Document:

Exhibit 10.6

Translated from Hebrew

 

 

AGREEMENT

 

Executed and signed on this 5th day of
October, 2006

 

	
  BETWEEN:

  	
  Del-Ta Engineering Equipment Ltd.

  
	
   

  	
  (Company
  No. 510463482)

  
	
   

  	
  of
  8 Shaul Hamelech, Boulevard, Tel Aviv

  
	
   

  	
  (Hereinafter:
  the “Delta”)

  
	
   

  	
   

  
	
  On the One Part;

  
	
   

  	
   

  
	
  AND BETWEEN:

  	
  Kardan Communications Ltd.

  
	
   

  	
  (Company
  No. 512051590)

  
	
   

  	
  of
  154 Petach Tikvah Road, Tel Aviv

  
	
   

  	
  (Hereinafter:
  “Kardan”)

  
	
   

  	
   

  
	
  On the Second Part;

  
	
   

  	
   

  
	
  AND BETWEEN:

  	
  David Rivel

  
	
   

  	
  I.D.
  65567117

  
	
   

  	
  of
  24 Ha’aravah Road, Omer

  
	
   

  	
  (Hereinafter:
  “Rivel”)

  
	
   

  	
   

  
	
  On the Third Part;

  
	
   

  	
   

  
	
  WHEREAS:

  	
  Delta,
  Kardan and Rivel are shareholders of RRSat Global Communications Network Ltd.
  (Company No. 510896293) (Hereinafter: “Company”);

  
	
   

  	
   

  
	
  AND WHEREAS

  	
  The
  Company has commenced the process of promoting the offering of its shares to
  the public (hereinafter: “IPO”)
  and their registration for trading on the NASDAQ market in New York, United
  States of America;

  
	
   

  	
   

  
	
  AND WHEREAS

  	
  The
  parties wish to comprehensively set out in writing the agreements and
  understandings reached between them in connection with the transfer of their
  respective holdings in the Company subject to and following the completion of
  the IPO;

  

 

Therefore It Is Agreed, Declared And Stipulated
Between The Parties As Follows:

 

 

1.                                      INTRODUCTION, HEADINGS AND
DEFINITIONS

 

1.1                                 The Introduction to this Agreement forms part
of this Agreement.

 

1.2                                 Headings to the sections of this Agreement
are for convenience only and do not form part of this Agreement, nor is any
meaning to be attributed to them in the interpretation of this Agreement and/or
any section contained herein.

 

1.3                                 For the purpose of this Agreement: “Holding” is given the same meaning as
under the Securities Law 5728 – 1968.

 

2.                                      RESTRICTIONS ON TRANSFERRING
SHARES IN THE COMPANY

 

From
the commencement of this Agreement, as specified in section 3.1, the transfer
and/or sale of shares of the Company held by Delta and/or Kardan (hereinafter
jointly: “Main Shareholders”),
will be subject to the terms of this section 2. For the avoidance of doubt, all
transfers or sales of shares and/or other securities of the Company by the Main
Shareholders in breach of the terms of this Agreement will be considered null
and void.

 

2.1                                 In the event that any one of the Main
Shareholders wishes to transfer its shares, in whole or in part, to a third
party (hereinafter: “Seller” and “Buyer” respectively), the Seller will
provide written notice to all parties to this Agreement, stating the amount of
shares to be offered for sale (hereinafter: “Offered
Shares”), the price and conditions that have been agreed in writing
between the Seller and the third party acting as a voluntary purchaser in good
faith (hereinafter: “Sale Notice”),
and shall offer to sell the shares of the other parties to this Agreement as
part of the same sale offer and on the same conditions.

 

2.2                                 Each of the other parties to this Agreement
will be entitled to serve notice on the Seller, within 14 days from receiving
the Sale Notice, of its intention to participate in the sale aforesaid at the
price and on the conditions set out in the Sale Notice (hereinafter: “Notice of Joining”).

 

2.3                                 If the parties are not able to sell their
full Holdings as aforesaid, the Seller and other parties to this agreement that
have requested to sell their shares, will be entitled to sell a part of their
shares in the sale offer, according to their Pro-rata Holding at the time.

 

For
the purpose of this section: The “Pro-rata
Holding” of each party is the amount of shares held by a party in relation
to the total amount of

 

2

 

shares
held by the other parties who wish to sell their Holdings in the Company at the
same time.

 

For
example, if Delta holds 120 shares, Kardan 80 shares and Rivel 50 shares. In
the event that Kardan requests to sell its full Holding and Rivel does not wish
to join the sale aforesaid (on the premise that the Seller does not wish to
acquire more than Kardan’s Holding), then 80 shares will be sold, from it 48
shares from Delta’s Holdings (representing its Pro-rata Holding of 60%), and 32
shares by Kardan (representing its 40 % Pro-rata Holding). If Rivel elects to
join the sale, 80 shares will be sold, from them 38 shares from Holdings of
Delta (representing its 48% Pro-rata Holding) 26 shares from Holdings of Kardan
(representing its 32% Pro-rata Holding) and 16 shares from the Holdings of
Rivel (representing its 20% Pro-rata Holding).

 

2.4                                 If at the end of the 14 day period aforesaid,
no Notice of Joining has been received, the Seller will be entitled, for a further
75 days thereafter, to sell the Offered Shares at a price no less and on terms
no less favorable than those specified in the Notice of Sale. If the shares
aforementioned were not sold by the end of the seventy five (75) day period,
the Seller will only be entitled to resell those shares, at every further
instance, in accordance with the terms of clause 2 aforementioned.

 

2.5                                 The right to participate in the sale of
shares pursuant to clause 2 aforesaid will not apply in the following
instances, as follows:

 

2.5.1                        The sale of shares on the stock exchange by any one of the Main
Shareholders;

 

2.5.2                        The transfer of shares from any of the Main Shareholders to a
corporation (hereinafter: “Transferee”)
which is controlled by the transferor or to a parent company of the transferor
(hereinafter: “Parent Company”) or
to a subsidiary of the Parent Company, and only if the transfer was solely
completed in good faith and not for the purpose of circumventing the rights of
joining, subject to any Transferee abovementioned accepting all of the
obligations contained in this Agreement.

 

If
a transfer of shares has been made in accordance with this sub-clause, control
to the Transferee shall not be transferred so long as the Transferee holds
shares in the Company.

 

For
the purpose of this clause, “control”
is given the same meaning as under the Securities Law 5728 – 1968.

 

3

 

3.                                      TERM OF THE AGREEMENT

 

3.1                                 This Agreement will come into force
(including all the rights and obligations contained herein) upon completion of
the IPO, being the day that the shares of the Company are registered for
trading on the NASDAQ market in New York, United States of America
(hereinafter: “Condition Precedent”
and the “Fixed Date” as
applicable) and shall continue for an initial period of three years from the
Fixed Date (hereinafter: “Initial Period”).
At the completion of each year following the Initial Period, the Initial Period
will be extended for a further year (hereinafter: “Further Term”). Notwithstanding the aforementioned, each of
the parties will be entitled to provide written notice to each of the other
parties advising of its non-extension of the agreement for a further year, such
written notice to be delivered at least 90 days before the end of the Initial
Period or the Further Term, as applicable, and in such a case, the Agreement
shall be ended at the end of the Initial Period or Further Term, as applicable.

