating in accordance with the rating of the Standard & Poor's Maalot or below the parallel rating of another Rating Agency, for a period of 90 consecutive days.

 

In this Section 10.1, a “Majority of the Company’s Assets” means asset and/or assets the overall amount of which constitutes more than 50% of the overall amount of all of the assets as recorded in the consolidated report on the financial position according to the consolidated financial reports last issued by the Company prior to a relevant event as aforesaid.

 

		10.2.	
Without derogating from any right of the Trustee and/or of the Holders by virtue of the provisions of the Securities Law in respect of the acceleration of the Debentures, upon the occurrence of the events specified in Section 10.1 above, the following provisions shall apply:

 

		[a]	
The Trustee shall be entitled to convene a meeting of the Debenture Holders, on the agenda of which shall be a resolution to accelerate the balance of the Debentures in circulation, and it shall be obligated to do so at the demand of Holders of the Debentures.

 

The date of convening of such meeting shall be upon the expiration of twenty one (21) days of the date of its notice, however, the Trustee will be entitled, at its discretion, to shorten such period to a reasonable period in the circumstances of the matter, if the Trustee shall be of the opinion that holding of the meeting at such date shall prejudice the possibility of accelerating the Debenture. The Trustee shall not do so unless it first provided a prior notice to the Company in which it specified the reasons for shortening such notice period;

 

24

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		[b]	
The Holders’ resolution to accelerate the Debentures shall be adopted at the Holders’ meeting, in which Holders of at least fifty percent (50%) of the balance of the nominal value of the Debentures were present, by a majority of the Holders of the balance of the nominal value of the Debentures represented at the vote or by such majority at an adjourned Holders’ meeting in which Holders of at least twenty percent (20%) of such balance were present;

 

		[c]	
In the event that until the date of adoption of the resolution at a Holders’ meeting for the acceleration of the balance of the Debentures as aforesaid, any of the events specified in Section 10.1 above have not been cancelled or removed, and a Holders’ resolution was adopted as aforesaid, the Trustee will be obligated to accelerate all of the unpaid balance of the Debentures of the Relevant Series;

 

		[d]	
The Trustee or the Holders shall not accelerate the Debentures unless they first delivered a notice to the Company of their intention to do so; however the Trustee or the Holders are not obligated to provide the Company with such notice, if there is a reasonable concern that the provision of such notice shall prejudice the possibility to accelerate the indebtedness;

 

		[e]	
It is clarified, that upon the occurrence of any of the events and/or causes specified in Section 10.1 above and which include a grace period  or if another cause for acceleration of the Debentures was  established by law, which includes a reasonable period during which the Company is permitted to take an action or adopt a resolution which may result in the removal of such cause, the right of the Trustee and/or of the Holders to accelerate the Debentures as aforesaid in this Section 10, shall arise only if the grace period prescribed in such Sections or such law (as applicable) had lapsed, and the cause was not removed in the duration thereof. Notwithstanding, the Trustee may shorten the grace period as aforesaid if it believed that it may materially prejudice the rights of the Holders.

 

		[f]	
Notwithstanding the provisions of this Section 10, in the event that the Company requests the Trustee, in writing, to appoint an urgent representative body, the parties shall act in accordance with the provisions of Section 13 of the Terms and Conditions Overleaf to the First Schedule.

 

		10.3.	
It is hereby clarified that the Trustee’s duties according to this Section 10, are subject to the actual knowledge thereof of the occurrence of the facts, cases, circumstances and events specified therein, whether by virtue of public announcements released by the Company, notifications sent to the Trustee by the Company pursuant to the terms of this Indenture, or by virtue of information which otherwise has reached it in the context of its service as Trustee of the Debenture. This is not to derogate from the duties of the Trustee according to any law.

 

25

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		10.4.	
It is clarified, that nothing in the right of acceleration as stated above and/or acceleration of Debentures will derogate or harm any other relief available to Holders of Debentures pursuant to the terms of the Debenture and the provisions of this Indenture or under law.

 

	11.	
Claims and Proceedings by the Trustee

 

		11.1.	
In addition to any other provision in this Indenture, the Trustee shall be entitled, according to its discretion, and shall be obliged to do so, if so required by a Special Resolution adopted at a meeting of the Holders of Debentures, but subject to the provision of a prior notice of twenty-one (21) days to Company, to initiate any such proceedings, including legal proceedings and motions for instructions, as the Trustee shall deem fit, and subject to the provisions of any law, for the enforcement of the Company’s undertakings pursuant to this Indenture and for the exercise of the rights of the Debentures Holders under this Indenture. Notwithstanding the aforesaid at the beginning of this Section 11.1, regarding the obligation to provide prior notice to the Company, the Trustee will be entitled, at its discretion, to shorten the abovementioned period for a reasonable period of time under the circumstances, if in his opinion, there is a reasonable concern that a delay in legal proceedings during the above mentioned period may materially harm the rights of the Holders. The Trustee shall not do so unless it provides a prior notice to the Company detailing the reasons for shortening the prior notice, as above mentioned. Notwithstanding the provisions of this Section 11, it is clarified that the right of acceleration shall only be realized in accordance with the provisions of Section 10 above and the provisions of this Section 11 shall not apply.

 

		11.2.	
The Trustee may, prior to initiating proceedings as aforesaid, convene a meeting of the Debenture Holders pursuant to the provisions hereof, in order for such Holders to decide by way of a Special Resolution what proceedings to initiate in order to exercise their rights pursuant to this Indenture, provided that the meeting shall be convened at the first possible date pursuant to this Indenture, and the delay of the proceedings shall not risk the rights of the said Holders. Also, the Trustee will be entitled to reconvene meetings of Holders as aforesaid, for the purpose of receiving instructions in all matters pertaining to the conduct of such proceedings according to the aforesaid.

 

		11.3.	
Subject to the provisions of the Indenture, the Trustee is entitled, but not obliged, to convene, at any time, a general meeting of the Debenture Holders in order to discuss and/or receive the instructions thereof in respect of any matter concerning the Indenture.

 

26

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		11.4.	
The Trustee may, according to its sole discretion, delay the performance of any action thereby according to the Indenture, for the purpose of referring to a meeting of the Debenture Holders and/or the Court until it receives instructions from the meeting of the Debenture Holders and/or from the Court as to how to act, provided that the convening of the meeting or application to the Court shall be carried out at the first possible date pursuant to the terms of this Indenture. The convening of a meeting of Debenture Holders by the Trustee in order to receive instructions as to how to act, shall not be deemed a breach of its duty under Section 35H of the Securities Law, provided that the convening of the meeting in itself shall not materially prejudice the rights of the Holders.

 

		11.5.	
For avoidance of doubt it is hereby clarified that none of the provisions specified above may prejudice and/or derogate from the right of the Trustee, hereby conferred upon the Trustee, to apply, according to its sole discretion, to legal proceedings, even before the Debentures shall be accelerated, and thereafter, for the purpose of issuance of any order in respect of all matters regarding the trust.

 

		11.6.	
It is clarified, that the right to accelerate the Debentures shall arise only in accordance with and in the manner prescribed in Section 10 of the Indenture, and the provisions of this Section 11 shall not supplement such causes and rights of acceleration of the Debenture.

 

	12.	
Trust for the Proceeds

 

All of the proceeds held by the Trustee in connection with the Debentures, other than its fees, shall be held thereby in trust for the Holders of Debentures and shall serve in the hands thereof for the purposes and according to the order of priorities as follows:

 

First, for clearing expenses, payments, levies and liabilities expended by the Trustee, charged thereon, or incurred through or as a result of the actions of performing the trust or in another manner in connection with the terms of the Indenture, including the fee thereof, all in respect of the Debentures, and will use the balance, first - to pay sums under the “Indemnification Undertaking” as defined in Section 25 below; second - to pay the Debentures Holders the arrears in interest (including the arrears interest if any) due thereto according to the terms of the Debentures pari passu and pro rata to the amount of the arrears in interest, owing to each of them with no preference or right of priority in respect of any of them; third – for the  payment to the Debenture Holders of arrears interest for arrears of the principal due thereto according to the Debentures terms and conditions, pari passu and pro rata to the amount of principal in arrear due to each one of them, with no preference or preemptive right with respect to any of them; forth -  in order to pay the Debenture Holders the interest amounts yet to mature and to which they are entitled under the Debentures held thereby, pari passu and pro rata to the amounts due thereto, with no preference regarding priority in time of issuance of the Debentures by the Company or otherwise; fifth - In order to pay the Debenture Holders the amounts of the principal due to them pursuant to the Debentures, pari passu and pro rata to the amounts due to them, without any preference as to the time priority of the issuance of the Debentures by the Company or otherwise; sixth - in order to pay the Debenture Holders the amounts of the principal yet to mature and to which they are entitled under the Debentures held thereby, pari passu and pro rata to the amounts due thereto, with no preference regarding priority in time of issuance of the Debentures by the Company or otherwise. The excess, if any, shall be paid by the Trustee to the Company or its successors. Withholding tax shall be deducted from the payments to the Debenture Holders, to the extent that such withholding is mandated under any law.

 

27

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Payment of the amounts by the Trustee to the Debenture Holders shall be effected according to the provisions of law.

 

	13.	
Authority to Withhold Distribution of Funds

 

Notwithstanding the provisions of Section 12 above, should the monetary amount received as a result of the initiation of the proceedings specified in Section 11 above and which will be available for distribution at any time to the Debenture Holders as aforesaid, will be less than NIS 1 million (the “Minimal Amount”), the Trustee shall not be obligated to distribute such and will be entitled to invest the said amount, in whole or in part, in investments permitted under Section 18 below.

 

Once the aforesaid investments including the profits thereof, together with other funds which shall reach the Trustee for the payment thereof to the Debenture Holders, if any, shall amount to the Minimal Amount, or at the next date prescribed for effecting payment on account of the principal and/or interest under the Debentures (the earlier thereof), even if the amount accrued by the Trustee is less than the Minimal Amount, the Trustee shall be obligated to distribute said amount accrued thereby as aforesaid to the Debenture Holders. Notwithstanding the provisions of this Section above, the Debenture Holders may, pursuant to an ordinary resolution adopted thereby, instruct the Trustee to pay them the funds received by the Trustee and are available for distribution as stated in Section 12 above, even if the amount thereof is less than the Minimal Amount and even if the payment date of principal and/or interest under the terms of the Debentures has yet to arrive.

 

Nothing stated in this Section above shall derogate from the provisions of Section 12 above regarding the order to priorities of distribution of funds received by the Trustee and it shall be clarified, that payments which precede payment to the Holders in the order of priorities, as set forth in Section 12 above, shall be distributed and/or paid, as the case may be, immediately after receipt thereof, even if the amount accrued by the Trustee is lower than the Minimal Amount.

 

28

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	14.	
Notice of Distribution

 

		14.1.	
The Trustee shall notify the Holders of the date and place on and in which any payment of the payments stated in Sections 12 and 13 above shall be made, by an advance notice of fourteen (14) days which will be delivered in the manner prescribed in Section 26 below.

 

		14.2.	
After the date specified in the notice, the Holders will be entitled to interest according to the rate set forth in the Debenture, only for the balance of the principal (if any) after deduction of the amount paid, or proposed to be paid to them, as aforesaid.

 

	15.	
Refrainment from Payment for a Reason which is Beyond the Company's Control

 

		15.1.	
Any sum payable to a Debenture Holder and which was not actually paid on the due date for the payment thereof for a reason beyond the Company’s control, even though the Company was ready and able to pay the sum in full (the “Impediment”), shall cease to bear interest from the date it has been transferred to the Trustee and the said Holder shall be entitled only to those sums to which he was entitled on the maturity date of that payment on account of the principal and/or interest (as applicable).

 

		15.2.	
If such sum as aforesaid has not been paid within fourteen (14) days of the due date for the payment thereof, then on the first Business Day after the due date for payment of such sum, the Company shall remit such sum to the Trustee, who shall hold the sum in trust for the Debenture Holder, and the transfer of the sum to the Trustee as aforesaid shall be deemed payment of such sum to such Holder. If the aforesaid sum is the last payment – the deposit of said sum in trust in the hands of the Trustee shall be deemed a redemption of the aforesaid Debentures. The Trustee shall deposit any sum held thereby in trust for Holders in the bank in investments permitted under the Indenture. After receiving from the Holder a notice of the removal of the Impediment, the Trustee shall remit to the Holder the funds accrued on the deposit and which resulted from the liquidation of the investment of the same, net of all of the expenses and management fees of the escrow account and net of any tax under law and his fees. The payment shall be made against the presentation of such evidence as shall be acceptable to the Trustee concerning the Holder’s right to receive the same.

 

29

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		15.3.	
Upon the expiration of one year after the final date for discharge of the Series L Debentures, the Trustee shall remit the sums accrued in its hands to the Company, net of expenses incurred pursuant to the terms of this Indenture, and his fees and the Company shall hold the same in trust and invest the same as provided in Section 15.2 above, for the Holder until the expiration of three (3) years after the date of the final discharge of the Debentures, and it shall make no use of the same during such period. With respect to the sums that shall be remitted to the Company by the Trustee as aforesaid, they shall be subject to the provisions of this Section 15, mutatis mutandis. After remitting the sums to the Company, the Trustee shall not owe to the Holders of Debentures any payment in respect of the sums held thereby as aforesaid.

 

		15.4.	
The Company shall confirm to the Trustee in writing that such sums were remitted thereto and the receipt of the same in trust for the Debenture Holders as aforesaid, and it shall undertake to indemnify the Trustee for any damage of any kind that the Trustee shall suffer for the remittance of the funds as aforesaid, provided that it acted in a reasonable manner and not in bad faith and/or malice and/or negligence. Funds as aforesaid which shall not be demanded from the Company by the Debenture Holder as aforesaid upon the expiration of seven (7) years after the final discharge date of the Debentures, shall become the Company’s property and it shall be entitled to use the remaining funds for any purpose whatsoever. It is clarified, that the foregoing shall not derogate from the rights of the Debenture Holders under the law.

 

	16.	
Receipt from the Debenture Holders

 

		16.1.	
A receipt from a Holder or evidence from the transferring bank regarding the execution of the transfer or the execution of the transfer via the TASE Clearinghouse for the amounts of principal and/or the interest (as applicable) paid to such Holder by the Trustee and/or the Company for the Debentures, shall release the Trustee and/or the Company (as the case may be) entirely in respect of anything related to the payment of the amounts stated therein.

 

		16.2.	
A receipt from the Trustee concerning the deposit of the amounts of principal and interest (as applicable therewith in favor of the Debenture Holder shall be deemed a receipt from the Debenture Holder.

 

		16.3.	
The funds distributed as provided in Section 15 above shall be deemed as made on account of the discharge of the Debentures.

 

		16.4.	
The Trustee shall be entitled to demand that a Debenture Holder present to it, upon payment on account of the principal and interest (as applicable), the Debenture Certificate for which the payments are made, or in the alternative, any other formal document signed by the Transfer Agent and/or a TASE member, attesting to the holding of the Debentures by him.

 

30

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	17.	
Application of the Securities Law

 

In any matter not mentioned herein as well as in any case of conflict between the mandatory provisions of the Securities Law regarding the Debentures and this Indenture, the parties shall act in accordance with the provisions of the Securities Law, with no necessity to amend the provisions of this Indenture.

 

	18.	
Investment of Funds

 

All of the funds which the Trustee may invest according to this Indenture shall be invested thereby solely in bank deposits with one of the five large banks in Israel whose rating is not less than AA rating or in governmental bonds, all subject to the terms of the Indenture and to the provisions of any law. If the Trustee invested funds as aforesaid, then in respect of such amounts, the Trustee shall owe the entitled parties only the consideration received from the realization of the investments, net of its fee and expenses, the commissions and expenses related to the investment as aforesaid and the management of the trust accounts, and net of the mandatory payments which apply to the trust accounts, and the Trustee shall act with respect to the balance of the funds in accordance with the provisions of the Indenture, as applicable.

 

	19.	
The Company’s Undertakings vis-à-vis the Trustee

 

The Company assumes, vis-à-vis the Trustee, the following undertakings, for as long as the Debentures have not yet been fully paid-up:

 

		19.1.	
To continue managing the Company’s businesses in an orderly and proper manner.

 

		19.2.	
To keep and maintain its assets (as being from time to time) in good and functioning condition.

 

		19.3.	
To provide and instruct its accountants to provide the Trustee and accountants, attorneys or other consultants on its behalf any information that shall be reasonably required for protecting the Holders with respect of all of the data related to the Company’s business or assets (subject to the provisions of any law and to their execution of an undertaking of confidentiality in favor of the Company as specified below). Without derogating from the generality of the foregoing, the Company shall deliver to the Trustee documents held solely by the Company within 5 Business Days of the date of the Trustee’s request. Such documents shall be delivered to consultants on behalf of the Trustee only after the Company shall have received a confidentiality undertaking signed by such consultants.

 

		19.4.	
To keep regular account books in accordance with acceptable accounting principles and to keep the books, including the documents serving as evidence thereof, at its offices, as required under law.

 

31

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		19.5.	
To allow the Trustee to attend the general meetings of the Company’s shareholders (without a right to participate or to vote).

 

		19.6.	
To deliver to the Trustee the reports and notices as specified in Section 31 below.

 

		19.7.	
To provide to the Trustee, at its request, an affidavit and/or statements and/or details and/or information, as required by the Trustee pursuant to its sole discretion, for the purpose of implementing and exercising the authorities, powers and authorizations of the Trustee and/or its representatives under the Indenture, provided that they are reasonable. Without derogating from the generality of the foregoing, the Company shall deliver to the Trustee documents held solely by the Company within 5 Business Days of the date of the Trustee’s request. Such documents shall be delivered to consultants on behalf of the Trustee only after the Company shall receive a confidentiality undertaking signed by such consultants.

 

		19.8.	
To promptly report by way of an immediate report, in the Trustee’s name, any report in such language as shall be delivered thereto in writing by the Trustee with respect to the Debentures and/or the trust thereof according to this Indenture, to the extent so requested by the Trustee.

 

		19.9.	
To provide the Trustee a copy of any document and all information that the Company provides to the Holders of Debentures, if provided.

 

		19.10.	
To inform the Trustee in writing of all changes in its name or address.

 

The Trustee hereby undertakes to maintain under confidentiality, and to obligate any person acting on its behalf to maintain under confidentiality, any information that it shall receive from the Company as aforesaid and that it shall receive under any law as in effect from time to time, and not to use such information unless its disclosure or use is required for the purpose of fulfilling the Trustee’s duty under the Securities Law, this Indenture or a court order, provided that such disclosure shall be limited to the minimal degree and scope required in order to comply with the requirements of the law and that the Trustee shall coordinate with the Company in advance, to the extent possible and permissible, the content and time of disclosure, in a manner affording the Company reasonable time to apply to legal proceedings to the extent necessary for the purpose of preventing such disclosure of information.

 

	20.	
Additional Undertakings

 

After and insofar as Debentures shall be accelerated, as set forth in Section 10 above, the Company shall perform from time to time and at any time that it shall be required to do so by the Trustee, all of the reasonable actions in order to allow the exercise of all of the authorities vested in the Trustee, and in particular, the Company shall take the following actions:

 

		20.1.	
It shall transfer and remit to the Trustee the consideration for the Debentures due, according to the terms thereof. In the event that the Company has remitted the full amount of the principal and/or interest pursuant to this Section, the Company shall be deemed to have fully fulfilled its undertakings toward the Debenture Holders in relation to the relevant payment of the principal and/or interest.

 

32

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		20.2.	
It shall deliver statements and/or shall execute all of the documents and/or shall take and/or cause the taking of all of the actions necessary or required under the law for validating the exercise of the authorities, powers and authorizations of the Trustee and/or its representatives.

 

		20.3.	
It shall provide all of the notices, orders and instructions that the Trustee shall deem useful and shall demand.

 

	21.	
Other Agreements

 

Subject to the provisions of the law, neither the fulfillment of the Trustee’s duties hereunder, nor its mere status as a trustee, shall prevent the Trustee from engaging with the Company in various contracts or from performing transactions therewith in its ordinary course of business, provided that such engagement with the Company shall not prejudice the rights of the Holders of the Debentures, and provided further that such engagement shall not place the Trustee in a conflict of interests toward the Holders of the Debentures.

 

	22.	
Trustee’s Fees

 

The Company shall pay to the Trustee a fee for its services as a trustee for the Debentures under the Indenture, as follows:

 

		22.1.	
For the first year of trust, immediately after the issuance of the Debentures, the Trustee shall be paid an annual fee of NIS 28,000, and for each additional year during which the Trustee shall act as a trustee for the Debentures (and for as long as the Debentures which are yet to be paid-up, are in circulation), the sum of NIS 24,000 (all linked to the Consumer Price Index known on the  execution date of this Indenture but in any event shall be no less than the sum prescribed above). Such fee shall be paid at the beginning of each year of trust. In the event that collateral shall be provided in favor of the Holders of the Debentures in accordance with the Indenture, the parties shall negotiate an update of the fee. No payment shall be charged for the expansion of a Debenture Series.

 

		22.2.	
For the Trustee’s presence at meetings of the Company’s shareholders, the Trustee shall be paid an additional fee of NIS 1,000 per meeting (linked to the Consumer Price Index as aforesaid).

 

33

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		22.3.	
If the Trustee’s term expired with respect to the Series L Debentures as provided in the Indenture and/or if it ended in accordance with the terms of the Debentures, the Trustee shall not be entitled to payment of a fee for the period commencing on the date on which a substitute trustee has commenced its service and any overpayment made to the Trustee for such period shall be reimbursed thereby to the Company.

 

		22.4.	
For special actions and special works performed by the Trustee, beyond the regular activity of the Trustee, such as the performance of an action resulting from a breach of the Indenture by the Company and/or due to the need to take actions due to the non-fulfillment by the Company of its undertakings toward the Debenture Holders and/or for an acceleration of the Debentures, and including the participation in various meetings (such as meetings with the Securities Authority), the Company shall pay the Trustee a fee according to the hours actually invested thereby, in the sum of NIS 550.

 

		22.5.	
VAT as prescribed by law shall be added to all of the aforesaid sums payable to the Trustee and they shall be linked to the index published on December 15, 2017, but shall not be less than the nominal amount prescribed above.

 

		22.6.	
For actions performed by the Trustee prior to the execution of this Indenture, the Company shall pay the Trustee a one-time amount in the sum of 7,500 NIS plus VAT.

 

Without derogating from the foregoing, in the event of the appointment of a Trustee in substitution of a Trustee whose service had ended pursuant to the provisions of this Indenture and/or the provisions of the law, the Debenture Holders shall bear the difference by which the fee of the appointed Trustee surpassed the fee paid under this Section 22 above to the Trustee whose service had ended as aforesaid, if any, and to the extent that such difference is unreasonable.

 

	23.	
Special Authorities

 

		23.1.	
The Trustee shall be entitled to deposit all of the notes and documents that attest to, represent and/or determine its right with respect to any asset found at that time in its hands, in a safe and/or any other place of its choice, with any banker and/or banking company and/or attorney.

 

		23.2.	
In the framework of performing the matters of the trust hereunder and subject to the provisions of any law and the Indenture, the Trustee may commission the opinion and/or advice of any expert, including any lawyer, accountant, assessor, appraiser, surveyor, broker or other expert, and act in accordance with the conclusions thereof, whether such opinion and/or advice were prepared at the request of the Trustee and/or of the Company, and the Trustee shall not be liable for any loss or damage suffered as a result of any act and/or omission committed thereby in reliance on such advice or opinion as aforesaid, unless it was determined in a final and conclusive judgment that the Trustee acted with malice or bad faith or negligence (in respect of which the Trustee is not exempted). The Trustee shall make available to the Company, at its request, a copy of any opinion or advice as aforesaid, provided that it shall not prejudice the rights of the Holders.

 

34

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		23.3.	
Subject to the provisions below, the Company shall bear the entire cost of engaging such consultants, provided that, to the extent that the terms below shall not prejudice the rights of the Debenture Holders, the Trustee shall deliver to the Company, reasonable time in advance, a notice of its intention to receive an expert opinion or advice as aforesaid, together with a specification of the representative’s fees and the purpose of appointment thereof, and that such opinion or advice shall be not provided by a person found in a conflict of interests and/or competition with the Company’s business (including material held companies of the Company). At the Company’s request, and to the extent that it will not prejudice the rights of the Debenture Holders, the Trustee shall examine and present to the Company, prior to such engagement, a reasonable number of alternatives for such engagement. The Company shall choose one of such offers, and shall be entitled to negotiate the offer with such experts. The aggregate sums to be borne by the Company for the foregoing shall not exceed a reasonable and acceptable amount in the circumstances of the matter.

 

		23.4.	
Any advice and/or opinion as aforesaid may be provided, sent or received by letter, telegram, fax and/or any other electronic medium for the transfer of information in writing.

 

		23.5.	
Subject to the provisions hereof, the Trustee may, but is not obligated to, convene at any time, if deemed necessary thereby, a general meeting of Holders of Debentures, in order to discuss and/or receive its instructions in any matter concerning this Indenture and it may reconvene the same.

 

		23.6.	
The Trustee shall not be required to notify any party of the execution of this Indenture and it may not intervene in any manner whatsoever in the management of the Company’s business or affairs, other than in accordance with the authorities granted thereto herein. Nothing in this Section shall limit the Trustee in any action that it is obligated to perform in accordance with the provisions of this Indenture.

 

		23.7.	
The Trustee shall faithfully exercise the powers, authorizations and authorities granted thereto hereunder at its absolute discretion, in a reasonable manner and in accordance with the provisions of any law.

 

35

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	24.	
Trustee’s Authority to Engage Proxies

 

The Trustee may, in the framework of managing the business of the trust under this Indenture, appoint a proxy, or proxies, to act in its place, whether an attorney or another person, in order to take or participate in taking special actions that are required in connection with the trust, and without derogating from the generality of the aforesaid, institute legal proceedings, provided that the Trustee gave notice to the Company of the appointment of a proxy as aforesaid and such representative shall have assumed a confidentiality undertaking toward the Company as set forth in Section 19 hereof. The Trustee may also pay, at the Company’s expense, the reasonable fees of any such representative for proceedings for the purpose of or after the acceleration of the Debentures, and the Company shall reimburse the Trustee, immediately at its first demand, for such expenses, provided that the Trustee acted in accordance with Section 23.3 above, mutatis mutandis, in connection with the appointment of such representatives. The appointment of a representative as aforesaid shall not release the Trustee from any liability that would have applied thereto if not for said appointment and/or derogate from the Trustee’s liability for its actions and the actions of its representatives. The Company may object to the appointment of a certain proxy as aforesaid on any reasonable ground, including if the proxy is a competitor or is found in a conflict of interests, whether directly or indirectly, with the Company’s businesses.

 

	25.	
Indemnification of the Trustee

 

		25.1.	
The Trustee and all of its officers, employees,  proxies or experts appointed and/or shall be appointed thereby pursuant to the provisions hereof (the “Indemnitees”) shall be entitled to receive indemnification from the Debenture Holders and/or the Company, as the case may be, for reasonable expenses that they incurred and/or shall incur and for a monetary charge under a final and conclusive judgment (in respect of which a stay of execution order was not issued) or pursuant to a settlement that has been concluded (and to the extent that the settlement pertains to the Company and/or to payments that it is to bear, subject to the Company’s consent), all - in connection with actions concerning the Debentures which they took or are to take by virtue of their duties under the terms hereof and/or under law and/or under any instruction of a competent authority and/or under any statute and/or at the demand of the Debenture Holders and/or at the demand of the Company, as specified in this Section below. Nothing in this Section 25 shall derogate from the provisions of Sections 23.2 and 24 regarding the Trustee’s mode of action in connection with the engagement of consultants and representatives thereby.

 

36

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		25.2.	
Notwithstanding the aforesaid:

 

		[a]	
The Indemnitees shall not be entitled to demand indemnification in advance in respect of an urgent matter (without derogating from their right to retroactive indemnification for such matter, if and insofar as such right is afforded thereto).

 

		[b]	
The Indemnitees shall be entitled to indemnification for liability in torts in case that they shall be charged with such liability under a final and conclusive judgment or a concluded settlement vis-à-vis a third party, who is not one of the Debenture Holders, provided that they did not act in negligence and/or bad faith and/or malice.

 

		25.3.	
The aforesaid right of indemnification is subject to the following conditions:

 

		[a]	
The expenses are reasonable.

 

		[b]	
The Indemnitees acted in good faith and such action was taken in the framework of the performance of their duties, according to the provisions of the law and this Indenture.

 

		[c]	
If determined in a final and conclusive judicial decision that the Indemnities acted in negligence and/or bad faith and/or malice and/or acted in negligence that is not exempted under any law or this Indenture, the Indemnitees shall repay the Indemnification Undertaking amounts paid thereto (together with linkage differentials).

 

		25.4.	
Without derogating from the rights of compensation and indemnification under the law and/or the commitments of the Company and the Debenture Holders hereunder, the Indemnitees shall be entitled to receive out of the funds received by the Trustee from the proceedings instituted thereby and/or otherwise under the Indenture, indemnification with respect to the undertakings assumed by them, with respect to expenses incurred by them in the course of performing the trust or in connection with such actions, which at the Trustee’s opinion were required for the performance of the same and/or with respect to the exercise of authorities and authorizations granted by virtue of the Indenture as well as with respect to all kinds of legal proceedings, opinions and consultation with attorneys and other experts, negotiations, exchange, expenses, claims and demands with respect to any matter and/or issue which were done and/or not done in any matter, and all with respect to the Debentures, and the Trustee may withhold the funds held thereby and pay therefrom the sums required for the payment of the indemnification as aforesaid. All of said sums shall have preference over the rights of the Debenture Holders, subject to the provisions of any law, provided that the Trustee acted in good faith and without negligence and in accordance with the duties imposed thereon under any law and hereunder.

 

37

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		25.5.	
Whenever the Trustee shall be required under the terms of the Indenture and/or under the law and/or an instruction by a competent authority and/or any statute and/or at the demand of the Debenture Holders and/or at the demand of the Company, to take any action with respect to the Debentures, including, without limitation, instituting proceedings or filing claims at the request of the Debenture Holders, as provided in the Indenture, the Trustee may refrain from taking any such action until it receives to its satisfaction a letter of indemnification from the Company and/or from all or any of the Debenture Holders with respect to expenses and/or damage that may be suffered thereby and/or by the Indemnitees and/or by the Company (as the case may be) due to taking such action as aforesaid, for any liability for damage and/or expenses that may be suffered by any of them, due to taking such action. It is clarified that the aforesaid does not exempt the Trustee from taking an urgent action which is required in order to prevent a material breach of the rights of the Debenture Holders.

 

		25.6.	
Notwithstanding the aforesaid in this Section 25, whenever the Trustee deems fit, for the purpose of protecting and/or exercising the rights of the Debenture Holders and/or whenever it shall be obligated, according to the terms of the Indenture and/or under law and/or an instruction of a competent authority and/or any statute and/or at the demand of the Company and/or the Debenture Holders, to institute legal proceedings, the Company shall deposit in the Trustee’s hands a sum that shall be reasonably determined by the Trustee as the expected sum of expenses of the Trustee and/or the Indemnitees in connection with such proceedings (the “Financing Cushion”). In case that the Company does not deposit the Financing Cushion on the date that it was requested to do so by the Trustee, and in the Trustee’s opinion there shall be doubt as to the Company’s ability to cover the expenses involved in instituting proceedings by the Trustee and/or by the Indemnitees, the Trustee shall immediately convene a meeting of the Holders of Debentures with a request that they shall deposit in its hands the amount of the Financing Cushion, each in accordance with its Pro Rata Portion (as such term is defined below) for covering the expenses involved in the proceedings which the Trustee intend to institute, and provided that the Indemnitees, take all the necessary actions in order to collect the aforesaid amounts from the Company. In the event that the Debenture Holders refuse to bear the expenses involved in instituting the proceedings by the Trustee, the Trustee shall be under no obligation to institute proceedings as aforesaid. It shall hereby be clarified, that the Debenture Holders’ consent as aforesaid shall not release the Company from its undertakings to bear and cover all of the reasonable expenses involved in instituting said proceedings, to the extent that such undertakings apply thereto under any law and this Indenture. In addition, all of the funds that shall be received from enforcement proceedings shall also be used for reimbursement and covering of expenses which the Debenture Holders undertook to bear as aforesaid. It is clarified that the foregoing does not exempt the Trustee from taking an urgent action required for preventing a material breach of rights of the Debenture Holders.

 

38

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

The Trustee is authorized to determine the amount of the Financing Cushion and shall be entitled to repeatedly act to create an additional Financing Cushion as aforesaid, from time to time, all subject to the provisions of this Section 25. To the extent that regulations under Section 35E1 of the Securities Law shall enter into effect (and apply to the Company) in respect of depositing a deposit by the Company in favor of the Debenture Holders, such deposit shall serve in lieu of the Financing Cushion, and the provisions of this Section shall apply to such deposit, mutatis mutandis, subject to the provisions of any law.

 

For the purpose of this Section 25, its “Pro Rata Portion” means: the pro rata portion of Debentures held by the Holder on the relevant effective date out of the aggregate nominal value in circulation at such date. It is clarified that the calculation of the Pro Rata Portion shall remain unchanged, even if after such date, the nominal value of the Debentures held by the Holder shall have changed.

 

The indemnification undertakings under this Section 25 shall be referred to as the “Indemnification Undertaking”.

 

		25.7.	
The ‘Indemnification Undertaking’:

 

		[a]	
Shall apply to the Company in any case of (1) actions that were taken and/or required to be taken according to the terms hereof or in order to protect the rights of the Debenture Holders (including due to a Holder’s demand which is required for such protection); and (2) actions that were taken and/or required to be taken at the Company’s demand.

 

		[b]	
Shall apply to the Holders who held the Debentures on the effective date (as defined below) in any case of (1) actions that were taken and/or required to be taken at the demand of the Debenture Holders (except for such actions that were taken at demand of the Debenture Holders in order to protect the rights of the Debenture Holders); and (2) the Company’s failure to pay the sum of the ‘Indemnification Undertaking’ that applies thereto under subsection [a] above (subject to the provisions of Section 25.9 below).

 

39

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

For the purpose of such matter, the effective date for determining the liability of a Holder for the ‘Indemnification Undertaking’ is as follows: (1) in any event in which the ‘Indemnification Undertaking’ is required due to an urgent resolution or action which is necessary in order to prevent a material adverse impairment of the rights of the Debenture Holders, without a prior resolution of the meeting of the Debenture Holders – the effective date for the liability shall be the closing of the Trading Day on the day on which the action is taken or the resolution is adopted (the earlier thereof) and if that day is not a Trading Day, the preceding Trading Day; (2) in any event in which the ‘Indemnification Undertaking’ is required according to a resolution of the meeting Debenture Holders – the effective date for the liability shall be the date stated in the proof of ownership (as specified in Section 8 of the Second Schedule hereto) and it shall also apply to a Holder who did not attend or participate in the meeting.

 

		25.8.	
In any event where: (a) the Company fails to pay the amounts required to cover the Indemnification Undertaking and/or fails to deposit the amount of the Financing Cushion, as the case may be; and/or (b) the Indemnification Undertaking applies to the Holders under the provisions of Section 25.7[b] above and/or the Holders were called to deposit the amount of the Financing Cushion under Section 25.6 above and they have failed to deposit said amount in full, the following provisions shall apply:

 

		25.8.1.	
First – the amount shall be financed out of the sums of interest and/or principal that the Company is to pay the Debenture Holders after the date of the required action, and the provisions of Section 12 of the Indenture shall apply.

 

		25.8.2.	
Second – if the Trustee believes that the amounts deposited under the Financing Cushion shall not suffice to cover the Indemnification Undertaking, the Holders holding on the effective date (as defined in Section 25.7 above) shall deposit in the hands of the Trustee, each in accordance with its Pro Rata Portion (as such term is defined in Section 25.6 above) the missing amount. The sum to be deposited by each Holder shall bear an annual interest at a rate equal to the interest determined for the Debentures and shall be paid by the Company in priority as set forth in Section 12 of the Indenture.

 

		25.9.	
The payment by the Holders in the Company’s stead of any sum imposed on the Company pursuant to this Section 25 shall not release the Company from its obligation to bear the said payment and the Trustee shall act reasonably to obtain the amounts from the Company, as specified in this section above.

 

		25.10.	
It is clarified, that the Company and/or the Debenture Holders shall not be required to pay under this Section 25 any funds actually paid to the Trustee and/or any of the Indemnitee, in any manner whatsoever, in the framework of insurance purchased by the Trustee and/or the Indemnitees. For the avoidance of doubt it shall be clarified, that the indemnification amount hereunder shall apply over and above (and in addition to) an amount paid in the framework of such insurance.

 

40

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	26.	
Reports and Notices

 

		26.1.	
The Trustee shall be required to submit a report regarding the actions performed by it, in accordance with the provisions of Section 35H1 of the Securities Law.

 

		26.2.	
The Trustee shall prepare an annual report on trust matters (the “Annual Report”), by June 30 of each year, for the previous calendar year. The Annual Report will include, inter alia, details of the following issues: (1) current details of the course of the trust’s affairs in the past year; (2) a report of exceptional events in connection with the trust, that occurred during the past year; The Trustee shall publish (in person or through the Company at the request of the Trustee) the Annual Report in the MAGNA system. In the event that the Trustee is informed of a material breach of this Indenture and/or of the terms and conditions of the Series L Debentures on the part of the Company, by virtue of public publications of the Company or by virtue of the Company's notice to the Trustee pursuant to Section 31 below, it shall notify the Series L Debenture Holders of the breach and the steps taken to prevent it or to enforce the fulfillment of the Company's undertakings to the Company, as the case may be. Such obligation shall not apply if it is an event that was published by the Company according to the law. This obligation of the Trustee is subject to its actual knowledge of the said breach.

 

		26.3.	
As of the signing date of this Indenture, the Trustee represents that it is insured under professional liability insurance in the amount of $ 10 million for the period (the “Coverage Amount”). If before the full repayment of the Series L Debentures, the Coverage Amount is reduced from $ 8 million for any reason, the Trustee will update the Company no later than 7 business days from the date on which the abovementioned reduction was known from the Insurer in order to publish an immediate report on the subject. The provisions of this section shall apply until the coming into force of the Securities Law Regulations, which will regulate the duty of insurance coverage of the Trustee. After the said regulations come into effect, the Trustee will be required to update the Company only in the event that the Trustee fails to comply with the requirements of the Regulations, and this for the purpose of immediate reporting on the matter.

 

		26.4.	
Any notice on behalf of the Company and/or Trustee to the Debenture Holders shall be provided by way of an immediate report on the MAGNA system only, and in the following cases only, including as required under any law, the Company shall also publish an announcement in two (2) newspapers of broad circulation, which are published in Israel in Hebrew: (a) an arrangement or settlement pursuant to Section 350 of the Companies Law; (b) a merger; provided that a newspaper publication is required under law. Any notice that was provided as aforesaid shall be deemed to have been delivered to the Debenture Holders at the date of publication on the MAGNA system or newspaper, as applicable and according to the earlier thereof.