 

3.2                                 Despite the aforementioned, if for whatever
reason the Condition Precedent is not fulfilled within four (4) months from the
day this Agreement is signed, this Agreement will become null and void and no
party will be entitled to bring a claim or complaint against another party.

 

3.3                                 This Agreement will terminate (all rights and
obligations) in relation to a party, upon such party reducing its proportion of
Holdings in the Company as aforementioned below 10% of the issued share capital
of the Company.

 

4.                                      GENERAL

 

4.1                                 This Agreement hereto constitute the full and entire understanding
and agreement between the parties and cancels any previous agreements and
understandings, in writing or oral, that may have been reached between the
parties with regard to the subject matters hereof and thereof. For the
avoidance of doubt it is clarified that the aforementioned does not derogate,
in any way whatsoever, from the validity of the cooperation agreement entered
into by Delta and Rivel in reliance on the signing of this Agreement.

 

4.2                                 The addresses of the parties is as specified
in the introduction herein. Any notice to be delivered from one party to
another according to the address details specified above will be considered as
if it has arrived to the addressee, if sent in the post, 3 business days
following its delivery to the Post Office as registered post, if hand delivered
– immediately upon delivery, if sent by electronic mail or facsimile – on the
day it is received, and only if the sender confirms by phone that the item has
been received.

 

4

 

4.3                                 No waiver, extension, derogation or avoidance
of one party’s obligations under this Agreement will constitute a waiver of
another parties’ rights and will not act to prevent the bringing of any cause
of action.

 

4.4                                 Any term of this Agreement may be amended and
the observance of any term hereof may be waived (either prospectively or
retroactively and either generally or in a particular instance) only with the
written consent of all of the parties.

 

4.5           For the avoidance of doubt, this Agreement shall
be governed by and construed in accordance with the laws of the State of
Israel. Each of the parties hereby irrevocably submits to the exclusive
jurisdiction of the appropriate court in Tel-Aviv, Israel, and agrees not to
assert any objections to the jurisdiction thereof.

 

In Witness Hereof The Parties Have Hereto Set Their Hands

 

 

	
  - Signed -

  	
   

  
	
  David
  Rivel

  
	
   

  
	
   

  
	
  - Signed -

  	
   

  
	
  Del-Ta
  Engineering Equipment Ltd.

  
	
   

  
	
   

  
	
  - Signed -

  	
   

  
	
  Kardan
  Communications Ltd.

  
			

 

5Exhibit 10.7
Translated from Hebrew

 

 

(Emblem of
the State of Israel)

 

Special License No.                             

 

 

Ministry of Communications

Senior Engineer & Licensing Department

Combined Licensing Field

P. O. Box 29107

Tel-Aviv 61290

24th Tamuz 5763

24th July 2003

 

Mr. David Ribel, Director General

R.R. Satellite Communications Ltd. Company

197/10 Yitzchak Regger Street

Be’er Sheva

 

Dear
Sir,

 

Re:          Amendment No. 1 of Special
License No. 5-10439-2-95049

 

1.             On 09.07.2003 an amendment of the Up-Link
Policies document attached hereto was approved.

 

2.             Attached hereto is an amendment of the
license pursuant to the guidelines in the policies document.

 

3.             The validity of the license was amended and
is now valid until Thursday, 28th
Tamuz 5768 (31.07.2008).

 

4.             I request to submit an activity report and
revised license appendices as of 30.08.2003.

 

Sincerely,

(—)

Ruti Cohen

Combined Licensing Field Manager

 

 

CC:

Mr. Chaim Garon, Adv.                       - Senior Deputy Director General Engineer and
Licensing

Dr. Yizhar Tal                                        - Legal Advisor

 

1

 

Mr. Ze’ev Raz                                       - Senior Deputy Director General of
Multi-Channel Subscription Broadcasting

 

Mr. Chaim Chaviv                                - Senior Deputy Director General
Telecommunication Monitoring

Mr. Moshe Galili                                  - Assistant Deputy Director General and
Senior Deputy Director General of Spectrum Management and Frequency Licensing.

 

Dr. Asaf Cohen                                    - Senior Deputy Director General of Economics
and Budget

Mr. Yossi Litman                                  - Assistant Deputy Director General of
Marketing and Sales, Telecommunication

 

	
  Telephone:
  03-5198205/243

  	
   

  	
  Facsimile: 03-5198244

  

 

2

 

Special License To Render Telecommunication Services

 Number
5-10439-2-95049 To The R.R. Satellite Communications Ltd. Company

 

Amendment No. 1

 

By
virtue of the power pursuant to Section 4 of the Communications
(Telecommunication and Broadcasting) Law, 5742-1982 (hereinafter – The Law) and
pursuant to Section 5 of the Mobile Telegraph [New Version] Ordinance 5732-1972
(hereinafter – The Ordinance), and the rest of the powers granted to us
pursuant to any law, we hereby grant a special license to render
telecommunication services – visual and audio transmission services via
stationary and mobile land satellite stations, as detailed below:

 

Part A: Licensee’s Details

 

R.R. Satellite Communications Ltd.

 

A
company registered in Israel whose number is: 51-926980-3

 

The
address of the company’s registered office: 197/10 Yitzchak Regger Street, Be’er Sheva

 

Telephone
No.: 08-6499007  Facsimile No.: 08-6499002

 

Electronic
Mail: gm@rrsat.com website: www.rrsat.com

 

Hereinafter:
“The Licensee”

 

3

 

Part B: The License

 

1.             Definitions

 

1.1           In this license, the following phrases will
bear the meaning alongside them:

 

	
  “Access Approval”-

  	
   

  	
  Approval
  given by the satellite service operator to the Licensee pertaining to the
  compatibility of theLicensee’s system to
  the technical requirements of the satellite system belonging to the satellite
  service provider, as attached in Appendix C to the license;

  
	
   

  	
   

  	
   

  
	
  “Approval Type”-

  	
   

  	
  Within
  the meaning of the Law or Ordinance, pursuant to the matter at hand;

  
	
   

  	
   

  	
   

  
	
  “The Treaty” -

  	
   

  	
  The
  International Telecommunication Union’s constitution (ITU) and the treaty
  there under, Kyoto 1994, or any other treaty repealing it and the
  administrative regulations for the radio and telephone pertaining thereto;

  
	
   

  	
   

  	
   

  
	
  “Licensee” -

  	
   

  	
  Whoever
  received a license to render visual transmission and audio services as
  referenced in this document;

  
	
   

  	
   

  	
   

  
	
  “Transmission Licensee”-

  	
   

  	
            
  or Licensee who received a special license to render transmission services.

  

 

4

 

	
  “Law” -

  	
   

  	
  Including
  but not limited to the Administration’s directives;

  
	
   

  	
   

  	
   

  
	
  “The Law”-

  	
   

  	
  The
  Communications (Telecommunication and Broadcasting) Law, 5742-1982 and
  secondary legislation enacted by virtue thereof;

  
	
   

  	
   

  	
   

  
	
  “The Client” -

  	
   

  	
  Whoever
  engaged in a contract with the Licensee in order to receive the service in
  accordance with Section 3 of the license and he is one of the following:

  

 

(1)   An Israeli corporation broadcasting
television or radio broadcasts pursuant to any law, to the public in Israel or
to some of it, or a foreign broadcasting or distribution corporation operating
in accordance with a treaty to which Israel is a signatory thereof (hereinafter
– The Broadcasting Corporation);

 

(2)   Whoever seeks to analogically transfer visual
and audio to a type of recipients and only them, and the visual and audio that
are being transmitted are not intended nor can be reasonably received by an
antenna with a diameter of 2.44 meters or less or which are not coded and which
are not intended nor

 

5

 

can be received by someone
who does not have a suitable decoder;

 

(3)   Whoever seeks to digitally and coded transfer
visual and audio to a type of recipients and only them, and the visual and
audio that are being transmitted are not intended nor can be received by
someone who does not have a suitable decoder;

 

(4)   Whoever was given from time to time, a
special approval from the Director General at the Ministry of Communications or
the person designated by him.

 

“The Director” - The Ministry’s Director
General or the person designated by him on his behalf with respect to this
license;

 

	
  “The System” -

  	
   

  	
  Stationary
  and mobile land satellite stations serving the transmission of visual and
  audio signals or combined visual and audio signals, including: antennas,
  broadcasting and reception equipment and ancillary equipment; as detailed in
  Appendix A to the license dated 31.12.2001;

  

 

6

 

“(Inter-State
Operator)

 

	
  ISO” -

  	
   

  	
  General
  Licensee to render Inter-State stationary (infrastructure, transmission,
  communication data and telephonic) telecommunication services;

  
	
   

  	
   

  	
   

  
	
  “Satellite Service Operator”

  	
   

  	
  A
  corporation that makes available for use of the Licensee, whether directly or
  via a subscriber, satellite space segmentswhich
  the Director, and subject to all laws, approved the use of its services;

  
	
   

  	
   

  	
   

  
	
  “The Supervisor”

  	
   

  	
  Whoever
  the Director authorized to supervise the Licensee’s activities;

  
	
   

  	
   

  	
   

  
	
  “State of Emergency” -

  	
   

  	
  One
  of the following situations:

  
	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  State
  of Emergency as defined in Sections 38, 39 and 41 of the Basic Law: The
  Government.

  
	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Home
  Front State of Emergency – in accordance with Section 9C of the Civil Defense
  Law, 5711-1951.

  
	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Material
  Communications Crisis – a situation whereby telecommunication systems crashed
  or there is a fear that they might crash, including but not limited to a
  natural disaster, mass disaster or breach of security and which the existence
  thereof was determined by the Minister of Communications;

  
				

 

7

 

	
  “The Ministry” -

  	
   

  	
  Ministry
  of Communications;

  
	
   

  	
   

  	
   

  
	
  “Type of Recipients” -

  	
   

  	
  A
  group including a limited number of persons with a common interest to receive
  the visual and audio and can justifiably be distinguished, from a material
  aspect, from other persons; In this respect the actual reception of visual
  will not be deemed a common interest;

  
	
   

  	
   

  	
   

  
	
  “Transfer”-

  	
   

  	
  Whether
  directly or indirectly, whether for consideration or without consideration,
  whether permanently or for a period of time;

  
	
   

  	
   

  	
   

  
	
  “Majority of the Assets”

  	
   

  	
  The
  Licensee’s assets that serve it to render the telecommunication services set
  forth in this license whereby without them the Licensee cannot itself offer
  the services under the license, in whole or in part, or without them the
  standard of service rendered by the Licensee would be substantially impaired;

  
	
   

  	
   

  	
   

  
	
  “The Ordinance” -

  	
   

  	
  The
  Mobile Telegraph Ordinance [New Version], 5732-1972 and the secondary
  legislation enacted pursuant thereto;

  
	
   

  	
   

  	
   

  
	
  “End Equipment” -

  	
   

  	
  Telecommunication
  equipment for the use of the client that connects or is intended to be
  connected from the client’s point to the system;

  

 

8

 

	
  “Point to Point Line”

  	
   

  	
  A physical or logical line serving
  telecommunication’s purposes, whereby the transmission by telecommunication
  begins at one end and only ends at the other end;

  
	
   

  	
   

  	
   

  
	
  “Broadcasting”

  	
   

  	
  Emission of electromagnetic signals;

  
	
   

  	
   

  	
   

  
	
  “Transmission
  Service” -

  	
   

  	
  The Licensee’s services that are given pursuant to
  this license;

  
	
   

  	
   

  	
   

  
	
  “The Minister”
  -

  	
   

  	
  Minister of Communications;

  
	
   

  	
   

  	
   

  
	
  “Supervision
  Regulations” -

  	
   

  	
  The Telecommunication (Supervision of Licensee’s
  Activities) Regulations 5746-1986;

  
	
   

  	
   

  	
   

  
	
  “Operational
  Regulations”

  	
   

  	
  The Telecommunication (Installation, Operation and
  Maintenance) Regulations, 5745-1985;

  

 

1.2           Phrases that are not explicitly defined in
Section 1.1 will bear the meaning given to them in a different place in this
license, or by law or by the ordinance or by the Interpretation Law, 5741-1981,
insofar as a different meaning is not implied by the written language or
context thereof.

 

2.             The Purpose Of The License

 

The
purpose of the license is to define the telecommunication services and the
telecommunication activities that are permitted under this license as well as
the conditions thereof.

 

9

 

3.             The Types Of Activities And
Services That Are Permitted

 

3.1           A Licensee, pursuant to this license and
subject to the terms hereof and all laws, may supply services as defined in
this section below to the client:

 

3.1.1        The receipt of the rights to use the
satellite space segments which the Licensee leased for its own use or for the
purpose of making them available to the client, upon coordinating the same with
the satellite service provider and the Ministry.

 

3.1.2        Visual and Audio Inter-State Transmission
Service

 

The
point to point visual and audio inter-state transmission service signals or
point to defined multi-point, including but not limited to reception,
broadcasting or both (up-link/down link) and transmission via or through
satellite.

 

3.1.3        Visual And Audio Inter-National Transmission
Service

 

Point
to point visual and audio inter-national transmission service signals or point
to defined multi-point, including but not limited to reception, broadcasting or
both (up-link/down link) and transmission via or through satellite.

 

3.1.4        Broadcasting Distribution by Broadcasting
Corporation

 

Distribution
service of the client’s broadcasts that is a broadcasting corporation will be
given in accordance with the

 

10

 

provisions
of the laws organizing the client’s aforesaid broadcasts.

 

3.2           Comments and Clarifications

 

3.2.1        A Licensee may carryout activities and
services permitted by this license by an analogical or digital method as well
as performing signal processing, compression, encoding and transmission.

 

3.2.2        Prior to the first operation of the land
satellite station opposite any satellite, the Licensee will perform
compatibility tests of the station against the said satellite and will be
entitled to operate the station against this satellite only after it has
obtained access approval. A copy of the approval will be remitted to the
Director of the engineering and licensing department as well as the supervisor
at the satellite communications office.

 

Copies
of all the Licensee’s access approvals are attached as Appendix C and will be
revised from time to time.