 

41

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		26.5.	
Any notice or demand on behalf of the Trustee to the Company or on behalf of the Company to the Trustee may be given by way of a letter that shall be sent by registered mail or by courier (according to the address specified in the Indenture or according to a different address of which a party shall give a written notice to the other), or – by transmitting it by fax or by e-mail. Any notice or demand that shall be sent by registered mail shall be deemed to have been received by the other party three (3) Business Days after postal dispatch thereof. Any notice or demand that shall be sent by courier shall be deemed to have been received by the other party upon its delivery by the courier to the addressee or upon the tender thereof to the addressee, as the case may be. Any notice or demand that shall be sent by fax or e-mail (in addition to telephone confirmation of receipt thereof) shall be deemed to have been received by the other party one Business Day after the transmission thereof.

 

		26.6.	
Copies of notices that shall be provided by the Company to the Debenture Holders shall be sent by the Company also to the Trustee (and for such purpose – the issuance of an immediate report by the Company on the MAGNA system shall also be deemed a dispatch of a copy of such notice to the Trustee), and copies of notices that shall be provided by the Trustee to the Debenture Holders shall be sent by the Trustee also to the Company.

 

		26.7.	
To the extent that the Trustee wishes to deliver a report or notice via the MAGNA system, the Trustee shall update the Company in advance prior to any report or notice filed thereby pursuant to the provisions of the Securities Law and its regulations and the provisions of this Section 26.

 

		26.8.	
As long as no other written notice was provided by the Trustee to the Company, the Trustee’s contact person in connection with this Indenture is Ori Lazar, e-mail: ori@slcpa.co.il.

 

42

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	27.	
Waivers, Compromises and/or Changes in the Indenture

 

		27.1.	
Subject to the provisions of any law, the Company and the Trustee may, whether before or after the principal of the Debentures is due, change the Indenture and/or the terms of the Debentures, if one of the following applies:

 

		[a]	
If the Trustee was convinced that the change does not prejudice the Holders of the Debentures. The provisions of this sub-section shall not apply to changes in payment terms under the Debentures (including the amount of principal of the Debentures, payment dates, the interest rate, including changes in the interest rate deriving from changes in ranking), in causes for acceleration, the Company’s undertakings to comply with the financial covenants, restrictions on distribution, restrictions on a series expansion, reports that the Company is obligated to provide to the Trustee, and in respect of a change of the Trustee’s identity or its fees under the Indenture, for the purpose of appointing a Trustee in substitution of a Trustee whose service has ended.

 

		[b]	
Holders of Debentures have agreed to the change in a resolution adopted at a meeting of the Holders of Debentures, in which Holders of at least fifty percent (50%) of the balance of the nominal value of the Debentures in circulation were present, or an adjourned meeting of such meeting, in which Holders of at least twenty percent (20%) of such balance were present, by a majority of Holders of at least two thirds of the balance of the nominal value of Debentures represented at the vote.

 

		27.2.	
In addition to the provisions of sub-section 27.1 above and subject to the provisions of any law:

 

		[a]	
Other than in respect of the matters specified in Section 27.1[a] above, the Trustee may, from time to time and at any time, if it does not prejudice the rights of the Holders of the Debentures, waive any breach or non-performance of any of the terms of the Indenture by the Company.

 

		[b]	
The Trustee shall be entitled, with a prior approval that shall be provided by a meeting of Holders of Debentures in the manner set forth in Section 27.1[b] above, settle with the Company with respect to any of their rights or claims, and to waive any of their rights or claims vis-à-vis the Company pursuant to the Indenture and the Debentures. If the Trustee settled with the Company after it received a prior approval of the Debenture Holders as aforesaid, the Trustee shall be exempt from any liability for this action, provided it did not act in malice, bad faith or negligence or in contradiction of the provisions hereof.

 

		27.3.	
The Company and/or Trustee shall deliver to the Debenture Holders a notice of any change and/or waiver as aforesaid in sub-sections 27.1[a] or 27.2[a] above, promptly after the execution thereof.

 

		27.4.	
In any case of exercise of the Trustee’s right under this Section above with respect to the Debentures, the Trustee may demand the Debenture Holders to deliver to it or to the Company the Debenture Certificates, for the purpose of registering a note concerning any waiver, settlement, change or amendment as aforesaid, and at the Trustee’s demand the Company shall register such a note on the Debenture Certificates delivered thereto.

 

43

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		27.5.	
In addition to the aforesaid, the terms of the Debentures may be changed in the framework of an arrangement or settlement that was approved by the Court, pursuant to Section 350 and the provisions of the Third Chapter of Part Nine of the Companies Law.

 

		27.6.	
To the extent that for the purpose of exchanging Debentures for debentures of another traded company, in the framework of a merger, split, re-organization of the Company or an exchange tender offer, the approval of the Debenture Holders shall be required under law, such approval shall be rendered by way of the adoption of a Special Resolution of the Debenture Holders, or in another manner permitted under law on the relevant date.

 

	28.	
The Debenture Holders’ Register

 

The Company shall keep, at is registered office, the Register (as defined in Section 1.7 of the Indenture) which shall be open to the inspection of any person (during reasonable activity hours and upon prior coordination) in which all of the registered Holders of the Debentures, as being from time to time, shall be registered, as well as additional details, as set forth in Section 35H3 of the Securities Law. In addition, the Register shall record other Holders, insofar as such Holders shall exist due to a split or a transfer of ownership of the Debentures, in the event that actions are taken in accordance with Section 6 of the Terms and Conditions Overleaf. The Company may close the Register from time to time for a period or periods of time that shall not exceed thirty (30) cumulative days per year.

 

The Company shall not be required to record in the Register any notice concerning a pledge or charge of any kind or any right in equity, claim or setoff or any other right with respect to the Debentures. The Company shall only acknowledge the ownership of the person in whose name the Debentures were registered. The legal heirs, administrators or executors of said Holder and any person who shall be entitled to the Debentures due to the bankruptcy of any registered Holder (and if it is a corporation – due to its dissolution) shall be entitled to be registered as the Holders thereof after providing evidence which in the Company’s opinion shall suffice to prove their right to be registered as Holders thereof. The foregoing shall not derogate from the provisions of Section 35H3(b) of the Securities Law regarding the registration of a holder of debentures in trust.

 

44

	29.	
Appointment of a New Trustee and Expiry of the Trustee’s Office

 

		29.1.	
The Trustee’s office shall terminate in the cases specified in Section 35N of the Securities Law and according to the terms thereof as well as in any event of a prevention under any other statute (including under the directives of the Israel Securities Authority), applying to its office as Trustee for the Debentures.

 

		29.2.	
In case of termination or expiry of the Trustee’s office as aforesaid, the Company shall act to appoint a new trustee which shall be a trust company of one of the six (6) large banks in Israel, or any other trustee that is a company registered in Israel, that is engaged in trusts, meets the qualification requirements prescribed by the Securities Law, and is approved at the meeting of the Debenture Holders by a simple majority pursuant to the provisions of Section 35N of the Securities Law.

 

		29.3.	
Notwithstanding the provisions of this Section above, a resolution of Holders regarding the termination of office of the Trustee and its replacement by another, shall be carried out in a meeting in which at least two Holders holding at least fifty percent (50%) of the balance of the nominal value of the Debentures are present, or an adjourned meeting in which at least two Holders holding at least ten percent (10%) of such balance are present, and by such majority at the vote as required for a Special Resolution.

 

		29.4.	
The Trustee shall hand-over to the new trustee all of the documents and sums accrued therewith in connection with the trust bound by this Indenture, and shall execute any document required therefor. Any new Trustee shall have the same powers, obligations and authorities and it shall be able to act for all intents and purposes as if it had been initially appointed as Trustee.

 

		29.5.	
The Company shall issue an immediate report in any event of the Trustee’s resignation and/or appointment of another Trustee in its place.

 

	30.	
Holders’ Meetings

 

The meetings of the Holders shall be conducted as provided in the Second Schedule hereto.

 

	31.	
Reporting to the Trustee

 

The Company shall deliver to the Trustee, as long as the Debentures are in circulation and have not yet been paid-up in full, the following reports and notices:

 

		31.1.	
Audited annual financial statements of the Company and reviewed quarterly financial statements of the Company, immediately upon the publication thereof.

 

45

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		31.2.	
Within fourteen (14) Business Days after making any payment to the Debenture Holders, the Company shall deliver to the Trustee a duly executed letter, confirming the performance of that payment to the Debenture Holders, specifying the manner of its calculation and the balance of the nominal value of the Debentures still in circulation as of the confirmation date.

 

		31.3.	
Up to fourteen (14) Business Days from the end of each calendar quarter, the Company shall deliver to the Trustee a written and duly executed certification, whereby, to the best of its knowledge, in the period commencing on the execution date of the Indenture and/or from the date of the last certification provided to the Trustee, the later thereof, and until the date of the delivery of the certification, the Company did not breach this Indenture, including a breach of the terms of the Debentures.

 

		31.4.	
No later than the lapse of ten (10) days after the issue date of Debentures, the Company shall submit to the Trustee a payment schedule for the Debentures (principal and interest), summarized in an Excel file.

 

		31.5.	
The Company shall notify the Trustee immediately and in writing of any reasonable concern of the Company that any or all of the events specified in Section 10.1 above is reasonably likely to occur and of the occurrence of any or all of the events specified in the aforesaid Section.

 

		31.6.	
The Company shall notify the Trustee of any change, to the best of its knowledge, in the rating of the Debenture, or a termination thereof.

 

		31.7.	
The Company shall notify the Trustee of the purchase of Debentures by the Company and/or by a subsidiary of the Company.

 

		31.8.	
The Company shall notify the Trustee in the event that the Company becomes aware of a breach of a material provision of the Indenture, immediately and in writing.

 

		31.9.	
The Company shall notify the Trustee of new pledges on the Company’s property that the Company shall register with the Registrar of Companies and/or the Registrar of Pledges, immediately and in writing.

 

		31.10.	
In the event that the Company is a Non-Reporting Corporation (as defined below), or became such after the date of issuance of the Debentures by virtue of this Indenture, the Company shall deliver to the Trustee, in addition to the stated in this Section 31 above, the reports required in the Codex Regulations1 or any other circular and/or document that may come in its place, and everything with the necessary changes to the Company’s reporting format prior to it becoming a Non-Reporting Corporation.

 

In this Section: a “Non-Reporting Corporation” means – a corporation that is not a “Reporting Corporation” as defined in the Securities Law, and that is not a corporation traded on a foreign stock exchange, as specified in the Second or Third Schedule of the Securities Law.

 

 

1 Codex Regulations – Principles of Business Management, title  5, part 2 – Capital, Measurement and Risk Management, chapter 4 – Management of investment assets, issued by the Commissionaire of capital markets, Insurance, and Savings in the Ministry of Treasury, as will be from time to time.

46

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		31.11.	
The Company shall inform the Trustee, by no later than forty eight (48) hours of the Company first becoming aware thereof, of the appointment of a liquidator (temporary or permanent) for the Company and of the appointment of a receiver (temporary or permanent) for the Company.

 

The issuance by the Company of documents as set forth in this Section on the MAGNA system, shall be deemed a delivery of the documents required above to the Trustee (it is clarified, that the foregoing does not obligate the Company to issue such documents on such systems).

 

	32.	
Rating

 

To the extent under its control, the Company undertakes to act to cause the Debentures to be subject to a rating watch of at least one Rating Agency. In respect of such matter, it is clarified, that the transfer of the Debentures to a watch list or any other action performed by the Rating Agency shall not be deemed a termination of rating.

 

The Company may, at its sole discretion, replace the Rating Agency throughout the entire lifetime of the Debentures, provided that the new rating agency shall be a Rating Agency, as defined in Section 1 above. The Company shall not require an approval of the Trustee or the Debenture Holders for replacing the Rating Agency as aforesaid.

 

In the event of a replacement of the Rating Agency, the Company shall issue an immediate report specifying the grounds for the replacement of the Rating Agency, within one Trading Day of the occurrence thereof. In the event that the Debentures shall no longer be rated (i.e. shall not be rated by any Rating Agency), the Company shall notify the Trustee in writing of the grounds for the termination of rating, immediately and by no later than one Business Day of the date of the termination of rating.

 

	33.	
Applicable Law and Jurisdiction

 

The exclusive law governing the Indenture and the Debentures is the Israeli law. The Courts in the city of Tel Aviv-Jaffa shall have a unique and exclusive jurisdiction in any conflict regarding the Indenture and the Debentures.

 

47

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	34.	
Liability of the Trustee

 

Notwithstanding the provisions of any law and Indenture, as long as the Trustee fulfills his responsibility in good faith and within a reasonable time and also inquires  the facts that a reasonable trustee would have inquired under the circumstances, the Trustee shall not be liable to a Debenture Holders for any damage caused to it as a result of the Trustee using his discretion under the provisions of sections 35H(d1) or 35I1 of the Securities Law, unless the plaintiff proves that the Trustee acted with severe negligence, maliciously and and/in bad faith. It is clarified, that in case of a contradiction between the provisions of this Section and another provision in this Indenture, the provisions of this Section shall prevail.

If the trustee acted in good faith and without negligence according to the provisions of section 35H(d2) or 35H(d3) of the Securities Law, it shall not be liable for the performance of the said action.

 

	35.	
Additional Provisions

 

The Trustee must submit a report regarding the actions it performed in accordance with the provisions of Chapter E1 of the Law, at the reasonable demand of the Holders of Debentures holding at least ten percent (10%) of the balance of the principal of the Debenture, within a reasonable time from the date of the demand, all subject to the confidentiality obligation of the Trustee vis-à-vis the Company as provided in Section 35J(D) of the Law.

At the demand of Holders of Debentures holding more than five percent (5%) of the balance of the principal of the Debenture, the Trustee shall transfer to the Holders of Debentures data and details concerning its expenses in connection with the trust which is the subject matter of the Indenture.

 

	36.	
Authorization for MAGNA

 

For the purpose of registering the Debentures for trade on TASE, by signing this Indenture the Trustee authorizes any of the Company’s electronic authorized signatories to report in its name of its engagement herein and its execution hereof on the MAGNA system.

48

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

In witness whereof the parties have hereunto set their hands:

 

	
 

	 	
 

	
Cellcom Israel Ltd.

	 	
Strauss Lazar Trust Company (1992) Ltd. 

	 	 	 
	
Signed by: 

                  

	
Liat Menahemi Stadler

Vice President of Legal Affairs and Corporate Secretary

	 	
 

____________________________________________

 

Attorney’s Certification

 

I, the undersigned, Adv. Tamar Enav, hereby certify that this Indenture was duly executed by the authorized signatories of Cellcom Israel Ltd., Ms. Liat Menahemi Stadler.

 

	
 

	

___________________________

Tamar Enav, Adv.

 

49

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Cellcom Israel Ltd.

 

First Schedule

 

Series L Debenture Certificate

 

Registered Debentures

 

Certificate no. ____________

 

Par value of this certificate: NIS ________________________.

 

The registered Holder of this Debenture: ________________________.

 

	1.	
This certificate attests that Cellcom Israel Ltd. (the “Company”) shall pay to the Holders of the Series L Debentures principal and interest payments on such dates, pursuant to such payment terms and in accordance with such other terms and conditions as set forth in the Terms and Conditions Overleaf in the Indenture dated January 21, 2018, between the Company, of the first part, and Strauss Lazar Trust Company (1992) Ltd., of the second part, by virtue of which the Debentures contemplated herein were issued, all of which constitute an integral part of this Debenture.

 

	2.	
This Debenture is issued as part of a series of Debentures pursuant to identical terms to the terms of this Debenture. The Debentures of the same series in circulation shall rank pari passu with each other, without any preference or priority of the one over the other.

 

	3.	
It is clarified that the provisions of the Indenture shall constitute an integral part of the provisions of this Debenture, and shall bind the Company and the Holders of the Series L Debentures.

 

	4.	
This Debenture is issued subject to the Terms and Conditions Overleaf and the terms of the Indenture, constituting an integral part of the Debenture.

 

Signed by the Company on: ________

 

_____________________________

 

Cellcom Israel Ltd.

 

Signed by: ________________________________

50

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

The Terms and Conditions Overleaf

 

The Terms and Conditions Overleaf, as specified in this part below, constitute an integral part of the Indenture (as defined below).

 

	1.	
General

 

		1.1.	
In this Debenture, the expressions in Section 1 of the Indenture shall bear the following meanings, unless another intention is implicated from the content of matters or the context thereof.

 

		1.2.	
The terms and conditions of the Debentures (the Terms and Conditions Overleaf) are an integral part of the provisions of the Indenture and the provisions of the Indenture shall be deemed to have been expressly included in the terms of these Debentures.

 

	2.	
The Debentures

 

		2.1.	
Registered Series L Debentures, of NIS 1 par value each, which shall mature (principal) in 6 (six) unequal annual payments which shall be paid on January 5 of each of the years 2023 to 2028 (inclusive), as follows: (1) 4 (four) equal payments of 15% of the amount of the original principal of the Series L Debentures on January 5 of each of the years 2023 to 2026; and (2) 2 (two) equal payments of 20% of the amount of the original principal of the Series L Debentures on January 5 of each of the years 2027 and 2028.

 

		2.2.	
The principal of the Series L Debentures shall bear an annual interest at a rate which shall be determined in a tender that shall be held in connection with their initial offering. The interest on the unpaid balance of the Series L Debentures shall be paid in annual payments on January 5 of each of the years 2019 to 2028 (inclusive) for the interest period ending on the payment date (the “Interest Period”). For details of an adjustment mechanism of the interest rate as a result of a change of the rating of the Debentures, see Section 2.6 below.

 

The Series L Debentures shall not be linked (principal and interest) to any index or currency whatsoever.

 

		2.3.	
The first interest payment shall be paid for the period commencing on the Trading Day transpiring after the day of the tender and ending on the first interest payment date, calculated on the basis of 365 days a year according to the number of days in the aforesaid period. Each additional Interest Period of the Debentures, shall commence on the first day after the end of the preceding Interest Period, and shall conclude at the end of the Interest Period (i.e., on the next payment date after the commencement date thereof).

 

51

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		2.4.	
The interest rate for the first Interest Period of the Debentures, the annual interest rate and the interest rate for the period on the basis of which it shall be determined, shall be specified in an immediate report to be issued by the Company in respect of the results of the tender pursuant to which the initial offering of the Debentures is to be effected.

 

		2.5.	
The last installment of interest on the principal of the Debentures shall be paid together with the last payment on account of the principal of the Debentures, against the delivery of the Debenture Certificates to the Company, on the date of payment, at the Company's registered office or at any other location of which the Company will inform at least five (5) Business Days before the last payment date.

 

		2.6.	
If after the date of the initial issuance of the Debentures, the series shall be expanded by the Company, the Holders of Debentures which will be issued within the framework of the expansion of such series, will not be entitled to receive payment on account of principal and/or interest for the Debentures, the effective date for payment of which occurs prior to the date of issuance as aforesaid.

 

		2.7.	
Adjustment mechanism to the interest rate as a result of a change of rating

 

		2.7.1.	
If the rating of the Debentures by Standard and Poor’s Maalot or any other Rating Agency that shall replace it (the “Rating Agency”) shall be updated in the course of any Interest Period, such that the rating determined for the Debentures shall be two ranks lower (the “Downgraded Rating”) than an A+ rating (or a parallel rating in lieu thereof as shall be determined by another Rating Agency, to the extent it shall substitute the aforesaid Rating Agency) (the “Base Rating”), the annual interest rate borne by the unpaid balance of the Debentures shall be increased by a rate of 0.5% over and above the annual interest rate borne by the Debentures (the “Base Interest”) for the period commencing on the next Interest Period (i.e. the Interest Period commencing immediately after the period during which the relevant rating change transpired), and until the full discharge of the unpaid balance of the Debentures or alternatively, until the Downgraded Rating shall rise back to the Base Rating, the earlier thereof (in which case the provisions of Section 2.7.5 below shall apply). It is clarified that no additional interest shall be received for the period from the downgrading of the rating and until the end of the Interest Period during which the Debentures’ rating was updated and that the interest shall not be decreased for the period commencing as of the date on which the rating was raised back to the Base Rating (or a higher rating) and until the end of the Interest Period during which the Debentures’ rating was updated.

 

52

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		2.7.2.	
The interest rate borne by the Debentures shall be updated also in case of additional rating downgrade(s) beyond the Downgraded Rating (collectively, the “Additionally Downgraded Rating”) such that: (a) in the event that the rating determined is one rank lower than the Downgraded Rating – the annual interest rate borne by the unpaid balance of the Debentures shall increase by an additional rate of 0.25%, such that it shall equal the Base Interest plus 0.75%; (b) in the event that the rating determined is two ranks lower than the Downgraded Rating – the annual interest rate borne by the unpaid balance of the Debentures at the additional rate of 0.25%, such that it shall equal the Base Interest plus 1.00%.

 

For the avoidance of doubt, the provisions of Section 2.7.1 regarding the period in respect of which the additional interest shall be paid, shall also apply to the additional interest pursuant to this Section 2.7.2.

 

It is clarified, that in any event, the Base Interest shall not be increased by more than 1% as a result of a downgrading of the rating compared to the Base Rating.

 

		2.7.3.	
By no later than one Business Day of receipt of the notice of the Rating Agency regarding the downgrading of the Debentures’ rating to the Downgraded Rating, as defined in Section 2.7.1 above, or to the Additionally Downgraded Rating, the Company shall issue an immediate report in which it shall state: (a) the fact that the rating was downgraded, the Downgraded Rating (or the Additionally Downgraded Rating) and the commencement date of rating the Debentures pursuant to such rating (the “Rating Downgrading Date”); (b) the updated annual interest rate and the updated semi-annual interest rate (that shall be calculated as the updated annual interest divided by two) that shall be borne by the principal of the Debentures for the period commencing on the next interest date (i.e. that commencing immediately after the period during which the relevant change of rating occurred).

 

Is shall be clarified that in any event of a change in the interest rate due to the aforementioned change of rating set forth under this section, no change shall be made in regard of the payment dates (principal or interest) or the effective date.

 

53

 

		2.7.4.	
It is clarified that the replacement of the Rating Agency (if and to the extent that the Company decides to replace it, as set forth in Section 32 of the Indenture), shall not affect the interest rate as provided in Sections 2.7.1 and/or 2.7.2 above and the provisions of this Section 2.7 shall not apply in any event, provided that the rating by the new Rating Agency shall be parallel to the rating of the current Rating Agency at the replacement date.

 

		2.7.5.	
It shall be clarified, that in the event that after the downgrading of the rating in a manner affecting the interest rate borne by the Debentures as aforesaid, the Rating Agency shall upgrade the Debentures’ rating, to a rating that is higher than the Downgraded Rating (and respectively, to a rating higher than the Additionally Downgraded Rating) (the “Upgraded Rating”), then the annual interest rate payable by the Company to the Debenture Holders shall be decreased by an annual rate of 0.25% for each rank up to a rating exceeding the Downgraded Rating, in which case the annual interest rate borne by the unpaid balance of the principal of the Debentures shall be the Base Index rate without any addition, for the period commencing on the beginning of the next Interest Period (i.e. the period commencing immediately after the period during which the relevant rating change transpired), and until the full discharge of the unpaid balance of the principal of the Debentures or until a change in the rating of such Debentures in accordance with and subject to the provisions of this Section 2.7.

 

		2.7.6.	
For the avoidance of doubt, it is clarified that a change in the rating outlook of the Debentures shall not cause a change in the interest borne by the Debentures as set forth in this Section above.

 

In addition, and notwithstanding the provisions of this Section 2.7, a rating downgrade of the Debentures, effected in the context of a rating update of all of the companies in Israel that are engaged in one or more of the Company’s business segments, solely as a result of a change of the methodology of the Rating Agency, shall not cause a change of the interest rates borne by the Debentures.

 

		2.7.7.	
The Company undertook, in Section 32 of the Indenture, that insofar under its control, it shall act to cause the Debentures to be subject to a rating coverage by at least one Rating Agency, for as long as Debentures of that series are in circulation.

 

54

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	3.	
Payments of the Principal and Interest of the Debentures

 

		3.1.	
The payments on account of the interest and/or principal of the Series L Debentures shall be made to the persons whose names will be registered on the Register (as defined in Section 1 above) on December 30th, as applicable (the “Effective Date”), other than the final installment of the principal and interest which will be paid against the delivery of the Debenture Certificates to the Company on the payment date, at the Company's registered office or at any other location of which the Company will inform at least five (5) Business Days before the last payment date.

 

		3.2.	
It is clarified that anyone who is not registered on the Register on the Effective Date shall not be entitled to an interest payment for the Interest Period which commenced prior to such date.

 

		3.3.	
In any event that the date of payment of the installment on account of the principal and/or interest will fall on a day which is not a Business Day, the payment date shall be postponed to the first Business Day thereafter, for no added payment, and the "Effective Date" for the purpose of determination of the entitlement to redemption or interest shall not change as a result thereof.

 

		3.4.	
All installments on account of a principal and/or interest which will be paid in an arrears of more than fourteen (14) Business Days from the date scheduled for the payment thereof pursuant to the terms of the Debentures, for reasons within the Company's control, shall bear arrears interest, commencing from the date which is scheduled for the payment thereof until the actual date of payment thereof. In this regard, arrears interest shall mean an annual interest rate of 3.5% which shall be added to the interest borne by the Debentures at such time. In the event of arrears as aforesaid, the Company shall notify of the exact total interest rate to be paid and the new payment date, in an immediate report, at least two (2) Trading Days prior to the actual payment of the principal and interest which were not paid as aforesaid.

 

		3.5.	
The payment to entitled persons shall be performed by way of check or wire transfer to the credit of the bank account of the persons whose names will be registered on the Register and which will be specified in the details which will be delivered to the Company in advance, according to the provisions of sub-section [f] below. If the Company will be unable to pay any amount to those who are entitled thereto, for a reason beyond its control, the provisions of Section 15 of the Indenture shall apply.

 

55

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		3.6.	
A registered Debenture Holder shall inform the Company of the details of the bank account to be credited with the payments pursuant to the Debentures as aforesaid, or of a change in the details of such account or his address, as the case may be, in a written notice which he will dispatch via registered mail to the Company. The Company shall be obligated to act according to the notice of a registered Holder pertaining to such change after the lapse of fifteen (15) Business Days from the date on which his notice shall have reached the Company.

 

		3.7.	
If a registered Holder of the Debentures who is entitled to payment as aforesaid shall not have delivered details pertaining to his bank account to the Company in advance, each payment on account of the principal and interest shall be performed by way of check which shall be dispatched via registered mail to his last address registered on the Register. The dispatch of a check to a registered Holder via registered mail as aforesaid shall be deemed, for all intents and purposes, as payment of the amount which is stated therein on the date of dispatch thereof via mail, unless it shall not have been cleared at the time of its lawful presentation for collection.

 

		3.8.	
Any and all mandatory payments shall be deducted from each payment due to the Debentures, to the extent required under the law.

 

	4.	
Refrainment from Payment for a Reason which is Beyond the Company's Control

 

For details on refrainment from payment for a reason which is beyond the Company's control, see Section 15 of the Indenture.

 

	5.	
The Debenture Holders' Register

 

For details on the Register of the Debenture Holders, see Section 28 of the Indenture.

 

	6.	
Transfer and Split of Debentures

 

Debentures are transferrable with respect to any nominal amount, provided that it will be in whole New Israeli Shekels. Any transfer of the Debentures (excluding a transfer executed through trade on TASE or a transfer between accounts of Holders holding via TASE members) will be effected by way of a deed of transfer in a standard form for transferring shares, duly signed by the registered Holder or the lawful representatives thereof and by the transferee or the lawful representatives thereof, which shall be delivered to the Company at its registered office, together with the Debenture Certificates transferred thereby and any other reasonable poof required by the Company in order to prove the transferor's right to transfer such.

 

56

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Subject to the foregoing, procedural provisions included in the Company’s Articles of Association in respect of the manner of transfer of shares, shall apply, mutantis mutandis, to the manner of transfer and endorsement of the Debentures.

 

If any mandatory payment shall apply to the Debentures’ deed of transfer, the Company shall be provided with reasonable evidence for its payment by the transfer applicant.

 

In the event of a transfer of only part of the principal amount stated in the Debenture Certificate, the Debenture Certificate should first be split into several Certificates, in the manner specified in this Section below, into such number of Debenture Certificates mandated thereby, such that the total principal amounts specified therein are equal to the principal amount specified in the Debenture Certificate sought to be split.

 

After the fulfillment of all such conditions, the transfer will be registered in the Register and the transferee shall be bound be all of the terms specified in the Indenture and in this Debenture and he will be deemed a "Holder" for the purposes of the Indenture.

 

All of the expenses and fees entailed by the transfer of the Debentures will be borne by the transfer applicant.

 

Each Debenture Certificate may be split into several Debenture Certificates, the total principal amounts stated thereon are equal to the nominal amount of principal of the Certificate sought to be split, provided that the said Certificates will not be issued, except at a reasonable quantity. The split will be affected against the delivery of such Debenture Certificate to the Company at its registered office for the execution of the split, together with a split application, duly signed by the applicant. All of the expenses entailed by the split, including taxes and levies, if any, will be borne by the split applicant.

 

	7.	
Early Redemption

 

For details as to early redemption of the Debentures by the TASE and/or by the Company, see Section 9 of the Indenture.

 

	8.	
Waivers, Compromises and/or Changes in the Indenture

 

For details as to the Company's and/or the Trustee's authority to make a modification, waiver, compromise and/or changes in the conditions of the Debentures, see Section 27 of the Indenture.

 

57

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	9.	
Debenture Holders’ Meetings

 

The general meetings of Debenture Holders will be convened and conducted in accordance with the provisions of the Second Schedule of the Indenture.

 

	10.	
Replacement of Debenture Certificates

 

In the event where a Debenture Certificate wears out, is lost or destroyed, the Company will be entitled (subject, inter alia, to receipt of evidence to its satisfaction of the ownership of the Holder in the Debentures) to issue in its stead (subject to the terms set forth in this Section) a new Certificate for the Debentures and pursuant to the same conditions in respect of proof, indemnification and coverage of reasonable expenses incurred by the Company in investigating the ownership right of the Debentures, as the Company deems fit, and in the event of wear, the worn Certificate will be returned to the Company prior to the issuance of a new Certificate. Taxes and other levies, as well as other expenses entailed in the issuance of a new Certificate, if any, will be borne by the applicant requesting such Certificate (including expenses pertaining to the proof of his ownership of the Debentures and pertaining to indemnification and/or insurance coverage requested by the Company, if requested, with respect thereto).

 

	11.	
Applicable Law and Jurisdiction

 

The exclusive law governing the Indenture and the Debentures is the Israeli law. The Courts in the city of Tel Aviv-Jaffa shall have a unique and exclusive jurisdiction in any conflict regarding the Indenture and the Debentures.

 

	12.	
Notices

 

For details as to notices, see Section 26 of the Indenture.

 

	13.	
Urgent Representative Body of the Debenture Holders

 

		13.1.	
Appointment; Term of office

 

		13.1.1.	
The Trustee shall be entitled, or at the Company’s written request – it shall be obligated, to appoint and convene an urgent representative body out of the Debenture Holders, as shall be specified below (the “Urgent Representative Body”).

58

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		13.1.2.	
The Trustee shall appoint to the Urgent Representative Body, the three (3) Debenture Holders, who, according to data it shall have received from the Company or pursuant to its best knowledge, hold the highest nominal value out of all of the Debenture Holders, and who declared that all of the following conditions are true in respect thereof (the “Members of the Urgent Representative Body”). In the event that any such Holder is unable to serve as a Member of the Urgent Representative Body, as aforesaid, the Trustee shall appoint, in lieu of said Debenture Holder, the Holder holding the next highest nominal value, in respect of whom all of the conditions specified below are fulfilled. And these are the conditions:

 

		13.1.2.1.	
The Debenture Holder is not in a material conflict of interests due to the existence of any additional material matter which conflicts with the interest deriving from his service on the Urgent Representative Body and his holding of the Debentures. For the avoidance of doubt it shall be clarified, that a Holder who is an Affiliated Holder (as defined in Section 8.2 of the Indenture) shall be deemed to be in a material conflict of interests as aforesaid, and shall not serve as a Member of the Urgent Representative Body;

 

		13.1.2.2.	
In the course of the same calendar year, the Debenture Holder does not serve on similar representative bodies of other debentures, the aggregate value of which exceeds the rate out of the asset portfolio managed by such Holder, that was determined as the maximal rate allowing service on urgent representative bodies under the directives of the Antitrust Commissioner which apply to the establishment of urgent representative bodies.

 

		13.1.3.	
In the event that during the service of the Urgent Representative Body, one of the circumstances specified in Sections 13.1.2.1 to 13.1.2.2 above shall have ceased to exist in respect to one of its members, his office shall expire and the Trustee shall appoint one member in his stead out of the Debenture Holders as set forth in Section 13.1.2 above.

 

		13.1.4.	
Prior to the appointment of the Members of the Urgent Representative Body, the Trustee shall receive from the candidates for service as Members of the Urgent Representative Body, a declaration as to the existence or absence of material conflicts of interests as set forth in Section 13.1.2.1 above and as to the service on additional representative bodies as set forth in Section 13.1.2.2 above. In addition, the Trustee shall be entitled to demand such a declaration from the Members of the Urgent Representative Body at any time during the service of the Urgent Representative Body. A Holder who fails to deliver such declaration shall be deemed to be found in a material conflict of interests or to be precluded from holding such office pursuant to the directives of the Antitrust Commissioner as aforesaid, as the case may be. In respect of a declaration of conflict of interests, the Trustee shall examine the existence of conflicting interests, and to the extent required, shall decide whether the conflict of interests disqualify that Holder from serving on the Representative Body. It is clarified, that the Trustee shall rely on such declarations and shall not be required to hold an additional independent examination or investigation. The determination of the Trustee in respect of such matters shall be conclusive.

 

59

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		13.1.5.	
The term of office of the Urgent Representative Body shall end on the date on which the Company shall publish the decisions of the Urgent Representative Body regarding the affordance of an extension to the Company for the purpose of its compliance with the terms of the Indenture as specified in Section 13.5 below, but in any event shall not exceed three months of the date of appointment thereof.

 

		13.2.	
Authority

 

		13.2.1.	
The Urgent Representative Body shall be authorized to afford a one-time extension to the Company in connection with the dates for complying with the financial covenant prescribed by the Indenture in a manner whereby the cause of acceleration set forth in Sections 10.1.17 and 10.1.18 of the Indenture shall be removed for the period of the extension, to the extent afforded, for a period of up to 90 days or until the date of publicity of the next financial statements, the earlier thereof. It shall be clarified, that the period of time until the appointment of the Urgent Representative Body shall be taken into account in the framework of such extension, and it shall not serve as cause to afford any additional extension to the Company over and above the aforesaid. It shall be clarified, that the actions of the Urgent Representative Body and the cooperation among its members, shall be limited to deliberating the possibility of affording an extension as aforesaid, and that no other information which does not pertain to the affordance of such extension shall be transferred between the Members of the Representative Body.

 

		13.2.2.	
Should an Urgent Representative Body not have been appointed in accordance with the provisions of this Section 13, or if the Urgent Representative Body has decided not to afford such extension to the Company as set forth in Section 13.2.1 above, the Trustee shall act in accordance with the provisions of Section 10.2 of the Indenture.

 

60

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		13.3.	
The Company’s undertakings in respect of the Representative Body

 

		13.3.1.	
The Company undertakes to provide the Trustee with any information that the Company possesses or is able to obtain in connection with the identity of the Debenture Holders and the scopes of their holdings. In addition, the Trustee shall act to obtain such information in accordance with the authorities legally conferred thereon.

 

		13.3.2.	
The Company undertakes to act in full cooperation with the Urgent Representative Body and the Trustee to the extent necessary in order to perform the inquiries required thereby and to form the decision of the Urgent Representative Body, and to transfer to the Urgent Representative Body all of the data and documents which it may require in respect of the Company, subject to legal limitations and the execution of an appropriate confidentiality agreement. Without derogating from the generality of the foregoing and subject to the execution of said confidentiality agreement, the Company shall deliver to the Urgent Representative Body the relevant information for the purpose of forming its decision, which shall not include any misleading detail and shall not be incomplete.

 

		13.3.3.	
The Company shall bear the costs of the Urgent Representative Body, including the costs of engaging consultants and experts by the Urgent Representative Body or on behalf thereof, pursuant to the provisions of Section 23 of the Indenture.

 

		13.4.	
Liability

 

		13.4.1.	
The Urgent Representative Body shall act and decide on the matters under its authority, according to its sole discretion and shall not be liable, neither it nor any of its Members, the officers therein, employees or consultants thereof, and the Company and the Debenture Holders hereby relieve them of liability for any allegations, demands and claims against them for using or refraining from using the powers, authorities or discretion vested to them under the Indenture and this Schedule and in connection thereof or from any other action they performed in accordance thereof, unless they have so acted in malice and/or in bad faith.

 

		13.4.2.	
The indemnification provisions set forth in Section 25 of this Indenture shall apply to the actions of the Members of the Urgent Representative Body and anyone on their behalf, as if they were the Trustee.

 

61

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		13.5.	
The Company shall issue an immediate report regarding the appointment of the Urgent Representative Body, the identity of its Members and its authorities, and shall issue an additional immediate report regarding the decisions of the Urgent Representative Body as aforesaid and an immediate report regarding the termination of office of the Urgent Representative Body.

 

		13.6.	
The appointment of the Urgent Representative Body shall not derogate from the Trustee’s right to convene a meeting of Holders of Debentures to the extent it so deems necessary. In such event, the resolutions of the Holders’ meeting shall govern the decisions of the Urgent Representative Body.

 

62

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Cellcom Israel Ltd.

 

Second Schedule

 

Debenture Holders’ Meetings

 

In any event that a different and/or supplementary mechanism for convening and/or holding of meetings of Debenture Holders shall be prescribed under any mandatory law, including pursuant to the TASE Directives, the provisions of this Schedule shall be automatically adjusted to the provisions of the law, to the extent and insofar as the provisions of such law so mandate.

 

Without derogating from any other provision prescribed under mandatory law or the Indenture, the following provisions shall apply to meetings of Holders of Debentures:

 

Calling Debenture Holders’ meetings

 

	1.	
The Trustee, if it deems it necessary (or if necessitated under law), or the Company, may convene a meeting of the Debenture Holders. In the event that the Company convenes such a meeting, it must immediately send written notice of the place, date and time of the meeting, as well as of the matters to be discussed therein, to the Trustee. In case the Trustee calls such meeting, it must send written notice of the place, date and time of the meeting, as well as of the matters to be discussed therein, to the Company.

 

	2.	
The Trustee shall convene a Holders’ meeting at the demand of one or more Debenture Holders, holding at least five percent (5%) of the balance of the nominal value of the Debentures. The Trustee may demand indemnification from the Holders requesting the meeting, including in advance, for the reasonable expenses involved therein. It shall be clarified, that the Trustee’s demand for indemnification shall not prejudice the calling of a meeting which was summoned for the purpose of taking an action intended for the prevention of a breach of the rights of the Debenture Holders.