 

3.2.3        With respect to a client who is a general
licensee for cable broadcasts, the Licensee may only give point to point
transmission services or point to predefined multi-point services provided that
the reception points are broadcasting centers that serve the general licensee
for cable broadcasts.

 

11

 

3.3           Ancillary Services

 

3.3.1        Establishment, installation, connection,
operations and maintenance of the system.

 

3.3.2        Establishment and operation of control means
necessary to guarantee that the system functions properly.

 

3.3.3        Ordering and receiving lines from the ISO or
special licensee to render transmission services for the purpose of connecting
the system with the client.

 

4.             Commencement, Renewal and
Validity of the License

 

4.1                                 This license will commence on the day the
Director signs it and it will be valid until Thursday,
28th Tamuz 5768 (31.07.2008) (hereinafter – “License Period”).

 

4.2                                 During the license period the Director may
inspect whether the license terms are being upheld by the Licensee and the
quality of its services.

 

4.3                                 Whereupon the Director deems it appropriate
during the license period to amend its terms or details of this license, add or
derogate from them (hereinafter – “The Director’s Requirements”), after having
heard the Licensee and after having taken into account inter  alia,
the considerations determined in Section 4(b) of the Law, the Licensee will act
to abide by the Director’s requirements and these requirements will be an
integral part of this license.

 

12

 

4.4                                 The Director will act pursuant to its powers
as noted in Section 4.3 after having given the Licensee ample opportunity to
argue his assertions.

 

4.5                                 A Licensee will notify the Ministry in
writing, no later than 60 days prior to the end of the license period whether
it intends to renew the license and will attach to the request a report as
detailed in Section 10.4, and should he not do so then the Licensee may not
continue rendering the services from the date of the end of the license period;  a request submitted after the aforesaid date,
if submitted, will be considered a new request to issue a special license and
all deriving there from.

 

5.                                       Terms of the License

 

5.1                                 Starting to Render the Service

 

5.1.1        A Licensee will establish and operate, for
the purpose of rendering the services, one mobile system or one stationary
system.

 

5.2                                 Installation and Operation of the System and
End Equipment

 

5.2.1        The existence of the necessary approvals as
detailed below:

 

5.2.1.1     Type Approval from the Director with respect
to all the end equipment specified in Appendix A to the license.

 

5.2.1.2     Installation of the system, operation and
maintenance thereof will be carried out by the Licensee or contractors who will
act on behalf of and in accordance with the

 

13

 

terms
of the Type Approval given with respect to the foregoing equipment.

 

5.2.1.3     A Licensee will advise the Ministry in
advance and in writing concerning the contractors working on its behalf.

 

5.2.1.4     Access approvals to the Licensee’s land
satellite stations.

 

5.3                                 Maintenance

 

5.3.1        In any event of a malfunction the turnaround
time for renewal of service to the client will be as detailed in the agreement
with the client.

 

5.3.2        The Licensee will ground the broadcasting
place and will ensure that the types and antennas will be at ground potential
with respect to direct voltage.

 

5.3.3        Whereby the power supply of the broadcaster
emanates from the electricity network electrical contact between the
electricity network and antenna needs to be avoided.

 

5.3.4        A Licensee will ensure that the operation of
the system does not cause electromagnetic interferences to the State’s systems
or to other lawful operating systems.

 

5.3.5        Whereupon the Licensee becomes aware that the
system is causing such interferences as noted in Section 5.3.4 it must stop

 

14

 

forthwith
the system from operating and not renew its operation so long as the
interference continues or may continue.

 

5.3.6        In any event of a malfunction constituting a
safety hazard, the Licensee is responsible to prevent the hazard immediately
upon its discovery.

 

5.3.7        In any event of a malfunction, the Licensee
will first inspect whether the source of the malfunction is something other
than the system, including but limited to the end equipment.

 

5.4                                 Infrastructures

 

The
service will be provided via the systems described in Appendices A 1-5 to the
license dated 31.12.2001, via satellite infrastructures (space segments) and
via the ISO (land) infrastructure or a special licensee to render the
transmission services.

 

5.5                                 Use of the Encoding System

 

Any
use of the encoding systems, whether direct or indirect, including but not
limited to via hardware and/or software must be pre-approved by the security
entities pursuant to the provisions of the Supervisory Order Over Commodities
And Services (Business Via Encoding), 5758-1998.

 

15

 

5.6                                 Restrictions

 

5.6.1        A Licensee will establish and operate, for the
purpose of rendering the service, a mobile land satellite station and a
stationary land satellite station.

 

5.6.2        For the sake of removing any doubt it is
clarified that: -

 

5.6.2.1         A Licensee is not entitled to render
telecommunication services that were not explicitly approved under this license
or by any other telecommunication license from the Director; without derogating
from the generality of the foregoing, a Licensee is not entitled, under this
license, to render telephonic services or data transfer.

 

5.6.2.2         Whereupon a Licensee sees a client rendering
services to third parties, it will not allow it nor enable it to do so unless
the client obtains a license to do so.

 

5.6.2.3         A Licensee is not entitled to permit the use
of its system by another Licensee unless this was permitted in this license or
pursuant to the Director’s directive in accordance with Section 5 of the law.

 

5.6.2.4         A Licensee will execute the activities and
services pursuant to this license by the manner determined herein with respect
to the performance and supply thereof;

 

5.6.2.5         A Licensee is not entitled to bypass the
foregoing stipulations through the use of permits determined in

 

16

 

other licenses given to it and which were intended
for another matter.

 

5.6.2.6         Operating the system is contingent upon
these:

 

5.6.2.6.1          Performing compatibility tests and obtaining
access approval from the satellite service operator.

 

5.6.2.7         A Licensee is not entitled to render
broadcasting services to the public nor is it entitled to permit another to
render such services using its facilities, unless the other is a client that is
a broadcasting corporation as defined in this document and in accordance with
the provisions of the law and the license organizing that client’s broadcasts.

 

5.6.2.8         A Licensee is not entitled to bypass, by any
means, a general licensee’s public telecommunications network or transmission
service of a special Licensee.

 

5.6.3        A Licensee is not entitled to make changes to
the system described in Appendices A 1-5 to this license dated 31.12.2001
without obtaining the Director’s approval in writing and in advance.

 

5.6.4        A Licensee is not entitled to use within the
client’s area, cables or pipes owned by ISO or used by ISO unless it obtains
ISO’s written consent to do so.

 

17

 

5.7                                 Fair Competition

 

A
Licensee’s activities will not include an act or omission that may impede upon
competition within the general telecommunications field or competition within
the field of services detailed in Section 3 in particular, restricting such
competition or harm the public benefit.

 

5.8                                 Revocation of the License

 

5.8.1        The Minister may revoke or condition the
license prior to the termination of the license period if one or more of the
grounds detailed in Section 6 of the Law occur or any one of the following
instances:

 

5.8.1.1     A Licensee refused to remit to the Minister,
Director or anyone on their behalf information that it is required to disclose
and which is in its possession or the Licensee remitted false information to
the Minister, Director or anyone on their behalf.

 

5.8.1.2     The Licensee’s activities constituted an act
or omission that impeded upon competition within the telecommunications field
in general or the services detailed in Section 3 in particular or which
restricted competition or harmed the public benefit.