 

	3.	
A Trustee required to convene a Holders meeting pursuant to Section 2 hereof, shall convene it within twenty one (21) days of the day on which the demand was submitted thereto, for a date to be determined in the notice, provided that the date of convening of the meeting shall not be earlier than seven (7) days and not be later than twenty one (21) days of the date of the notice; provided that the Trustee may convene the meeting earlier, if it believes that this is required for the protection of the Holders’ rights and subject to the provisions of Section 7 hereof. In such event, the Trustee shall provide the reasons for convening the meeting earlier in the report of the meeting’s notice.

 

Had the Trustee failed to convene a Holders’ meeting at the demand of a Holder as aforesaid, within the period prescribed above, the Holder may convene the meeting, provided that the date of the meeting shall be within fourteen (14) days of the end of the period for convening the meeting by the Trustee, and the Trustee shall bear the expenses incurred by the Holder in connection with the convening of the meeting.

 

63

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	4.	
In the event that a Holders’ meeting was not held as set forth in Sections 2 and 3 hereof or as set forth in Section 35B(a1) of the Securities Law, the Court shall be entitled, at the request of a Debenture Holder, to order the convening thereof. Should the Court order as aforesaid, the Trustee shall bear the reasonable expenses incurred by the applicant in the Court proceeding, as shall be determined by the Court.

 

	5.	
The Court may, at the request of a Debenture Holder, order the revocation of a resolution adopted at a Holders’ meeting that was convened or conducted without the terms prescribed therefor under the Securities Law or the Indenture being fulfilled. In case the fault pertains to the notice regarding the place or time of convening the meeting, a Debenture Holder who appeared at the meeting, notwithstanding the fault, may not demand the revocation of the resolution.

 

	6.	
Any meeting of Debenture Holders will take place at the registered office of the Company, or at another address of which the caller of the meeting shall notify, and in any event it shall be held in Israel.

 

Effective date; Proof of ownership of Debentures

 

	7.	
The effective date for ownership of Debentures - Debenture Holders entitled to participate and vote at the Holders’ meeting are Holders of Debentures at the date prescribed in the notice of the Holders’ meeting, provided such date shall be no  less than three (3) trading days prior to the date of convening of the Holders’ meeting, and shall be no more than  fourteen (14) day prior to the date of the meeting.

 

	8.	
A Debenture Holder wishing to vote at a Holders’ meeting is entitled to receive, without condition, from the TASE member through which the Debentures are held, a confirmation proving his ownership of the Debentures. The Debenture Holder shall deliver to the Company at its registered office (or to the entity calling the meeting at the address determined by such entity), by the date as determined by the caller of the meeting in the invitation to the meeting, a confirmation of ownership as aforesaid from the TASE member through which the Debentures are held, as to the number of Debentures held by the Holder as stated as of the date specified in such confirmation, together with a proxy if the confirmation of ownership is not in the name of the entity participating at the meeting.

 

64

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

The chairperson of the meeting

 

	9.	
In each Holders’ meeting, the Trustee or a person appointed thereby shall reside as the chairman of such meeting.

 

Legal quorum; Adjourned meeting

 

	10.	
A Debenture Holders’ meeting will open after it has been proven that the legal quorum required for holding a discussion in respect of any of the issues on the agenda of the meeting is present. In a Debenture Holders’ meeting, only resolutions which were included in the meeting's agenda, and with respect to which the legal quorum required for adoption thereof is present, will be put to the vote. For the purpose of counting the Holders for determining the presence of the legal quorum required for discussing a certain matter at a Holders’ meeting, see Section 15 of this Schedule below, and the provisions of Sections 37 to 45 of this Schedule shall apply to the counting of votes at a Holders’ meeting.

 

	11.	
In meetings of Debenture Holders, but except in regards to resolutions in respect of which a different quorum is prescribed by mandatory law and/or by the Indenture, two Debenture Holders or more, present in person or by proxy at the meeting within half an hour of the time prescribed for opening the meeting, and holding or representing together twenty five percent (25%) of the voting rights by virtue of the Debentures, shall constitute a legal quorum.

 

	12.	
If, within half an hour of the time set for the beginning of the meeting, a legal quorum will have not been present at the Holders’ meeting, the meeting shall be adjourned to another date which shall not be earlier than two (2) Business days after the date prescribed for the convening of the original meeting, or not earlier than one (1) Business Day, if the Trustee believed that it is necessary for the protection of the Holders’ rights in the Debentures. In the event that the meeting was adjourned, the Trustee will specify the reasons therefor in the report of the meeting’s notice.

 

	13.	
In the event that a legal quorum will have not been present at the adjourned Holders’ meeting as aforesaid in Section 12 hereof, within half an hour of the time set for the beginning thereof, the meeting shall be held at any number of participants, unless a different requirement is prescribed by the Securities Law or the Indenture. Notwithstanding the foregoing, if the Holders’ meeting was convened at the demand of Holders as set forth in Section 2 hereof, the adjourned Holders’ meeting may be held only if at least such number of Debenture Holders as required in said Section for convening such a meeting are present.

 

65

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	14.	
With respect to a meeting on the agenda of which is a proposal to approve a Special Resolution, two Debenture Holders or more, present in person or by proxy thereof at the meeting and holding or representing together at least fifty percent (50%) of the unpaid balance of the nominal value of the Debentures in circulation, will constitute a legal quorum. If, within half an hour of the time set for the beginning of the meeting, a legal quorum as aforesaid will not have been present, the meeting shall be adjourned and the provisions of Section 12 above shall apply, mutatis mutandis. At a meeting on the agenda of which is a proposal to approve a Special Resolution which was adjourned as aforesaid, two Debenture Holders or more, present in person or by proxy in the meeting and holding or representing together at least twenty percent (20%) of the unpaid balance of the nominal value of the Debentures in circulation, will constitute a legal quorum.

 

	15.	
The vote of a Debenture Holder that is an Affiliated Holder, shall not be counted for the purpose of determining the presence of a legal quorum required to open a Holders’ meeting (including an adjourned meeting). However, the votes of whomever the Trustee has determined, according to the provisions of this Schedule and/or any other law, to be a Holder of Conflicting Interest (as defined in Section 38 of this Schedule below), shall be counted for the purpose of determining the presence of a legal quorum (including an adjourned meeting).

 

Follow-on meeting

 

	16.	
A Holders’ meeting in which a legal quorum is present, or the Trustee, may resolve to postpone the continuation of the meeting, the discussion or the adoption of a resolution in respect of an issue specified in the agenda, to another date and place to be determined (a “Follow-on Meeting”). A Follow-on Meeting of Holders, shall only deliberate such issue which was on the agenda and in respect of which a resolution was not adopted. In the event that the Holders’ meeting was adjourned as aforesaid without changing its agenda, invitations regarding the date of the new meeting shall be provided as soon as possible, and by no later than twelve (12) hours prior to the convening of the new Holders’ meeting. Such invitations shall be issued in accordance with Section 31 of this Schedule.

 

Vote; Required majority

 

	17.	
At any meeting of Debenture Holders, any Debenture Holder, who is present therein in person or by proxy thereof, is entitled to one vote for every NIS 1 par value of the principal of the Debentures by virtue of which he is entitled to vote subject to the provisions of the Indenture. The Trustee, who shall participate in a meeting, will participate without a voting right.

 

	18.	
In the event of joint Debenture Holders, only the vote of the Holder listed first from among them in the Register for same series, seeking to vote either in person or by proxy thereof, will be counted.

 

	19.	
A resolution at a Holders’ meeting, will be decided by a count of votes.

 

66

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	20.	
Resolutions of Holders’ meeting shall be adopted by a simple majority, unless a different majority is prescribed by the Securities Law or the Indenture or if the Trustee determined, pursuant to its authorities under the Indenture, that a resolution shall be adopted by a majority which is not a simple majority. The majority required for the adoption of a Special Resolution at a Holders’ meeting is a majority of at least seventy-five (75%) of all of the participating votes, excluding abstainers.

 

	21.	
The announcement of the chairperson with respect to the adoption or rejection of a resolution and an entry to this effect in the book of minutes, will serve as prima facie evidence of its adoption or rejection as aforesaid.

 

	22.	
A Debenture Holder may vote in Holders’ meetings by himself or via proxy and also by way of a voting card in which he shall state the manner of his vote, as specified in Section 28 hereof. A Debenture Holder is entitled to vote in Holders’ meetings also by means of an electronic voting system. A proxy appointment form shall be made in writing and signed by the principal or by an attorney thereof duly authorized in writing to do so. If the principal is a corporation, the appointment will be made in writing, signed by the corporate stamp together with the signature of a corporate official or an attorney of the corporation who is authorized to do so. The proxy appointment form will be drawn-up in any standard form. A proxy does not have to be a Debenture Holder himself.

 

	23.	
A proxy appointment form and the power of attorney pursuant to which the appointment form was signed, or a certified copy of such power of attorney, will be deposited with the Company's registered office (or with the entity calling the meeting at the address determined by such entity) by a date as shall be determined by the entity calling the meeting in the meeting’s notice, unless otherwise determined by the caller of the meeting in the notice calling the meeting. The appointment form will be valid for any adjourned meeting of a meeting referred to in the appointment form, provided that the appointment form does not stipulate otherwise.

 

	24.	
A vote, which was made in accordance with the conditions of the document appointing a proxy, will be valid even if prior thereto the principal will have passed away or declared legally incompetent or the appointment form will have been revoked or the Debenture with respect to which the vote was granted will have been transferred, unless a written notice of the passing, the incompetence decision, the revocation or the transfer, as applicable, will have been received at the Company's registered office (or by the entity calling the meeting at the time set by such entity), before the meeting.

 

	25.	
A Debenture Holder or his proxy may cast some of his votes in favor of a certain proposed resolution, and some against, and abstain in respect of others, all as he deems fit.

 

67

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	26.	
A Debenture Holder shall refrain from abusing his power in voting at the Holders’ meeting.

 

Minutes

 

	27.	
The Trustee will take minutes of the Holders’ meeting and shall keep them at its registered office for a period of seven (7) years of the date of the meeting. Minutes executed by the chairperson of the meeting shall serve as prima facie evidence of the stated therein. The minutes’ register of Holders’ meetings  shall be maintained at the registered office of the Trustee, and shall be open for the inspection of the Debenture Holders and a copy thereof shall be sent to any Debenture Holder requesting the same.

 

Voting Card

 

	28.	
Debenture Holders may vote in a meeting of Debenture Holders by way of voting cards. A voting card shall be delivered by the Trustee to all of the Debenture Holders. A Debenture Holder may state the manner of his vote in the voting card and send it to the Trustee. The wording of the voting cards shall be delivered to the Holders by the Trustee prior to the close of the meeting, by way of an immediate report. Subject to the provisions of the Securities Law and its regulations, a Holder is entitled to receive, without condition, a voting card from the TASE member through which the Debentures are held. In order to vote by way of a voting card as stated, such should be delivered to the place, at the dates and to the entities, as shall be determined in the notice of the meeting and/or in the voting card and as shall be published in an immediate report, such voting card being filled-in, duly signed and accompanied by all of the required documents attached thereto. A voting card in which a Debenture Holder has stated the manner of his vote which has reached the Trustee by the last date prescribed therefor, shall be deemed as presence at the meeting for the purpose of the existence of a legal quorum. A voting card received by the Trustee in respect of a certain matter which was not voted on at the Holders’ meeting, shall be considered as abstaining from the vote at such meeting in respect of a resolution to hold an adjourned Holders’ meeting according to the provisions of Section 16 hereof, and it shall be counted at the adjourned Holders’ meeting that shall be held pursuant to the provisions of Section 13 or 16 of this Schedule.

 

	29.	
The Trustee may, at its discretion and subject to any law, hold voting meetings in which votes shall be held by way of voting cards without convening the Holders, provided that the votes shall be held in respect of issues deliberated at Holders’ meetings.

 

68

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Presence

 

	30.	
A person or persons appointed by the Trustee, may be present but shall not be entitled to vote at meetings of Debenture Holders. At meetings of Debenture Holders called by the Trustee, the Company's representatives and any other person or persons permitted therefor by the Trustee, may be present, with no voting right. In the event that, pursuant to the Trustee’s discretion, part of the meeting calls for a discussion without the presence of a certain person, including the Company’s representatives, such person shall not participate in such part of the discussion.

 

Meeting’s notice; Agenda

 

	31.	
A notice of a meeting of Debenture Holders shall be published and delivered to the Company pursuant to the provisions of Chapter G1 and Sections 35H(1)(d) and (e) of the Securities Law and in accordance with the provisions of Section 26 of the Indenture, and shall include the agenda, the proposed resolutions and the arrangements pertaining to written votes.

 

	32.	
The Trustee shall determine the agenda for a meeting of Debenture Holders and shall include therein issues in respect of which the convening of the Holders’ meeting was required according to Section 2 hereof and any issue requested by a Holder as specified in Section 33 of this Schedule below. The Holders’ meeting shall only adopt resolutions in respect of issues specified on the agenda. Notwithstanding the aforesaid, to the extent that regulations be promulgated by virtue of Section 35L8 of the Securities Law, the meeting may adopt resolutions that differ from the wording of the resolutions on the agenda, according to the provisions of the law.

 

	33.	
One Debenture Holder or more, holding at least five percent (5%) of the balance of the nominal value of a series of Debentures, may request that the Trustee include an issue on the agenda of a Holders’ meeting that shall be convened in the future, provided that such issue is fit to be discussed at such meeting, all subject to the provisions of the Securities Law and its regulations.

 

Additional Provisions

 

	34.	
Nothing stated in Sections 2, 32 and 33 of this Schedule shall derogate from the Trustee’s authority to convene a Holders’ meeting, if it sees a need to consult therewith. The notice of such meeting shall not specify issues on its agenda and the date of its convening shall be at least one day after the date of the notice. No vote shall be held and no resolutions shall be adopted at such meeting and the provisions of the Securities Law shall apply thereto, other than the provisions specified in Section 35L26(b) of the Securities Law.

 

	35.	
Where there is no practical possibility to convene a Holders’ meeting or to hold it in the manner prescribed therefor by the Indenture or by the Securities Law, the Court may, at the request of the Company, a Debenture Holder entitled to vote at the meeting or the Trustee, order that a meeting be convened and held in a manner to be determined by the Court, and it is entitled to render supplementary instructions for such purpose to the extent deemed fit thereby.

 

69

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	36.	
No resolution duly adopted at a meeting convened as set forth in this Schedule above shall be revoked, even if due to an error, notice thereof was not provided to all Debenture Holders, or if such notice was not received by all of the Debenture Holders. The foregoing in this Section shall apply if the meeting’s notice (or the adjourned meeting’s notice, as applicable) was issued on the MAGNA system.

 

Affiliated Holder; Determination of Conflicting Interest

 

	37.	
In the event that a Holders’ meeting was convened, the Trustee shall examine the existence of conflicts of interest of the Holders, be it an interest deriving from their holding of the Debentures or another interest thereof, as shall be determined by the Trustee (“Another Interest”). The Trustee may demand of a Debenture Holder participating in a Holders’ meeting to inform it, including in writing, prior to the vote, of Another Interest it has and whether it is in a conflict of interests as aforesaid. The Trustee shall exclusively rely on the declarations delivered to it by the Holders as aforesaid and shall not hold an additional investigation or examination. A Holder that does not provide a written affirmation after having been requested to do so by the Trustee, shall be regarded as a one that provided a declaration of having a personal interest as stated, and the Trustee shall determine with respect to him that he is Holder with a conflicting interest.

 

	38.	
In counting the votes at a vote held in a Holders’ meeting, the Trustee shall not count the votes of Holders who failed to respond to the Trustee’s demand as set forth in Section 37 above or of Holders in respect of whom the Trustee found that a conflict of interests exists as set forth in such Section (“Holders of a Conflicting Interest”) and of Affiliated Holders. An Affiliated Holder shall notify the Trustee in writing prior to the convening of a meeting of the Debenture Holders that he is an Affiliated Holder.

 

	39.	
Notwithstanding the foregoing, in the event that the total holdings of participants at the vote, who are not Holders of a Conflicting Interest, constituted less than five percent (5%) of the balance of the nominal value of the Debentures, the Trustee will count the votes of Holders of a Conflicting Interest in the tally of votes.

 

	40.	
In the context of the votes held at all meetings of Debenture Holders, the Trustee shall be permitted, at its sole discretion, to determine that a certain resolution shall be subject to the approval of the required majority only out of votes of Holders who are not Affiliated Holders and are not Holders of a Conflicting Interest.

 

	41.	
The Trustee shall examine whether a Holder is a Holder of a Conflicting Interest also considering such Holder’s holdings in other securities of the Company and/or of securities of any other corporation that is relevant to the resolution brought to the approval of the meeting (as shall be specified in the voting card), according to the declaration of such Holder.

 

70

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	42.	
The determination of the existence of a Conflicting Interest may also be made on the basis of a general test of conflict of interests to be applied by the Trustee. For such purpose, the Trustee may rely on a legal opinion that it shall receive (in accordance with and subject to the provisions of the Indenture in such context). In addition, for the avoidance of doubt it is clarified, that none of the definitions above shall derogate from the provisions of the law, case law and the binding directives of the Israel Securities Authority which pertain to the definition of debenture holders having a “conflicting interest”, as shall apply at the date of the examination.

 

	43.	
The Trustee shall examine the manner of appropriate treatment of the votes of Holders who sought to participate at the vote in accordance with all of the above, and in the event necessary, shall apply to the Court to seek instructions in respect thereof.

 

	44.	
No separate meeting of those Holders classified as Holders of a Conflicting Interest shall be held, and the adoption of a resolution at a meeting of all of the Holders or of Holders of a Conflicting Interests shall not be required for the purpose of adopting a binding resolution.

 

	45.	
It shall be clarified, that the examination of a Conflicting Interest as aforesaid, shall be performed separately in respect of each resolution on the agenda of the meeting, and separately in respect of each meeting. It shall be clarified further, that the declaration of a Holder as a Holder of a Conflicting Interest in a certain resolution or meeting, shall not, in itself, indicate a Conflicting Interest of such Holder in another resolution on the agenda of the meeting or of a Conflicting Interest of such Holder in other meetings.

 

	46.	
For the purpose of this Schedule, an “Affiliated Holder” shall mean as defined term in Section 8.2 of the Indenture.

 

71Exhibit 4.13

 

	

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 March 1, 2017

1

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

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:

 

2

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

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;

	"Cellular Radio Infrastructure License Holder"	
-

	whoever receives the license for establishment, existence and operation of a radio infrastructure for mobile telephony communication;
	"Generation 2"	
-

	A network which allows mostly the provision of call and message services, using basic mobile telephony communications of GSM or CDMA and all of their updates, such as GPRS, EDGE, etc.;
	"Generation 3"	
-

	A network, which in addition to Generation 2 services, allows for the provision of data services at an medium pace (a few dozen megabits per second) using basic mobile telephony communications of UMTS and CDMA2000 and all of their updates, such as HSPA, HSPA+, etc.;
	
"Generation 4"

	
-

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

	
"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;

	
"Roaming Licensee" A60

	
-

	
The person who one Tender 12/2010 – Combined License for the Provision of Mobile Radio Telephone Services by the Cellular Method (Cellular) in Israel – Extension of Existing License and Grant of a New License.

	
"Broadcasting Licensee" A16

	
-

	
As defined in the Law;

                                                     

A16 Amendment No. 16

A16 Amendment No. 16

A16 Amendment No. 16

A60 Amendment No. 60

A16 Amendment No. 16

3

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
"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.;
	"Bill" or "Telephone Bill"	
-

	A bill which the license owner submits to the subscriber for services it provided to him or for services provided to the subscriber by another license owner or by a service provider;
	
"Bill Period"

	
-

	
A cyclical time period, whose length is particular, at the end of which a bill for payment is submitted to the subscriber for the services of the license owner and for the services of the service provider, which were provided to the subscriber during said period.

	
the “Law"

	
-

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

	
"Goods"

	
-

	
As defined in Section 3 of the Interpretation Law, 5741-1981;

                                                    

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

A16 Amendment No. 16

4

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
"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;

	"Applicant"	-	
Someone who requests to enter into a contracting agreement or purchase agreement with the license owner;

	
"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

	"Generation 4 Tender"	
-

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

                                                     

A16 Amendment No. 16

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]

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

5

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
"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.

	
"Split Business Subscriber"

	
-

	
A user of end equipment, whose telephone account charge is split between him and a business subscriber or that he is charged with the telephone bill in its entirety.

	
“Private Subscriber” T52

	
-

	
A subscriber who is not a Business Subscriber and who is not a Split Business Subscriber;

	"Post-Paid"	
-

	Payment for services which was collected from the subscriber after the end of the Bill Period.
	
"Pre-Paid"

	
-

	Payment for services which was collected from the subscriber before or upon the commencement of supply of the services.
	
"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

                                                    

T47) Amendment No. 47.

T52) Amendment No. 52.

A16 Amendment No. 16

 

6

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
"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"

"Mobile Telephony Services (MTS) Operator in Another Network"

	
-

-

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

A license owner for the provision of MTS services, involving the use of the MTS system of an MTS operator, in whole or in part, and at the least the access network of the said MTS system.

	
"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;

	
"Domestic Roaming" A60

	
-

	
Expansion of the services of another cellular licensee (hereinafter – "cellular licensee") to the coverage areas of the Licensee by means of the Licensee's cellular system, as set forth in section 67E.

	
"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;

	"One-Time Transaction"	
-

	
A transaction that is not an ongoing transaction.

	
"Ongoing Transaction"

	
-

	A contracting agreement for the purchase of continuous and ongoing services of the license owner, including any amendment of the agreement or addendum thereto that does not constitute a new transaction, all whether the contracting agreement is for a fixed period or a non-fixed period.
	
"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

A16 Amendment No. 16

A16 Amendment No. 16

A60 Amendment No. 60

A16 Amendment No. 16

A16 Amendment No. 16

A16 Amendment No. 16

7

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
"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

A16 Amendment No. 16

A16 Amendment No. 16

A16 Amendment No. 16

9

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
"International Telephone Service (ITMS)"

	
-

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

	
"International Roaming Service" A16 A66

	
-

	
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;

	
"Radio Infrastructure"

	
-

	
Radio centers by way of the cellular method, monitoring units thereof, if any, and transmission connecting them to the core of the public Bezeq network of the License Owner

                                                    

A16 Amendment No. 16

A66 Amendment No. 66

A16 Amendment No. 16

A16 Amendment No. 16

A16 Amendment No. 16

A16 Amendment No. 16

A16 Amendment No. 16

10

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

	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.

 

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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

 

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THE BINDING VERSION IS THE HEBREW VERSION

 

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 mobile phone system to another public communication network in Israel;

 

	 	
(3)

	
To engage with the subscribers for the purpose of provision of mobile phone services;

 

	 	
(4)

	
To supply mobile phone terminal equipment to subscribers;

 

	 	
(5)

	
To provide its subscribers with mobile phone services as specified in the first addendum to the license;

 

	 	
(6)

	
To provide its subscribers with services for which it has received approval in accordance with Section 67C of the license. A66

	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.

                                                    

A66 Amendment No. 66

A16 Amendment No. 16

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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.

	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

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	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.

 

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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.

 

                                                    

A16 Amendment No. 16

 

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THE BINDING VERSION IS THE HEBREW VERSION

 

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;

                                                    

A2 Amendment No. 2

 

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(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)	
Cancelled;

 

		(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;

                                                   

A2 Amendment No. 2

A2 Amendment No. 2

 

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THE BINDING VERSION IS THE HEBREW VERSION

 

		(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 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).

 

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THE BINDING VERSION IS THE HEBREW VERSION

 

CHAPTER C: OWNERSHIP, ASSETS AND MEANS OF CONTROL

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

16.          Void. A66

 

17.          Ownership of the Cellular System

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

17.2         Notwithstanding Clause 17.1, the License Holder may make use of:

 

(a) physical or wireless transmission lines of another license owner;

 

(b) the radio infrastructure, that is functioning and operating by way of a cellular radio infrastructure License Holder, in the framework of a usage agreement, as defined in Clause 19.3C, and after receiving the manager's agreement in advance and in writing, and in accordance with the terms determined by the Director.

 

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 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.

	
18.4A

	
For purposes of sale, lease, mortgage or transfer of the license assets to the cellular radio infrastructure license holder, whom the License Holder is his client, the provisions of this Clause shall not apply.

                                                    

A66 Amendment No. 66

A16 Amendment No. 16

A2 Amendment No. 2

A2 Amendment No. 2

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THE BINDING VERSION IS THE HEBREW VERSION

 

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.

Part A1 – Mutual relations with a cellular radio infrastructure License Holder

19A         Definitions

 

19.1A      In this Section –

"Confidential Commercial Information" - data regarding the License Holder that is not public, and that relates to one of the following:

 

	(1)	
Amount and volume of Bezeq messages transferred through the network, the kinds thereof and their destinations;

 

	(2)	
Number of subscribers, their classification and characteristics;

 

	(3)	
Network structure, its layout and the technology according to which it operates;

 

	(4)	
Plans for the expansion of the network, changes therein and operation of new services therewith;

 

	(5)	
Marketing or other technological plans or activities, the information regarding them was transferred to the License Holder by the mobile telephony communications license owner, or other business activity, the information regarding which was classified by the mobile telephony communications license owner as confidential commercial information;

 

	(6)	
Any other information which cannot be legally easily discovered by others, whose confidentiality grants its owners a business advantage over its competitors.

"Passive Component" – the passive elements in the cellular radio center's website, including pole, structure, electricity and air conditioning;

"Active cooperation of an antenna" – passive cooperation and in addition, cooperation of the antenna or cable feed to the antenna;

"Active cooperation of a frequency" (MOCNa) – active cooperation of an antenna, including sharing of radio equipment and frequency that were allotted for use of the mobile telephony communications license owner;

                                                     

a Multi Operator Core Network

 

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"Passive cooperation" – Whole or partial cooperation of a Passive Component in a significant number of cellular radio center's websites between two or more of the mobile telephony communications license owners;

19B.        Cooperation with another mobile telephony communications license owner

	19.1B	
The License Owner may contract with another mobile telephony communications license owner (hereinafter in this section: "Other License Owner") for the purpose of cooperation ("Cooperation Agreement") in any one of the following options only:

 

(a) Passive Cooperation Agreement;

 

(b) Active Cooperation of an Antenna Agreement;

 

(c) Active Cooperation of a Frequency Agreement (MOCN);

19.2B      Without derogation from the aforementioned in Clause 19.3B:

 

(a)     The License Owner may contract with other telephony communications license owners in various cooperation agreements in each of the Generation 2, Generation 3 or Generation 4 networks. Despite the aforementioned:

 

(1)       Active Cooperation of a Frequency (MOCN) shall not be approved between two operators.

 

		(2)	
Active Cooperation of a Frequency (MOCN) in Generation 2 or 3 shall be approved only if both cooperating license owners were allotted Generation 4 frequencies and if the cooperating license owner who is not an operator has an Active Cooperation of a Frequency (MOCN) in Generation 4.

 

For the purpose of this sub-clause, "Operator" – a license owner who has completely laid out access network in Generation 3: Pelephone Communications Ltd., Cellcom Israel Ltd., Partner Communications Ltd.;

(b) Cancelled.

	19.3B	
If the License Owner and the Other Owner reach a cooperation agreement of the types specified in Clause 19.1B, the License Owner shall submit a written request to the Manager no later than thirty days from the date of signature of the Cooperation Agreement (hereinafter in this clause – the "Request"), and shall request his approval of the Cooperation Agreement, and the Request shall include, at least, all of the following:

 

		(a)	
Details of the License Owner and the Other License Owner;

 

		(b)	
Type of Cooperation Agreement as stated in Clause 19.1B;

 

		(c)	
Executive summary of the main points of the Cooperation Agreement;

 

		(d)	
A copy of the Agreement with all of its attachments and appendices, together with an affidavit of an officer of the License Owner that except for these documents, no agreement exists, in writing or orally, in connection with the Agreement;

 

		(e)	
An opinion according to which the Agreement meets the most recent "Broadband Access Cooperation of the License Owner for the Provision of Mobile Telephony Communications" policy and the terms of Section A1. The opinion shall include an analysis of the influence of the Cooperation Agreement on the competition in the Bezeq and broadcasting area.

 

		(f)	
The date scheduled for the commencement of the implementation of the Agreement and its expiration;

	19.4B	
The manager may approve the Request, deny it or condition its approval, including amending the Agreement.

  

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	19.5B	
The License Owner may commence the implementation of the Cooperation Agreement only after the manager approved the Request of the License Owner and the Other License Owner in writing.

	19C	
Cooperation Agreement and Use Agreement

	19.1C	
If the License Owner files a request for an active cooperation of a frequency agreement (MOCN), the manager shall consider the request, taking into account, inter alia, the existing competition level of mobile telephony communication services and the potential to the harm in competition, the existing and expected frequency inventories and the efficiency of use of the frequencies, the survivability and the redundancy of the networks from a national standpoint and ensuring the Bezeq service level over time.

	19.2C	
The active cooperation of a frequency agreement (MOCN) shall include the following terms:

 

		(a)	
Cooperating license owners shall establish a joint corporation, and shall have equal control thereof. The joint corporation shall be required to obtain a special cellular radio infrastructure license;

 

		(b)	
The following provisions in regards to the Passive Component and the radio centers included in the joint access network shall apply to each one of the cooperating license owners during the entire term of the Cooperation Agreement:

 

(1) in the cellular radio centers – all cooperating license owners shall hold equally;

(2) in the passive component – each of the cooperating license holders shall have the right to make effective use of all passive components in the access network.

In this regard – "Right to make effective use" – indefeasible right to use, during the relevant license period, the Passive Component, resulting from ownership or other source, which shall allow its owners to perform all actions connected to the establishment, existence and operation of cellular radio centers by way of or on the Passive Components.

		(c)	
The cooperation agreement expiration mechanism, which ensures the ability of each of the cooperating license owners to continue providing mobile telephony communication services to its subscribers after said expiration, in accordance with the provisions of its license. The framework of said expiration mechanism shall include provisions which shall arrange for the continued existence of the right to make effective use of the Passive Components in case of termination of the Cooperation Agreement in accordance with the provisions of sub-clause (2) and the mutual duty to allow for passive cooperation even after the termination.

	19.3C	
Without derogating from the aforementioned in Clause 19.2C, the License Owner, the Other License Owner and the special cellular radio infrastructure license owner shall contract in an agreement between them, which grants the special cellular radio infrastructure license owner an indefeasible right of use (IRU) in the joint access network components, which are not owned by the special cellular radio infrastructure license owner, which specifies the method of use that shall be made with the joint network (hereinafter: the "Usage Agreement").

 

In this regard, the indefeasible right of use shall be provided for a period not to exceed 10 years, and shall refer to the relevant access network components for a generation which was agreed upon in the Cooperation Agreement.

	19.4C	
any change in the Usage Agreement or in the Cooperation Agreement shall be presented to the manager for approval no later than ten days from the date of signing the change; the License Owner shall forward to the manager, upon request, a copy of the Usage Agreement or any change therein.

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	19.5C	
The Cooperation Agreement or Usage Agreement (hereinafter in this Clause – the "Agreement") shall not limit, directly or indirectly, the License Owner and the Other License Owner from reaching an agreement with an additional license owner or a mobile telephony communications license owner on another network or from signing another agreement with them, or from causing discrimination in regards to the terms of use of the cellular radio infrastructure.

	19.6C	
if the License Owner or the Other License Owner requested to make use of the radio infrastructure of the special cellular radio infrastructure license owner, it shall contact the license owners who are parties to the agreement in order to formulate a cooperation agreement, and shall act as stated in Clause 19B.

	19.7C	
Nothing in the contracting with the special cellular radio infrastructure license owner may derogate from its duties as a license order and from its responsibilities to supply to its customers any service of the services under this license, in whole or in part, under the provisions of this license.

	19.8C	
If the parties do not reach an agreement, each party may contact the Ministry in order to resolve the disputes between them in accordance with Section 5 of the Law.

	19D.	
Obligation for Structural Separation

	19.1D	
The License Owner shall maintain structural separation between it and the special cellular radio infrastructure license owner, as specified below:

		(a)	
Complete separation between its management and the management of the special cellular radio infrastructure license owner; in this regard – "Management", with the exception of an officer who is not a Board member of the License Owner, who is also a Board member of the special cellular radio infrastructure license owner.

 

		(b)	
Complete separation between its assets and the assets of the special cellular radio infrastructure license owner, with the exception of the radio infrastructure of the License Owner;

 

		(c)	
The License Owner shall not employ the employees of the special cellular radio infrastructure license owner, and the special cellular radio infrastructure license owner shall not employ employees of the License Owner;

 

		(d)	
The License Owner shall not employ anyone who was a Management employee of the special cellular radio infrastructure license owner for one year after the termination of his employment, without the approval of the manager;

 

		(e)	
The License Owner shall neither receive nor transfer to the special cellular radio infrastructure license owner Confidential Commercial Information that is not required for the provision of the special cellular radio infrastructure license owner's services to the License Owner.

	19.2D	
Regarding confidentiality of commercial information, the License Owner shall do as follows:

 

		(a)	
The License Owner shall refrain from transferring Confidential Commercial Information to the special cellular radio infrastructure license owner, except for information required for the provision of the services of the special cellular radio infrastructure license owner to the License Owner;

 

		(b)	
The License Owner shall refrain from transferring Confidential Commercial Information to the Other License Owner holding the same special cellular radio infrastructure license owner or receives services therefrom;

 

		(c)	
The License Owner shall determine procedures and rules for maintaining Confidentiality of Commercial Information, and for the prevention of its transfer as stated in sub-clauses (a) and (b). The procedures shall determine, inter alia, limitations regarding the distribution of the Confidential Commercial Information to the License Owner and the special cellular radio infrastructure license owner, and the access to Confidential Commercial Information by employees who are not supposed to handle it in the framework of their positions.

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	19.3D	
If the Minister notices that there is a real concern to damage to competition in the Bezeq area or to the public's interest, he may instruct that the provisions of this chapter, in whole or in part, shall apply to an affiliated company to the License Owner that has a license under the Communications Law.

	19.4D	
If the Minister notices that in a certain incident, circumstances existed which permitted it, and after he was convinced that there would be no damage to competition in the Bezeq area or to the broadcasts or to the public's benefit he may, according to a written request from the License Owner, permit by way of a written approval, reservations to the obligation for structural separation set forth in this section or according thereto, and he may determine conditions for it.

 

	19E.	
Application of shared frequencies by means of the Joint Corporation and in accordance with the Cooperation Agreement”:

		(1)	
In this section:

 

“Cooperation Agreement” – A Cooperation Agreement for the Generation  4 Network and on between Cellcom Israel Ltd. (hereinafter: “Cellcom”), Electra Consumer Products (1970) Ltd. (hereinafter: “Electra”) and Marathon 018 xPhone Ltd. (hereinafter: “xPhone”) of February 22, 2017, which was authorized on March 21, 2017 (hereinafter: “the Generation 4 Cooperation Agreement”), and in addition a Cooperation and Usage Agreement of the Generation 3 Network between  Cellcom and Electra of January 2, 2017, which was authorized on March 16, 2017 (hereinafter: “the Generation 3 Cooperation Agreement”);

 

“Joint Network” – A joint access network by virtue of the Cooperation Agreement as it is defined herein in this Section;

 

“The Generation 4 Network Joint Corporation” – A Joint Corporation that was set up in accordance with the Generation 4 Cooperation Agreement;

 

“Generation 3 Network Joint Corporation” – A Joint Corporation that was set up in accordance with the Generation 3 Cooperation Agreement;

		(2)	
Up to the date January 31, 2018 – the License Holder shall complete the establishment of the Generation 4 Network Joint Corporation and shall submit an Application for a Special License for the Generation 4 Network Joint Corporation, in accordance with the Telecommunications Regulations (Bezeq and Broadcasting) (Application Details for a Special License), 5764-2004.

Up to the date February 15, 2018 – the License Holder shall complete the establishment of the Generation 3 Network Joint Corporation and shall submit an Application for a Special License for the Generation 3 Network Joint Corporation, in accordance with the Telecommunications Regulations (Bezeq and Broadcasting) (Application Details for a Special License) 5764-2004. In addition, the License Holder shall fill the various positions in the Generation 4 Network Joint Corporation and in the Generation 3 Network Joint Corporation, as determined in Section 13 of the Generation 4 Cooperation Agreement and Section 23 of the Generation 3 Cooperation Agreement.

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		(3)	
The License Holder will connect and operate the joint network sites in accordance with that which is stated herein below:

		(a)	
Up to the date March 31, 2018 – Full connection and operation of all of the Joint Network sites, for the License Holder and xPhone;

 

		(b)	
Up to the date April 30, 2018 – The connection and operation of at least half (50%) of all the sites of the Joint Network for the License Holder and Golan Telecom Ltd.;

 

		(c)	
Up to the date July 31, 2018 – The connection and operation of all the sites of the Joint Network for the License Holder and Golan Telecom Ltd.

(4)

 

		(a)	
The License Holder may not deviate from the timetable specified in sub-sections (2) and (3) above, unless the Director  has authorized this for him, and provided that the License Holder contacted the Director in writing for the purpose of obtaining his immediate authorization after he found that difficulties arose, which preclude him from meeting the said deadlines.

		(b)	
The Director may authorize the License Holder’s request to deviate from the timetable, in full or in part, and stipulate conditions for the authorization thereof, and this, solely if the Director found, to his satisfaction, that the License Holder did everything in a reasonable manner under the circumstances of the matter to meet the deadlines.

		(5)	
Until the date of completion of the connection and operation of all the sites of the Joint Network as specified above, the License Holder shall transmit on the first day of every month the data specified herein below to the director of the Supervisory Administration in the Ministry:

		(a)	
The total of all the traffic of the License Holder in all the technologies divided in accordance with: Generation 2, Generation 3, and Generation 4; the total traffic including the volumes of information traffic of all subscribers;

		(b)	
The percentage of traffic of the License Holder in the Joint Network out of the total traffic of the License Holder as specified in sub-section (a);

		(c)	
The percentage of traffic of the License Holder that was implemented by way of intra-country migration out of the total traffic of the License Holder as specified in sub-section (a);

		(d)	
The number of radio sites of the License Holder that were connected and operated within the framework of the Joint Network.

                                                    

A2 Amendment No. 2

 

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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 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.

 

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

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

	21.9	
The provisions of sections 21.5 and 21.8 shall not apply to founding shareholders or their substitutes.

 

22.           Encumbrance of Means of Control

 

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

 

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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 total holdings of “Israeli Entities”, one or more, who are listed with the founding shareholders or their alternates thereof, out of the total holdings of founding shareholders or their alternates thereof, as stated in section 22A.1 above, shall be at any time no less than five percent (5%) of the total issued share capital and of each of the means of control in the license holderb. 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 one tenth (10%) of the members of the Board of Directors of the license holder shall be appointed by the Israeli Entities, as aforesaid in section 22A.2. Notwithstanding the aforesaid, on this matter – if the Board of Directors of a license holder shall appoint up to 14 members – at least one director shall be appointed by the Israeli Entities, as aforesaid in section 22A.2; if the Board of Directors of the license holder shall appoint from 15 to 24 members – at least two directors shall be appointed by the Israeli Entities, as aforesaid in section 22.2A above, and so on.

	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.

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.

b The commencement of section 2 shall be on 8 Av 5777 (July 31, 2017) (hereinafter – “The Date of Commencement”). During the period from the date of signature of the amendment of this license and until the Date of Commencement, in section 2.22A, in place of “shall be at any time no less than 20% of the  total issued share capital and of each of the means of control in the license holder. On this matter the issued share capital of the license holder shall be calculated, with the deduction of the number of dormant shares held by the license holder” it shall be deemed as if it states “shall be at a rate of 0% subject to the fulfillment of all the conditions specified in Appendix XVII of the License.

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	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.

		(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.

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THE BINDING VERSION IS THE HEBREW VERSION

 

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

 

	24.1	
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 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.

 

	24.2	
Without derogating from the aforementioned in Clause 24.1, the License Owner shall reach a cooperation agreement as stated in Clause 19.1B

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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.

 

	26.3	
The Licensee may discontinue the operation of a cellular system that has become technologically obsolete, after received the Director's approval in that regard and subject to conditions to be set in the LicenseA63.

26.A        Approval of Operation

 

	
26.1A

	
The License Owner shall contact the director in writing for the receipt of his approval to commence the provision of Generation 4 services (hereinafter – "Approval of Operation")

 

The License Owner may commence the provision of Generation 4 services only after receiving Approval of Operation from the director.

26B         Obligation to Provide Generation 4 Service

 

	26.1B	
If the License Owner has not begun providing Generation 4 Services within 12 months from the determining date, as stated in Clause 2.1(b)(2)(a) to Appendix E, the frequencies allotment that it provided for the provision of this service shall expire, and the license fees paid due to the award of the Generation 4 Tender shall not be returned.

The expiration of the frequencies allotment as stated shall be considered a change of the Cooperation Agreement or change of the Usage Agreement, as applicable.

 

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.

 

A63 Amendment No. 63

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	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.

		(E)	
Connection between the mobile telephony communications system component exclusively owned by the License Owner and the joint mobile telephony communications system component.

	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.

 

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.

33

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

	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;

	 	(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;

34

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

	 	(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.

	 	(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.

35

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

	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.

 

	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.

 

36

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

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. A72In the setup period, this report shall be integrated into the engineering system report, as stated in Section 104.1(e)

	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 a new 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.

 

A72 Amendment No. 72 (Inception: This amendment will come into force on the day of signing the Amendment)

	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.

37

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

	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.( A2)

 

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

	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).

 

38

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

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.

		(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.

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THE BINDING VERSION IS THE HEBREW VERSION

 

		(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.

 

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.

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THE BINDING VERSION IS THE HEBREW VERSION

 

	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

 

	46.1	
The Licensee will make use of the frequencies allocated to it as stated in Section 45 only for providing the services under this license.

 

	46.2	
Without derogating from the aforementioned in Clauses 45 and 46.1, and in accordance with the terms of the allotment provided to the other mobile telephony communications license owner, the License Owner may make use of the frequencies allotted to the other mobile telephony communications license owner in addition to the aforementioned in Clause 45, provided that the frequencies serve as cellular radio centers of the License Owner through the cellular radio infrastructure license owner that provides it with its services.

 

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' 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.           Preparing to ensure continuity of operations in emergencies

 

	48.1	
The License Holder will appoint a functionary (including a first deputy and a second deputy) who will be responsible in emergencies for maintaining contact with the Ministry; the License Holder will provide to the Director, once a year, on January 1st, the details of the functionary and his deputies, as well as their contact details.

 

	48.2	
The License Holder will be prepared to ensure continuity of operations in emergencies, as specified in Annex D – “Preparing to Ensure Continuity of Operations in Emergencies”.

 

41

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

Part D: Inspections and Maintenance(A43)

 

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.

	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.

 

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THE BINDING VERSION IS THE HEBREW VERSION

 

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.

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)

	
The first part of the contracting agreement shall clearly and accurately specify the main points of the fees and services plan according to the contracting agreement (hereinafter – the "Main Points of the Plan"). Should the contracting agreement include one type of services, the license owner may specify the Main Points of the Plan over no more than two pages. Should the agreement include a number of service types (landline, mobile phone, international services, internet, etc.), subject to the aforementioned, the license owner may add one page for each type of additional service. The Main Points of the Plan document shall be printed, without handwritten amendments or addenda, with the exception of that stated in Section (1), and as specified below:

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		(1)	
Licensee's name or logo, details of the Licensee's representative who executed the contract, Date and method of contracting executionc, subscriber's details including name, identity number, subscriber type, address, electronic mail, telephone number to which the contract relates, additional telephone number of the subscriber for sending notices from the license owner concerning the rate of utilization of the service package as stated in section 75D and regarding the disconnection of a dormant subscriber, as stated in Section 72A and a description of the goods, if included in the contract. Notwithstanding that stated at the beginning of section (a), the details mentioned in this subsection, other than the Licensee's name or logo, can be written in handwriting.

		(2)	
The duration of the commitment period, if any, and its expiry date. For purposes of this subsection, "commitment" – as this term is defined in section 56.1A.

		(3)	
All rates, according to which the license owner charges the subscriber for the services he requested to receive during the performance of the contract, including video call services and multimedia messages, and the rate of each fixed payment or one-time payment, including fixed payment of one-time payment which is not a Bezeq service, including connection fees, as defined in Section 74.1(a), smart card fees, as defined in Section 74.1(a1) and plan transfer fees.

 

If the license owner does not charge for connection fees or smart card fees or plan transfer fees, it shall be noted accordingly.

 

If the contracting agreement includes international services in the form of a package or plan of call minutes abroad, the license owner shall state its rates, the quota of the allotted minutes therein, the three-digit international access code which needs to be dialed, the countries included therein, the type of destinations in those countries (landline, mobile), and rate for deviating therefrom.

 

	 	
(3A)

	
With respect to a surfing package, as this term is defined in section 75D – the service unit rate outside the package will be presented in the same values as in the package.

	 	
(3b)

	
The quota of the service units determined by the license owner for the service or the service package ("Units Quota"), and the maximum length of a call, if any.

	 	
(3c)

	
If the license owner provides the subscriber with a service provided at a discount or for free for a fixed period ("Benefit"), and thereafter for full pay or the subscriber receives a credit for the end equipment which the subscriber provided to the license owner, the license owner shall specify the Main Points of the Plan as follows:

		(1)	
The monthly amount of the benefit / credit;

 

		(2)	
The duration for providing the benefit / credit;

 

		(3)	
Type of term from which the benefit / credit period begins being counted;

 

		(4)	
Service rate after the termination of providing the benefit.

The abovementioned shall apply also when the benefit is provided in the framework of a rate plan, and not only for a specific service included in the plan.

	 	
(3d)

	
If the subscriber transfers from one rate plan to another, and the license owner provided the subscriber with the main points of the new plan, the Main Points of the Plan shall also include the date of entry into force of the new plan.

	 	
(3e)

	
The manner in which the online service is provided after exhausting the entire volume of the browsing package – termination of service or slowing down of pace, without payment and without an additional charge, until the end of the bill term or the allotment of additional packages for pay, according to the choice of the subscriber at the time of performing the contract. Should the license owner choose to slow down the pace, it shall state in the Main Points of the plan what the maximum pace is for downloading.

 

c Transaction at a service station of the license owner or a transaction in peddling, as defined in the Consumer Protection Law, 5741-1981 or a transaction by way of a telephone call or a internet transaction.

44

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	
(3f)

	
The manner in which speech service and text messages are provided after exhausting the entire monthly Units Quota for these services – termination of service until the end of the bill period or the continued supply of the services and charging the subscriber according to rates set forth by the license owner in the framework of the plan.

		(4)	
Description of all goods purchased or leased during the performance of the contract and their overall price, and if agreed between the subscriber and the license owner as to the installment payment for the goods – the rate of each payment. If the goods were provided as a gift, it shall be explicitly stated.

		(5)	
Information regarding the cancelation of any benefit as a result of transferring to another rate plan.

		(6)	
The method of calculation of the amount the subscriber will be required to pay for a breach of the commitment, as this term is defined in section 56A.1.

		(7)	
With respect to a business subscriber – information on rate increases during the commitment period, if this possibility exists under the terms of the contract, including the date and amount of such increase.

		(8)	
Information on the balance of any payment for end-equipment that was purchased from the Licensee in a previous contract.

		(9)	
The Licensee's undertaking to pay to a subscriber of another cellular licensee who has become a subscriber of the Licensee, the payment such subscriber will be required to make to the other cellular licensee for the breach of his commitment to that cellular licensee, and the manner of spreading such payment.

 

In this regard, "commitment" – as this term is defined in section 56A.1.

		(10)	
The declaration of a subscriber, according to which he read the Main Points of the Agreement document, and he received it at the time of the execution of the agreement. The declaration shall state the details of the representatives on behalf of the license owner who executed the contract and the original signature of the subscriber shall appear at the end of the Main Points of the Plan.

		(11)	
Respecting subsection (a)(1) to (10) – "Subscriber" is any person who entered into an agreement with the Licensee for receipt of cellular mobile radio telephone services for up to twenty five telephone numbers, excluding a Pre-Paid Subscriber.A59

(12) A Split Business Subscriber" shall sign the Main Points of the Plan.

	 	
(13)

	
A license owner shall not include in the Main Points of the Plan information or additional details beyond those listed in this Section, unless they are data in NIS or NIS per consumption unit, which may directly affect the monthly account limit of the subscriber.

	 	
(14)

	
The rates of all services and payments, as specified in sub-section (3), (3b), (3c) (4) and (5) shall be presented in a chart with two columns – "Description of the Service / Benefit / Credit / Goods / Payment" and "Rate for the Service / Amount of Benefit / Credit / Payment."

 

	
                (a1)A58

 

	
 (1)

	
A separate, printed page, on which the subscriber will be required to mark his choice as to the accessibility of any telephone number to which the contract relates, to services as set out in Appendix E2 (hereinafter – the Access to Services Form or the form) and to sign at the bottom of the formA59; The form will be adjacent to the Main Points of the Plan.

 

A59  Amendment No. 59

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

45

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(2)	
A new subscriber who did not mark his choice regarding a certain service, blocked or open, in the place intended therefor on the form, his receipt of that service shall be blocked. A new subscriber who did not sign at the bottom of the form shall be blocked of all services appearing on the form.

 

In this section, "New Subscriber" – a subscriber who contracted with the license owner after 15 Tevet, 5777 (May 11, 2017).

		(3)	
A subscriber may request the Licensee at any time, orally in a human respond only or in writing, to change his accessibility to services specified in the form (hereinafter in this section – the subscriber's request). A first change will be made free of charge. The Licensee will implement the subscriber's request only after it has identified the subscriber. The license owner shall keep the application, as stated, and make it available for delivery or transfer to the manager, at his request, within five (5) business days from the application submission date.

 

The subscriber's request must be implemented within one working dayA59 from the date of the request.

		(4)	
The Licensee will include in the next telephone bill after the date of the subscriber's request a notice concerning the implementation of the request and the date of implementation. The license owner shall keep the telephone bill, as stated, and make it available for delivery or transfer to the manager, at his request, within five (5) business days from the bill preparation date.

		(5)	
The Licensee shall attach to the form two (2) immediate telephone statements sent after September 13, 2011 (14 Ellul, 5771) to a Subscriber who is not a new SubscriberA59.

		(5)	
(A) A Subscriber who is not a new Subscriber who failed to transfer to the Licensee his comments on the form by December 13, 2011 (17 Kislev, 5772) will be blocked from receiving the services set forth in section 3 of the form within seven (7) working days of the aforesaid date;

 

(B) Notwithstanding that stated, where a non-new subscriber has not used the services set out in Section 3 of the form starting November 1, 2011 (4 Heshvan 5772) and has not submitted to the Licensee a response to the form by December 1, 2011 (5 Kislev 5772), the Licensee may block his access to said services as of December 1, 2011 (5 Kislev 5772)A64;

 

(C) A non-new subscriber who has submitted to the Licensee a response to the form, will have his access to services blocked or opened in accordance with his request in the form, within one workday of the request's receiptA62;

 

(D) A Subscriber who transferred to the Licensee his comments on the form and failed to mark his Selection and signed alongside the service appearing on the form as stated in subsection (1) shall be blocked from receiving such serviceA59.

 

(E) The license owner shall block the access to services provided according to Section 2(e) on the form for access to services from any existing subscriber who did not choose it explicitly by completing the form, in the "open" option for these services within seven (7) business days after 15 Tevet, 5777 (May 11, 2017).

 

(6A) The Licensee will notify the subscriber about the block in the next telephone bill after the block. The license owner shall keep the telephone bill, as stated, and make it available for delivery or transfer to the manager, at his request, within five (5) business days from the bill preparation date.

 

(6B) Should the subscriber state his choices on the form for access to services, the license owner shall act in accordance with the choices of the subscriber immediately after the form was delivered to it.

 

(6C) A subscriber shall be required to complete a new form for access to services for any transfer from one rate plan to another only if his existing form is not the format of the form presented in Appendix E'2

 

A59 Amendment No. 59

A59 Amendment No. 59

A59 Amendment No. 59

A64 Amendment No. 64

A62 Amendment No. 62

A59 Amendment No. 59

46

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(7)	
The Licensee will publish the form on its website, within seven (7) work days from September 13, 2011 (14 Ellul, 5771)A59.

 

(7a) Should the Manager instruct to amend the version of the form for access to services, the License Owner shall publish the updated form for access to services on its website  within the time period set forth by the Manager from the date of signing the amendment to the license.

 

		(8)	
Respecting subsection (a1)(1) to (6) – "Subscriber" - excluding a Pre-Paid Subscriber. Notwithstanding the above, the Licensee shall block services at the request of a Pre-Paid Subscriber, to the extent that it comes from a telephone number to which the request refers, or such Subscriber presented before it the end-equipment serving the telephone number forming the subject matter of the request, or in any other manner to the Licensee's satisfaction A59.

 

		(9)	
If it is a Split Business Subscriber, only he shall complete the form for access to services and sign it, and only he may amend it.

		(a2)	
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 discontinuation of all service A58 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 A58	
Where a contract is executed in the presence of the Licensee's representative and the subscriber, the Licensee will act as follows:

(A)  The license owner's representative shall perform a reliable identification of the applicant according to the procedure set forth by the license owner. The license owner shall keep a copy of the identification card of the applicant and a copy of the identification card of the payer of the bill, which was provided to the license owner's representative when the contract was executed.

 

A59 Amendment No. 59

A59 Amendment No. 59

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

47

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(A1)	
Prior to executing the contract, the Licensee's representative will present to the person requesting to be a subscriber a printed copy of the contract, and will allow him to peruse the contract.

		(b)	
When executing the contract, the applicant and the Licensee's representative must affix their original signature to the contract that was given to the applicant for perusal. Following such signature, the Licensee's representative will give the subscriber a copy of the contract bearing the original signatures of the Licensee's representative and the subscriber.

		(c)	
After that stated in subsections (a) and (b) has been done, the Licensee's representative may require the subscriber to sign an identical contract to the one signed with original signatures, by electronic means.

		(d)	
The Licensee must keep in its possession a signed copy of the contract and make it available for delivery or transfer to the Manager, at his request, within five (5) business days from the contracting date.

		(e)	
Should the subscriber request to make a change in the terms of the contract, including a request to replace the existing plan with a new plan, to receive an additional service, to expand a service, or to join a service package – he will be given, at the time of the request for the change, a printed notice bearing the Licensee's name or logo, noting the time of submitting the application, the details of the change that was made, its effective date and the full name of the Licensee's representative and the subscriber together with their original signatures. The license owner may not amend, as stated, including replacing an existing plan with a new plan without receiving the explicit consent of the subscriber as detailed above.

 

The license owner shall keep the signed notice, as stated, and make it available for delivery or transfer to the manager, at his request, within five (5) business days from the submission of the application.

	55.6	
cancelled.

	55.7 A70	
Notwithstanding the provisions of Section 55.5, the Licensee may have a subscriber sign an engagement agreement also through an Electronic Graphic Signature, in lieu of an original signature, and the provisions of appendix E shall apply in this regard in lieu of the provisions of Section 55.5.

 

For this purpose, "Electronic Graphic Signature" – A signature which is saved electronically as a graphic file."

 

	55A. A58	
Remote Sales Transaction

	55.1a	
In a remote sales transaction, as defined in Section 14c to the Consumer Protection Law, 5741-1981, executed over the telephone, the license owner shall act as follows:

		(a)	
The license owner shall record the telephone conversation that took place between the applicant and the license owner's representative;

		(b)	
During the sales call and before the applicant consented to contract with the license owner, the representative of the license owner shall request the consent of the applicant to send by email or text message or facsimile, the Main Points of the Plan and the form for access to services, and shall state to him that he will be requested to confirm in writing that he accepts the terms of the contract agreement as a condition for its entering into force. If the applicant explicitly states that he is not interested in receiving said documents by one of the said three methods during the sales call, the license owner shall be exempt from sending them to the applicant during the sales call, and they shall be sent to him together with other instructions of the contract terms document on the date the transaction was executed. If the applicant requests to receive the said documents my one of the methods mentioned above, the representative of the license owner shall send them to him by way of the method he requested during the sales call.

 

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A69 Amendment No. 69

48

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(c)	
On the form for access to services sent by email or text message, every service shall be marked in a computerized manner as 'blocked" or as "open", as the applicant chose during said telephone call.

		(d)	
In the email or text message, the applicant shall be requested to confirm the execution of the transaction and the markings as presented in the form for access to service. The applicant shall explicitly confirm the terms of the transaction, without any handwritten conditions or reservations or modifications regarding the terms of the contract terms document by way of return email or return text message, which shall include his full name and identification number.

		(e)	
If the applicant requested to receive the Main Points of the Plan and the form for access to services by facsimile, the license owner's representative shall send said documents by facsimile, whose number shall be provided to the license owner's representative during the call.

The applicant shall explicitly confirm the terms of the transaction, without any handwriting conditions or reservations or modifications regarding the terms of said documents, in his handwriting on the markings and signatures on the Main Points of the Plan and on the form for access to services, and shall send the said two documents by facsimile to the facsimile number which the license owner's representative provided to him during their conversation.

The license owner shall send the other instructions of the contract terms document by regular mail on the date the transaction was executed.

		(f)	
The remotes sales transaction shall be completed and shall enter into force, and the license owner may charge the applicant in accordance with its terms only after the license owner receives the return notice of the applicant by email or text message, confirming the execution of the contract agreement or the said documents by facsimile, marked and signed as required.

		(g)	
The license owner shall keep the following in his possession:

		(1)	
The telephone conversation recording between the applicant and the license owner's representative;

		(2)	
The email or text message which the license owner sent the applicant, including the Main Points of the Plan and the form for access to services attached thereto;

		(3)	
The email or text message confirming the execution of the transaction, which the applicant send to the license owner in reply to the email or text message sent by the license owner to the applicant, when they are presented in a row;

		(4)	
If the transaction was executed by facsimile, it shall keep the Main Points of the Plan, bearing the handwritten signature of the applicant and the form for access to services, bearing the handwritten markings and signature of the applicant;

		(5)	
The other instructions of the contract terms document, updated to the date of the execution of the contract with the applicant.

		(h)	
The license owner shall make the recording and the documents specified in Section (g) available for delivery or transfer to the manager, at his request, and within five (5) business days from the entry of the transaction into force.

		(i)	
The rules specified in this section shall also apply in regards to a modification in the existing plan or replacement of the existing plan with a new plan.

49

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

In regards to this section, "Modification" – receipt of an additional service, expansion of service, joining a service package.

The license owner may not modify, including replacing an existing plan with a new plan, without receiving the explicit consent of the subscriber in a manner specified in Section 60.6(b).

		(j)	
Notwithstanding the above, where a Subscriber requested to make a change which does not involve an extension of the term of undertaking of the Subscriber or the creation of such a term, the Licensee shall include in the immediate telephone statement to the date of the request a notice in which the particulars specified in subsection (b) shall be noted, except for the name of the Licensee's representative. For the purpose of this subsection, "undertaking" is within the meaning in section 56.1A of the License.

	55.2a	
In a remote sales transaction, as defined in Section 14c of the Consumer Protection Law, 5741-1981, executed over the internet, the license owner shall act as follows:

		(a)	
In the publication of the rate plan on its website, the license owner shall explicitly include all details specified in sub-section 55.4(a2) to 55.4(h) and the Main Points of the Plan and form for access to services.

 

		(b)	
In the registration process for rate plan, as stated, the license owner shall include a presentation of the Main Points of the Plan to the applicant as well as a box which the applicant shall be required to mark prior to the completion of the registration, as stated, and its marking shall constitute a declaration that he had read the information included in the Main Points of the Plan. If the marking is not made, as stated. the registration will not be able to be completed.

 

		(c)	
In the registration process for rate plan, as stated, the license owner shall include the online form for access to services, which the applicant shall be able to mark and to retrieve it at any time, and to modify its markings as he wishes.

 

		(d)	
The license owner shall send a copy of the contract terms document to the subscriber who executed the "remote sales" transaction by internet immediately after the completion of the performance of the transaction. A copy of the contracting agreement executed between the subscriber and the license owner shall be sent to the subscriber by email, which shall include the contracting agreement as an attached file.

 

		(e)	
The license owner shall keep the contacting terms document, as stated, and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date of completion of the transaction by the subscriber.

 

		(f)	
The rules specified in this section shall also apply in regards to a modification in the existing plan or replacement of the existing plan with a new plan.

 

In regards to this section, "Modification" – receipt of an additional service, expansion of service, joining a service package.

The license owner may not modify, including replacing an existing plan with a new plan, without receiving the explicit consent of the subscriber in a manner specified in Section 60.6(b).

 

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.

 

50

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	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. The Licensee will publish on its website the contract that does not include a commitment, including the Plan Summary Page of such contract A58.

 

	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.

 

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)

 

T47) Amendment No. 47.

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

 

51

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

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)

 

	 	
(a)

	
The license owner shall not supply or expand, with or without consideration, any of its services which the subscriber did not explicitly request to receive or expand, with the exception of a services provided free of charge to all subscribers, and shall not all the supply or expansion of services of a service provider that the subscriber did not explicit request the receipt or expansion thereof from the license owner.

In regards to this section, "Service Provider" – whomever provides a service by way of the network, and the payment for the service is made by the telephone bill.

 

		(b)	
A58 An explicit request may be made by one of the following ways:

		(1)	
By a document signed by the subscriber and sent to the Licensee;

 

		(2)	
By an email message sent by the subscriber to the Licensee;

 

		(3)	
In a phone call between the subscriber and the Licensee's representative;

 

		(4)	
By an SMS message sent from the subscriber to the Licensee;

 

		(5)	
By ordering a service on the website of the Licensee or a service provider. Ordering of the service shall be done in accordance with the provisions of Appendix F to the License.A61

 

	 	
(6)

	
A session with the representative of the license owner by way of the internet ("CHAT");

 

		(c)	
The Licensee will keep documentation on the subscriber's explicit request. The documentation must be kept available by the License owner for presenting to the Director within five (5) work days from the day of the subscriber's explicit request.

In this regard – "documentation":

 

For purposes of subsection (b)(1) – a copy of the document;

 

For purposes of subsection (b)(2) – a printout of the email message;

 

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A61  Amendment No. 61

52

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

For purposes of subsection (b)(3) – a recording of the phone call;

 

For purposes of subjection (b)(4) – a copy of the subscriber's telephone bill in which the details of the SMS and a printout of its content as received by the system of the license owner sent by the subscriber appear in the "itemized list of calls."

 

For purposes of subsection (b)(5) – a log printout from the Licensee's short message service center (SMSC4), detailing the fact of the sending of the two SMS messages from the Licensee to the subscriber during the service ordering process. If the service was ordered on the Licensee's website or on its cellular portal by means of a user code and password as stated in section 1.3 in Appendix F to the License – a log printout from the SMSC testifying to the execution of the service ordering process, and a log printout of the log-in of the user code and password by the subscriberA61.

 

For purposes of subsection (b)(6) - printout of the internet chat;

A memorandum entered by the Licensee's representative in the Licensee's information systems does not constitute documentation.

	60.7A63	
Without derogating from that stated in section 26.3, the Licensee may not discontinue the provision of cellular services through a system that has become technologically obsolete, until after that stated in Appendix K-1 is fulfilled.

	60.7 A58	
The Licensee may not collect payment from a subscriber for a service or its increase, unless it has documentation on the subscriber's explicit request to receive the service or its increase.

	
60.8A58

	
A subscriber who was debited for a service or for its increase and notifies the Licensee that he did not request to receive or to increase the service, will be refunded the full amount collected from him as payment for the service or for the increase, where the Licensee has no documentation on the subscriber's explicit request to receive or to increase the service. The subscriber's contestations and the refund will be handled in accordance with the provisions on "excess charges" in section 83A of the License.

 

61.A43)     Public Ombudsman

	
61.1

	
The ombudsman shall be directly subordinate to the CEO of the license owner or the Board of Directors, including one of the committees of the Board of Directors.

	
61.2

	
Subject to the provisions of Section 61a regarding "dispute resolution", the roles and authorities of the ombudsman are:

	 	(a)	
To review complaints of subscribers and applicants regarding the services of the license owner;

 

	 	(b)	
To review complaints of subscribers regarding bills which the license owner submitted to them and to make a decision in their regard;

 

	 	(c)	
To review differences of opinion which arose between the license owner and a subscriber regarding the interpretation or performance of the contracting agreement and to make a decision in their regard;

	
61.3

	
The license owner shall place on its website in a prominent place and in a prominent manner a link named "ombudsman"5. Clicking on said link shall lead to a landing page in which the roles and authorities of the ombudsman shall be specified, as well as the four (4) options for sending a complaint thereto as follows:

	 	(a)	
Regular mail;

 

4 Short Message Service Center.

A61 Amendment No. 61

A63 Amendment No. 63 - Mistake in the original language

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

 

53

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	(b)	
Email;

 

	 	(c)	
Online form on the website of the license owner, to which various files can be attached;

 

	 	(d)	
Facsimile.

	
61.4

	
The license owner shall specify in each bill it submits to the subscriber the roles and authorities of the ombudsman and the address, facsimile number and email, by which the subscriber way send a written complaint to it.

	
61.5

	
The license owner shall notify in its website and on each bill its submits to the subscriber, in regards to each of the four (4) options specified above, the details which the subscriber is required to complete in the framework of the complaint he intends to send.

	
61.6

	
Once a complaint is sent to the ombudsman by email or by online form, an automatic conformation notice regarding its acceptance shall be sent to the subscriber immediately after the receipt of the complaint. The confirmation notice shall include the number which the license owner's system gave the complaint, the date of receipt of the complaint, the content of the complaint as sent by the subscriber and the time period no later thereof a written response to the complaint shall be provided.

	
61.7

	
The license owner shall keep a copy of the complaint and the written response sent to the subscriber, and shall make them available for delivery or transfer to the manager, at his request, within five (5) business days from the date of receipt of the complaint and from the date of delivery of the response.

61A.        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 of all service A58 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.

 

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

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63.A56       Call Center

 

	63.1	
The Licensee will operate a manned call center for receiving calls of its subscribers. The Licensee will also operate additional means that allow its subscribers to turn to it for information and inquiries, all as set forth in Appendix E to the License.

 

	63.2	
The call center will be manned by skilled and professional personnel, having the appropriate competence for handling calls, and if a complaint has been received regarding a malfunction that led to termination of all cellular services to a subscriber, said personnel will act immediately to localize the malfunction and start taking steps to immediately correct it.

 

	63.3	
The Licensee will specify in the maintenance log the details of the malfunction, as stated in section 63.2, and the steps taken to correct it, all as stated in section 51

 

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:

		(a)	
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;

 

		(b)	
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.

 

		(c)	
During the sales call by telephone call for the purchase or lease of MTS end user equipment, without executing a transaction for the purchase of MTS services (hereinafter – "Purchase Agreement") with the applicant, and before the applicant expresses his consent to enter into a Purchase Agreement with the license owner, the license owner's representative shall request the approval of the applicant to send him by email or text message or facsimile, a printed Purchase Agreement, without handwritten modifications, with the logo of the license owner, specifying the description of the end user equipment and its overall price, and if it was agreed between the purchase and the license owner in regards to payment in installments for the end user equipment – the number of payments and the rate of each payment, including the date of the sales call and the details of the purchase and the license owner's representative, and shall inform him that he shall be required to confirm in writing that he accepts the terms of the Purchase Agreement as a condition of its entry into force. If the applicant explicitly states that he is not interested in received said document by one of the said three methods during the sales call, the license owner shall be exempt from sending them to the applicant during the sales call, and it shall be sent on the date the transaction was executed. If the applicant requests to receive the said documents my one of the methods mentioned above, the representative of the license owner shall send them to him by way of the method he requested.

The license owner shall keep a copy of the Purchase Agreement and make it available for delivery or transfer to the manager, at his request, and within five (5) business days from the date the transaction was executed.

 

The license owner shall also record the telephone conversation which took place with the applicant, and shall make the recording available for delivery or transfer to the manager, at his request, and within five (5) business days from the date the transaction was executed.

 

A56 Amendment No. 56

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THE BINDING VERSION IS THE HEBREW VERSION

 

		(d)	
In a notice that shall be sent to the applicant, he shall be requested to confirm the execution of the transaction. The applicant shall explicitly confirm the terms of the transaction without any handwriting conditions or reservations or modifications regarding the terms of the Purchasing Agreement by way of a return email or return text message or facsimile, which shall include his full name and his identification number.

The license owner shall keep a copy the purchaser's confirmation and make it available for delivery or transfer to the manager, at his request, and within five (5) business days from the date the transaction was executed.

		(e)	
Immediately after the delivery of confirmation by the applicant, as stated, the license owner shall send him in the manner in which the Purchase Agreement was sent, a document by law6.

		(f)	
When executing a transaction in the presence of two parties for the purchase of MTS end user equipment, without executing a transaction for the purchase of MTS services, and before the applicant expresses his consent to execute a Purchase Agreement with the license owner, the license owner's representative shall forward to the applicant a printed copy of the Purchase Agreement prior to the purchase, and shall allow him to review it.

Upon the execution of the transaction, the applicant and the license owner's representative shall sign the Purchase Agreement, which was forwarded to the applicant for his review, with original signatures.

After signing, as stated, the license owner's representative shall deliver the Purchase Agreement to the applicant, on which the original signatures of the license owner's representative and the applicant appear, as well as the document stated in sub-section (e).

After performing the aforementioned in this sub-section, the license owner's representative may have the applicant sign an identical Purchase Agreement to the one signed with original signatures while using electronic means.

The license owner shall keep the Purchase Agreement and the document stated in sub-section (e), and shall make it available for delivery or transfer to the manager, at his request, and within five (5) business days from the date the transaction was executed.

The license owner's representative shall perform a reliable identification of the applicant according to the procedure set forth by the license owner. The license owner shall keep a copy of the identification card of the applicant and a copy of the identification card of the payer of the bill, which was provided to the license owner's representative when the contract was executed.

		(g)	
If the subscriber and the license owner agreed on payment in installments for goods the subscriber purchased or leased from it, and the subscriber breached the contract agreement before all payments were made for the said goods, however the breach was remedied within forty five (45) days from the date the license owner informed the subscriber of the breach, the license owner may not charge the subscriber the remaining payments for the goods in one payment, and the payment in installments shall continue as agreed between the subscriber and the license owner from the start.

 

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 systemsg to identify the telephone number of a subscriber calling themh, 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.

 

f Tax invoice / receipt

g Israel Police – 100, Magen David Adom – 101, Fire Station - 102

h 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

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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 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.

 

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	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.

 

65.B       “Personal Message” Service A75

 

	65.1B	
The license holder will provide a personal message service (in this section: the “Service”), at any time and free of charge, to all of its subscribers, including to subscribers of another license holder, owners of end equipment which supports the Service (in this section: “Subscribers”), and in accordance with the “personal message” service file.

 

For purposes of this section:

 

“Another License Holder” – another Cellular license holder who receives service through national roaming or a cellular license holder on another network which receives service through a hosting agreement on the license holder’s network;

 

“Personal Message” – A short instruction, notification and warning of the Defense Agencies, sent immediately, selectively and in a focused manner to subscribers with CMR end equipment which supports use of cell broadcast (“CB”) technology.

 

“Defense Agencies” – Representatives of the Ministry of Defense and the Home Front Command which are responsible for the personal message system;

 

““Personal Message” Service File” – A service file approved by the Director, including amendments that shall be made to the service file.

 

	65.2B	
For the purpose of performance of the provisions of Section 65.1B, the license holder shall act as stated in the First Schedule and in the service file regarding this Service and as follows:

 

	 	(a)	
Adaptation of the network and its components so as to support the provision of a personal message service, with the exception of the network components operating with iDEN or CDMA technology;

 

	 	(b)	
Assistance and allocation of resources for the performance of work to connect the Defense Agencies’ personal message system to the network;

 

	 	(c)	
Operation and maintenance of the components of the Service on the network, according to written instructions that shall be presented to the Defense Agencies; without derogating from the aforesaid, the Defense Agencies may instruct the license holder to modify such instructions, but the same does not derogate from the license holder’s responsibility for the repair and connection of the network;

 

	 	(d)	
Performance of technical trials to examine the integration between the system and the network and carrying out drills of the operation of the network and the system, in accordance with the instructions of the Ministry and the Defense Agencies.

 

	65.3B	
The license holder shall report to the Defense Agencies on any gap in the capability to provide the Service, and will act to restore capability as soon as possible, in accordance with written operation procedures that shall be formulated thereby and presented to the Defense Agencies.

 

Without derogating from the aforesaid, the Defense Agencies may instruct the license holders to modify the operation procedures, should it find them lacking, although such an instruction does not derogate from the license holder’s responsibility as stated above.

 

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	65.4B	
The license holder shall notify the Defense Agencies in advance of any change in the network which may affect availability to provide the Service.

 

	65.5B	
The license holder shall not make commercial use of the CB function without the Defense Agencies’ knowledge, at least 30 days in advance before operation of the Service, and the Defense Agencies may notify it, in writing, within 15 days, of its objection to provision of the Service or conditions to provision of the Service as aforesaid, in which case, the license holder will not operate the Service, or may operate the same only according to the conditions determined by the Defense Agencies, as the case may be.

 

The aforesaid does not obviate the license holder’s obligation to receive the Director’s approval for the Service as aforesaid.

 

	
65.6B

	
The license holder will assist in launching the Service to its subscribers in all of the following ways:

 

	 	(a)	
By written information on the company’s website;

 

	 	(b)	
By direct marketing to subscribers through the monthly invoice upon the launch of the Service;

 

	 	(c)	
By responding to subscribers’ requests to select the definitions required in his cellular end equipment. With respect to cellular end equipment models which were not marketed by the license holder, the license holder will make a reasonable effort to provide a solution for such subscribers;

 

	 	(d)	
The license holder will allow the Defense Agencies to make reasonable use of its existing distribution channels for the purpose of informing the subscribers of the Service.

 

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.

 

T3)  Amendment No. 3

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

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

 

66B.A12)  Security Provisions

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

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

		(1)	
An Israeli citizen, as this term is defined in the Citizenship Law, 1952, and a resident of Israel;

		(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	
Void A58.

	67.3	
The Licensee may collect payments for his services from the subscriber through another, including through Bezeq.

 

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

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	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)	
cancelled.

		(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 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.

 

		(2)	
cancelled.

		(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.

	67.5T52	
A bill submitted to a private subscriber and a split Business 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”).

	67A.5A58	
A bill submitted to a business subscriber will include the same details as in subsections 9b(1) to 9b(4) in Appendix E1 to the License.

 

In this section, 'business subscriber' – excluding the subscribers specified in subsections (b) and (d) of the definition of 'business subscriber' in section 1 of the License.

 

T52) Amendment No. 52.

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

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67.6T52

	
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. A business subscriber may also request from the Licensee a written explanation regarding the method of calculating a 'onetime debit.' The Licensee will submit to the business subscriber such written explanation regarding a 'onetime debit' within thirty (30) days from when the subscriber submitted a request in the matter to the customer service center or to the public ombudsman A58.

67.7         The subscriber shall receive a bill, at his choice, by one of the following methods:

		(a)	
Regular mail;

		(b)	
Email with an attached file;

		(c)	
Text message with an attached link;

		(d)	
The website of the license owner;

		(e)	
Other electronic means at the choice of the license owner.

The license owner shall present the said five (5) methods for the choice of the subscriber in the framework of the form for access to services. If the subscriber does not choose one of the methods, the bill shall be sent to him by regular mail. The subscriber may, at any time, modify the method in which he shall receive the bill by oral or written request.

The license owner shall document the request of the subscriber, as stated, and shall make this documentation available for delivery or transfer to the manager, at his request, and within five (5) business days from the date of submission of the request.

If the subscriber submits the request during the first half of the bill period, the license owner shall send him the bill following the date of the request in the manner the subscriber requested. Otherwise, the license owner shall send the bill to the subscriber after the following bill in the manner the subscriber requested.

The license owner may not request from the subscriber any payment for the issuance of the bill, including a "call details" from any date, which was sent to the subscriber at his request regularly or on a one-time basis, only in the event that the bill was received by the subscriber as specified in sub-section (a).

	67.8 A58	
If the payment specified in the telephone bill is made by standing order or credit card, the payment will not be executed before the expiry of ten (10) days from the day on which the telephone bill was sent to the subscriber.

 

T52) Amendment No. 52.

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

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67.9

	
The license owner may act, in regards to sending the bill to a subscriber who receives the bill by regular mail, as specified below:

		(A)	
The license owner shall send each subscriber, as stated, a separate letter by regular mail or message by email, in which he shall be required to choose, within thirty (30) days from the date of delivery of the letter or the message, the manner in which the monthly bill shall be sent to him from the following methods:

 

		(1)	
Regular mail;

 

		(2)	
Email with an attached file;

 

		(3)	
Text message with an attached link;

 

		(4)	
The website of the license owner;

 

		(5)	
Other electronic means at the choice of the license owner.

		(B)	
The license owner shall allow each subscriber, as stated, to reply to the request addressed to him by regular mail, free of charge, and by email and facsimile.

 

		(C)	
The license owner is obligated to use at least two electronic means from those specified in sub-section (a) above.

 

		(D)	
The license owner shall make reference to the business subscriber and to the Split Business Subscriber in a framed message in bold and with a 16 font size at least, and if he does not choose the method in which to receive the bill, the bill shall be sent to him by the method set forth by the license owner, and without derogating from the provisions of section 13b(a) of the Consumer Protection Law, 5741-1981.

 

		(E)	
The license owner shall state in the reference to the Private Subscriber in bold and with a 16 font size at least, that if he shall not choose a method to receive the bill, the bill shall be delivered to him by regular mail.

 

		(F)	
The license owner may not deliver the bill by text message to end user equipment that is blocked from receiving text messages and to end user equipment that is not a smartphone.

 

		(G)	
The license owner may not modify the method in which to deliver the bill to a Private Subscriber who did not respond to the reference which the license owner sent to him.

 

		(H)	
If the method of delivery of the bill to the subscriber is modified, the license owner shall send notice to the subscriber before sending the first bill by the new method by way of a text message, informing him of the modification details. A subscriber who is blocked from receiving text messages shall receive said notice in the bill following the modification.

 

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	
cancelled.

	67.3A	
In addition to that stated in Section 67.1A, 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.

 

A39)  Amendment No. 39

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	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)	
cancelled.