 

5.8.2        Whereupon the Minister is of the opinion that
the grounds for revocation, under the circumstances of the matter does not
require revocation of the license the Minister will grant the

 

18

 

Licensee ample opportunity to remedy the act or
omission constituting the grounds for revocation.

 

5.8.3        The Minister will notify the Licensee in
advance of its intention to revoke the license, and will reference in the
notice the grounds for doing so and will allow the Licensee, within a period
stipulated in the notice, to argue its assertions in relation to the grounds
for revocation, whether in writing or orally, pursuant to the circumstances of
the matter at hand.

 

5.8.4        In the revocation notice the Minister will
determine a date upon which the revocation of the license will take effect and
he may instruct the Licensee to continue to render the services pursuant to
this license until the license is given to another or until a trustee is
appointed or until a receiver is duly appointed in order to manage the
Licensee’s business and operate the system pursuant to the matter at hand.

 

5.8.5        A Licensee will continue to render the
services until the date determined by the Minister in the notice, as determined
in the notice and will abide by the provisions of this license and any
directive given to him by the Minister in this respect.

 

5.8.6        Cancellation of a Condition in the License

 

Cancellation
or a determination pertaining to the cancellation of a condition in this
license or a portion thereof will only apply with respect to that condition or
portion thereof, pursuant to the

 

19

 

matter
at hand, and they will not in and of themselves prejudice the binding validity
of the license or of another condition therein unless a different meaning is
compelled resulting from the cancellation or revocation or the context of the
matter at hand.

 

5.9                                 Client Representation (Before ISO)

 

Not
applicable.

 

5.10                           Licensee’s Role In A State Of Emergency

 

A
Licensee will act as detailed in Appendix B to this license.

 

5.11                           Norms, Procedures, Specifications and
Standards

 

5.11.1      A Licensee will prepare and remit for
approval by the Director, procedures, specifications and standards necessary to
carryout the telecommunication activities and rendering telecommunication
services.

 

5.11.2      A Licensee will ensure that it obtains access
approval for the stations from the “A.T. Communications Channels Ltd.” Company
and will remit a copy of any access approval given to it to the Director.

 

5.12                           Instructions and Restrictions With respect to
Spectrum issues

 

5.12.1      The approval to operate the system over an
electromagnetic spectrum is as detailed in Appendices A, B and E which will be
revised from time to time by the Director.

 

20

 

5.12.2      A Licensee will abide by all the rules
deriving from broadcasting and reception activities via satellite pursuant to
the treaty, law, ordinance and the license and pursuant to the procedures as
published by the Director from time to time.

 

5.12.3      The approval for the station’s activity over
the electromagnetic spectrum will be on a secondary basis* and subject to
additional conditions based on the station’s individual frequency as detailed
in Appendix E.

 

5.12.4      In the case of an Israeli satellite operator,
a Licensee will ensure that the system operates in accordance with the spectral
constraints which the State submitted to toward other organizations.

 

5.12.5      In the case of a foreign satellite service
operator, a Licensee will ensure that the system operates in accordance with
the spectral constraints that the satellite service operator’s Directors and
organizations submitted to toward the State.

 

5.12.6      In the event that no such reciprocal
undertakings exist the Director may determine the conditions pursuant to which
the foreign satellite service operator may broadcast.

 

* Secondary Basis – within the
meaning of the International Telecommunication Union (ITU) Regulations 

 

21

 

5.12.7      The frequencies and broadcasting suppliers
detailed in Appendix E will be compatible with the foregoing constraints
pursuant to the sections above.

 

5.12.8      The approval for the electromagnetic spectrum
activity is as detailed in Appendices A, B and E, any change in frequencies or
other data compel contacting the Director in advance and in writing in order to
request approval. The Director will consider the specific request and is not
obligated to approve the requested change.

 

5.12.9      Use of Frequencies

 

5.12.9.1       A Licensee will establish the system and
operate it by such a manner that none of its parts radiate radiation that is
prohibited pursuant to the provisions of the Pharmacists (Radioactive Bases And
Their Products) Regulations, 5740-1980, and will do all that is necessary, if
necessary in order to obtain a permit pursuant to the foregoing regulations and
all laws.

 

5.12.9.2       A Licensee will establish the systems and
operate them by such a manner that prevents interference with other
telecommunication and remote systems that operate lawfully; prior to operating
the system the Licensee will perform tests and measurements in order to prevent
electromagnetic interferences;  if it is
discovered that electromagnetic interference is

 

22

 

foreseen or interference is discovered upon the operation thereof, the
Licensee will act in order to find a solution to prevent such interference and
prevent them from reoccurring and if no solution can be found then the Licensee
will write to the Director or the person designated for this purpose on its behalf
in order to try and find a reasonable solution; 
the Director may demand that each of the parties make changes in
operating the equipment or use of the frequencies or stop broadcasting over
certain frequencies across the country or in specific areas.

 

5.12.9.3       A Licensee will use the frequencies allotted
to him as noted in Appendix E only in order to render the services pursuant to
this license.

 

5.12.9.4       Granting this license, including but not
limited to approval of the engineering plan, does not award any protection from
interferences from other radiators that are lawfully operable within parallel
frequency fields or other radiators operating outside the State territory or
radiators that are lawfully operable on a frequency whereby their harmony is
received by the system, however the Director will make all reasonable efforts
in order to find a suitable solution for the required protection.

 

23

 

5.13         Experts

 

In
order to render the services pursuant to this license the Licensee will operate
suitable means and will employ a skilled technical team to include system
experts as detailed in Section 9.

 

5.14         Alliance Agreement And Approval Thereof

 

5.14.1      Definition

 

Alliance
Agreement – the agreement between the Licensee and client, to render the
services.

 

5.14.2      Alliance Agreement

 

Not
applicable.

 

5.14.3      Contract with the Client

 

5.14.3.1   Only an alliance agreement that was submitted
to the Ministry as noted will serve the Licensee as a contract with its clients.

 

5.14.3.2   Once an alliance agreement is signed between
the Licensee and client, the Licensee will remit to the client a copy of the
alliance agreement. Whereupon the agreement also included appendices, the
Licensee will attach a copy of the appendices to the alliance agreement to be
remitted to the client.

 

24

 

5.15         Payments

 

The
client will pay the Licensee for the services in accordance with the tariff
table attached to the alliance agreement.

 

6.             Methods of Rendering the
Service

 

6.1           Furnishing the Service

 

6.1.1        A Licensee will render its services via the
system and stations that are specified in Appendices A and E to this license.

 

6.1.2        A Licensee will remit complete and detailed
information regarding the services, nature of the services, scope and the cost
of such service to anyone seeking such information and to the clients.

 

6.1.3        A copy of the alliance agreement to be
remitted to the client will include, inter
alia, these:

 

6.1.3.1         A description of the services the client is
to receive.

 

6.1.3.2         The technical standards of the service.

 

6.1.3.3         The quality of service and availability
standards, including but not limited to maintenance and control data.

 

6.1.3.4         The date upon which rendering the services
will begin.

 

6.1.3.5         Routes of the lines – outlet and destination.

 

6.1.3.6         The consideration that the client will pay
the Licensee in return for the service.

 

6.1.3.7         Data pertaining to the systems via which the
services will be rendered.

 

25

 

6.1.4        A Licensee will render the service
continuously, in accordance with the alliance agreement with the client and
subject to all laws and provisions of the license.

 

6.2           Marketing the Service

 

6.2.1        A Licensee will render the service to all
those seeking the service within the State of Israel, and with the liaison and
coordination director’s approval, will render the services in the Judea and
Samaria region and the Gaza strip that are within the control of the State of
Israel, subject to the local law and the security legislation in those areas.

 

6.2.2        A Licensee is not entitled to operate the
satellite system from the Palestinian Authority territory for the purpose of
international communications.

 

6.3           Advertising the Service

 

With
respect to advertising the services subject-matter of this license the Licensee
will abide by the following:

 

6.3.1        Advertising the services to the public will
be sincere and accurate and pursuant to the provisions of the law.

 

6.3.2        No advertising will prejudice the public
benefit, prejudice the Ministry or ISO and the restrictions detailed in this
license will apply thereto.

 

26

 

6.3.3        The advertising will correspond with the
conditions of the license and the informative content of the service being
advertised.

 

6.3.4        The advertisement will include a detailed
reference of the service being provided pursuant to this license and will also
note the license number therein.

 

6.3.5        The advertisement will include complete
information about the service center and the person responsible for handling
public grievances.

 

27

 

7.             Amending the Conditions of
the License

 

The
Director, after having given the Licensee ample opportunity to argue its
assertions, may amend the conditions of the license, add to them or derogate
from them if he is of the opinion that one of the following has occurred:

 

7.1           A change occurred to the license applicant’s
extent of compatibility to perform the actions and services subject-matter of
the license.

 

7.2           The change to the license was necessary in
order to improve to guarantee the competition within the telecommunications
field.

 

7.3           The change to the license was necessary to
ensure the standard of services provided hereunder.

 

7.4           Technological changes in the
telecommunications field justifying a change in the license.

 

8.             Communication and Quality of
Service

 

8.1           Service Location

 

8.1.1        In order to render the services pursuant to
this license, the Licensee will operate an operations, control and maintenance
center (hereinafter – The Center); the center will install and operate a
service communications and control center.

 

8.1.2        The centers are located in:

 

a.     Moshe Yatom Street, corner of Sheshet Hayamim Street, Rehovot
Industrial Zone.

 

28

 

Tel: 08-9316545, Fax: 08-9466476

 

b.     5 Hahalacha Blvd., Tel-Aviv. Tel: 03-5623994, Fax:
03-5613061.

 

c.     1 Hakesem Street, Herzalia. Tel: 09-9541383, Fax: 03-9541328.

 

8.1.3        The center will offer those calling
information pertaining to the Licensee’s services and will serve as the address
for clarifications and handling malfunctions.

 

8.1.4        The Licensee will keep a record of all
complaints it receives and the manner by which they are handled.

 

8.1.5        The center will be manned 24 hours a day, all
year round to the exception of Saturdays and Holidays.

 

8.2           Lines

 

For
the purpose of rendering the service subject-matter of this license by the
Licensee, ISO or a special licensee rendering transmission services to the
Licensee will install lines whose numbers will be adapted to the system’s
traffic load and will allow the service quality requirements to be met that
were determined in Section 8.3.

 

8.3           Quality and Continuity of Service

 

8.3.1        Upon rendering the service pursuant to this
license, the Licensee will guarantee at least the following:

 

29

 

8.3.1.1     Continuous supply of control and maintenance
services in accordance with the alliance agreement with the client and subject
to all laws.

 

8.3.1.2     The Licensee will act, insofar as possible,
to prevent the occurrence of malfunctions of the machine.

 

8.3.1.3     The Licensee and whomever he so authorizes
will report any malfunctions that impact the ISO public telecommunications
network to ISO and will act to quickly repair the malfunction insofar as
possible.

 

8.3.2        A Licensee will install, as part of the
system, computerized means for reporting and warnings pertaining to meeting the
quality of service.

 

8.3.3        A Licensee will appoint someone responsible
to handle clients’ grievances; will keep a record of the grievances and the
manner by which they were handled – all as the Director so instructs.

 

8.3.4        The installation and existence of a generator
and U.P.S. system that will allow for uninterrupted work during electricity
power cuts for a period of at least eight hours.

 

9.             Qualifications and Ability

 

9.1           In order to render services pursuant to this
license, and to perform the provisions of this license, the Licensee will
employ a qualified

 

30

 

professional
team to include at least 6 technical professionals (engineers, technical
engineers and registered technicians) of which at least 2 registered engineers
out of all the professionals – at least two who each one will have at least 3
years experience in the satellite communications field.

 

9.2           The professional team will have the knowledge
and experience in the satellite communication field and operating satellite
communication systems as well as having the ability to coordinate between
satellite organizations and satellite networks and the Minister of
Communications.

 

9.3           A Licensee will keep in its possession,
during the license period valid knowledge agreements to operate the system as
well as agreements to service and maintain all the system’s components.

 

9.4           Economic Stability

 

Upon
receiving this license and upon renewal hereof the Licensee is required to have
self-capital of at least 1 million NIS and a total of financial sources
available to it for the purpose of realizing the license will be no less than
4.5 million NIS.

 

10.           Monitoring, Reporting and
Cooperation

 

10.1         With respect to monitoring and control powers
over the Licensee’s activities and the duty to report applicable to it, the
provisions of the Supervisory Regulations will be deemed an integral part of
the conditions of this license.

 

31

 

10.2         The Licensee will cooperate with the
supervisor and anyone appointed on its behalf for this purpose – will extend
the required assistance and will furnish plans and other documents, accounts as
requested from time to time associated with the license and operation of the
service as well as the provisions of the supervisory regulations. Likewise, a
Licensee will enable a person designated for this purpose on behalf of the
Ministry to perform engineering tests and other tests in its premises, systems
and other equipment he installed.

 

10.3         The Ministry will monitor adherence to the
license conditions and will make available to itself all the powers determined
by law whereupon any of the provisions of the license are breached, including
but not limited to the possibility of disconnecting the lines or terminating
the services and even revoking the license in instances that are appropriate in
the law, and including but not limited to imposing financial sanctions in
accordance with the law.

 

10.4         The Licensee’s Activities Report and Plans

 

10.4.1      The Licensee will remit to the senior
engineer and licensing deputy director general and to the senior deputy
director general telecommunications supervisor an annual report of its
activities and plans (hereinafter – The Report) together with a renewal of the
license application pursuant to the Telecommunications (Details Of License
Application) Regulations, 5752-1992, 60 days before the end of the license
period. The report constitutes

 

32

 

a
necessary condition precedent to handling the application and without it the
application will not be dealt with.

 

10.4.2      Likewise, the report will be submitted as an
annual report to the senior engineer and licensing deputy director general and
the senior deputy director general telecommunications supervisor by the 31st
of March every year. With respect to the last year in which the license is
valid – the report will be submitted by the later of the two dates determined
in Section 10.4.1 or this section.