		(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:

 

		(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 the information service for clarifying telephone numbers given free of charge by the Licensee ("Free Information Service"). The advertising should include at least the following:

		(A)	
The Licensee's website;

 

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.

 

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		(B)	
Each telephone bill of the subscriber.

		(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.

	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.

 

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	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.

 

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.

 

67D1      Premium Service A81

 

67.1D1   The license holder may provide premium services in one of the following two ways:

 

(1)       A premium service, the payment for which is charged according to a premium tariff and is collected through the telephone bill, shall be provided according to the provisions of Annex P;

 

(2)       A premium service, the payment for which is charged according to a regular tariff (in this subsection: the “Service”), will be provided as follows:

 

(a)    As an inter-network service through a network access code;

 

(b)    By dialing a landline number, access to which will be enabled for every subscriber of a general license holder's subscriber.

 

For purposes of this section:

 

“Landline Number” – A numbering format of geographic numbers and landline national numbers or a numbering format of an asterisk and four digits (*XXXX), as defined in the numbering plan.

 

“Premium Service” and “Regular Tariff” as defined in Annex P.”

 

67E.T60)    Domestic Roaming

 

	67E.1	
The Licensee provide by means of its network to a roaming licensee a domestic roaming service for the subscribers of the roaming to the network of the host operator, as set forth below.

 

	67E.2	
Licensee's preparations

 

A60) Amendment No. 60

A81 Amendment No. 81

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The Licensee shall prepare for the implementation of domestic roaming in accordance with all of the following:

 

(a)        The provisions of Appendix C, in the Second Schedule.

 

		(b)	
The provisions of the Law and the License concerning provision of the possibility of utilization of its network, and specifically sections 30 to 30C of the License, mutatis mutandis.

 

	67E.3	
Operating arrangement

 

		(a)	
If a roaming licensee notifies the Licensee, after notifying the Minister of its failure to reach agreement with any existing licensees on the conditions for the provision of roaming services as stated in section 5B(b)(1) of the Law, that it has chosen the Licensee for the receipt of domestic roaming services (in this subsection "notice"), the Licensee and the roaming operator shall forward to the Director the engineering and operating details agreed between them with respect to the implementation of domestic roaming ("operating arrangement"), within three months from the date of sending of the notice. In addition, said operators shall include engineering or operating details as required for maintaining domestic roaming, which were not included in the operating arrangement due to disagreements, should any arise.

 

		(b)	
Matters in disagreement as stated in paragraph (a) above, should there be any, shall be decided by the Director. The Director's instructions in this regard shall form an integral part of the operating arrangement.

 

	67E.4	
Starting date for implementation of domestic roaming

 

A host licensee shall begin providing domestic roaming services in accordance with the operating arrangement no later than three months after the date on which the roaming licensee presented to the host licensee the Minister's approval as stated in section 5B(b)(2) of the Law.

 

67F. A66   International roaming service through a network of a mobile phone operator in a neighboring country

 

	
67F.1

	
The license holder will act so as that in an area in which there is reception which allows an proper call to be made, both from the network and from a network of a mobile phone operator in a neighboring country, the subscriber will receive mobile phone service through the network. The license holder will perform the action itself, without the need for any action on the part of the subscriber.

 

	
67F.2

	
The license holder will block the possibility of a subscriber receiving international roaming service through a network of a mobile phone operator in a neighboring country (the "Service"), unless the subscriber shall have explicitly requested to receive the Service, and after it shall have been explained to him that in the framework of receipt of the Service, the terminal equipment in his possession may unintentionally roam near the border with a neighboring country, to a mobile phone network in a neighboring country, and he shall have been given information regarding the Service tariffs; if a subscriber requests to receive the Service as aforesaid:

 

		(a)	
The license holder will explain to him how he is able to choose, manually, through the terminal equipment in his possession, the mobile phone network from which he shall receive the Service;

 

		(b)	
The license holder will allow the subscriber to choose whether to block access to receipt of a data communications service through a mobile phone network of a neighboring country.

 

A66  Amendment No. 66

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67F.3       In this section, "Neighboring Country" -  Jordan and Egypt;

 

		"Proper Call" -	
A call made according to the minimum reception definitions set forth in international standards according to which the network operates.

	67G. A67	
Offensive content and sites

 

	67G.1	
The license holder will notify its subscribers of offensive sites and offensive content, as defined in Section 4.i of the law, as stated in Section 4.i(b)(1) of the law; such notice shall be given in the manner set forth in Section 4.i(c) of the law.

 

	67G.2	
The license holder will notify its subscribers of the existence of content on the internet which is inappropriate for children and youth (for example pornographic sites), and will include a specification of the ways in which the access of children and youth to such content may be blocked; such notice shall be given in all of the ways listed in Section 4.i(c) of the law.

 

	
67G.3

	
The license holder will offer its subscribers, in all of the ways listed in Section 4.i(c) of the law, an effective service to filter offensive sites and offensive content, for no charge additional to the payment it collects from him for the internet access service, all as stated in Section4.i(d) of the law, provided that such service shall be based on an analysis of the information and not according to a "black list" of sites only.

Part C:   Termination Of Service Or Its Disconnection Or Termination Of The Contract

 

68.           Definitions

In this part –

	
"Cancelation of Service" -

	
permanent disconnection of one of the services of the license owner for all subscribers"

	
"Discontinuation of Service" -

	
temporary termination of one of the services of the license owner or of all services of the license owner provided to the subscriber;

	
"Disconnection of Service" -

	
permanent disconnection of one of the services of the license owner provided to the subscriber;

	
"Termination of Service" -

	
Disconnection of all services of the license owner provided to the subscriber, and cancelation of the contracting agreement with him."

 

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.

69a.         Prohibition on Termination of Service

 

The license owner is not allowed to terminate mobile telephone services or other services, that The license owner is obligated to provide under this License, unless the following in this part or in section 48 occurs.

 

69b.         Discontinuation of Service at the Request of the Subscriber

 

		69.1b	
A subscriber may request from the license owner to discontinue any one of the services of the license owner, once per year, for a period of not less than thirty (30) days, and which shall not exceed ninety (90) days.

 

A67  Amendment No. 67

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		69.2b	
A subscriber may submit a request to discontinue service by the following methods:

		(a)	
In writing, including by regular mail, facsimile, email or online form on the website of the license owner, to which various files may be attached, and the license owner may permit the submission of requests by online chat.

		(b)	
Orally, by calling the call center or at the service station of the license owner;

		69.3b	
The license owner shall document the request of the subscriber and shall make this documentation available for delivery or transfer to the manager, at his request, and within five (5) business days from the date of submission of the request.

		69.4b	
The license owner shall discontinue services, disconnect services or terminate services no later than the business day following the date in which the request was submitted; if the subscriber stated a future date from the discontinuation of service, disconnection of service or termination of contract, the license owner shall fulfill the request on the date stated by the subscriber.

		69.5b	
The license owner shall document the date (date and time) in which the subscriber's request was made in its information systems.

		69.6b	
Once service is discontinued for a subscriber, the license owner shall renew the provision of the service no later than the business day following the date in which the request was submitted unless the subscriber requested a later date for the renewal of the provision of the service.

		69.7b	
if the subscriber requests to discontinue any of the services of the license owner, the license owner shall preserve the telephone number for the subscriber for the entire discontinuation period, and shall not transfer it to another.

		69.8b	
The license owner may not charge the subscriber payment for the discontinuation of service, for its renewal, and may not charge the subscriber payment for the discontinuation period of all of its services.

		69.9b	
Following the renewal of the provision of the service to the subscriber, the license owner shall charge the subscriber according to the rates of the plan and its terms, according to which the subscriber was charged prior to the discontinuation of the service unless the rates for the plan and its terms were modified during the discontinuation period for all of the subscribers of that plan.

69c.        Disconnection of Service at the Request of the Subscriber

		69.1c	
A subscriber may request the license owner to disconnect a service; the subscriber may make his request in writing or orally, as stated in Section 69.2b.

 

		69.2c	
The provisions of Sections 69.3b until 69.5b above shall apply to the disconnection at the request of the subscriber, and the license owner may not charge the subscriber for the disconnection of the service.

 

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69d.        Termination of Contract at the Request of the Subscriber

		69.1d	
A subscriber may notify the license owner of the termination of the contract between them; the subscriber may make his notice in writing or orally, as stated in Section 69.2b.

		69.2d	
The provisions of Sections 69.3b until 69.5b above shall apply to the termination of the contract at the request of the subscriber.

		69.3d	
The license owner shall send the subscriber notice regarding the termination of the contract within two business days from the date the subscriber requested the termination of the contract. The notice shall include, inter alia, the date on which the termination of the contract was made and the last date of delivery of the last final bill, referring to the last bill period of his subscription with the license owner ("Final Bill").

		69.4d	
A subscriber who terminated his contract with the license owner shall receive a Final Bill as soon as possible, and no later than two months from the date of termination of the contract.

The Final Bill shall state the date on which the termination of the contract was made, and it shall be titled "Final Bill".

		69.5d	
Nothing in the provisions of this section may derogate from the termination of the contract by way of the mobility of numbers in accordance with the numbering plan regarding mobility of numbers – combine version dated August 22, 2005, and its amendments.

69e.        Preserving a Telephone Number upon the Termination of Contract

		69.1e	
Once a contract is terminated between the license owner and a subscriber, whether initiated by the license owner or by the subscriber, the license owner shall preserve, free of charge and without conditions or restrictions, the telephone number for the subscriber, shall not transfer it to another and shall not return it to the number database intended for allotment for a period of fourteen (14) days from the date of termination of the contract.

		69.2e	
If the subscriber requests to receive back his telephone number within the said time period, the license owner shall immediately fulfill the request of the subscriber, and may charge the subscriber for the time period between the termination and the renewal of that telephone number that was returned to him according to the rate plan which the subscriber had before the termination of the contract, and continue charging him according to said rate plan.

 

69f.         Discontinuation of Service or its Disconnection or Termination of Contract – General Provisions

		69.1f	
The license owner shall set forth in his website, in a prominent place and in a prominent manner, a link named "Discontinuation / Disconnection of Service"i, clicking thereon shall refer to the three following options:

		(a)	
Discontinuation of service;

		(b)	
Disconnection of service;

		(c)	
Termination of contract.

		69.2f	
The license owner shall present the following details in each one of the three options:

		(a)	
A short explanation regarding the option chosen;

 

i A link named "Contact Us" shall not be considered a replacement for said link.

 

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		(b)	
Methods of contact regarding the submission of a request in each of the said methods, including telephone number, address, facsimile number, email address, online form and internet chat, if the license owner chooses this methods, in which the subscriber may submit the request as stated;

		(c)	
The details which the subscriber is required to state in the framework of his request, including the telephone number, subject of the request, the identification number of the subscriber, the last four (4) digits of the method of payment, email address, provided that the subscriber makes use of email to submit his request, and the date which the subscriber determined for the performance of his request;

		(d)	
The date on which the request of the subscriber shall be fulfilled, the date on which the billing on the phone bill shall terminate and the date on which the Final Bill shall be sent to the subscriber in the event of termination of the contract.

		69.3f	
The license owner shall publish in each telephone bill the telephone number, address, facsimile number and email address, by which the subscriber may submit said requests.

		69.4f	
If the subscriber submitted his request by way of email, the license owner shall send a return email immediately upon the receipt of the request, confirming the receipt of the request. The email shall include the number determined for the request of the subscriber in the system of the license owner, the date of receipt of the request and the content of the request, as was sent by the subscriber.

		69.5f	
If the subscriber submitted his request by way of an online form, the license owner shall present on the screen of the equipment through which the online form was sent (computer or appropriate MTS end user equipment), notice confirming the receipt of the request; the notice shall include the details specified in Section 69.4f.

		69.6f	
If the request of the subscriber, which was submitted by way of an online form, included any detail of those specified in subsection 69.2(c) being incorrect, the license owner shall mark the incorrect detail on the online form and the subscriber shall be requested to re-deliver the request with the correct detail.

 

70.           cancelled

 

71.           cancelled.          

 

	71A.T48)	
Blocking of Cellular End-User Equipment

 

	71A.1	
The license owner shall maintain in its MTS system the identification number of the end user equipment (IMEI – International Mobile Equipment Identity) that the subscriber made use of, with the exception of the MTS end user equipment operating with IDEN technology (hereinafter in this Section – "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.

 

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

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		(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.

 

	71A.2	
If the subscriber notified the license owner that his End User Equipment was stolen or lost, the license owner shall do as follows:

		(a)	
During the call with the subscriber when his delivers his message, as stated, the license owner shall authenticate the identity of the subscriber.

		(b)	
The license owner shall raise before the subscriber the option of submitting a complaint at the police station for theft or loss of the End User Equipment.

		(c)	
The license owner shall request from the subscriber an alternate telephone number with which he can be contacted.

		(d)	
The license owner shall immediately and free of charge "discontinue the service" for all services provided for use, including international services, by blocking the smartcard of the subscriber, with the exception of incoming calls if the subscriber requested not to block these calls, immediately upon receipt of the notice regarding the theft or loss of the End User Equipment, and shall inform the subscriber in this regard.

		(e)	
Despite the aforementioned, the license owner shall "discontinue the service" free of charge for all MTS services provided to the subscriber, including incoming calls, after three (3) days from the date of receipt of the notice regarding theft or loss of the End User Equipment.

		(f)	
If the subscriber notified of theft or loss of the End User Equipment while he is abroad and receiving international roaming services, the license owner shall immediately and free of charge "discontinue the service" for all MTS services provided to the subscriber by blocking the smartcard of the subscriber, including incoming calls, unless the subscriber requested not to block these calls.

		(g)	
The license owner shall block the End User Equipment free of charge by blocking the identification number of said End User Equipment, as recently recorded on the MTS system of the license owner, immediately after twelve (12) hours had passed from the time of the subscriber's notice of the theft or loss of the End User Equipment. The license owner shall make it clear to the subscriber that upon receive of his notice of the theft or loss of the End User Equipment, blocking the End User Equipment by blocking his identification number shall be performed at that time.

		(h)	
The license owner shall immediately and free of charge remove the blockage of the End User Equipment upon demand of an authorized factor. "Authorized Factor" for this Section is a police officer who obtained authority from a police officer with a Brigadier General ranking to contact the license owner and instruct it as to the removal of the blockage. The license owner shall make a special marking in its information system of the End User Equipment regarding which the "Authorized Factor" requested to remove the blockage, however it shall not provide any information regarding the removal of the blockage, as stated.

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		(i)	
The license owner shall re-block the End User Equipment after receiving the approval of the Authorized Factor.

		(j)	
The license owner shall renew the supply of all services to the subscriber immediately upon delivery of a new smartcard to the subscriber.

		(k)	
The license owner shall state on the telephone bill of the subscriber, following the date on which the subscriber's notice regarding the theft or loss of the End User Equipment was provided, or the telephone bill following that, the date and time of the subscriber's report, date and time of the discontinuation of the MTS services to said End User Equipment, as specified in Sections 71.2a(d) until 71.2a(f), and the date and time of performing the blockage of the End User Equipment, if the Equipment is not located.

		(l)	
The license owner shall preserve documentation of the telephone bill, which includes said notices, and shall make the documentation available for delivery or transfer to the manager, at his request, within five (5) business days from the issuance of the bill.

		(m)	
A license holder shall transfer daily to all the mobile phone operators, including the mobile phone operators in another network, and the licensed entity, a computerized file, which will include information with respect to all end equipment, the identification number of which has been blocked by it on the same day, all end equipment for which the blocked identification number was removed that day at the request of a subscriber, all end equipment for which the blocked identification number was removed that day at the request of a licensed entity, as well as all end equipment whose identification number was blocked anew with the authorization of the licensed entity, after the blocking was removed earlier at its request. The license holder shall send the aforesaid computerized file daily up to 11 p.m. with respect to all end equipment that has been blocked or that has had the blocking removed, as aforesaid, up until the time 11 p.m.

 

		(n)	
The license holder shall update in his information system on a daily basis up to the hour of 12 a.m. (midnight) the list of end equipment, which was blocked by the license holder that day and, in addition, shall update by 12 a.m. (midnight) of the same day the list of end equipment that was blocked by other mobile phone operators on that day, and with regard to which a report was delivered thereto by means of the computerized files that were sent thereto by the other mobile phone operators. The list shall include the following details with respect to all end equipment:

(1)          Identification No. (IMEI);

(2)          Name of manufacturer;

(3)          End equipment model;

(4)          Time at which blocking was implemented;

(5)          Name of license holder that ordered the blocking to be implemented;

		(o)	
The license holder shall allow at any time the performance of a search on its Internet site in accordance with the Identification No. of the end equipment, whose Identification numbers were blocked due to a notice of theft or loss.

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		(p)	
The license holder shall retain in his possession an updated list with the details as specified in sub-section (n) of all end equipment that has been blocked, and shall deliver it or transfer it to the manager on demand. The said list must be identical for all mobile phone operators.

 

		(q)	
The license holder shall publicize on its Internet website the following information:

 

		(1)	
Recommendations with respect to actions that the subscriber must take in the event that his end equipment is stolen or lost, including:

((a)) determination of a password for the prevention of use of the End User Equipment by anyone who is not authorized;

 

((b)) installation of applications on End User Equipment if it is a smartphone, with which the location of the End User Equipment can be located and which allow remote blocking of access to information on it or erasing it;

 

((c)) backing up on a computer or by way of cloud services of necessary information, such as: pictures, movies, list of contacts and email messages.

(2)          The actions which the subscriber must take once he becomes aware of the theft or loss of the End User Equipment.

 

	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).

 

T50) Amendment No. 50.

T50) Amendment No. 50

T50) Amendment No. 50

T50) Amendment No. 50

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	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 identification numbers that were not blocked pursuant to this section and the reasons therefor.

 

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 terminate 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;

 

	72.4T2)	
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 opportunity, within an amount of time to be set in the notice, to repair the end-user equipment in such manner as to prevent said interference.

 

	
72.5

	
If the license owner terminated all of its services due to a breach of agreement by the subscriber, the monthly or other fixed periodic payment collection from the subscriber shall discontinue on the date of discontinuation of service, as stated, until the date of renewal of supply of all services; during the bill period in which the discontinuation of service was made, as stated, the license owner shall charge the subscriber a fixed payment as specified in Section 74.3(c) or according to that specified in Section 74.3(d), as applicable.

 

T50) Amendment No. 50

T50) Amendment No. 50

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).

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	72A.T48)	
Discontinuation of Service to a Dormant Subscriber

 

	72A.1	
The License Owner may disconnect service for a dormant subscriber 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.

 

	 	
(d)

	
The license owner shall preserve documentation regarding delivery of notice to a dormant subscriber as follows:

		(1)	
A copy of the letter sent by regular mail;

 

		(2)	
Printout from notebook server of message delivery, as specified in Section 60.6(c).

 

	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).

 

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	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 four months, without payment, 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.

 

	72B.A68	
Disconnection of service due to recovery of the network in a fault event

 

	72B.1	
The license holder may temporarily disconnect or limit services that it is obligated to provide due to the need to allow speedy recovery of the networkin a material fault event.

 

For this purpose, "Material Fault" – a fault which causes disconnection of service for 10% of the subscribers, or for 100,000 subscribers at least, whichever is lower.

 

In this section, "Subscriber" – including a subscriber of a mobile phone license holder on another network and a subscriber of a roaming license holder using the network.

 

	72B.2	
The license holder will submit a detailed engineering procedure and process for recovery of the network in the event of a Material Fault (the "Procedure"), for the Director's approval, within 15 days from the date of signing of this Amendment.

 

	72B.3	
During a Material Fault, the license holder will act according to the Procedure that was submitted to the Director or which was approved by the Director, whichever is later.

 

	72B.4	
The Procedure will include, inter alia, initiated disconnection of service for subscribers who were not directly affected by the Material Fault, which shall begin two hours at most after the identification of a Material Fault, for the purpose of reduction of the load and controlled restoration of proper and regular service.

 

	72B.5	
Insofar as possible, the Procedure will allow preference to be given to the provision of proper and regular services to the armed forces, public emergency services and hospitals, as the Director shall determine."

 

A68 Amendment No. 68

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	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.

	
73.2

	
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.

	
73.3

	
Void. A2)

	
73.4

	
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.

	
73.5

	
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).

 

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;

 

78

 

	

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“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

 

	74.1 A57	
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 (hereinafter – connection fee);

 

	 	
(a1)

	
Smartcard fee – one-time payment for a smartcard (SIM).

 

		(b)	
A fixed monthly A57 payment;

 

		(c)	
Payment for airtime as specified in section 75A;

 

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

 

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

 

74.2 A57       The Licensee may not collect from a subscriber:

 

		(a)	
Payment for establishing a call;

 

		(b)	
A minimum price for a call.

 

74.3             The license owner shall collect payments from the subscriber according with the following:

 

		a)	
in a One-Time Transaction, the payment for the services that are supposed to be provided in the framework thereof shall be Pre-Paid; the license owner may collect the entire payment in a transaction of this kind retroactively.

 

		b)	
in an Ongoing  Transaction, the payment for the services provided in the framework thereof shall be Post-Paid, however the license holder may collect in an Ongoing Transaction Pre-Paid at the request of the subscriber, provided that the payment is made in cash by way of vouchers that will be issued to the subscriber by the license owner.

 

A57 Amendment No. 57 (Inception: This amendment will come into force on the day of signing the Amendment)

A57 Amendment No. 57 (Inception: This amendment will come into force on the day of signing the Amendment)

A57 Amendment No. 57 (Inception: This amendment will come into force on the day of signing the Amendment)

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		c)	
In a transaction as specified in sub-section (b), in the framework of which a monthly or other periodic payment was collected from the subscriber, as stated, for the Bill Period, during which the request of the subscriber to terminate the contract or discontinue all of its services, including during the performance of the mobility of the telephone number, the highest of the following:

 

		(1)	
The ratio between the number of days from the date of commencement of the Bill Period until the date of termination of the contract or the discontinuation date, as stated, at the time set forth by the subscriber in his request, or until one business day at the latest after the date of submission of the request for termination of the contract or discontinuation of all services of the license owner, if the subscriber did not set a date for the termination of the contract or the discontinuation, as stated, and between the number of days included in the Bill Period;

 

		(2)	
The higher ratio between the services including in the service package between the amount of service units consumed from the date of commencement of the Bill Period until the date of termination of the contract or the date of discontinuation, as stated, or until one business day at the latest after the date of submission of the request for termination of the contract or discontinuation of all services of the license owner, if the subscriber did not set a date for the termination of the contract or the discontinuation, as stated, and between the number of units allotted for the Bill Period.

		(d)	
In a transaction as specified in sub-section (b), in the framework of which a monthly or other periodic payment was collected from the subscriber without a service package, the license owner shall charge the subscriber the fixed payment, as stated, for the Bill Period, during which the request of the subscriber to terminate the contract or discontinue its services, including during the performance of the mobility of the telephone number, as specified in Section 74.3(c)(1).

		(e)	
In a transaction as specified in sub-section (b), in the framework of which a monthly or other periodic payment was collected from the subscriber, the license owner may not collect any payment from the subscriber for the time period before the performance of the activation of the smartcard.

		(f)	
In a transaction as specified in sub-section (b), in the framework of which a monthly or other periodic payment was collected from the subscriber, following the transfer of a subscriber from one rate plan to another rate plan, the license owner shall charge the subscriber a fixed payment, as stated, for the period from the commencement of the Bill Period until the date of performance of the transaction, in accordance with the rate of the former rate plan, according to that specified in Section 74.3(c) or according to that specified in Section 74.3(d), as applicable, and for the period following the date of performance of the transaction until the date of completion of the Bill Period, based on the ratio between the number of days from the date following the date of performance of the transaction until the date of completion of the Bill Period and between the overall number of days in the Bill Period, according to the rate of the new rate plan.

 

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Part B –      Setting and Publication of Rates

 

Part B1 –    Package Services in Israel

 

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.

 

	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	
cancelled.

 

T49) Amendment No. 49 (Inception: This amendment will come into force on December 31, 2008).

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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)	
A call created by dialing a special prefix for a toll-free service that was allocated to the subscriber under an agreement with himA55;

 

		(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;

 

		(d)	
For a call to an international destination, the Licensee may receive only the payment imposed on the international operator, as determined in the Interconnection Regulations." A54

 

75.9A18) Inception

 

Void A55

 

	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)	
The payment for each airtime unit, at least during the first minute of contact, will be fixed.A57

 

A55 Amendment No. 55 (Inception: This amendment will come into force on the day the relevant amendments to the Payment Regulations and to the Interconnection Regulations come into force, or on March 28, 2010 – whichever the later)

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

A54 Amendment No. 54 (Inception: This amendment will come into force on the day the amendment to the Interconnection Regulations concerning a call from a cellular network to an international telecommunications network comes into force)

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

A55 Amendment No. 55 (Inception: This amendment will come into force on the day the relevant amendments to the Payment Regulations and to the Interconnection Regulations come into force, or on March 28, 2010 – whichever the later)

A57 Amendment No. 57 (Inception: This amendment will come into force on the day of signing the Amendment)

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		(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 subsection, “call transferred to a voice mailbox” – excluding a call originating in an international telecommunications system.

 

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75.11(a) (A71)   In this section –

 

"Limited Plan" – A minute plan which is limited to a number of minutes according to the subscriber engagement plan.

 

"Unlimited Plan" – An unlimited minute plan, for which the subscriber pays.

 

"Toll-Free Number" – A telephone number, a call to which from any network has been determined to be free of charge for the caller;

 

"Special Telephone Number at a Composite Rate" – A national or network telephone number in an Irregular Number Pattern, the rate of a call to which is a Composite Rate;

 

"Special Telephone Number at a Regular Rate" – A national10 or network11 telephone number in an Irregular Number Pattern, the rate of a call to which does not exceed the Regular Rate;

 

"Irregular Number Pattern" – A number pattern which is not a regular number pattern;

 

"Regular Number Pattern" – A number pattern of geographical numbers and national numbers, as defined in the number plan12;

 

"Composite Rate" – A rate comprising a Regular Rate plus a rate for a service that is provided by a Licensee or anyone on its behalf or a service provider;

 

"Regular Rate" – A rate per call minute to telephone numbers in a Regular Number Pattern, in accordance with the subscriber's tariff plan.

 

		(b)	
The Licensee shall not charge a subscriber calling destinations with Toll-Free Numbers and will not count the calling minutes to such destinations in a Limited Plan.

 

		(c)	
The Licensee may charge a subscriber calling destinations with Special Telephone Numbers at a Regular Rate, and shall count the calling minutes to the said destinations in a Limited Plan or in an Unlimited Plan. For the avoidance of doubt, the Licensee may not charge a subscriber calling destinations with Special Telephone Numbers at a Regular Rate any extra fee over the fixed payment that he pays for the minute plan, insofar as the subscriber shall not have exceeded the minute quota in the plan. If the subscriber exceeds the minute quota in the plan, the Licensee may charge him for calling the said destinations according to a rate no higher than the Regular Rate. In addition to the aforesaid, the Licensee may not make any distinction in the rate, according to which it charges the subscriber, between calling telephone numbers with a Regular Number Pattern and calling Special Telephone Numbers at a Regular Rate, including by determining separate call minute plans.

 

		(d)	
If the charge for calls to destinations with Special Telephone Numbers is made according to a Composite Rate, the Licensee shall count the calling minutes to the said destinations in the framework of the Limited Plan or the Unlimited Plan for which the subscriber pays.

 

The Licensee may charge the subscriber for the services provided in the framework of calling telephone numbers which are charged according to a Composite Rate, whether the charge is made according to a call minute or the charge is fixed per call, in addition to the fixed payment for the minute plan.

 

A54 Amendment No. 71 (Inception: Sections 75.11(a)-(c) will take effect no later than September 3, 2013; Sections 75.11(d) will take effect no later than December 3, 2013).

10  A telephone number, access to which is possible from any network.

11  A telephone number, access to which is possible only from the license holder's network.

12  For example, numbers in the pattern 03-XXXXXXX, 05Y-XXXXXXX and 07Z-XXXXXXX.

First Schedule - 1

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

2.                 Sections 75.11(a)-(c) will take effect no later than Elul 28, 5773 (September 3, 2013).

 

Section 75.11(d) will take effect no later than Kislev 30, 5774 (December 3, 2013).

 

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;

 

		(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.

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

First Schedule - 2

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

75D. A58       Notice Concerning Utilization of Service Package in Israel

 

	75D.1	
cancelled.

 

	75D.2	
Notices regarding Utilization of Service Package

 

		(a)	
If the subscriber purchased a service or service package for which a quota of units was set, the license owner shall notify the subscriber by text message about the rate of utilization of the unit quota when the subscriber utilized 75% and 100% of the unit quota of the service package or any one of the services included therein. The text message shall be sent to the subscriber as close as possible to the date on which the subscriber reached each of said utilization levels. The text message shall be sent to the telephone number of the subscriber and to an additional telephone number, if the subscriber set one upon when contracting with the license owner. The text message shall be sent free of charge, and shall include the rate of utilization of the package or the service, the date on which the subscriber reached said utilization while detailing the date and time on which the utilization rate of determined, the rate of deviation from the service package or any of the services included therein, if the deviation is permitted, and the date of completion of the Bill Period. Said data shall be specified in accordance with the matter according to:

 

		(1)	
Call minutes;

 

		(2)	
Text messages;

 

		(3)	
Surfing (on MB);

 

		(4)	
Combined call minutes and text messages;

 

		(5)	
Combing call minutes, text messages and surfing.

For this matter, "Service Package" – a number of services marketed to the subscriber as a package with a fixed monthly payment, including service of calls in Israel, call service abroad, text message service or internet surfing service, when the package was determined for an overall unit quota13, or a certain unit quota was determined for each of the services included therein14, or that the subscriber determined a usage limit for usage control.

 

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

13 Thus, for example, a package including 100 units of call minutes, text messages and internet surfing (in MB) for 15 NIS, the subscriber shall receive a text message in accordance with consumption regarding all of the above services. Thus, for example, a text message shall be sent after 75 units were utilized, and an additional warning text message shall be sent after 100 units are utilized.

14 Thus, for example, a package including 100 call minutes, 100 text messages and 50MB of internet surfing for 20 NIS, the subscriber shall receive a text message, in accordance with the consumption regarding each of the above services. Thus, for example, a text message shall be sent after 75 call minutes were utilized, and an additional warning text message shall be sent after 100 call minutes are utilized.

First Schedule - 3

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(b)	
If the service pertains to call abroad, messages shall be sent to the subscriber, as stated, by the license owner, whose international system routes the calls abroad.

 

		(c)	
If it is a telephone line that is blocked from receiving text messages, the subscriber shall receive voice messages instead of text messages. After hearing the message for the first time on the voice mail, the subscriber shall be given the option by way of pressing a certain key to hear it again, and the message shall be played to the subscriber again, if he so chooses.

 

		(d)	
The license owner shall allow any subscriber who pays in advance (pre-paid), to receive updates from time to time, free of charge, as to the balance available to him and the date on which the validity of the budget available to him by way of dialing a designated telephone number, following which the subscriber shall receive said information by way of voice mail or by way of a text message.

 

	75.3d	
Consumption of surfing service by a subscriber who purchased surfing service

 

		(a)	
If the subscriber reaches utilization of 100% of the quota determined for surfing service, the license owner shall discontinue the surfing service or shall slow down the surfing rate. The license owner shall send the subscriber a text message, free of charge, in which notice regarding the discontinuation or slowing down of the service shall be made. If the license owner allows surfing at a lower speed, he may not charge the subscriber additional payment beyond the fixed monthly payment for the surfing service.

 

		(b)	
The license owner may continue providing the subscriber with surfing services for an additional payment following utilization of 100% of the quota set forth for the surfing service determined, provided that the subscriber requested to do so explicitly, as specified in Section 60.6 during the Bill Period in which he utilized 100% of the quota determined for the surfing service; the license owner shall document the explicit request of the subscriber, as stated, and shall preserve the documentation in its possession, and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the request submission date."

 

The subscriber may refuse, at the time of contracting with the license owner, to continue receiving surfing services for additional payment after utilizing 100% of the quota set from for surfing services before the completion of the Bill Period.

 

This shall be noted in a prominent place in the framework of publication of the relevant plan on the website of the license owner, if they are published on the website, and by a representative of the license owner during the performance of the sales contract.

 

		(c)	
If the subscriber purchased a package, which includes surfing, and which is comprised of a basic surfing package and of additional surfing packages for utilization after the complete utilization of the basic surfing package before the completion of the Bill Period, for each of which an amount of service units and price were determined, the subscriber may entirely cancel, at any time, in writing or orally, the purchase of the additional surfing packages he purchased, and shall not be charged more for them as of the date of the request onwards.

 

This shall be published in a prominent manner in the framework of publishing the relevant plans on the internet of the license owner, provided they are published on the website, and by the representative of the license owner during the sales call.

 

First Schedule - 4

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(d)	
If the subscriber purchases a package which includes a basic surfing package, the subscriber may request the license owner, at any time, whether in writing or orally, to block access to the surfing service and the license owner shall reply to his request.

 

75.4d Consumption of surfing service by a subscriber who did not purchase surfing service

 

		(a)	
The license owner shall block from surfing a Private Subscriber who did not purchase a surfing package with a surfing volume set forth in the agreement between him and the license owner.

 

		(b)	
If the license owner blocked the surfing service, as stated in sub-section (a), the subscriber may contact the license owner by way of a telephone call with the service representative for re-connection of the surfing service, and this obligates the subscriber in accordance with the surfing volume he shall order or consume. The representative of the license owner shall state the surfing rate to 1MB to the subscriber. The subscriber's request and its documentation shall be done in accordance with Section 60.6.

 

(c)

 

PART B2 - International Roaming Service Package

 

75E. A73 Billing for International Roaming Service

 

Definitions

 

	75E.1	
In this section –

 

"Arrangement" – A package or plan which includes surfing or calls or text message;

 

"Surfing Arrangement" – a package or plan which includes surfing.

 

"Call or Text Messages Arrangement" – a package or plan which include calls or text messages.

 

"Surfing Package Offer" – An offer of three different packages or plans, insofar as exist at the Licensee, which include Surfing Service, which were offered to the Licensee's subscribers in the month prior to the date on which the package offer was sent to the subscriber.

 

"Call or Text Messages Arrangement Offer" – an offer of three different packages or plans, if available at the license owner, which include calls or text messages, offered to the subscribers of the license owner during the month prior to the date on which the arrangement offer was sent to the subscriber.

 

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A73 Amendment No. 73 (Inception: This amendment will come into force no later than February 17,2014)

A74  Amendment No. 74

First Schedule - 5

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

"Package" – A limited number of service units which may be used in a limited period of time, through an international roaming service Abroad, which is sold at a fixed and predetermined price, and is valid for certain Destinations;

 

"Abroad" or "Destination" – A country, including a ship at sea and an aircraft;

 

"MB" – One million bytes (MByte);

 

"Blocked Subscriber" – a subscriber who did not request by way of a form for "access to services" to have permanent access to surfing services.

 

"Open Subscriber" – a subscriber who requested by way of a form for "access to services" to be permanently accessible to surfing services

 

"Surfing Service" or "Surfing" – Cellular surfing service Abroad;

 

"Plan" – A tariff plan for a limited period of time or for a specific trip overseasa74 for the consumption of services through an international roaming service Abroad (such as: call service, sending and receiving text messages and internet) for the Destinations included therein, with the payment for the services being made according to consumption; the rates of the services included in the plan are different to the rate for the same services for a subscriber who did not sign up for the plan; the plan may determine a fixed fee that does not depend on consumption.

 

"Non-Reduced Rate" – a rate for call minute to a text message and to 1 MB not within the framework of the arrangement.

 

"Reduced Rate" – a rate for call minute to a text message and to 1 MB within the framework of the arrangement.

 

Notices regarding utilization of international roaming services and non-reduced rates for calls and text messages

 

	75E.2	(a)	An arrangement which the subscriber purchased shall enter into force on the date determined by the subscriber at the time of purchase.

 

		(b)	
(1)   The license owner shall send text messages to the subscriber who purchased the arrangement when the subscriber utilized 75% and 100% of each of the follows:

 

((a)) The number of service units or the fixed amount of money determined for payment for the usage of the services;

 

((b)) The period of validity of the arrangement.

	 	
(2)

	
The text messages shall be sent free of charge, as close as possible to the date on which the subscriber reached the said utilization level; the text messages shall include notice to the subscriber according to which the said utilization levels were reached, the number of service units left, the number of days left until the end of the period of validity of the arrangement, the date of making the utilization calculation (date and hour) and the rate for the deviation from the arrangement, as far as the deviation is permitted.

 

First Schedule - 6

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	(3)	
In this section, "Service Units" shall be according to these:

 

((a)) calls – call minutes;

 

((b)) text messages – the number of text messages sent;

 

((c)) surfing – surfing volumes by MB or GB.

	 	(4)	
In packages which include combined call, text messages or surfing messages, the utilization rate of the package shall be calculated according to the said Service Units.

	 	(5)	
The license owner shall send a text message free of charge to a subscriber who did not purchase a call or text message arrangement, or that said arrangement purchased did not include the destination to which he arrived, immediately upon his arrival to any destination, as stated, which shall state that making calls, receiving calls and sending text messages shall be subject to a fee according to the non-reduced rate. Furthermore, the text message shall include the offer of a call or text message arrangement.

	 	(6)	
The license owner shall document the said text messages in this Section, as specified in Section 60.6(c), shall preserve the documentation, and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date it was sent.

 

(c)        Notwithstanding the provisions of Section 75.2E(b)(1) -

 

		(1)	
The license holder will be exempt from sending SMSs to a subscriber in respect of use of the package to which he subscribed, as stated in Section 75.2E(b)(1), provided that all of the following are fulfilled:

 

		(2)	
The subscriber purchased the package before Adar B 29, 5774 (March 31, 2014);

 

		(3)	
The subscriber explicitly agreed in writing to waive receipt of SMSs as stated in Section 75.2E(b)(1);

 

		(4)	
The license holder proves, to the Director’s satisfaction, that a technological restriction beyond its control is preventing it from receiving an indication in real time or close to real time with respect to the making of direct dial calls.

 

	 	
(3)

	
With respect to a subscriber who makes use of Cellular end equipment which does not support an SMS service, including a tablet with a SIM card and a cellular modem, the license holder will demand of the subscriber, at the time of subscribing to the package, a means of communication as an alternative to SMS (such as Skype, Viber, Whatsapp applications, e-mail or voicemail) (“Alternative Means”); if the subscriber provides Alternative Means, the license holder will send to the subscriber the messages regarding use of the package as stated in Section 75.2E(b)(1) via the Alternative Means.

 

	
75E.3

	
Blocking the Surfing Service to a Private Subscriber, a Split Business Subscriber by International Roaming Surfing to a Blocked Business Subscriber and a Subscriber without a Surfing Arrangement

 

		(a)	
If a Private Subscriber or a Split Business Subscriber who is charged for international roaming surfing service (hereinafter – "Split Business Subscriber by Surfing Service in International Roaming") or a blocked business subscriber package which includes surfing purchase a package which includes surfing, the license owner shall block the access to the surfing service after the complete utilization of the package or after the completion of the period of validity of the package, the earlier of the two, free of charge, and the subscriber shall not be required to make any payment for the surfing service beyond the payment known in advance for the package he purchased. The license owner shall send the subscriber a text message, free of charge, regarding the said blockage close to the time of the blockage. The text message shall include the surfing arrangement offer.