 

10.4.3      The report must describe in detail the manner
of operation under the license that was given and the Licensee’s plans for the
future and it must include at least these:

 

10.4.3.1       The name and license number of the Licensee.

 

10.4.3.2       A description of the existing system and
plans for expanding it.

 

10.4.3.3       A description of the services provided and
the planned services for the future.

 

10.4.3.4       Schedules.

 

10.4.3.5       Clients and characteristics thereof.

 

10.4.3.6       Investments that were made and planned
investments for the future.

 

10.4.3.7       Financial reports relating to the foregoing
license.

 

10.4.3.8       Prices and tariffs (method and rate).

 

33

 

10.4.4      The report will be signed by the authorized
signatory and will be confirmed by the Licensee’s accountant and attorney.

 

11.           Miscellaneous

 

11.1         Fees

 

11.1.1      The Licensee will pay fees at the rates and
on the dates as determined by the Ministry in return for the license – all
pursuant to the law and the ordinance; the Licensee will also provide, to
guarantee fulfillment of its obligations, a bank guarantee or other guarantee,
pursuant to the Ministry’s guidelines and subject to all laws.

 

11.1.2      A suspending condition to this license being
enforced and the continued enforcement in the future is that the Licensee pays
all such payments.

 

11.1.3      Whereupon the license was revoked, limited,
suspended or not renewed for whatever reason – the Licensee will not be
entitled to reimbursement of payments or fees, in whole or in part, that it
paid for the license, renewal thereof, expanding it or changing the details
thereof.

 

11.2         The Liability Of The Parties And The
Relationship Between Them

 

11.2.1      The Ministry is not liable toward the clients
and toward any third party for any damage sustained as a result of an act or
omission by the Licensee, those acting on its behalf or in its place and which
are associated with rendering services pursuant

 

34

 

to
this license; the Licensee will indemnify the Ministry, forthwith, for any
damage or expense it incurs due to such a claim.

 

11.2.2      The Licensee will clarify in the alliance
agreement that the contractual relationship for the purpose of rendering
services subject-matter of this license is between him and the client only and
that there are no contractual or commercial relations between the client and
the Ministry or between the client and ISO insofar as rendering services under
this license are concerned.

 

11.3         Changing Identification Details

 

A
Licensee will notify the Director in advance and in writing of any change to
its address, the center’s address, his name, telephone number or facsimile
number.

 

11.4         Publication and Remitting Information

 

11.4.1      The Ministry is entitled to publish the
license, in whole or in part, to the exception of its appendices, for public
knowledge on the date and as it deems appropriate;  without derogating from the foregoing the
license without its appendices is available to the public for perusal at the
Ministry.

 

11.4.2      The provisions of the Freedom of Information
Law, 5758-1998 (hereinafter: “Freedom of Information Law”) will apply to a
request for information including details pertaining to the appendices to the
license.

 

35

 

11.4.3      A Licensee will mark in the application to
obtain a license the information contained in the license appendices which in
his opinion sub-section 9(b)(6) of the Freedom of Information Law will apply
and will reason his opinion as detailed in Section 13 of the Freedom of
Information Law.

 

12.           The License, Its provisions
and Provisions of the Law

 

12.1         Captions of the Sections

 

The
captions of the sections in the license were inserted solely for convenience
purposes and will not be used as an aid to interpretation or explaining the
content of any of the conditions in the license.

 

12.2         Contradiction Between The Provisions Of The
License

 

In
any event that a dispute arises with respect to interpreting a provision in the
license or a prima facie contradiction between them, the Director will
determine how to interpret the provisions or how to settle the contradiction
between them and after having given the Licensee ample opportunity to argue his
assertions.

 

12.3         Abiding By The Provisions Of All Laws

 

12.3.1      Upon rendering the services pursuant to this
license, the Licensee will ensure that it abides by all of the following:

 

12.3.1.1       The provisions of the law, treaty and
ordinance.

 

12.3.1.2       The instructions given by the Administration
as given pursuant to the law or ordinance.

 

36

 

12.3.2      The granting of this license does not release
the Licensee from fulfilling any provision applicable to him pursuant to any
law.

 

12.4         The License As An Exhaustive Document

 

12.4.1      The Licensee’s rights, duties and powers
insofar as performing telecommunication activities and rendering
telecommunication services as detailed in this license are concerned, and the
performance of telecommunication activities necessary for the purpose of the
foregoing license, are those that only originate in this license and derived
from it and pursuant to it.

 

12.4.2      The Licensee will be estopped from asserting
the existence of any right, permission or power in connection with the
performance of telecommunication activities or rendering telecommunication
services on the basis of any information, warranty, undertaking,
representation, offer, understanding, publication, protocol, discussion or
declaration made outside the scope of this license, whether in writing or
orally, whether prior to being granted the license or thereafter, unless they
were explicitly expressed in this license.

 

12.5         Assignment To Another

 

12.5.1      The license is personal and the Licensee
cannot assign it to another, whether directly or indirectly, including but not
limited to the assignment of any right or duty pursuant hereto, unless the
Licensee notified the Director of any such change in advance and in writing and
the Director approved this in writing.

 

37

 

12.5.2      For the purpose of Section 12.5.1 –

 

12.5.1.1           “Assignment” – including but not limited to a
change in the means of control of the Licensee even if this does not constitute
a change of controlling owners and including but not limited to transferring
the majority of the Licensee’s assets.

 

12.5.1.2           “Means of Control” – within the meaning of
Section 1 of the law.

 

12.6         The License Documents

 

The
documents pertaining to this license are exclusively owned by the Ministry and
the Licensee is entitled to hold them only during the license period; once the
license expires, is revoked or suspended for any reason whatsoever, the
Licensee will return the license documents in their entirety to the Director.

 

12.7         Revocation Of The License, Limiting The
License Or Expiration Thereof

 

12.7.1      If the license is revoked or suspended the
Licensee will act as detailed in Section 5.8.5 of the license.

 

12.7.2      If the license is limited, the Licensee will
render services in accordance with the limitation.

 

12.7.3      Upon revocation of the license or expiration
thereof, ISO or a special licensee rendering transmission services will
disconnect forthwith the lines servicing the Licensee to render the service
pursuant to this license.

 

38

 

13.           Terms And Provisions To
Ensure Individual Privacy

 

While
rendering services pursuant to this license, the Licensee will take every
measure necessary pursuant to the law to ensure the client’s privacy and inter alia will act in accordance with the
these terms:

 

13.1         The Licensee will not remit any information
or details about the client and about the type of services it requests to the
exception of the client itself.

 

13.2         Not applicable.

 

14.           Appendices to the License

 

The
Appendices to this license detailed below and which are attached to the license
dated 31.12.2001 constitute an integral part of the license and will be revised
from time to time by the Director.

 

Below Is The List Of Appendices:

 

	
  Appendix
  A -

  	
  The
  principle structure of the system dated 31.12.2001.

  
	
   

  	
   

  
	
  Appendix
  B -

  	
  The
  Licensee’s role during a state of emergency, special home front situation and
  a material communications crisis.

  
	
   

  	
   

  
	
  Appendix
  C -

  	
  Copies
  of the access approvals.

  
	
   

  	
   

  
	
  Appendix
  D -

  	
  Copy
  of the Licensee’s license to trade, valid on the date of the license being
  granted.