 

First Schedule - 7

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

If a Private Subscriber or a Split Business Subscriber in an international roaming surfing service or a blocked package business subscriber, which includes surfing, comprised of a basic surfing package and of additional surfing packages for utilization after fully utilizing the basic surfing package, for each of which Service Unit amounts and price were determined or comprised of a basic surfing package, after the full utilization thereof, the subscriber is charged according to a reduced rate; the subscriber may entirely cancel at any time, in writing or orally, the purchase of additional surfing packages he purchased or the additional surfing according to a reduced rate he purchased, and the license owner shall stop supplying him the additional surfing packages or the additional surfing at the reduced rate, and shall not charge him for surfing as of the date of the request onwards.

 

The license owner shall document the explicit request of the subscriber, as stated, as specified in Section 60.6(c), shall preserve the documentation, and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date the request was submitted.

 

If a Private Subscriber or a Split Business Subscriber in an international roaming surfing service or a blocked package business subscriber may refuse, at the time of ordering the service from the license owner, to continue receiving the surfing service for an additional charge after utilization of 100% of the basic package determined for the surfing service, as specified in Section 75.2e(b)(1). This shall me stated in a prominent place in the framework of the publication of the relevant plans on the website of the license owner and by the representative of the license owner during the sale call.

 

		(b)	
The license owner shall block, free of charge, the access to the surfing service of each subscriber immediately upon his arrival abroad, unless one of the following conditions exist in a subscriber:

 

		(1)	
The subscriber has a surfing arrangement;

 

		(2)	
The subscriber requested to be an open subscriber15.

 

		(c)	
If one of the conditions stated in sub-section (b) does not exist in a subscriber, and the license owner did not block the surfing service from the subscriber, the license owner shall not charge the subscriber for the surfing service.

 

15 An "open" situation on the form for access to services, without a surfing arrangement, is relevant to a business subscriber only; a private subscriber and a split business subscriber on international roaming surfing, without a surfing arrangement, shall be blocked from surfing as a default.

First Schedule - 8

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(d)	
The license owner shall block, free of charge, access to surfing service, as stated in sub-section (b), and shall not charge a private subscriber or a split business subscriber for international roaming surfing service or a block business subscriber for surfing service, as stated in subsection (c) at any time the subscriber, as stated, who purchased a surfing arrangement, reached a destination that is not included in the surfing arrangement. The license owner shall re-offer the subscriber, as stated, the surfing service immediately and automatically, and without the need for the subscriber to perform any manual action at any time the subscriber is at a destination which is included in the surfing arrangement.

 

		(e)	
The license owner shall send the subscriber, as stated, a text message, free of charge, regarding the blockage stated in subsection (b) and (d), close to the blockage date, and shall state therein the reason for the blockage and the methods of contacting it in order to unblock. The text message shall include an offer for a surfing arrangement.

 

		(f)	
Ordering surfing service by a blocked business subscriber while he is abroad, after his access to surfing service was blocked, to allow him access to surfing service without purchasing a surfing arrangement, shall be performed by way of a telephone call with a representative of the license owner, who shall state to the subscriber the non-reduced surfing rate for 1 MB. The access to the surfing service shall open after the subscriber confirmed the non-reduced surfing rate stated to him. Section 60.6 shall apply to the documentation of the order, and the documentation shall also include the trustworthy identification details of the subscriber and his confirmation, as stated.

 

	75E.4	
Cancelled.

 

	75E.5	
Blocking surfing service from an open business subscriber

 

		(a)	
The license owner shall send an open business subscriber who did not purchase surfing service or that the surfing arrangement he purchased did not include the country to which he arrived, a text message free of charge immediately upon his arrival abroad, which shall include a warning regarding the possible consumption of surfing service subject to a fee, without the subscriber initiating a surfing action, and shall include surfing charges without the purchase of a surfing arrangement. Furthermore, the text message shall include a surfing arrangement offer.

The license owner shall document the sending of said text message to the business subscriber, as specified in Section 60.6(c), shall preserve the documentation and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date the text messages were sent.

 

		(b)	
The license owner shall send the open business subscriber who purchased only a basic package, whose rate after its full utilization is a reduced or non-reduced rate, text messages free of charge, which included notice regarding the rate of utilization of the package, as stated in Section 75.2e(b), and the rate, as stated.

 

The license owner shall document the sending of said text messages to the subscriber and the sending of said text messages by the subscriber to it, if any, as specified in Section 60.6(c), shall preserve the documentation, and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date they were sent.

 

First Schedule - 9

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	75E.6	
The Licensee shall inform its subscribers, in the telephone bill following the date of signing of the license amendment, of their possibility to block Surfing Service by filling out the "Access to Services Form" which is posted on the licensee's website. The subscriber may send the said form to the licensee by regular mail, e-mail, facsimile or via an online form on the Licensee's website, insofar as the Licensee's website supports such possibility.

 

	75E.7	
The Licensee shall post on its website information regarding the possibility available to the subscriber of blocking access to Surfing Service also through the end equipment, insofar as such blocking does not also block the possibility of surfing in Israel.

 

	75E.8	
The Licensee shall post on its website information whereby there are services which consume data for a fee, also without any active action being taken by the subscriber, such as: automatic synchronization of e-mail and the update of various applications.

 

	75E.9	
Billing for international roaming services according to a rate per unit, shall be made in the telephone bill retroactively, after consumption of the services, and not in advance. Insofar as a subscriber purchases an Arrangement which includes a predetermined payment, the billing for such payment shall be made in the billing period during which the transaction took effect.

 

	
75E.10

	
Without derogating from the provisions of Section 55A, Section 60.6 shall apply to a transaction for the "remote sale" of services via an international roaming service.

 

	75E.11	
The Licensee shall send, free of charge, a text message to any subscriber who performed a "remote sale" transaction for the purchase of services via an international roaming service, which includes a summary of the transaction, as early as possible, and no later than the end of the day on which the "remote sale" transaction was performed. As long as the transaction for the purchase of calls or text messages does not include destinations abroad, it shall be noted in said text message that outgoing calls and sending text messages to destinations abroad shall be charged at the non-reduced rate.

The license owner shall document its sending said text message, as specified in Section 60.6(c), shall preserve the documentation, and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date of performance of the transaction

 

In addition, the Licensee shall state information regarding the said "remote sale" transaction in the telephone bill following the date of performance of the transaction, in accordance with the subscriber's billing period, including the telephone number in respect of which the transaction was performed, the date of performance of the transaction, the quantity and types of the services purchased via an international roaming service, the number of days allocated for use of the services, the date and time of commencement of provision of the services, the price of the services purchased, the price according to which consumption of services over and above the Package shall be charged, insofar as a Package is purchased, and the manner of rounding off of any quantity that shall be consumed (the "Details of the Transaction").

 

The license owner shall preserve a copy of the telephone bill in which the details of the transaction shall be specified, and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date the bill was made.

 

First Schedule - 10

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	75E.12	
In an engagement for the purchase of services via an international roaming service performed in the presence of a representative of the Licensee and the subscriber, printed confirmation shall be delivered to the subscriber upon performance of the transaction, including the Details of the Transaction. The license owner shall preserve a copy of the confirmation, as stated, and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date of execution of the transaction.

 

	75E.13	
The Licensee shall post on its website all of the marketed arrangements to private subscribers, as well as the rates of all of the international roaming services for a subscriber without an Arrangement, for all of the Destinations in respect of which the licensee has an international roaming agreement. The Licensee will not charge a subscriber for an international roaming service provided at a Destination that was not published thereby as aforesaid before the charge.

 

	75E.14	
The rate for Surfing Service shall be stated by the Licensee, wherever it is stated, in units of NIS per 1 MB.

 

	75E.15	
The internet rate per 1 MB for a subscriber who is not in a Surfing Arrangement will be lower than the price of the cheapest Package offered by the Licensee.

 

	75E.16	
The purchase of a Surfing Arrangement, in Israel or Abroad, does not change the default option stated in the updated services order form other than for the period of such Surfing Arrangement.

 

	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.

 

First Schedule - 11

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	77A.3	
The Licensee shall cooperate with other licensees in locating and preventing fraud.

 

Part C –    Changes in the Rates

 

78.              Change in the Rates

 

78.1 Subject to that stated in Section 75, the license owner may modify the rate or the number of service units allotted for the bill period (hereinafter: the "Number of Units") of each service or service package (hereinafter in this section – "Service"), which it determined, provided that:

 

		(a)	
It sent the manager written notice between fourteen (14) days to twenty one (21) days prior to the date the modification entered into force, and which details the service, the rate or the new number of units and the date of  their entry into force, as well as the rate or number of units prior to the modification.

 

The duty to send the manager notice regarding the modification shall not apply to a modification determined in advance in the contracting agreement at the time of the subscriber's joining the service or service package.

 

		(b)	
It sent a written message in advance to every subscriber who joined the service, in which the name of the service shall be stated, the rate or the new number of units and the date of their entry into force, as well as the rate or the number of units prior to the modification, between fourteen (14) days to twenty one (21) days prior to the date the modification entered into force.

 

Despite the aforementioned, regarding the rate reduction, the license owner may send the notice to the subscriber up to one month after the reduction.

 

In reference to this section "Modification" – any modification in the rate that may cause an increase or reduction in payment before VAT, which the subscriber has to pay for the services of the license owner or any reduction in the allotted number of service units to the bill period without a rate modification.

 

		(c)	
The notice as stated in subsection (b) shall be sent to the subscriber who has access to the receipt of text message services by way of a text message, and to a subscriber who is blocked from receiving text message services by way of voice mail. After hearing the message for the first time on the voice mail, the subscriber shall be given the option by way of pressing a certain key to hear it again, and the message shall be played to the subscriber again, if he so chooses.

 

		(d)	
The license owner shall preserve the documentation regarding sending the notice as follows:

 

		(1)	
Printout from notebook server of message delivery, as specified in Section 60.6(c);

 

		(2)	
Recording of the voice message as specified in Section 106a.

 

The license owner shall make the documentation of the delivery of the message available for delivery or transfer to the manager, at his request, within five (5) business days from the date it was sent.

 

First Schedule - 12

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(e)	
The duty to send the subscriber notice regarding a modification shall apply also to a modification determined in advance in the contacting agreement at the time of joining the service or service package or the rate plan.

 

		(f)	
The license owner shall state in the phone bill, that during the bill period for which the modification was made, in the framework of the "account detail", as specified in Section 9(a) of Appendix E1, the rate and the number of new units and the date of their entry into force, as well as the rate or number of units prior to the modification.

 

The license owner shall make a copy of the telephone bill available for delivery or transfer to the manager, at his request, within five (5) business days from the date of its issuance.

 

		(g)	
If the license owner provided the subscriber a service that is not a speech service or text messages or surfing, for a discount or for free for a fixed period, including service that is not Bezeq service, the license owner shall send the subscriber a text message regarding the modification of the rate, as specified in Section 78.1(b), in which the subscriber is requested to send a return text message, which includes the digit zero (0), if he is not interested in continuing to receive the service subject to a fee. If the subscriber sent a text message which includes the digit zero (0), he may not continue or begin to charge the subscriber for said service upon the end of said term. The documentation regarding the delivery of the text message by the license owner to the subscriber shall be performed as specified in Section 60.6(c) and the content of the text message shall be documented.

 

The license owner shall make the said documentation available for delivery or transfer to the Manager, at his request, within five (5) business days from the date of sending the text message.

 

	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.

 

First Schedule - 13

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Part D – Miscellaneous

 

	81.	
Connection Fee

 

		(a)	
The connection fee and the smartcard fee shall be uniform, independent of the type or model of the end user equipment, type of smartcard, the technological generation of the network to which the end user equipment of the subscriber shall be connected, etc.

 

		(b)	
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 contraction under section 69d.

 

		(c)	
The license owner may not charge from the subscriber connection fee as long as the connection of the end user equipment has not  been completed, including activation of the smartcard.

 

81a. Smartcard Fees

 

		(a)	
The smartcard fees shall be reasonable in relation to the cost of the smartcard for the license owner.

 

		(b)	
The smartcard fees shall be uniform, independent of the type or model of the end user equipment, type of smartcard, the technological generation of the network to which the end user equipment of the subscriber shall be connected, etc.

 

		(c)	
The smartcard fees shall not include the price of the end user equipment, and they shall be presented separately in the contracting agreement, in the telephone bill of the subscriber and in the publication of the rate plan on the website of the license owner, if such was published.

 

		(d)	
If the license owner shall charge the subscriber with smartcard fees, it may charge the payment from him only as a one-time payment in the framework of the first telephone bill, following the date of delivery or sending of the smartcard. If the license owner did not do so, he may not charge for said payment thereafter, and it may not charge the subscriber said payment or any other payment if he does not return the smartcard following the termination of the contracting between them.

 

		(e)	
The license owner may not charge from the subscriber smartcard fees for replacing the smartcard due to a malfunction discovered therein.

 

		(f)	
The license owner may not discriminate a subscriber who did not purchase end user equipment from him in collecting smartcard fees

 

		(g)	
If a subscriber has a smartcard, which was issued to him by the license owner, which was used by the subscriber in the past and was disconnected as a result of the termination of the contract, and the subscriber requests to activate it in order to return to being a subscriber of the license owner, the license owner shall do so, and may not charge the subscriber smartcard fees.

 

First Schedule - 14

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	82.	
Collection of Connection 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

 

	83A.A58	
Excess Charges

 

		(a)	
The license owner may charge from a subscriber payments only in accordance with that specified in its contracting agreement with the subscriber, and in accordance with the provisions of Sections 74.3(c) – 74.3(f).

 

		(b)	
If the subscriber filed a complaint with the license owner according to which the license owner charged an additional amount to the total he was entitled to collection in accordance with the contracting agreement (hereinafter – "Overcharge"), the license owner shall review the subscriber's complaint within ten (10) business days from the date of receipt of the complaint. In regards to this Section, "Complaint" – in writing or orally, including the reference of the subscriber to the license owner in order to verify the charge details; "Date of Receipt of the Complaint" – regarding a written complaint – the date of receipt of the complaint by the license owner, and regarding an oral complaint – the date on which the complaint was reported to the license owner.

 

The license owner shall document the content of the complaint in its information system immediately upon its filing, and the results of the review or its transfer to the manager, at its request, within five (5) business days from the completion of the review of the complaint.

 

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

First Schedule - 15

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(c)	
If the license owner discovered that he overcharged the subscriber, the license owner shall return to the subscriber the overcharge in one payment, without determining an condition thereto, and shall return the VAT for the said amount, together with "linkage differentials and interest" as defined in Section 1 of the Interest and Linkage Law, 1961, from the date of collection until the date of the actual return (hereinafter: the "Return Amount") and this as specified below:

 

		(1)	
If the return amount is greater than fifty (50) NIS, the return amount shall be directly transferred to the method of payment (bank account or credit card) of the subscriber within four (4) business days after the completion of the period set forth in subsection (b). Despite the aforementioned, the license owner may return to the business subscriber the said return amount by way of a credit to the following telephone bill if the business subscriber agreed thereto.

 

		(2)	
If the return amount is fifty (50) or less than that, the license owner shall return the amount by way of a credit to the telephone bill following the end of the period set forth in Section (b). If the return amount is greater than the amount to be paid in the next telephone bill, the balance shall be directly transferred to the method of payment of the subscriber within four (4) business days as of the date the telephone bill was sent to the subscriber; the offset from the telephone bill or the transfer of the return amount balance to the method of payment, shall be stated in the telephone bill pertaining to that matter;

 

		(3)	
Despite the aforementioned in Clauses (1) and (2), return of the return amount to a pre-paid subscriber, shall be performed by way of increasing the balance available to the subscriber.

 

		(d)	
The license owner shall provide the subscriber with a written reply regarding his complaint within twenty one (21) business days from the date of receipt of the complaint. The response to a complaint shall include the detained reasons for the denial of the complaint, and as long as the reasons refer to the terms of the contracting agreement, its attachment to the response, referral to a section therein, according to which the charge on the telephone bill was made and the method of its calculation or mention of a return amount and the manner of which it was calculated.

 

(e)       (1)  The license owner shall document in its information system, any complaint of the subscriber regarding overcharge, which was submitted in writing or orally.

 

	 	
(2)

	
The license owner shall preserve a copy of the reply, as stated in subsection (d); If the license owner sent the response via email or facsimile, the license owner may preserve a copy of the response and the copy of the confirmation of the delivery (hereinafter: "Copy of the Response".

 

	 	
(3)

	
The license owner shall make the complaint and a copy of the response available for delivery or transfer to the manager, at his request, within five (5) business days from the date the response was sent to the subscriber.

 

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.

 

First Schedule - 16

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	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.

 

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.

 

First Schedule - 17

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	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 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.

 

	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.

 

First Schedule - 18

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	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.

 

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

 

	94.	
The Guarantee and Its Purpose

 

	94.1	
The License Owner shall forward to the director an unconditional bank guarantee from an Israeli bank / autonomic insurance from an Israeli company (hereinafter – the "Guarantee") in favor of the State of Israel in NIS to ensure the fulfillment of the conditions of the License; the Guarantee amount, its phrasing and undertaking to extend the Guarantee shall be as stated in Appendix H to the Second Addition;

 

	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;

 

First Schedule - 19

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		(d)	
The Licensee is not complying with the coverage and service quality requirements as stated in Appendix B and Appendix E does not meet the requirements regarding the Passive Components and the cellular radio centers as stated in Clause 19.2C.;

 

		(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 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.

 

First Schedule - 20

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	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 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.

 

	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.

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.

 

First Schedule - 21

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	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.

 

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.

 

104.1A43)     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.

 

		(e)	
A43The engineering system report – an engineering plan for the setup, development and upgrade of the network in the format set forth in Appendix B.

 

First Schedule - 22

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	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.

 

	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)	
VoidA72);

 

		(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)	
VoidA72);

 

		(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.

 

First Schedule - 23

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	105.A43)	
Notice Concerning a Defect

 

	105.1	
If the Manager discovered defects or impairments in the actions of the license owner, the manager shall notify it of such in writing (in this Section – "Notice of the Manager" or the "Notice").

 

	105.2	
The license owner shall provide his response to the manager in writing within the time period determined by the manager in the Notice. If the manager did not determine a time period for providing the license owner's response, the license owner shall provide his response to the manager no later than thirty (30) days from the date it received the Notice of the Manager. In its response, the license owner shall specify the means taken to amend the impairments and defects specified in the Notice and to prevent their reoccurrence.

 

	106.A43)	
Void.

 

	106a	
Preservation of documents and recordings

 

		(a)	
The license owner shall preserve documents and recordings pertaining to the terms of the contract with the subscriber throughout the term of the contracting agreement and for one year after the termination of the contract.

 

		(b)	
The license owner shall deliver or transfer to the manager, at his request, any document or recording pertaining to the terms of the contract with the subscriber, at the time, format and manner ordered by the Manager.

 

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.

 

	108.2A16)	
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 – A72the engineering plan attached to Appendix B;

 

	 	(c)	
Appendix D - Preparing to Ensure Continuity of Operations in Emergencies

 

	 	(d)	
Appendix G – Insurance contract;

 

	 	(e)	
Appendix H – Bank guarantee;

 

First Schedule - 24

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	(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.

 

	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.

 

	112.	
Operations in the Judea and Samaria Civil Administration Area

 

	112.1	
The License Owner shall contact the communications staff officer in the Judea and Samaria Civil Administration Area for the allotment of frequencies, the expansion of its license in the Judea and Samaria areas, for the expansion of the mobile telephony system and for the provision of Generation 4 services in the area in which the authorities in the Bezeq area are of the Civil Administration.

 

	112.2	
The License Owner shall operation in the Judea and Samaria areas in accordance with the license and frequencies allotment from the communications staff officer of the Civil Administration; the frequencies allotment and the license in the Judea and Samaria area, including the layout, minimum requirements and service level to the subscriber shall be mostly based on the allotment terms in Israel and the provisions of this license, mutatis mutandis, as shall be determined by the Civil Administration manager and in accordance with the law and the Security Legislation applicable to the Judea and Samaria areas, including the need to receive an individual approval for the establishment of each communication facility.

First Schedule - 25

 

	

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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 - 26

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

2.                 List of ServicesA65

 

	 	2.1.	
Basic Telephone Services 

	
No.

	
Name of Service

	
Description of Service

	
Date of Provision

	
Service Quality Measures

	
Comments

	
1.

	
Cellular calls

	
Telephone calls to and from subscribers ofthe license holder to any telephone or other appropriate terminal equipment on another public communication network, in Israel or globally.

	
In place

	
Availability of the service 98%

	 
	
2.

	
Emergency calls

	
Free calls to the emergency services, to be determined by the Director (for example: Police, MDA, Fire Dept., others). The caller will be routed to the emergency center according to the service provider's definition in reference to the subscriber's location.

	
In place

	
Availability of the service 98%

	
According to the Director's instructions.

The caller's telephone number may be identified by the public emergency services call center.

 

	 	2.2.	
Related Services

	
No.

	
Name of Service

	
Description of Service

	
Date of Provision

	
Service Quality Measures

	
Comments

	
3.

	
Callwaiting with option for temporary suspension

	
Subscriber may receive an incoming call while on another call. The subscriber may suspend this service at will.

	
In place

	
Availability of the service 99.9%

	 
	
4.

	
Call forwarding

	
Forwarding incoming calls to another telephone number, at the subscriber's choice:

Regularly, when the line is busy, when the call is notanswered or in cases of unavailability.

	
In place

	
Availability of the service 99.9%

	 

 

A65 Amendment No. 65

First Schedule - 27

 

	

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5.

	
Call transfer

	
The subscriber may transfer a call to another telephone number or between 2terminal devices having the same number.

	
* 3/2007

	
Availability of the service 99.9%

	
In accordance with notice dated March 14, 2007

	
6.

	
Hunting group

	
Determination of a hunt number for the group of the subscriber's telephone numbers; dialing the hunt number will route the call to an available number in the group.

	
In the future

	
Availability of the service 99.9%

	 
	
7.

	
Caller ID

	
Caller's number is displayed on the subscriber's telephonedisplay.

	
In place

	 	
Dependent on the caller's terminal equipment

	
8.

	
Calling ID restriction

	
Allows the subscriber's telephone number to be blocked from display on the call recipient's display. The blocking may be permanent or one-time.

	
In place

	
Availability of the service 99.9%

	 
	
9.

	
Caller name announce-ment

	
Provides the possibility of identifying the caller by anaudiosignature.

	
In place

	
Availability of the service 99.9%

	 
	
10.

	
Conference call

	
Supports a call for several subscribers simultaneously.

	
In place

	
Availability of the service 98%

	 
	
11.

	
Closed user group

	
A group of telephone numbers only between which a call may be made.

	
In place

	
Availability of the service 98%

	
On GSM network only.

	
12.

	
Voice mail

	
Storage and the possibility of retrieval of voice messages of persons calling the subscriber in a personal box.

	
In place

	
Availability of the service 99%

	 
	
13.

	
Advanced voice mail

	
A voicemail system as specified in Paragraph 12 above, plus additional "smart" features includinga visual or voice announcement of incoming messages, the transfer of messages to other platforms and receipt of messages from such platforms.

	
In place

	
Availability of the service 98%

	 

 

 

First Schedule - 28

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

	
14.

	
Voice activated service

	
Voice activation of telephone and basic services, related services and value-added services.

	
Partially in place, will be expanded in the future

	
70% probability of  good identifi-cation in areas with asignal level higher than 85dbm

	 
	
15.

	
Call tracking

	
Allows the subscriber, during a call, to send the applicant an announcement for the purpose ofsubsequent identification of the source of the call.

	
In the future

	
Availability of the service 99.9%

	
Subject to any law

	
16.

	
Virtual private network (VPN)

	
Allows speed dialing according to a private numbering program.

	
In place

	
Availability of the service 99.9%

	
For types of subscribers according to relevant distinctions. Currently provided to the business sector.

	
17.

	
Centrex

	
Allows the maintenance of a private network while using the network's resources.

	
In the future

	 	 
	
18.

	
Facsimile services

	
Receipt, storage and retrieval of facsimile messages through the telephone.

	
In place

	
Availability of the service 99.9%

	 
	
19.

	
Roaming

	
Provision of mobile phone services when visiting Israel (for "roamers" from overseas).

Forwarding calls to a subscriber who is overseas through a holder of a license to provide international communication services and allowing subscribers who are overseas to receive mobile phone services from operators overseas, including callscreening and call-back, and providing mobile phone services and related services to anyone visiting Israel (for roamers from overseas), all through roaming agreements with operators in other countries.

	
2002

	
Availability of the service 99.9%

	
The service was expanded in 2003 to also include data comm-unications services.

 

 

First Schedule - 29

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

	
20.

	
Toll free service

	
The maker of the call is not charged.

The subscriber called is charged in accordance with appropriate charge arrangements.

	
3/2010

	 	
According to service file(1800).

	
21.

	
Talk Two

	
One number for several SIM/terminal equipment units.

	
In place

	
Availability of the service 99%

	 
	
22.

	
Two telephone numbers for one SIM card

	
Definition of two telephone numbers for the same SIM card.

	
*7/2005

	
Availability of the service 99%

	
* According to notice dated June 7, 2005

	
23.

	
Change of number announce-ment

	
A person calling the subscriber will receive an announcement of the subscriber's new number and be given the possibility of routing to the new number at the applicant.

	
In place

	
Availability of the service 99.9%

	
On GSM network only.

	
24.

	
Camp on busy line

	
Automatic announcement and/or making of a call to a busy line once it becomes free.

	
*3/2004

	
Availability of the service 99.9%

	
* According to notice dated Feb. 5, 2004

	
25.

	
Personal number service

	
Allows the subscriber to determine that calls to one telephone number be routed to various destinations according to parameters to be determined by the subscriber.

	
In the future

	
Availability of the service 99.9%

	 
	
26.

	
Collect call

	
A call whose cost will be paid by the subscriber receiving the call, after authorization thereof.

	
In place

	
Availability of the service 99.9%

	 
	
27.

	
Message distribution

	
Distribution of messages to a list of recipients through various platforms.

	
In the future

	
Availability of the service 99.9%

	 
	
28.

	
Over the air services (OTA)

	
Remote update of data and applications on the SIM card/terminal equipment by the license holder. The applications will be run from the SIM card / terminal equipment by the subscriber, on the terminal equipment.

	
11/2011

	
Availability of the service 99%

	 

 

(1800) In accordance with service file "toll free service" ("1-800 service").

First Schedule - 30

 

	

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29.

	
Account code billing

	
Code billing for one telephone number in separate bills. The subscriber's instruction regarding the account to be charged will be given by entering a code at the beginning of or during the call.

	
In the future

	
Availability of the service 99%

	 
	
30.

	
Star services

	
Allows a call to be made by dialing a speed access code according to an internal numbering program of the applicant.

	
In place

	
Availability of the service 99.9%

	 
	
31.

	
SMS – short messages services

	
Transmission and receipt of text, graphics, voice and image messages to and from mobile phone terminal equipmentover the license holder's network, or from terminal equipment on other networks in Israel or overseas which have reached an agreement with the license holder.

Transmission of such messagesfrom a personal computer.

Forwarding of incoming messages to a facsimile machine.

The license holder will support various languages.

	
In place

	
Availability of the service 99%

	
Dependent on the terminal equipment

	
32.

	
Packet switching data com-munication

	
Connection of the subscriber through the telephone or an independent modem to TCP/UDP/IP communications for packet switching.

	
In place

	
Availability of the service 98%

on a best effort basis

	
Dependent on terminal equipment

	
33.

	
Discon-nection of service

	
Disconnection of service at the subscriber's request.

	
In place

	
To be performed no later than the business day after the date of the subscriber's request

	 
	
34.

	
POC (push to talk over cellular)

	
Making a call by pushing a button on the mobile terminal device.

The call may be private (subscriber-to-subscriber) or for a group on a data communication network.

	
In place(commen-cement)

	
According to service file

	
Pursuant to temporary provision

 

First Schedule - 31

	
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.

 

	 	2.3.	
Value Added Services

	
No.

	
Name of Service

	
Description of Service

	
Date of Provision

	
Service Quality Measures

	
Comments

	
35.

	
Directory assistance

	
Allows receipt of information on telephone numbers and the automatic making of a call to the number in respect of which the information was received.

	
In place

	
Availability of the service 99.9%

	
Pursuant to the provisions of Section 67A of the license

	
36.

	
Connectivity to information & enter-tainment services

	
Allows the subscriber connectivity to push or pull information services, entertainment, applications and content, both interactive and non-interactive, through various means of access.

	
In place

	
Availability of the service 99.9%

	
Dependent on the terminal equipment. Subject to the Director's instructions.

 

 

First Schedule - 32

 

	

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37.

	
Access to internet provider services

	
Allows the subscriber access to an internet access provider.

	
In place

	 	 
	
38.

	
Location based information & tracking

	
Receiving and sending information dependent on the location of the telephone, subject to any law.

	
* 3/2007

	 	
* In accordance with notice dated March 14, 2007

	
39.

	
M-commerce

	
Connectivity through terminal equipment for the performance of transactions.

	
In place

	 	
Dependent on the terminal equipment. Subject to the Director's instructions.

	
40.

	
Unified messaging

	
Allows the subscriber to receive and send voice messages, speech, fax, SMS, e-mail, applications and multimedia files to and from a unified box, with the possibility of converting the information received from one format to another, and access to information from various means of access.

	
In the future

	
Availability of the service 99.9%

	
Dependent on the terminal equipment

	
41.

	
Telemetry command and control

	
Use of a telephone or cellular modem to receive announcements and to send commands pertaining to the operation of various devices (such as: alarm systems, inventory systems, traffic lights, controls etc.)

	
In place

	
Availability of the service 99%

	 
	
42.

	
Sponsored call

	
A call during which the subscriber is exposed to commercial advertising and information.

	
In the future

	 	
Subject to any law

	
43.

	
Video conference

	
Allows visual and audio communication between several users.

	
* 4/2004

	 	
Dependent on the terminal equipment.

* In accordance with notice dated April 4, 2004

 

 

First Schedule - 33

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

	
44.

	
Instant messaging

	
A messaging service between members of a "community", organization, group of friends, group of persons with a common interest. The subscriber announces his being online and his readiness to receive messages. The service notifies the subscriber of the group member who is located in geographic proximity to him.

	
In the future

	 	 
	
45.

	
Surf & talk

	
Allows the subscriber to receive notice of and answer a call waitingwhile surfing the internet.

	
In place

	
Availability of the service 99%

	
Dependent on the terminal equipment. On GSM network only

	
46.

	
Personal information management

	
Accessto and synchronization of a personal information database through the terminal equipment.

	
In place

	 	
Dependent on the terminal equipment.

	
47.

	
Memo

	
Sending of a voice message as a memo from the subscriber to any telephone on a public network.

	
* 1/2004

	 	
* In accordance with notice dated Jan. 8, 2004

	
48.

A67

	
Filtering of offensive content and sites on the internet

	
Filtering of offensive content and sites while the subscriber is surfing the internet through his terminal equipment, in accordance with the provisions of Section 67G of the license.

	
4/12

	 	
The service is provided to subscribers who use the internet access service for no charge additional to the payment it collects from him for the internet access service.

	
49. A75

	
“Personal Message”

	
A short instruction, notification and warning of the Defense Agencies, sent immediately, selectively and in a focused manner to subscribers with cellular end equipment which supports use of cell broadcast (“CB”) technology;

	
10/2014

	 	
Pursuant to the provisions of Section 65.B and the “personal message” service file

 

A67  Amendment no.67

A67  Amendment no.67

First Schedule - 34

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

	
50. A81

	
Premium Service at Premium Tariff

	
A premium service provided through a designated code allocated for such purpose (1-900, 1-901, 1-902).

	
2/2015

	 	
The service will be provided according to the provisions of Annex P.

	
51 A81.

 

	
Premium Service at Regular Tariff

	
1)          A premium service provided through:

2)          A network access code – as an inter-network service;

3)          Dialing a landline number – as a nationwide service.

	
2/2015

	 	
Landline number and regular tariff within the meaning thereof in Section 67D1 of the license.

	
 

	
Safe network and blocking of malware

	
Protection against fishing threats, access to suspicious sites and prevention of malicious software activities / unwanted malware installed on the subscriber's end user equipment

	
Future

	 	 

 

The availability of the service is a percentage of the timeduring which the service is available, excluding the availability of the basic service.

 

A67  Amendment no.67

A67  Amendment no.67

First Schedule - 35

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

 

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 CA60

	
Domestic Roaming;

	
Appendix DA43

	 
	
Appendix EA16

	
Level of Subscriber Services;

	
Appendix FA8

	
Ordering Of A Service On The Website Of The Licensee Or A Service Provider;

	
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

A16 Amendment no.16

A60 Amendment no.60

A43 Amendment no.43

A16 Amendment no.16

A8 Amendment no.8

A16 Amendment no.16

A3 Amendment no.3

A5 Amendment no. 5

A6 Amendment no.6 replaced Amendment no.4

A7 Amendment no.7

A12 Amendment no.12

A12 Amendment no.12

A16 Amendment no.16

A24 Amendment no.24

 

Second Schedule - 1 

	

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Appendix C – DOMESTIC ROAMING

 

	1.	
In this Appendix

 

	"Handover16"	
Continuity of a call during its transfer by means of cellular end equipment from the coverage area of a cellular radio center of one licensee to the coverage area of a cellular radio center of another licensee, in a continuous manner, without being disconnected or disrupted.

 

	"Call"	
Including SMS messages, data communication, cellular Internet surfing, use of applications and the like.

 

	"Roaming Licensee's Subscriber"	
Including a subscriber of a cellular licensee on another network, where such licensee utilizes a roaming licensee's network.

 

	"Lockdown"	
A state in which the end equipment of a roaming licensee's subscriber, who roamed to a host network, continues to receive service on the Licensee's network after the termination of the call, even if the roaming licensee has coverage in that area.

 

	"Specifications"	
The current 3GPP17 recommendations regarding domestic roaming as in effect from time to time.

 

	2.	
The Licensee shall provide by means of its network to a roaming licensee a domestic roaming service, as stated in section 67E, in accordance with the conditions set out below.

 

	3.	
The Licensee shall provide a domestic roaming service, as stated, by one of the following two methods:

 

		(a)	
Call transfer – The Licensee shall enable the transfer of a call which is being conducted by means of a subscriber's end equipment from a roaming licensee's network to the Licensee's network, when the roaming operator's network has no coverage in that area. After the transfer, the call shall be conducted on the Licensee's network up to its termination.

 

		(b)	
Call setup – The Licensee shall enable the setup of a call on its network, by means of the end equipment of a roaming subscriber's licensee, if the roaming operator's network has no coverage in that area, or due to locking down of the end equipment of the roaming subscriber on the Licensee's network. Following its setup, the call shall be conducted on the Licensee's network up to its termination.

 

	4.	
The Licensee shall determine the duration of the lockdown time in accordance with the requirement of the roaming licensee.

 

16 Handover.

17 3rd Generation Project Partnership.

 

	

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	5.	
The Licensee shall guarantee reasonable and equal conditions for every roaming licensee, as regards the provisions of cellular services by it, including the following:

 

	 	(1)	
Prohibition on discrimination – The scope, nature and quality of the services received by a roaming licensee's subscribers may not be inferior to those provided to the Licensee's subscribers. Insofar as the Licensee creates a distinction between categories of its subscribers, regarding the scope, quality or nature of its services, it shall allow the roaming licensee to maintain the same distinction for its subscribers.

 

	 	(2)	
Transfer – The Licensee shall allow a roaming licensee's subscribers a one-way transfer, i.e. – from the roaming licensee's coverage area to the Licensee's coverage area, in a continuous manner, without disconnection or interruption of the call.

 

	 	(3)	
Advanced network – The Licensee shall provide domestic roaming services to a roaming licensee by means of its most advanced network18 and within the lowest frequency utilized by it19; only if it does not have such coverage shall it provide the roaming licensee with domestic roaming services by means of a higher frequency range or by means of an earlier generation network20, all according to the same priority as its own subscribers.

 

	 	(4)	
Range of services – The Licensee shall enable a roaming licensee to provide the entire range of services the roaming licensee wishes to provide to its subscribers, subject to the host licensee's technical possibilities and provided this does not burden it unreasonably.

 

	6.	
The Licensee shall cooperate with the roaming licensee, including by -

 

	 	(1)	
Blocking sites – The Licensee, at the roaming licensee's request from time to time, shall block the use by the roaming licensee's subscribers in specific coverage areas of sites of the Licensee in which the roaming licensee has coverage.

 

		(2)	
Dynamic update – The Licensee shall update the roaming licensee on a regular basis regarding the data required for domestic roaming support, according to the roaming licensee's needs and in line with the expansion of its network, and regarding changes in the Licensee's network, including traffic data by sites, records of calls21, billing data of the roaming licensee's subscribers, malfunctions, changes in systems, etc., and the Licensee shall also update its systems, as necessary, according to the network data of the roaming licensee.

 

		(3)	
Location data – The Licensee shall provide to a roaming licensee, on a regular basis, real-time location data of the roaming licensee's subscribers who are within the Licensee's coverage area. Such location data shall not be less than those received for the Licensee's subscribers.

 

		(4)	
Visibility - The Licensee shall operate, to the extent possible, in such a manner that a roaming licensee's subscribers do not notice that they are receiving service through the Licensee.

18 UMTS / HSPA / HSPA+ and in the future LTE.

19 For example, a licensee operating UMTS networks within frequency ranges of 850/900 MHz and 2100 MHz, shall provide to the roaming licensee's subscribers services by means of the network within the 850/900 range according to the same priority as its own subscribers.

20 GSM / GPRS / EDGE.

21 Call Details Record (CDR).

 

 

	

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	 	(5)	
Switching – The Licensee shall transfer all the outgoing and incoming calls through the roaming licensee's network, to enable the roaming licensee to provide to its subscribers all the services it wishes to provide to them, including signaling of failed calls.

 

	 	(6)	
Intelligent network – The Licensee shall support, to the extent possible, intelligent network services provided by a roaming licensee.

 

	 	(7)	
Calls to emergency centers – The call of a roaming licensee's subscriber to an emergency center set up on the Licensee's network shall be routed directly to the emergency center by the Licensee, unless the roaming licensee is able to route it to the appropriate emergency center according to the subscriber's geographical location.

 

	 	(8)	
Compliance with statutory provisions – The Licensee shall cooperate with the roaming licensee for the purpose of complying with any statutory provision issued to any of them, where such cooperation is required by the existence per se of domestic roaming.

 

	 	(9)	
Handling malfunctions – The Licensee shall repair malfunctions in its systems which impair or could impair the domestic roaming service level agreed upon between the Licensee and the roaming licensee22 or determined by the Ministry.

 

	 	(10)	
Prevention of information transfer – The Licensee shall keep fully confidential any information relating to a roaming licensee, and shall prevent the transfer of any information relating to the roaming licensee from its employees and representatives who handle the operation of the domestic roaming to any other personnel of the Licensee, and particularly the Licensee's marketing and sales personnel.

 

	7.	
The Licensee shall operate, with respect to domestic roaming, in accordance with the Specifications. Where any matter is not regulating in the Specifications, the licensees concerned shall act according to the best engineering practice23.

 

22 Service Level Agreement (SLA).

23 Best Engineering Practice.

 

	

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THE BINDING VERSION IS THE HEBREW VERSION

Annex D – Preparing to Ensure Continuity of Operations in Emergencies

 

	1.	
Introduction

 

		1.1.	
The Israeli communications sector constitutes a vital national infrastructure both on a routine basis and in emergencies, and hence requires the License Holder to prepare to ensure continuity of operations in order to continue to provide its services also in emergencies.

 

		1.2.	
The License Holder will implement a comprehensive work plan and will ensure its durability for functioning in emergencies, while ensuring continuity of operations to provide its services.

 

		1.3.	
This annex constitutes a minimal action framework for the License Holder in order to maintain continuity of operations in emergencies, which includes a business continuity program (BCP) and a disaster recovery plan (DRP).

 

	2.	
Definitions

 

	
“Interim Site”

	
-

	
A site containing sub-systems of the network for performance of connection and control of end sites;

	
“Alternative Site”

	
-

	
A site held in a state of preparedness and intended for use in an emergency, at which the activity to ensure continuity of operations will continue;

	
“Core Site”

	
-

	
A main site which contains central systems of the network including switch, databases, computer systems, storage and a control and management center;

	
“End Site”

	
-

	
A cellular radio center on a license holder’s network;

	
“Sharing Agreement”

	
-

	
An active frequency sharing agreement, as defined in Section 19A of the license;

	
“Recovery Target”

	
-

	
A target determined by the License Holder for reinstating technological activity and support systems to a defined service level and within a defined time period;

	
“Portable Site”

	
-

	
A portable end site;

	
“Continuity of Operations”

	
-

	
Ensuring continuity of operations of the License Holder’s services, which includes a disaster recovery plan and a business continuity program;

	
“Plan”

	
-

	
Plan to ensure continuity of operations;

	
“Business Continuity Program”

	
-

	
Plan of action carried out by the License Holder in emergencies to ensure continuity of operations of processes that are defined as critical and of the communication, computer and storage systems (BCP).

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	3.	
Formulation of a plan to ensure Continuity of Operations

 

		3.1.	
The License Holder will formulate a plan to ensure Continuity of Operations which will assist it in emergencies to ensure its ability to operate continuously, to mitigate the harm to provision of its services and to recover its operations; the plan will include at least the following issues:

 

		(a)	
Analysis of risks to which it is exposed in emergencies, including an analysis of results, repercussions and implications for the ongoing and proper work of the infrastructures and of its services;

 

		(b)	
Determination of service targets and Recovery Targets for emergencies, in accordance with the analysis of the risks and their implications for Continuity of Operations and continued provision of its services;

 

		(c)	
The guidelines specified below in this annex, including the various plans specified below in this annex, while addressing the roles and responsibilities of various functionaries in the management of the emergency situation and actual implementation of the plan;

 

		(d)	
Assimilation of the plan among the managers, employees, suppliers and subcontractors.

 

	4.	
Liability of the board of directors and the management

 

		4.1.	
The License Holder’s board will approve the plan, while addressing the risks to Continuity of Operations and control thereof, as part of the comprehensive work framework for risk management, and shall instruct the License Holder’s management to carry out the same.

 

		4.2.	
The board of directors will discuss the Continuity of Operations issues upon significant technological changes and after a communication failure event, a significant failure in critical IT systems such as the billing system or the customer relationship management (CRM) system, provided that the Continuity of Operations issues are discussed at least once a year.

 

		4.3.	
The License Holder shall appoint a Continuity of Operations manager and shall define his responsibilities and powers, which shall include ensuring implementation of the plan and adjustment thereof to technological changes, the existence of an assimilation plan, practice drills and lesson drawing as well as mapping and monitoring existing deficiencies and reporting thereon to the management.

 

		4.4.	
The plan will be periodically audited by the internal auditor or a senior officer of the License Holder.

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		4.5.	
The board of directors and the management will define periodic monitoring discussions, documentation and reporting format, within the company.

 

	5.	
Management of an emergency situation

 

		5.1.	
The License Holder shall appoint a senior executive to declare the transition from routine work to emergency work in a transition from routine to emergency procedure.

 

		5.2.	
The License Holder shall operate a situation room in emergencies, which includes all of the resources required to manage the situation, including alternative means of communication which do not rely on the License Holder’s network (the “Main Situation Room”).

 

		5.3.	
The License Holder will set up an alternative situation room at another site, at a distance of at least thirty (30) km from the Main Situation Room; the aforesaid notwithstanding, at the License Holder’s written request, the Director may approve having an alternative situation room at a shorter distance.

 

		5.4.	
The situation room will be used by the officers of the License Holder to manage the situation and to operate the plan of action for Continuity of Operations.

 

		5.5.	
The License Holder will appoint a team to manage the emergency situation, to comprise, inter alia, the officers, key decision makers and technology professionals (communications and IT).

 

	6.	
Manpower, economic immobilization and emergency economy

 

		6.1.	
The License Holder will act vis-à-vis the Ministry of Economy for its recognition as an essential enterprise pursuant to the Emergency Work Service Law, 5727-1967.

 

		6.2.	
The License Holder will prepare manpower for every operating sector thereof which will allow it Continuity of Operations; the License Holder will validate the manning lists once a year.

 

		6.3.	
The License Holder will ensure regular working conditions and inter alia, on the following matters:

 

		(a)	
Food, water, sleeping equipment for all of the manned sites;

 

		(b)	
Equipment, protection, food and water for the field teams (field technician/field maintenance);

 

		(c)	
Protected spaces/rooms (floor shelters/apartment shelters) and safe work areas.

 

		6.4.	
The License Holder will maintain one armored vehicle which will allow the activity of a field team. A license holder which operates more than 1,000 sites will maintain an additional armored vehicle; such vehicles shall be owned by the License Holder or supplied through a supplier.

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		6.5.	
The License Holder will arrange for a transportation system for its employees to travel to and from its sites according to the manpower standard it has determined for each of its operating sectors as stated in Section 6.2.

 

	7.	
Continuity, backup and survivability of the network and the infrastructure

 

		7.1.	
The License Holder’s network will comprise at least two Core Sites at a geographic distance of at least thirty (30) km; the aforesaid notwithstanding, at the License Holder’s written request, the Director may approve having Core Sites at a shorter distance.

 

		7.2.	
The core systems on the network will operate on BCP architecture, insofar as the technology is available from the equipment manufacturer.

 

		7.3.	
The core of the network will be planned to have no single point of failure, a malfunction in which causes the malfunction of the entire network.

 

		7.4.	
The License Holder will operate a manned management and control center 24/7, 365 days a year, for the monitoring, control and operation of all of the network’s components.

 

		7.5.	
The License Holder will set up an alternative management and control center at another geographic site at a distance of at least thirty (30) km; the aforesaid notwithstanding, at the License Holder’s written request, the Director may approve having an alternative management and control center at a shorter distance.

 

		7.6.	
The alternative management and control center shall include all of the management and control systems required for Continuity of Operations of the License Holder’s services independently, and will be available for immediate action.

 

		7.7.	
The License Holder will formulate a technological and engineering backup plan for the Core Sites which will enable Continuity of Operations in the event of a Core Site failure.

 

		7.8.	
The License Holder will formulate a technological and engineering backup plan for the Interim Sites which will enable Continuity of Operations in the event of an Interim Site failure.

 

		7.9.	
The License Holder will formulate a contingency plan (without actual rollout of additional infrastructures) which will be operated at failure events to link End Sites in accordance with criteria to be determined by the License Holder.

 

		7.10.	
In the event of a failure at the Core Site or an Interim Site, the backup plans will allow additional reception of at least fifty percent (50%) of the disconnected End Sites.

 

		7.11.	
The License Holder will formulate a plan for regular backup of data and information systems on a routine basis and in emergencies at another geographic site, at a distance of at least thirty (30) km; the aforesaid notwithstanding, at the License Holder’s written request, the Director may approve an Alternative Site at a shorter distance.

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		7.12.	
The License Holder will maintain backed up transmission infrastructures to link the Core and Interim Sites.

 

		7.13.	
The License Holder will maintain four (4) Portable Sites which will substitute damaged End Sites, to expand coverage or increase capacity; such resources shall be owned by the License Holder. The aforesaid notwithstanding, in the event that the License Holder entered into a Sharing Agreement with another license holder, the License Holder may maintain the aforesaid together with the other license holder.

 

		7.14.	
The License Holder will have the independent capacity to roll out and operate the Portable Sites, supply energy and transmission and connect them to the network within twelve (12) hours.

 

		7.15.	
The License Holder will maintain reserve technical equipment for the entire technological system which will allow current continuous maintenance for at least three weeks, without the need to bring alternative equipment from overseas; such equipment shall be owned by the License Holder.

 

	8.	
Transmission infrastructures

 

		8.1.	
The License Holder will formulate a technological and engineering backup plan for the infrastructure and the transmission routes for Continuity of Operations of the transmission services, through landline or wireless transmission.

 

		8.2.	
The License Holder will formulate a technological and engineering backup plan for the transmission infrastructure connecting the network to the core facilities of another general license holder and any license holder through which it provides the internet access service.

 

	9.	
Energy and electricity infrastructures

 

		9.1.	
The License Holder will prepare for energy and electricity backup, as specified below, for which purpose it may use a supplier:

 

		(a)	
Core Sites – alternative supply of electricity through batteries, generators, diesel oil containers and supply of diesel oil for continuous operation of at least forty-eight (48) hours;

 

		(b)	
Interim Sites – alternative supply of electricity through batteries, generators, diesel oil containers and supply of diesel oil for continuous operation as specified below:

 

		(1)	
An Interim Site which connects more than thirty-two (32) End Sites – for twenty-four (24) hours;

 

		(2)	
An Interim Site which connects up to thirty-two (32) End Sites – for twelve (12) hours.

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		9.2.	
The License Holder will prepare for energy and electricity backup at the End Sites for an alternative supply of electricity through batteries for two hours for each End Site whose activity is required to meet the coverage level set forth in the provisions of the license; such batteries shall be owned by the License Holder.

 

		9.3.	
The License Holder will maintain at least six (6) generators for continuous operation of End Sites in the event of a power outage; such generators shall be owned by the License Holder. The aforesaid notwithstanding, in the event that the License Holder entered into a Sharing Agreement with another license holder, the License Holder may maintain the aforesaid together with the other license holder.

 

		9.4.	
The License Holder shall enter into an agreement with a subcontractor for the repair and transportation of generators in emergencies.

 

		9.5.	
The License Holder shall enter into an agreement with a supplier for the supply of diesel oil for fuelling in emergencies.

 

	10.	
Data and system protection

 

		10.1.	
The License Holder shall formulate a data and system protection plan which shall include protection procedures and responses to data protection events.

 

		10.2.	
The data and system protection plan will be determined in accordance with the instructions of the Ministry and the security forces.

 

		10.3.	
The License Holder will determine the work procedures and rules for remote access upon a data systems event as part of the plan to ensure Continuity of Operations.

 

	11.	
Suppliers and subcontractors

 

		11.1.	
The License Holder shall ensure that the engagement agreements with the suppliers and the subcontractors regulate the duty of the supplier and the subcontractor to provide the services required by the License Holder to ensure Continuity of Operations in emergencies.

 

		11.2.	
The agreements shall include a plan to ensure Continuity of Operations at the supplier and the subcontractor, including manpower and the resources required to provide the service.

 

		11.3.	
The agreements shall include the participation of the supplier and the subcontractor in drills.

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	12.	
Reinstatement of service in emergencies

 

		12.1.	
In the event of a significant service interruption in an emergency, the License Holder will reinstate the service according to the reinstatement of service procedure; insofar as possible, the procedure will give priority to the reinstatement of service to vital bodies, including security forces and emergency services, hospitals, emergency centers and government ministries.

 

		12.2.	
The procedure will be formulated such that reinstatement of the communication services will be according to the order specified below:

 

		(a)	
Dialing and maintaining a voice call between subscribers of the License Holder and between its subscribers and the subscribers of another license holder;

 

		(b)	
National and personal messaging (cell broadcast);

 

		(c)	
Surfing services;

 

		(d)	
Sending SMSs between subscribers of the License Holder and between its subscribers and the subscribers of another license holder;

 

		(e)	
The other services.

 

	13.	
Restoration of the service

 

		13.1.	
The License Holder will formulate a plan for restoration of its services which includes the following stages:

 

		(a)	
Immediate restoration – preplanned restoration; such restoration will be carried out within a very short time and almost automatically;

 

		(b)	
Interim restoration – utilization of existing surplus capacity, including available alternative machines; such restoration will be carried out within several days;

 

		(c)	
Long-term restoration – installation of new systems; such restoration will be carried out within weeks or months and is contingent on available equipment at the supplier and installation and construction capabilities.

 

		13.2.	
According to the restoration plan, the service level of the various services provided by the License Holder will be determined.

 

	14.	
Assimilation and practice

 

		14.1.	
The License Holder will implement the plan to ensure Continuity of Operations among its employees by instructing and training them.

 

		14.2.	
The License Holder will formulate a periodic practice drill plan which includes all of the scenarios and the critical processes included in the plan to ensure Continuity of Operations.

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

		14.3.	
The License Holder will carry out, within the company, a practical and comprehensive drill, once a year, with the participation of an internal control team which shall examine the License Holder’s emergency preparedness; the License Holder will notify the Ministry of the date of holding of the drill at least thirty (30) days in advance thereof and will allow the Ministry’s representatives to attend the same.

 

		14.4.	
The conclusions of the drill will be provided to the License Holder’s management to study and examine required updates to the plan to ensure Continuity of Operations; the conclusions of the drill will be provided in writing to the Director within thirty (30) days after the holding of the drill.

 

	15.	
Procedures

 

		15.1.	
The License Holder will formulate designated procedures for various emergency scenarios in the framework of the plan, as specified below:

 

		(a)	
Procedure for handling malfunctions and irregular events in emergencies and recovery therefrom;

 

		(b)	
Procedure for skipping and transition to an alternative management and control center;

 

		(c)	
Procedures for backup and survivability of Core and Interim Sites;

 

		(d)	
Operation of portable resources procedure;

 

		(e)	
Procedure for reporting to the Ministry in emergencies;

 

		(f)	
Procedure for operation of the customer service system in emergencies;

 

		(g)	
Procedure for protection and response against data protection events;

 

		(h)	
Reinstatement of service in emergencies procedure;

 

		(i)	
Transition from routine to emergency procedure.

 

		15.2.	
The procedures will be approved by relevant officers at the company and will be updated once a year.

 

	16.	
Miscellaneous

 

		16.1.	
This annex will take effect no later than Tuesday, Elul 17, 5775 (September 1, 2015), with the exception of Sections 7 and 9, which will take effect no later than Tuesday, Adar A 21, 5776 (March 1, 2016).

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E

 

Appendix E – Minimum Requirements and Level of Subscriber ServicesA16)

 

	
1.

	
System Performance

		1.1	
Definitions:

 

"Population" - the entire population in the area, according to the publications of the Central Bureau of Statistics

"Layout Ratio" - the ratio between the household rates in the peripheral settlements and the household rate in central settlements;

"Central Settlement" - A settlement defined by the Central Bureau of Statistics as a settlement of a "intermediate" level (clusters 5,6), at a "central" level (cluster  7) and at a "very central" level (clusters 8, 9, 10);

"Peripheral Settlement" - A settlement defined by the Central Bureau of Statistics as a settlement at a "very peripheral" level (clusters 1, 2, 3) and a "peripheral" level (cluster 4);

"Street" - the area (length x width) of any street whose number is up to 4 digits inclusive, and the national and local railroad route in the area of the State of Israel, during the license period; when the width of the street or the national and local railroad route shall include the actual width of the street/route + 5 meters from each side of the street/route;

"Coverage Level" -  Broadcast and reception of electromagnetic signals which allow for the proper existence of any service to the mobile telephony communications end equipment, rising to a height of one and a half meters (1.5) above the surface;

In this regard, proper existence of the service shall be considered the service provided in the Coverage Area, while meeting the minimum requirements in regards to the service level, as specified in this Clause;

"Area" - the overall area regarding which the Law, jurisdiction and Administration of the State of Israel apply.

"Blocked Calls" - calls and data communication or links that cannot be established or messages that cannot be transferred immediately upon an order to establish contact due to unavailability of the network resources or resources for linkage between the network and other networks;

"Dropped Calls" - calls and data communications or links that were terminated not by the initiation of the subscriber who initiated the call / link or the call recipient.

 

		1.2	
Milestones for the establishment of the network:

		(a)	
The network and its services shall meet the performances, features and indicators defined in the engineering plan – Appendix B, including an engineering plan attached to the Generation 4 Tender;

		(b)	
The milestones for the establishment of the network and provision of service:

(1)          canceled;

 

Second Schedule—Appendix E – 1

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E

 

(2)          network using Generation 4 technology:

	
2.

	
((a)) Stages and dates

Stage A          at the end of 18 months from the determining date;

Stage B          at the end of 36 months from the determining date;

Stage C          at the end of 48 months from the determining date;

Stage D          at the end of 24 months from the date of the manager's announcement;

"Determining Date" - date of amendment of the license

"Date of Manager's Announcement"- the date on which the manager shall provide the License Owner notice in writing regarding the performance of Stage D. The notice shall be provided after the end of 60 months from the determining date.

((b)) The License Owner shall operate to establish the Generation 4 network as follows:

((1))     shall submit a layout plan in a format set forth in the provisions of this Appendix no later than sixty (60) days after the Determining Date; the layout plan shall constitute part of the engineering plan.

((2))     the layout plan shall include the following data:

(((a)))    all of the settlements in Israel shall be detailed therein, in accordance with the Central Bureau of Statistics, divided into two groups – Central Settlements and Peripheral Settlements; the number of households in each settlement shall be stated next to the name of each settlement, and the total number households in central settlements and in peripheral settlements shall be stated; the planned date for the completion of the layout plan for each settlement shall be stated next to each settlement;

(((b)))    all of the Streets shall be detailed therein; next to each Street the number of the Street shall be stated and across from each Street, the planned date for the completion of the layout plan for that Street shall be stated.

((3))      The License Owner may update the layout plan and change the order of the settlements or Streets in which the network layout is planned by providing notice to the manager up to 60 days before the date the layout is planned, provided that the updated layout plan meets the provisions set forth in this Appendix.

((4))      The network layout pace shall be as follows:

(((a)))    at the end of one year from the Determining Date, the License Owner shall layout the network so that at the end of said period, there will be access to the network at a certain rate of households, according to the determination of the License Owner, provided that no later than 12 months from the Determining Date, the License Owner shall commence providing the service;

(((b)))    As of the beginning of the second year from the Determining Date, the License Owner shall layout the network at the Layout Ratio that is no less than one (1), and according to the following:

At the end of Stage A – coverage of 30% minimum requirements of the network coverage obligation, as stated in Clause 1.3(b)(1);

At the end of Stage A – coverage of 65% minimum requirements of the network coverage obligation, as stated in Clause 1.3(b)(1);

At the end of Stage A – coverage of 100% minimum requirements of the network coverage obligation, as stated in Clause 1.3(b)(1);

At the end of Stage A – coverage of 100% minimum requirements of the network coverage obligation, as stated in Clause 1.3(b)(1);

		1.3	
Minimum Requirements of the Obligation Network Coverage:

	
(a)

	
In a 3rd generation technological network:

(1)  The network’s performance and services will be provided by meeting the coverage level and shall be no less than the following minimal requirements:

Service area: the area in which 99% of the population live, and no less than 92% of the area.

	
(b)

	
In 4th generation technological network:

(1)  in stages A through C, the network performances and services shall be supplied while meeting the coverage level, and shall be no less than the following minimum requirements:

((a)) Service area: an area in which 97% of the Population resides, and not less than 75% of the area;

 

Second Schedule—Appendix E – 2

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E

 

((b)) Settlement: each settlement separately, the coverage level shall be at least 90% of the settlement area.

((c)) Street / Route:

((1))     90% of the area of a single digit, double digit and triple digit street, national and local railroad route, including stations, road structures and operational areas and tunnels in each street or national and local railroad route;

 

((2))     75% of the area of a four digit street and national railroad route for cargo trains.

(2)  in stage D, the network performance and services shall be supplied while meeting the coverage level, and shall be no less than the following minimum requirements:

((a)) Service area: an area in which 99% of the Population resides, and not less than 95% of the area;

((b)) Settlement: each settlement separately, the coverage level shall be at least 95% of the settlement area.

((c)) Street / Route:

((1))    95% of the area of a single digit, double digit and triple digit street, national and local railroad route, including stations, road structures and operational areas and tunnels in each street or national and local railroad route;

((2))    85% of the area of a four digit street and national railroad route for cargo trains.

	
3.

	
(c) canceled.

		1.4	
Service Quality:

		(a)	
Blocked Calls and Dropped Calls:

(1)  a percentage of Blocked Calls at peak times shall not exceed two percent (2%) and the percentage of Dropped Calls at peak times shall not exceed two percent (2%).

(2)  up to ten percent (10%) of all sectors shall allow for deviation beyond two percent (2%).

(3)  Amount of Blocked and Dropped Calls shall be measured in the following manner:

((a))   the measurement shall refer to a one-hour time frame;

((b))   the peak time tow which the measurement shall refer shall be the busiest time of the system, during the week, which is not a Hol Hamoed or holiday eve;

((c))    the measurement and the calculation of the percentage of Blocked or Dropped Calls shall be performed by the License Owner of each sector and the system in general. The data shall be presented in a graphical manner and shall be forwarded to the Ministry in the framework of the engineering system report.

 

                (b)

(1) Reference signal reception level for 3rd generation Services shall be determined according to the most up-to-date ETSI/3GPP standards for 3rd Generation technology, allowing telephony services for outdoor coverage, according to the limiting channel from the increasing and decreasing channel;

The license holder shall perform prediction once per year for each sector and each cell. The data will be presented and delivered to the Ministry in the form of a national coverage map as well as in the format defined for the engineering sector report.

Second Schedule—Appendix E – 3

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E

 

(2) The reception of a reference signal for Generation 4 services to networks on a broadband of 15/20 megahertz of signals received from descending/upward channel, according to the limiting of the two, under the ETSI24 standard, according to a bandwidth of 5 megahertz, shall be:s

	
Generation 4 network

	 	
Reception Range

	 	
Descending Channel

	
Upward Channel

	
1800 frequencies

	 	
-101.5 (Site in open area)

	
Megahertz

	 	
-93.5 (site in constructed area)

For indoor coverage – relief of 20db.

The examination shall be performed once per year by the License Owner for each sector and each cell. The data shall be presented and delivered to the Ministry by way of a national coverage map in the framework defined in the engineering system report.

(c)          Service provision pace:

(1)          Canceled;

(2)          In regards to the proper existence of data communications in Generation 4, the record data pace per sector in the descending channel / upward channel:

	
Table 1

	
Record data pace (Mbps) in a network of 20 megahertz bandwidth

	
Data Upload

	
At least 100

	
Data Download

	
At least 50

	
Table 2

	
Record data pace (Mbps) in a network of 15 megahertz bandwidth

	
Data Upload

	
At least 80

	
Data Download

	
At least 40

The License Owner shall measure once per quarter the provision of record service pace and shall present the data and the method of examination in the framework of the engineering system report.

	2.	
Customer and Subscriber Services Quality Measures

	
2.1

	
Service to provide information to customers and subscribers: will be provided through a telephone call to a call center, on the license holder's website, by e-mail and by facsimile; such service may be provided also through a representative in a service station open to the public, through an IVR system, SMS, chat or by regular mail. A69

24 http://www.etsi.org/deliver/etsi_ts/136100_136199/136104/10.01.00 60/ts_136104v100100p.pdf

 Tables 7.2.1-3, 7.2.1-2, 7.2.1-1

http://www.etsi.org/deliver/etsi_ts/136500_136599/13652101/11.02.00_60/ts_13652101v110200p.pdf

Table 7.3.3-1

A69 Amendment No. 69

Second Schedule—Appendix E – 4

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E

 

	
2.2

	
Standards for accessibility and provision of information:

	
(A)

	
A56A call center will be manned twenty four (24) hours a day, for receiving calls regarding theft or loss of cellular end-equipment, a network malfunction leading to termination of cellular service to the subscriber and the "international roaming service", all days of the week except on Yom Kippur.

A73For the purpose of inquiries regarding an international roaming service – the licensee is required to allow any subscriber who is Abroad to contact the said call center free of charge, provided that the inquiry is made via a telephone number which is on the licensee's network. The licensee shall publish the telephone number for calls from Abroad on its website.

	
(B)

	
The telephonic call center shall be manned for at least ten (10) hours on weekdays, and at least five (5) hours on Friday, holiday eves and Chol Hamoed Sukkot and Passover for the receipt of notices regarding malfunctions in the receiving MTS services, which are not a malfunction as stated in subsection (a) and in regards to the services of the license owner, and shall operate continuously as of 08:00 a.m.

	
(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.

	
(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.

	
(G)

	
A58 The Licensee may not use a telephone number with a cell phone area code for a fax service for the purpose of receiving complaints from the public.

 

A56 Amendment No. 56

A56 Amendment No. 56

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

Second Schedule—Appendix E – 5

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E

 

	
(H)

	
A58Access to all call centers for reporting malfunctions, loss or theft (hereinafter – problem reporting center")will be via a toll-free service (1-800 service). The Licensee will enable access to the problem reporting center from any national domestic network.

 

	
(I)

	
A58 Subject to that stated in subsection (h), access to all call centers for matters pertaining to the Licensee's services will be by means of each of the following:

 

(1)          A network number to which access is free of charge;

(2)          A split-charge call service (1-700 service) or a toll-free service (1-800 service).

	
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.

	 	
 (1)

	
The Licensee may include information regarding deals and personal notices to the subscriber.

	
(C)

	
Production and delivery of bills

	 	
   (1)

	
The Licensee will produce monthly bills for its subscribers or at any other time with subscriber’s consent.

	
           (2)

	
A subscriber who wishes to terminate its contraction with the Licensee shall receive a final bill on the nearest possible date, and no later than two months after the termination date. A61Where the subscriber and the Licensee agreed on payment in installments for end-equipment purchased by the subscriber from the Licensee, and the subscriber's contract with the Licensee is cancelled before the subscriber has paid all the installments on the Goods which he purchased or rented from the Licensee, the Licensee will send the subscriber a final invoice for the Licensee's services, and thereafter the Licensee will be entitled to send the subscriber invoices only in respect of the debit for the Goods. A58

 

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A61 Amendment No. 61

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

Second Schedule—Appendix E – 6

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E

 

A final invoice will be titled 'Final Invoice'.

 

	 	
   (3)

	
Void T52

 

	
           (4)

	
Following the collection of the payment amount as specified in the Final Bill, the license owner may not collect from the subscriber, by way of the payment method provided by him, any payment that is not for Goods, without the explicit consent in writing and in advance of the subscriber. The license owner shall preserve a copy of the consent of the subscriber, as stated, and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date provided to the license owner.

	
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.

	
2.5 A70

	
Manner of Use of an Electronic Graphic Signature

 

	
(a)

	
Identification of subscriber – the Licensee shall identify the subscriber before modifying an engagement agreement or having him sign a new engagement agreement, through a photo-bearing I.D. or a power of attorney together with an I.D. of the attorney.

	
(b)

	
Use of a digital screen – the Licensee shall allocate for the subscriber's sole use, throughout performance of the transaction until completion thereof, a digital screen, and shall allow the subscriber reasonable time to inspect the entire agreement and to understand the content thereof before being required to sign the same.

	
(c)

	
Signature by the subscriber – the "access to services form" and the documents relevant to the agreement shall be marked and signed only by the subscriber.

	
(d)

	
Fixed signature – each signature will be separately locked and fixed in place, with the unique characteristics thereof, such that it will be possible to prove that this signature is not the result of the "copying and pasting" of another signature of the subscriber signed elsewhere in the engagement agreement or in other documents.  Further to the aforesaid, each signature shall have an information layer in addition to the signature – which shall document the exact time of the signing thereof (precise date and time accurate to within a second).

 

T52) Amendment No. 52.

Second Schedule—Appendix E – 7

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E

 

	
(e)

	
"Locking" of an agreement – Upon completion of the execution of the entire agreement, the agreement document shall be "locked", such that it will be possible to identify any modification of the agreement after the date of signing. The "locking" of the agreement by a secured electronic signature or an approved electronic signature ("Electronic Signature") of the Licensee, within the meaning thereof in the Electronic Signature Law, 5761-2001, immediately after the execution thereof by the subscriber, shall be deemed as reasonable means of locking the agreement and protecting it against changes.

	
(f)

	
Document Retention – the Licensee will retain documentation of any and all of the agreement documents in accordance with the requirements of Section 113.1 of its license, and shall regularly take measures to prevent the undocumented addition or omission of documents to the electronic archive system. A Licensee will take the necessary measures and processes in order to ensure that the content of the agreement is retained without modification from the date of the drafting thereof and throughout the retention period, considering technological changes or changes in the encryption methods used to retain documents. A Licensee may prove to the Ministry at any time that it took such measures and processes.

	
(g)

	
Receipt of a copy of the engagement agreement –

	
(1)

	
The subscriber may choose between two options for the receipt of documents at the time of consummation of the transaction (by checking one of two boxes):

  ((a)) Box one – to receive only the "plan summary";

 

  ((b)) Box two – to receive the full signed agreement.

 

	
(2)

	
The subscriber shall confirm his choice by his signature. The space for the signature shall be adjacent to the said two boxes.

	
(3)

	
A subscriber who requests to receive only the "plan summary " will need to state his e-mail address or his fax number, to one of which the full signed agreement shall be sent (including plan summary).

	
(4)

	
The e-mail address or the fax number to which the full agreement shall be sent will be typed in by the sales representative (on his own keyboard).

	
(5)

	
The address or fax number shall appear beneath and adjacent to the said boxes.

 

	 	
(6)

	
The subscriber shall confirm by an additional signature that this is the e-mail address or fax number, to one of which the agreement shall be sent.

 

	
(7)

	
As a consequence of the aforesaid: any subscriber who does not have an e-mail address or a fax shall receive the full agreement at the time of consummation of the transaction.

	
(h)

	
Identification of the representative – any agreement shall include unequivocal identification of the representative who had the subscriber sign (full name and signature).

	
(i)

	
The license owner shall preserve a copy of the contracting agreement and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date of contracting.

	
(j)

	
If the subscriber requests to make a change to the terms and conditions of the engagement agreement, including a request to receive an additional service, to cancel a service, or to join a service plan – printed notice bearing the name or logo of the Licensee shall be delivered to the subscriber upon the request for the change, stating the details of the change made, the date of its taking effect and the full name of the Licensee's representative and the subscriber and their original signatures. The license owner shall preserve a copy of the contracting agreement and shall make it available for delivery or transfer to the manager, at his request, within five (5) business days from the date of contracting.

	
(k)

	
Cold Calling – the rules specified above shall also apply to cold calling.

 

Second Schedule—Appendix E – 8

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E1

 

Appendix E1 T52 - Fair Disclosure in Telephone Bills

General

	1.	
The telephone bill (hereinafter referred to in this Appendix as the “Bill”) to be presented by the licensee to a subscriber shall be clear, legible and comprehensible; the Bill shall include accurate details about the components of the charge demanded in NIS, as set forth in this Appendix.

	1a.	
The telephone Bill shall include the payments for all services and all goods presented in the Main Points of the Plan.

	2.	
The Bill shall include the following parts:

		A.	
“Billing Summary”;

		B.	
“Billing Details” including:

		1)	
Details of fixed charges, variable charges, one-time charges, credits and reimbursements, within the meaning in section 8 E of this Appendix;

 

		2)	
Information on usage patterns;

		C.	
“Call Details”.

		3.	
The Bill shall be constructed using a bottom-up method, with its bottom level being Part C - “Call Details”, above it Part B - “Billing Details” and at the top level Part A - “Billing Summary”.

 

		4.	
The Company name and logo shall be displayed on each page of the Bill, including on the “Call Details”.

 

		5.	
The licensee shall issue a “Billing Summary”, “Billing Details” and “Call Details” for each telephone number separately. The licensee may issue to a subscriber holding several telephone lines one “Billing Summary” to refer to all the telephone numbers in the possession of the subscriber, provided that the “Billing Summary” sets forth each of the telephone numbers to which the Bill relates (see examples 1 and 2). “Call Details” and “Billing Details” shall be issued by the licensee for each telephone number separately. Notwithstanding the above, a subscriber in possession of several telephone numbers may demand from the licensee to receive a separate “Billing Summary” for each telephone number in his possession. In this regard, a PRI line shall be deemed one telephone number.

 

T53) Amendment No. 52.

Second Schedule—Appendix E1 – 1

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E1

 

		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 and email 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;

 

		B.	
Licensee Details -

 

		1)	
Company name;

 

		2)	
Company management address;

 

		3)	
Customer service telephone and facsimile numbers;

 

		4)	
Company website address.

 

Second Schedule—Appendix E1 – 2

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E1

 

(c)       Dates –

	 	
(1)

	
Date of preparing the bill;

	 	
(2)

	
Manner of delivery of the bill;

	 	
(3)

	
Term of the bill;

	 	
(4)

	
Last date for payment of the bill – regarding the bill paid not by way of automatic debit from the bank account or credit card;

	 	
(5)

	
The date on which the method of payment shall be charged – in regards to the bill paid by way of automatic debit from the bank account or credit card.

 

		D.	
Notices to Subscriber

 

	 	
(1)

	
Notice regarding the option to submit a complaint to the Ombudsman at the License Owner, and regarding the authorities and methods of reference thereto as specified in Sections 61.3 and 61.4.

	 	
(2)

	
Address, telephone number, facsimile number and email address by which the subscriber may submit a request to the license owner for termination of service, disconnection of service, termination of contract or to deliver to it a notice of cancelation, as it means in Section 13d of the Consumer Protection Law, 1981.

 

	 	
(3)

	
Information on offers and personal notices to the subscriber, at the decision of the licensee.

 

		E.	
Billing charge inclusive 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)	
benefits /credits, such as a benefit of providing service at a discount or free of charge for a fixed period or a benefit of providing a discount for the entire rate plan for a fixed period, benefits / credit for a subsidy on terminal equipment, etc. (hereinafter referred to in this Appendix as “Credits”);

 

		5)	
Financial reimbursements for overcharges and interest and linkage differentials for overcharges (hereinafter referred to in this Appendix as “Reimbursements”).

 

		6)	
Purchase of goods.

 

Second Schedule—Appendix E1 – 3

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E1

 

		F.	
Total payment amount will be presented as set forth below:

 

		1)	
Total payment amount exclusive of VAT; the amount shall be calculated according to the charges summary presented in the “Subtotals Summary” and the “Billing Summary”;

 

		2)	
VAT amount;

 

		3)	
Total payment amount, plus VAT.

 

		F.	
All charges appearing in the “Billing Summary” shall be presented as a decimal number in New Israeli Shekels to a degree of accuracy of two digits after the decimal point.

 

Part B - “Billing Details”

 

		9.	
Part 1 of the “Billing Details” will include information on fixed charges, variable charges, One-Time Charges, Credits and Reimbursements, as set forth below:

 

		A.	
“Billing Details” will include general information on the tariffs plan according to the terms of which the subscriber is charged, including the date of entry of the rate plan into force, details of its main tariffs, inclusive of VAT. If the payment or rate level for the services purchased by the subscribers are supposed to be modified or that the provision of benefits which the subscriber received are supposed to end, the license owner shall stated the new payment or rate levels for said services or the said benefit level, which include VAT, or the new usage unit amounts as well as the date of entry of the modifications into force.

 

		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.

 

Second Schedule—Appendix E1 – 4

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E1

 

		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)	
Cancelled.

 

		4)	
The licensee will present to the subscriber written details in respect of the mode of calculation of the Exit Fee within 14 days of the date the subscriber submitted a request to the licensee’s customer service center or the ombudsman.

 

		C.	
“Billing Details shall be presented by means of a table composed of columns and rows, as set forth in the Examples.

 

		D.	
Each service provided to the subscriber in the course of the Billing Period shall be presented in the “Billing Details” in a separate row, with the following details:

 

		1)	
Name of service; the name of the service shall identify as clearly and as accurately as possible, the service provided to the subscriber; respecting a service provided to the subscriber not by means of the licensee, the licensee shall present the details of the service provider, including its name and a telephone number by means of which it can be contacted;

 

		2)	
Quantity for a service unit; quantity measured in time will be presented in the form of mm:ss (minutes: seconds). Quantity measured by data volume will be presented as a decimal number in MB to a degree of accuracy of at least 3 digits after the decimal point. The quantity of internet pages viewed or text messages will be presented as a natural number.

 

		3)	
Tariff for a service unit; 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).

Second Schedule—Appendix E1 – 5

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E1

Rate of a calendar time unit11; - the rate shall be represented as a decimal number in NIS with a level of accuracy of 2 digits after the decimal point.

 

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 debit amount; the debit amount shall be calculated according to the multiplication of the rate amount and shall be presented as a decimal point with a level of accuracy of 2 digits after the decimal point.

 

		5)	
In the event that there is also a fixed charge for each individual call, the number of calls made and the fixed tariff per call shall also be presented in the same row and the charge amount shall be calculated by multiplying the number of calls by the fixed charge tariff per call plus the quantity multiplied by the tariff (see Example 4).

 

		E.	
The “Fixed Charges”, “Variable charges” “One-Time charges”, “Credits”, “Reimbursements” and "Linkage differences and interest" as specified in sections 60.8 and 83A A58, 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 A58 the “One-Time Charge”; the licensee will furnish the subscriber with such written details within 30 days of the date of submission of a request by the subscriber on the matter to the licensee’s customer service center or the ombudsman (see Examples 3 and 5).

 

		G.	
Charges 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 inclusive of VAT, for fixed charges, variable charges, One-Time Charges, Credits and Reimbursements (“Subtotal Row”). The debit amount for any Subtotal Row shall by transferred from the "account detail" to "account summary".

 

		I.	
The final debit amount shall be presented when it includes VAT.

 

		J.	
Cancelled.

 

11 One month, two months, etc.

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

A58 Amendment No. 58 (inception: this amendment will come into force on March 13, 2011).

Second Schedule—Appendix E1 – 6

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E1

 

		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.

 

	 	
(l)

	
The license owner may not present in the account details rates and debit amounts without VAT

 

		10.	
In Part 2 of the “Billing Details” the licensee shall present in graph form or in any other manner in respect of each telephone number to which the telephone bill relates information about usage patterns, as set forth below:

 

		A.	
The rate of utilization of each package of services included in the tariffs plan to which he is a subscriber, including packages of services granted to a subscriber within the scope of the fixed charge including international roaming packages;

 

		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;

 

Second Schedule—Appendix E1 – 7

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E1

 

		2)	
Time (hh:mm:ss);

 

		3)	
Call destination (if any);

 

		4)	
Quantity for a service unit;

 

		5)	
Tariff inclusive of VAT, to a decimal number in New Israeli Shekels to a degree of accuracy of at least 3 digits after the decimal point.