  
	
   

  	
   

  
	
  Appendix
  E -

  	
  The
  system’s technical and spectral data and that of the space segments (approved
  by the senior deputy director general of the spectrum management and
  frequency licensing).

  
	
   

  	
   

  
	
  Appendix
  F -

  	
  List
  of clients (correct as of 31.12.2001) and services given to the client.

  
	
   

  	
   

  
	
  Appendix
  G -

  	
  List
  of holders in the company.

  

 

39

 

15.           Name of contact person on behalf of the
company: Mr. David Ribel
Telephone No. 08-6499007,
Fax No. 08-6499002.

 

                    
5763 (           2003)

 

 

	
  ( - )

  	
   

  	
  ( - )

  	
   

  
	
  Chaim Garon, Adv.

  	
   

  	
  Uri Olnick, Adv.

  	
   

  
	
  Senior Deputy Director General

  	
   

  	
  Director General

  	
   

  
	
  Engineering and Licensing

  	
   

  	
   

  	
   

  
	
  Ministry of Communications

  	
   

  	
  Ministry of Communications

  	
   

  

 

 

Copies: Special License distribution

 

40

STATE OF ISRAEL

MINISTRY OF COMMUNICATION

 

Special License for the Provision of Visual and Audio Transmission

Through a Mobile or Stationary Satellite Ground Station

R.R. Satellite Communications Ltd.

License Number 5-10439-2-95049

 

Amendment
Number 2

 

Under the authority of the
Minister of Communications pursuant to section 4(f) of the Communications Law
(Bezeq and Broadcasting) 5742-1982, delegated to us under section 5 of the
Wireless Telegraphic Ordinance (New Version) 5732-1972, and all other powers vested
in us according to the law, and in accordance with the request of the company R.R. Satellite Communications Ltd., whose
name is changed to RRSat Global
Communications Network Ltd. (hereinafter: RR), we hereby administer the special license for the provision
of Bezeq Services number 5-10493-2-95049
granted to RR on Thursday, 29 of the Month of Nissan, 5756 (18.04.1996),
as follows:

 

Amendment
to the Licensor’s Name

 

1.             After
the heading “Section A: Details of the Licensor”

 

The name “R.R. Satellite Communications Ltd.” is
replaced with “RRSat Global Communications
Network Ltd.”

 

Amendment
to Section 12.5

 

2.             After
section 12.5.3 insert:

 

“12.5.3        Notwithstanding
section 12.5.1, the transfer or acquisition of a traded means of control in the
Licensor that require approval under section 12.5.1, that does not involve a
transfer of control in the Licensor, will be performed in accordance with the
terms set out in Annex H and after the Manager has provided written approval in
advance for the completion of the public offering or sale of securities to the
public. For these purposes, “traded means of
control “ – means of control, including a deposit certificate or
similar certificates, for securities registered for trading on the stock
exchange in Israel or abroad in a country that is not hostile, or means of
control that was offered to the public according to a prospectus and are held
by the public, in Israel or abroad in a country that is not hostile.”

 

Amendment
– Annex H

 

3.                                      After
Annex G, the attached will be inserted as “Annex
H– The Transfer of the Means of Trading Control”.

 

 

Commencement

 

4.                                      This
amendment will commence on the date that RR notifies the office that the
Articles of Association of the Licensor is amended in accordance with Section
4(c) of Annex H to the License.

 

	
  12 Tishrei,
  5765

  	
   

  	
  (-)

  	
   

  	
  (-)

  
	
  4 October,
  2006

  	
   

  	
  Chaim Garon,
  Advocate

  Senior Vice President,

  Engineering and Licensing

  	
   

  	
  Mordechai
  Mordechai

  General Manager

  

 

 

Annex H – Transfer of Traded Means of Control

 

Further to the above section 12.5.3
of the License, the following sections will apply:

 

1. Notwithstanding section
12.5.1 of the License -

 

(a)         If, without the prior approval of the Manager,
traded means of control in the Licensor have been transferred or acquired
resulting with a person becoming an interested party in the Licensor, the
Licensor shall report such transaction to the Manager in writing within 21 days
from the day that he was notified of it.

 

(b)         If, without the prior approval of the Manager,
traded means of control have been transferred or acquired equal to 10% or more
of means of control or in an amount resulting with a person becoming an
influential party in the Licensor, which did not result in the transfer of
control of the Licensor, the Licensor shall report this to the Manager in
writing and file with the Manager a request to approve such transfer or
acquisition, and all within 21 days from the day that it was notified of such
transaction.

 

2.            Entering
into an Underwriting Agreement in connection with a public offering or sale of
securities to the public, and also their registration on a stock exchange in
Israel or abroad in a country that is not hostile, or the deposit of
securities, including a deposit certificate or any such similar certificate,
for securities, or their registration with a depositary and/or registration
agent, will not be regarded in and of itself as the transfer of the means of
control in the Licensor.

 

3.                        (a)  Immediately
upon the Licensor becoming aware of any Extraordinary Holdings, it shall record
such matter in the company books (Shareholder Register) noting the
Extraordinary Holdings, and send a notice to the shareholder with the
Extraordinary Holdings and to the Manager. For these purposes, “Extraordinary Holdings” — the holding of
traded means of control without the prior approval of the Manager in accordance
with section 1(b) above, and as long as the Manager has not provided his
approval in accordance with the section.

 

(b)                   Extraordinary Holdings, that will be
recorded in accordance with section 3(a), will not grant the holder any rights
whatsoever, and will be considered “dormant shares” as defined under section
308 of the Companies Law, 5759-1999, except for the purpose of shareholder
dividends or other distributions (including the right to participate in an
offering of rights calculated on the basis of the holdings of the means of
control of the Licensor, however, the holdings acquired pursuant to such
offering will be considered as Extraordinary Holdings), and therefore any
action or claim in relation to an exercise of any right due to the
Extraordinary Holdings will not be enforceable, except for the receipt of
dividends or other distributions as aforesaid.

 

4.                          (a)
The Extraordinary Holdings will not grant voting rights in the general meeting.
The participating shareholder in the vote of the shareholders meeting will
notify the Licensor before the vote, or if the vote is a written vote, to be

 

 

noted on the ballot, whether the shareholder’s holdings in the Licensor
or the shareholder’s vote requires approval according to section 1(b) or not; a
shareholder who did not notify the Licensor as aforesaid, his vote will not be
counted and his voice will not be included.

 

(b) A director of the Licensor will not be appointed, elected or dismissed
from office as a result of the exercise of the rights of the Extraordinary
Holdings; in the event that a director has been appointed, elected or
dismissed, any such appointment, election or dismissal shall not be valid.

 

(c) The terms of sections 3 and 4 will be included in the Articles of
Association of the Licensor, including section 6, with all necessary changes.

 

5. As long as the Articles of
Association include the terms of sections 3 and 4 and the Licensor acts in
accordance with sections 1, 3 and 4, the Extraordinary Holdings themselves will
not constitute grounds for revocation of the License.

 

6. The terms of sections 1-5
will not apply to a person who is a founding shareholder. In this context, “a founding shareholder” – Kardan
Communications Ltd, Del-Ta Engineering Equipment Ltd. and Mr David Rivel.

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