 

		6)	
Charge amount inclusive of VAT, to a decimal number in New Israeli Shekels to a degree of accuracy of at least 2 digits after the decimal point.

 

		(E1)	
Despite the aforementioned in subsection (e), the License Owner may not present the surfing details performed daily, but rather the overall amount of the surfing volume consumed daily. The license owner shall preserve documentation of the surfing details performed daily and shall forward them to the subscriber at his request.

 

		F.	
The tariff presented shall be the tariff according to which the subscriber is charged, viz., for example, after a discount, if any, the cheaper tariff offered to the subscriber within the scope of any offer, etc.

 

(F1) The license owner may not present the rates and debit amounts without VAT.

 

		G.	
The quantity, tariff and charge amount will be presented in adjacent columns if possible, so that the quantity multiplied by the tariff will give the charge amount. If there is also a fixed charge per call the quantity of calls made and the fixed charge per call shall be presented and the charge amount will be calculated by the quantity of calls multiplied by the fixed charge tariff per call plus the quantity multiplied by the tariff (see Example 4).

 

		H.	
Quantity measured by time will be presented in the form of mm:ss (minutes: seconds); quantity measured by data volume will be presented as a digital number in MB when the data volume allotted to the subscriber for the bill period is up  to 1 GB, and in GB when the data volume allotted to the subscriber for the bill period is greater than 1 GB, 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 only the total quantity for which the subscriber is charged (hereinafter referred to in this Appendix as the “Subtotal Row”). The total amount in the subtotal row shall be transferred from "call detail" to "account detail

 

		J.	
Cancelled.

 

Second Schedule—Appendix E1 – 8

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E1

 

		K.	
The presentation of each Subtotal Row shall be made in a prominent manner.

 

		L.	
A call whose tariff is variable in the course of performance thereof, such as a transition from off-peak to peak rate or from peak to off-peak rate, a change in tariff in the course of the conversation, including a conversation starting within the scope of a “pay as you go” program and exceeding the minutes in the course of performance thereof, will be presented within the scope of “Calls at Variable Tariff in the Course of a Call”; the tariff will be presented under the column “Average Tariff” and will be calculated by dividing the charge amount into the quantity (see Example 5 - Version A). A call whose tariff is variable in the course of performance thereof may also be presented in another form in which the charge tariff, the quantity and the charge amount, as well as the total charge of the call will be presented in respect of each segment of such call (see Example 5 - Version B).

 

		M.	
The licensee may provide a subscriber making an express request, with Call Details in chronological order in which the calls were provided with no separation between categories of services, provided that it notifies the subscriber within the scope of the “Call Details” that he may receive “Call Details” also pursuant to the format determined in section 11(b).

  

Second Schedule—Appendix E1 – 9

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix E2

 

 A73Annex E2 – Access to Services Form

	
Form for Access to Services through the Cellular Device that are Billed in the Telephone Bill

	 	
Name of the license holder

Methods for submission of the form:

Address

E-mail address

Facsimile no.

Date: ___________________

	
 

I, whose details are stated below, request access to the services specified below, for the telephone number stated in this form, as follows:

 

The Subscriber's Details

 

The subscriber's name / the company's name: ______________ I.D./P.C. ________________   Address: ________________ Telephone number: ____________________

 

Check according to your choice and sign. Please be advised that partial checking and signing means that the possibility of receiving the service will be blocked.

	
No.

	
Type of Service

	
Blocked

	
Open

	 
	
1.

	
Cellular internet surfing service abroad without a surfing package / plan abroad

 

(a)          This section is intended for business subscribers only.

 

(b)          The subscriber funding the surfing abroad at his own expense shall be blocked from surfing abroad and shall not be charge for it if he does not have a surfing package / plan abroad;

 

(c)          Blockage does not prevent surfing by Wi-Fi;

 

Marking "open" in this section does not include opening the services in Jordan and in Egypt.

	
☐

	
☐

	 
	 	 	 	 	 
	
2.

	
One-time content and/or information service

	
a.

	
One-time receipt or downloading of content via the internet, viewing and/or listening thereto (such as: one-time downloading or viewing of a video, listening to a song, downloading a ringtone, downloading a video, downloading a game).

	
☐

	
☐

	 
	
b.

	
One-time sending of a special rate text message to vote in a program broadcast on television (such as: one-time voting in a reality show).

	
☐

	
☐

	 
	
c.

	
One-time giving of a donation by sending a text message (such as: a one-time donation to an association).

	 	 	 
	
d.

	
Receipt of useful information on a one-time basis (such as: information regarding transportation lines, professionals, financial information, notice regarding the receipt of certified mail, and all on a one-time basis)

	
☐

	
☐

	 
	 	 	
e.

	
Receipt of content on a one-time basis (such as: quiz, lottery, survey, poll, astrological forecast, receipt of a link for downloading a video, and all on a one-time basis)

	
☐

	
☐

	 
	
3.

	
Continuous content and/or information service – subscription

	
a.

	
Receipt or downloading of content via the internet, viewing and/or listening thereto other than on a one-time basis (such as: a subscription to download or view videos, a subscription to a music service, a subscription to download ringtones, a subscription to download videos and a subscription to download games).

	
☐

	
☐

	 
	
b.

	
Receipt of content and/or information other than on a one-time basis (such as: a subscription to receive news updates, a subscription to receive sports results, a subscription to receive trivia questions and a subscription to receive diet recipes).

	
☐

	
☐

	 
	
In an engagement in the presence of a representative of the licensee – I represent that this form has been marked and signed by

Name of the licensee's representative: _________________ Signature of the licensee's representative: ___________________ The subscriber's signature: ___________________

 

Second Schedule—Appendix E2 – 1

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix F

APPENDIX F – ORDERING OF A SERVICE ON THE WEBSITE OF THE LICENSEE OR A SERVICE PROVIDERA61

 

1.       Ordering a Service from the Licensee

 

		1.1	
Ordering a Service from the Licensee

 

The ordering of a service on the Licensee's website or on its cellular portal (both hereinafter – the "Site") shall be done according to one of the alternatives detailed in sections 1.2 or 1.3.

 

		1.2	
Random Code

 

		(a)	
The subscriber shall enter on the Site, in the place designated for that purpose, his subscriber number25.

 

		(b)	
If the subscriber is blocked for the service, the Licensee shall send the subscriber an SMS notifying him that he is blocked for the type of service that was ordered, and that he can apply to the Licensee to remove the block for that type of service.

 

		(c)	
If the subscriber is not blocked for the service, the Licensee shall send the subscriber an SMS including the following:

 

		(1)	
The name of the service including its classification as "one-time" or as "continuing."

 

		(2)	
The price of the service. The price shall be displayed in a detailed manner, including details concerning a "one-time" payment, a "fixed" payment for a specific period, including specification of the period, and the unit price according to which the payment for the service is measured.

 

		(3)	
A random code of five (5) digits (hereinafter – the "Sent Code").

 

		(d)	
The subscriber shall enter on the Site, in the place designated for that purpose, the Sent Code.

 

		(e)	
The Licensee shall compare the Sent Code and the code entered by the subscriber as stated in subsection (d) (hereinafter – the "Entered Code").

 

		(f)	
If the Entered Code is identical to the Sent Code, the Licensee shall send the subscriber an SMS notifying him that his registration for the service was approved, and in the case of a continuing service – information concerning the manner in which it is possible to cancel the registration for the service.

 

		(g)	
If the Entered Code is not identical to the Sent Code, the Licensee shall send the subscriber an SMS notifying him that his registration for the service failed due to such non-identity.

 

A61 Amendment No. 61

25 Mobile Subscriber Number (MSN).

Second Schedule—Appendix F – 1

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix F

 

		1.3	
User Code and Password

 

		(a)	
The Licensee shall display on the Site, next to the place designated for ordering the service, prominently and in a clear and legible manner, the following details:

 

		(1)	
The name of the service including its classification as "one-time" or as "continuing." In the case of a continuing service – information concerning the manner in which it is possible to cancel the registration for the service.

 

		(2)	
The price of the service. The price shall be displayed in a detailed manner, including details concerning a "one-time" payment, a "fixed" payment for a specific period, including specification of the period, and the unit price according to which the payment for the service is measured.

 

		(b)	
The subscriber shall enter on the Site the user code and the password set or approved for him by the Licensee (hereinafter – the "Identity Code").

 

		(c)	
If the subscriber is blocked for the service, the Licensee shall display to the subscriber a message addressed exclusively to him on the Site, notifying him that he is blocked for the type of service that was ordered, and that he can apply to the Licensee to remove the block for that type of service.

 

		(d)	
The Licensee shall compare the Identity Code and the user code and password set by it for the subscriber and saved in its system (hereinafter – the "Saved Code").

 

		(e)	
If the Identity Code is identical to the Saved Code, the Licensee shall provide the service to the Licensee.

 

		(g)	
If the Identity Code is not identical to the Saved Code, the Licensee shall send the subscriber a message addressed exclusively to him through the Site, notifying him that his registration for the service failed due to such non-identity.

 

	2.	
Ordering a Service from a Service Provider

 

		2.1	
Order of service from the website of the service supplier shall take place as specified below:

	
(a)

	
Contracting with a service provider as defined in Section 60.6 for the receipt of its services, shall take place only by way of the website of the service provider (hereinafter – the "Supplier's Website")12.

 

	
(b)

	
The first detail which the subscriber shall be required to type on the Supplier's Website, in the intended place for it shall be – the method of payment customary to him for payment for services provided by the license owner or on its behalf – (Pre-paid) or (Post-paid);

 

12 It is forbidden to contract with a service provider in response to an offer set to end user equipment, or by way of notice sent from end user equipment.

Second Schedule—Appendix F – 2

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix F

 

	
(c)

	
A subscriber, who pays his telephone bills post-paid shall be required to type the following on the Supplier's Website:

 

	
(1)

	
"Cancelled";

	
(2)

	
The subscriber's identification number;

	
(3)

	
The subscriber's telephone number, which shall be charged for the consumption of the service;

	
(4)

	
The last four digits of the payment method (the number of the credit card of the number of the bank account).

	
 (d)

	
A subscriber, for whom the pre-paid method of payment is implemented, shall type the following on the Supplier's Website:

	
(1)

	
The telephone number from which the service consumption can be debited from the outstanding balance;

	
(2)

	
In the event that the charging was made by way of a dialing card – the last four (4) digits of the dialing card number; in the event the charging was made by way of a credit card – the last four (4) digits of the credit card number.

	
 (e)

	
The service provider shall forward to the license owner a notice, which includes that detailed in subsection (c) or (d), as applicable, as well as the following:

	
(1)

	
The name of the service, including the classification of the service as a "one-time" payment service or as a "continuous" payment service;

	
(2)

	
Service rates.

	
 (f)

	
Immediately after the details above are forwarded to the license owner by the service provider, the license owner shall perform a conformity examination between the said details and the details appearing in its information system. The registration process for service may be continued only after the license owner informs the service provider that the conformity examination was found to be entirely identical to the details examined.

	
 (g)

	
If the subscriber is blocked from receiving the service or that all details are not entirely identical, as stated, the license owner shall notify the service provider that the subscriber is blocked from receiving the type of service requested or that his registration for services failed, as applicable, and shall notify the subscriber by way of a text message, free of charge, that he is blocked from receiving the type of service requested by him, or that his registration for service failed, as applicable, and that he may contact the license owner for the removal of the blockage from said type of service.

 

Second Schedule—Appendix F – 3

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix F

 

	
 (h)

	
If the subscriber is not blocked for the receipt of service and all details are entirely identical, as stated, the license owner shall send the subscriber a text message, free of charge, which shall include only the following:

	
(1)

	
The name of the service, including the classification of the service as a "one-time" payment service or as a "continuous" payment service;

	
(2)

	
Service rates;

	
(3)

	
A random code of at least five (5) digits.

	
 (i)

	
The subscriber shall type the code on the Supplier's Website in the intended place for it.

	
 (j)

	
The service provider shall forward to the license owner the code which the subscriber type, as stated in subsection (i).

	
 (k)

	
The license owner shall make a comparison between the code sent to the subscriber and the code typed by the subscriber on the Supplier's Website.

	
 (l)

	
If the code the subscriber types is identical to the code sent to him, the license owner shall send the subscriber a text message, free of charge, notifying him that his registration for the service was approved, and if the service is on "continuous" payment, the information regarding the method by which the registration for the service may be canceled. Furthermore, the license owner shall notify the service provider that it approved the registration for the service.

	
 (m)

	
 If the code typed by the subscriber is not identical to the code sent to him, the license owner shall send a text message to the subscriber, free of charge, notifying him that his registration for the service failed due to lack of conformity, as stated. Furthermore, the license owner shall notify the service provider that the registration for service failed.

	
 (n)

	
The service provided as a "one-time" payment shall be provided to the subscriber only once, and the charge for it shall be on a one-time basis. If the subscriber wishes to receive the service on a one-time service additional times, he shall be required to register for the service time and time again.

 

Second Schedule—Appendix F – 4

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix H – Bank Guarantee and Letter of Undertaking

The License Owner shall provide the manager with an unconditional guarantee in favor of the State of Israel. The guarantee shall be in the amount of eighty million (80,000,000) NIS. This guarantee shall be in place of any previous guarantee which the License Owner provided to the manager under the provisions of its license. If the License Owner met the provisions of Appendix E, the guarantee amount shall be reduced to forty million (40,000,000) NIS.

Version of Bank Guarantee / autonomic insurance and version of undertaking to extend the guarantee

To:

The State of Israel – Ministry of Communications

23 Jaffa Street, Jerusalem

RE: Bank Guarantee / Autonomic Insurance No. ---------------

	
1.

	
According to the request of [name of License Owner] (hereinafter – the "License Owner"), we hereby guarantee towards you the payment of any amount, at your request, up to a total amount of [the guarantee amount] at the actual payment date (hereinafter – guarantee amount), in connection with the general license for the provision of mobile telephony communications, which was granted to the License Owner.

	
2.

	
We undertake to pay you at your initial written request, any amount stated in the demand up to the guarantee amount within ten days from the date of receipt of your request.

(Optional paragraph: a payment demand must be delivered to the bank branch stated in this Bank Letter, during working hours in which the branch is opened. A demand by facsimile, telex, electronic mail or telegram shall not be considered as a sufficient demand for the purpose of this guarantee).

	
3.

	
Our undertaking under this Guarantee is unconditional, and you do not have to specify, base or prove your demand or to initially request payment from the License Owner.

 

	
4.

	
This guarantee shall be valid until [seven years from the date of receipt of the license]; the License Owner shall bear any expense entailed in the realization or extension of this guarantee.

 

	
 

	Sincerely,

 

________________ Bank

Second Schedule—Appendix J – 1

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

To

The State of Israel – Ministry of Communications

23 Jaffa Street, Jerusalem

RE: Undertaking to Extend the Bank Guarantee / Autonomic Insurance No. ---------------

Further to the bank guarantee / autonomic insurance no. ____________________, which was provided to you in accordance with the provisions of the general license for the provision of mobile telephony communications (hereinafter: the "Guarantee"), we [name of License Owner] (hereinafter – the "License Owner") undertake that no later than sixty days before the end of the guarantee term, it shall be extended for a period of another five years, and each time for an additional period in a manner in which the guarantee shall be valid until [two years from the end of the validity of the license granted to us]; however, if at said period we did not pay off, to your satisfaction, all of our charges, the guarantee shall be extended, each time for a period of an additional year, according to your written request.

	
 

 

 

 

24 of Av, 5775 

August 9, 2015

	Sincerely,

 

[the License Owner]

 

 

_______/Signature______

           Shlomo Filber

     The General Manager

 

Second Schedule—Appendix J – 2

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

To

The State of Israel – Ministry of Communications

23 Jaffa Street, Jerusalem

RE: Undertaking to Extend the Bank Guarantee / Autonomic Insurance No. ---------------

Further to the bank guarantee / autonomic insurance no. ____________________, which was provided to you in accordance with the provisions of the general license for the provision of mobile telephony communications (hereinafter: the "Guarantee"), we [name of License Owner] (hereinafter – the "License Owner") undertake that no later than sixty days before the end of the guarantee term, it shall be extended for a period of another five years, and each time for an additional period in a manner in which the guarantee shall be valid until [two years from the end of the validity of the license granted to us]; however, if at said period we did not pay off, to your satisfaction, all of our charges, the guarantee shall be extended, each time for a period of an additional year, according to your written request.

 

	
 

 

 

 

24 of Av, 5775 

August 9, 2015

	Sincerely,

 

[the License Owner]

 

 

_______/Signature______

           Shlomo Filber

     The General Manager

 

Second Schedule—Appendix J – 3

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

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.

 

	
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.

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 – 4

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	
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 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.

 

Second Schedule—Appendix J – 5

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	
2.2

	
If the Licensee allows its subscriber the use of another short dial code (such as +), instead of the “00” dial code (hereinafter: a special code), all the provisions and rules applicable to the short “00” dial code will apply to the special code as well.

	 	
2.3

	
Dial by pre-paid program for unidentified subscribers who are not blocked for outgoing ITMS calls will be possible only using three-digit access codes of the 01X type, and four-digit access codes of the 18XY type; upon dialing a short access code or a special access code, a voice announcement will be heard referring the customer to dial via said access codes available to him.

2A. A23 Subscriber Access to Outgoing ITMS Calls :

		2A.1	
The Licensee will allow subscribers to act as follows, with regard to outgoing ITMS calls:

	 	
(A)

	
as an ascribed subscriber.

	 	
(B)

	
As blocked

	 	
(C)

	
As a chance caller only.

 

	
3.

	
Blocking Outgoing International Calls and Removal of the Blocking

	3.1	
The Licensee will block outgoing ITMS calls, and may also block collect incoming ITMS calls for any subscriber requesting to block access to international services or subscribers for whom the international service for outgoing ITMS calls has been stopped or cut off, in accordance with the conditions of the License; the licensee may not block incoming ITMS calls except collect calls.

	
3.2

	
If a block for outgoing ITMS calls has been implemented at a subscriber’s request, the Licensee will remove the block as follows: A23

	
(A)

	
If the subscriber has asked to join, he will indicate his choice international operator who shall serve as his “chosen operator”, by his signature on the appropriate form; notice given by means of facsimile  will be deemed notice in writing given to by the subscriber in this matter.

	
(B)

	
If the subscriber has asked to be a chance caller, he will notify the Licensee of such; if the notice is verbal, the Licensee will verify the requesting party’s identity.

	
3.3

	
The Licensee will perform the block for ITMS or removal thereof, performed in accordance with the subscriber’s request, according to the following:

	
(A)

	
70% - Within one working day of receipt of notice; requests received after 1500 hours will be deemed having been received on the following work day;

	
(B)

	
20% - within two working days of receipt of notice;

	
(C)

	
the rest – within 5 working days.

 

Second Schedule—Appendix J – 6

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
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.

	
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.

 

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 – 7

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	
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 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;

 

effect This amendment will go into effect by no later than Thursday, the 29th of Nissan, 5763 (May 1, 2003)

Second Schedule—Appendix J – 8

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	
(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:

	 	
 (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 – 9

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	
(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;

	 	
(B)

	
Allow all subscribers to change their chosen operators; this service will be given in return for a reasonable charge,

 

Second Schedule—Appendix J – 10

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	
(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.

	 	
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 – 11

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

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 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.

 

t7 Amendment 7

Second Schedule—Appendix K – 1

Appendix K

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
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

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix K-1

 

A63Appendix K-1 – Discontinuation of Service for Cellular End Equipment in a Cellular System Using the IS-136 (TDMA) technology.

 

1.       Definitions

 

In this appendix –

 

	
"Day of Service Discontinuation"

	
December 31, 2011 or an earlier date, if no initiated calls are made in the system operating by the IS-136 (TDMA) technology (hereinafter – the "old system") by entitled subscribers during at least 14 consecutive days.

 

	
"Entitled Subscriber"

	
A subscriber, excluding a dormant subscriber to which the service was discontinued, who prior to the day of service discontinuation held obsolete equipment and has still not replaced or upgraded it to new equipment.

 

	
"Phone Number"

	
The phone number given to an entitled subscriber holding obsolete equipment.

 

	
"New Equipment"

	
Cellular end equipment, including a battery and charger, reconditioned or new according to the Licensee's choice, operating at a minimum on a system using the GSM technology, of Nokia 6070 model or another model with features not inferior to those of the said model.

 

	
"Obsolete Equipment"

	
Cellular end equipment operating on the obsolete system and its accessories, including end equipment which is out of order or missing.

 

	2.	
The Licensee shall discontinue the provision of cellular service to a subscriber holding obsolete equipment, starting from the service discontinuation day.

 

	3.	
Publication of Service Discontinuation

 

		3.1	
The Licensee shall publish, in at least three major dailies in Israel one of which is published in Arabic, on the closest Friday to the date 30 days before the service discontinuation, an appropriate notice notifying the public of the discontinuation of activity of the system using the IS-136 (TDMA) technology and the services provided to its subscribers through that system, in accordance with the provisions of this appendix (hereinafter – the "first notice"). In addition, it shall send a written notice similar to the first notice to each entitled subscriber whose address is registered with the Licensee. The Licensee shall submit the contents of the first notice to the Director for approval prior to its publication.

 

		3.2	
The Licensee shall publish, in three major newspapers in Israel, one of which is published in Arabic, on the closest Friday to the date 30 days earlier than the end of six months from the date of service discontinuation, an additional notice, in accordance with the provisions of this appendix (hereinafter: the "second notice"). Notwithstanding the foregoing, the Licensee is entitled not to publish a second notice as stated, if no entitled subscriber exists on that date.

 

		3.3	
The Licensee shall send an entitled subscriber a voice message and an SMS concerning the discontinuation of the service, by one week before the day of service discontinuation.

 

		3.4	
The Licensee shall publish a notice similar to the first notice also on its website, starting from the date of publication of the first notice until 30 days after the publication of the second notice.

 

A63 Amendment no. 63

Second Schedule—Appendix K1 – 1

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Appendix K-1

 

	4.	
End Equipment Replacement Process

 

		4.1	
The Licensee shall do the following, without any direct or indirect consideration:

 

		a.	
It shall replace for each entitled subscriber the obsolete equipment with new equipment.

 

		b.	
For an entitled subscriber with a speaker, it shall replace the speaker with a reconditioned or new speaker compatible with the new equipment. In this regard, replacement – including installation of the speaker.

 

		c.	
It shall grant a warranty for the new equipment and for the speaker, as the case may be, for a period of no less than two years from the day of publication of the first notice.

 

(All that stated in section 4.1 above – "upgrade".)

 

		4.2	
The upgrade process shall be carried out at any of the Licensee's service and sales center, during two years from the day of publication of the first notice.

 

		4.3	
An entitled subscriber who is a "prepaid" subscriber with an unutilized payment balance, and who is not interested in upgrading the obsolete equipment held by him, shall receive from the Licensee the balance of the payment. Such a subscriber shall be entitled to a refund of the unutilized balance, after showing the obsolete equipment, from the day of service discontinuation until the end of the validity of such balance.

 

	5.	
Phone Number

 

		5.1	
The Licensee shall keep the phone number of an entitled subscriber that was allocated to him before the day of service discontinuation, during one year from the day of service discontinuation, before it is returned to the pool of phone numbers of the Licensee, unless the entitled subscriber notifies the Licensee of his wish to keep the number that was allocated to him for an additional year.

 

	6.	
Notice of Inception

 

		6.1	
Without derogating from that stated in section 3.1, the Licensee shall give the Director prior written notice regarding the day of service discontinuation and the publications days as stated, and shall furnish to the Director photocopies of all the notices, as stated in section 3.

 

Second Schedule—Appendix K1 – 2

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

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.

 

A36 Amendment no. 36

effect This amendment will go into effect  on the 1st of Nissan, 5766(March 30, 2006)

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
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, 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.

	
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.

 

A76  Amendment No. 76

 

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
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.

	 	
4.7

	
The license owner shall document the request of the subscriber for the removal of the blockage of erotic services. The documentation shall be available at the license owner for delivery or transfer, as applicable, to the manager, within five (5) business days from the date the subscriber submitted his request.

	
4

	
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.

 

	
5

	
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.

 

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
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.

	 	
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.

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
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:

	 	
  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.

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

Annex P – Premium Service Provided at a Premium Tariff A76

	
1.

	
Definitions

 

	 	 
	
1.1

	
In this Annex:

 

	 	 
	 	
“License Holder”

	
-

	
An entity which received a general license by virtue of the law;

 

	 	
“Host License Holder”

	
-

	
A License Holder through whose Network the Service Provider provides its services;

 

	 	
“Source License Holder”

	
-

	
A landline or mobile domestic License Holder, whose Subscriber wishes to purchase a Premium Service;

 

	 	
“Service Order”

	
-

	
Any action initiated by the Subscriber for the purpose of receiving a Premium Service, including calling a Dialing Code, entering the Subscriber’s telephone number, entering a password and entering a code;

 

	 	
“Telephone Bill”

	
-

	
A bill submitted by a License Holder to a Subscriber for services provided to him;

 

	 	
“Writing”

	
-

	
Including via facsimile or e-mail;

 

	 	
“International Operator”

	
-

	
An entity which received a general license to provide international telecommunications services;

 

	 	
“Subscriber”

	
-

	
A subscriber of the Source License Holder;

 

	 	
“Service Number”

	
-

	
A 10-digit telephone number determined according to the provisions of the numbering plan and the instructions of the Directorate in this regard, which includes a designated Dialing Code plus several digits, which the Host License Holder allocates to a Service Provider, and the dialing of which allows a Subscriber access to a Premium Service;

 

	 	
“Service Provider”

	
-

	
An entity which provides Premium Service through a License Holder’s telecommunications Network, the payment for which is made through the Telephone Bill;

 

	 	
“Dialing Code”

	
-

	
A national dialing code, in a format determined by the Ministry for the purpose of accessing a Premium Service;

 

	 	
“Network”

	
-

	
A system of telecommunications facilities through which a License Holder provides its services;

 

	 	
“Premium Service”

	
-

	
Voice message announcement or visual message presentation service, including a recorded message, which is provided through a telecommunications device, directly or indirectly, inter alia for one of the following purposes: the provision of information and content, entertainment, advice, dating service, chat, entering a competition, a lottery, a game or a vote or service provided over the internet, and with the exception of an erotic service; for this purpose, “indirectly” – including by way of making contact from the Subscriber’s end equipment or entering the Subscriber’s telephone number, including on the internet, as a condition to provision of or charging for the service;

 

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	 	
“Premium Tariff”

	
-

	
The tariff for payment for a Premium Service is in accordance with the requirement of the Host License Holder; this tariff shall include a tariff for completing the call on the Host License Holder’s public telecommunications Network, which is determined pursuant to the Communications Regulations (Telecommunications and Broadcasting) (Payments for Interconnect), 5760-2000, and with respect to a service that is provided by an International Operator as a Host License Holder, the tariff shall include the payment to be retained by the International Operator;

 

	 	
“Regular Tariff”

	
-

	
The tariff collected from the Subscriber by the Source License Holder, in accordance with the tariff plan set forth in the engagement agreement between it and the Subscriber26.

 

	
1.2

	
Words and expressions in this annex that have not been defined in this section will bear the same meaning as in the law, in the regulations promulgated thereunder, in the Interpretation Law, 5741-1981, in Section 1 of the license or as specified elsewhere in this annex, unless another meaning is implied by the context.

 

	
2.

	
Access to Service and the Duty of Universality

 

	
2.1

	
A Source License Holder will allow every Subscriber access to any Premium Service provided on all of the Networks of the license holders.

 

	
2.2

	
A Host License Holder will allow all callers of all license holders access to the Premium Services provided through its Network.

 

	
2.3

	
A Host License Holder and a Source License Holder will allow provision of Premium Services only through the Dialing Code and Service Number.

 

	
2.4

	
Referral to the Dialing Code will be made only in order to receive a Premium Service; referral to such Dialing Codes for other purposes, including charging and collection arrangements, customer service or administration, is absolutely prohibited.

 

	
2.5

	
The license holder will block access to a telephone number, including an international number, without the Dialing Codes for a Premium Service, insofar as it is informed by the Ministry or otherwise learns that a Premium Service is provided through this telephone number.

 

26   In the event that the Subscriber has a limited monthly minutes package, the License Holder shall deduct the payment according to the duration of the call from the monthly minute quota; in the event that the Subscriber has an unlimited plan, he will not be charged any additional payment for dialing a Service Number; in the event that the Subscriber has a tariff plan other than in the framework of a package, his Regular Tariff will be identical to the tariff for an inter-network calling minute.

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
3.

	
Duty of a recorded announcement and notification to the Subscriber

 

	
3.1

	
Immediately after consummation of the engagement, and before providing a Premium Service, the Host License Holder will play a recorded message to the caller, in the language in which the service is provided, using clear and universally understandable words, and without interference on the recording. The recorded message will include the following details, according to the following order:

 

(a)          The nature of the service;

(b)          The Premium Tariff, in addition to the Subscriber’s Regular Tariff;

(c)          The maximum tariff that may be collected for the service;

(d)          The maximum duration determined for the purpose of receipt of a Premium Service, if determined;

(e)          The possibility available to the caller to disconnect the call before commencement of provision of the service, without being charged, until the end of the sounding 

               of the signal as specified in Section 3.2.

 

	
3.2

	
Upon completion of the sounding of the recorded announcement as stated in Section 3.1, and before commencement of provision of the service, the Host License Holder will sound a special signal to the caller, following which he shall be afforded at least 5 seconds to disconnect the call, without being charged the Premium Tariff. The license holder may afford the Subscriber the possibility of confirming receipt of the service by pressing a certain key on the end equipment in his possession to start the provision of the services before expiration of the said time.

 

	
3.3

	
If access to a Premium Service is blocked as stated in Section 7.1, the Source License Holder shall play a recorded message to the Subscriber whereby such service cannot be received, due to blocking of the access to the Dialing Code. The license holder may specify, in the recorded message, the ways of removing the blocking.

 

	
4.

	
Purchase of a Service

 

	
4.1

	
Upon completion of the process stated in Section 3.2, the caller will be afforded the possibility of purchasing the Premium Service.

 

	
4.2

	
The service purchase will be made for each service separately, and according to the Dialing Code, and the purchase of a certain service shall not be deemed as the purchase of an additional service, whether the same service or another service.

 

	
5.

	
Price of the Service

 

	
5.1

	
For all of the Dialing Codes specified below, the service tariff for the Subscriber will be the Premium Tariff for the service plus the Regular Tariff.

 

	
5.2

	
For a service provided with the Dialing Code 1-900, a maximum sum of NIS 0.5 per calling minute may be charged, and no more than NIS 30 for the entire call.

 

	
5.3

	
For a service provided with the Dialing Code 1-901, a maximum sum of NIS 50 may be charged, regardless of whether the Premium Tariff for the service was collected on a one-time basis or the tariff was determined according to the duration of the service, or a combination of the two.

 

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
5.4

	
For a service provided with the Dialing Code 1-902, a maximum sum of NIS 100 may be charged, regardless of whether the Premium Tariff for the service was determined on a one-time basis or the tariff was determined according to the duration of the service, or a combination of the two.

 

	
5.5

	
Subject to the provisions of Sections 5.2-5.4, the binding Premium Tariff is the tariff provided to the Subscriber in the recorded announcement, prior to provision of the service, in accordance with Section 3.1.

 

	
5.6

	
The prices stated in this section include V.A.T.

 

	
6.

	
Collection and charging arrangements

 

	
6.1

	
A Source License Holder will not collect from a Subscriber payment for a Premium Service, which was provided contrary to the provisions of this annex.

 

	
6.2

	
The Source License Holder will collect from the Subscriber payment for the Premium Service according to the charge records that the Host License Holder forwarded thereto, in addition to the Regular Tariff.

 

	
6.3

	
The Host License Holder will forward to the Source License Holder, at least once a day, charge records in respect of a Premium Service (the “Premium Records File”) which was provided to the Subscriber, as delivered to the Subscriber in an announcement according to Section 3.1.

 

	
6.4

	
The Source License Holder will remit to the Host License Holder payments that it collected from its Subscribers in respect of Premium Services, according to the Premium Tariff, and will not be required to do so in respect of payments, as aforesaid, that it was unsuccessful in collecting from its Subscribers.

 

	
6.5

	
If a Subscriber disconnects the call before provision of the service has begun, the Source License Holder may collect from him a Regular Tariff, and will not remit to the Host License Holder an interconnect tariff, as set forth in the Communications Regulations (Telecommunications and Broadcasting) (Payments for Interconnect), 5760-2000 (the “Interconnect Regulations”).

 

	
7.

	
Discontinuation of a Premium Service

 

	
7.1

	
A Host License Holder may disconnect the caller from a Premium Service upon the payment for the call reaching the maximum payment as stated in Section 5.

 

	
7.2

	
A Source License Holder shall block the Premium Service for prepaid Subscribers upon exhaustion of the balance available to the Subscriber, or at the very latest, upon receipt of the “Premium Records File”.

 

	
7.3

	
The provisions of Section 7.2 shall apply also to a credit-restricted postpaid Subscriber who has reached the credit limit agreed with him.

 

	
8.

	
Blocking Access to Service

 

	
8.1

	
The license holder will allow every Subscriber, existing or new, to choose whether the access from his telephone line to Premium Services with Dialing Codes 1-900 and 1-901 will be open or blocked. The Subscriber’s decision will be made by checking the “blocked” or “open” box on the access to services form (the “Form”).

 

	
8.2

	
The license holder will prepare the access to services form or amend the access to services form defined in its license (the “Access to Services Form”) so as to include the provisions of the access to premium services form in Section 12.

 

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
8.3

	
The license holder will post the Access to Services Form on its website.

 

	
8.4

	
A new Subscriber’s choice will be made by checking a box on the form which constitutes part of the “engagement agreement”, when made in a transaction in the presence of the Subscriber and a representative of the license holder, in the framework of the “engagement terms and conditions document”, when the engagement is made in a remote sale transaction via a telephone call, or as marked by the Subscriber on an online form, when the engagement is made via the internet.

 

	
8.5

	
The license holder will notify an existing Subscriber, in the Telephone Bill, of the option of downloading the form from its website, and marking his choice regarding access to Premium Services with Dialing Codes 1-900 and 1-901. If an existing Subscriber filled out a form in the past and is now only filling out his choice regarding access to Premium Services, his previous choices regarding access to services shall remain in place, unless the Subscriber explicitly requests to modify them.

 

	
8.6

	
If an existing Subscriber does not explicitly mark, within two months from this annex taking effect, his choice regarding access to Premium Services which are provided with Dialing Codes 1-900 and 1-901, the default option will be as follows:

 

a.          With respect to code 1-900 – open;

b.          With respect to code 1-901 – blocked.

 

	
8.7

	
The blocking of access to Premium Services with Dialing Code 1-901 according to the default option as stated in Section 8.4, will be performed by the license holder within seven (7) working days from two months after this annex takes effect. A Subscriber’s first-time blocking of access to codes 1-900 and 1-901, whether according to the Subscriber’s choice or as a default option, will be performed free of charge.

 

	
8.8

	
The license holder will block the access of all of its Subscribers to the services provided with the Dialing Code 1-902 as a default option, free of charge, within one working day, from the date of this annex taking effect. A Subscriber’s request to remove the blocking will be made in writing, or orally, provided that the license holder performs a reliable identification of the Subscriber submitting the request, according to the procedure determined thereby.

 

	
8.9

	
If a Subscriber requests removal of a blocking, the license holder shall remove the blocking within a reasonable time.

 

	
8.10

	
The license holder shall document the Subscriber’s request to remove the blocking of Premium Services. The documentation will be available at the license holder for delivery or transfer, as the case may be, to the Director within five (5) working days from the date on which the Subscriber submitted his request.

 

	
9.

	
Provision of the service in Israel through an International Operator

 

	
9.1

	
An International Operator may be a Host License Holder, and allow provision of a Premium Service through its Network, without being required to route the call overseas.

 

	
10.

	
Miscellaneous provisions

 

	
10.1

	
A Host License Holder may permit a Service Provider to perform telecommunications actions through the facilities of the License Holder for the purpose of provision of the service; the Service Provider is exempt from the duty to obtain a general permit or license for the purpose of performance of telecommunications actions, pursuant to the provisions of Section 3(5) of the law.

 

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	
10.2

	
If a Subscriber does not pay a Telephone Bill which includes a charge in respect of Premium Services, the License Holder will forward to the Host License Holder the following details of the Subscriber: his full name, I.D. number and contact details.

 

	
10.3

	
In a Telephone Bill which includes charges in respect of Premium Services, the License Holder will specify in respect of each Service Provider, charges in respect of whose services are included in the bill, the following details:

 

a.          Name and address of the Host License Holder;

b.          Company number or licensed dealer number of the Host License Holder;

c.          Details for contacting the Host License Holder, including a telephone number.

 

	
10.4

	
A Host License Holder may not use means of payment details, provided thereto by the caller for the purpose of payment for other services, in order to collect a premium payment.

 

	
11.

	
Temporary provision

 

	
11.1

	
(a)          A Host License Holder will play an announcement to the caller whereby the Premium Service is provided only through use of the Dialing Codes 1-900, 1-901 and 

              1-902 in the following cases:

 

(1)          By calling Premium Services, access to which was enabled until the provisions of this annex took effect, by dialing an international number;

(2)          By calling Premium Services, access to which was enabled until the provisions of this annex took effect, by dialing a network access code, as 

              defined in the numbering plan in Israel.

 

(b)          The announcement will be made in the language in which the Premium Service is given.

(c)          The Host License Holder will play the announcement for six months from the date on which the provisions of this annex take effect.

(d)          The source operator may charge the Subscriber the Regular Tariff in respect of the announcement.

 

		

 

A76  Amendment No. 76

 

	

TRANSLATION FROM HEBREW

THE BINDING VERSION IS THE HEBREW VERSION

 

	12.	Access to Premium Services form:
	 	 
	 	
Form of Access via the Telephone Device to Services Charged in the Telephone Bill

	 	 	
Name of License Holder

Ways to send the form:

Address

E-mail address

Facsimile no.

Date: ____________

 

	 	
I, whose details are recorded below, request access to the services specified below, for the telephone number stated on this form, as follows:

 

Details of the Subscriber

 

Name of the Subscriber / name of the company: __________ I.D./P.C. __________ Address: _______________ Telephone number: _______________

 

Check the box according to your choice and sign. Please note that partial checking and signing mean blocking the possibility of receiving the service.

 

	 	
Type of service

	
Blocked

	
Open

	
Subscriber’s signature

	 	
Access to Premium Services, which include playing of audio content or presentation of visual content, such as: information, entertainment, advice, dating service, entering competitions, etc., which are provided by dialing 1-900 and 1-901 numbers.

	
    a.

	
1-900 numbers at a tariff of up to 50 Agorot per minute and no more than NIS 30 for an entire call.

	 ☐	 ☐	 
	 	
    b.

	
1-901 numbers at a tariff that does not exceed NIS 50 for an entire call.

	 ☐	☐	 
	 	
 

In an engagement in the presence of a representative of the License Holder –

I, the undersigned subscriber, declare that this form was marked and signed by me.

Name of representative of the License Holder: ________________

Signature of representative of the License Holder: ________________

The Subscriber’s signature: _________________

A76  Amendment No. 76

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