Partner Communications Inks New Framework Agreement For Relationship With Orange

(RTTNews) - Partner Communications Co. Ltd. (PTNR) announced that it has signed an agreement with Orange which creates a new framework for their relationship. The two companies will use a detailed market study to assess Partner's position within the dynamics of the Israeli telecommunications services marketplace.

Partner said the agreement provides both the companies the right to terminate the current Orange brand license agreement or BLA: If Partner does not exercise its right to terminate within 12 months, either Partner or Orange may terminate the Brand Licensing Agreement during the following 12 months.

In addition, the agreement provides for total payments of €40 million to Partner from signing the agreement until completion of the market study, and an additional €50 million should the BLA be terminated within 24 months. Amounts paid to Partner shall, as set forth in the agreement, be reconciled evenly over eight quarters against marketing, sales, customer services and related expenses.

Partner's Chairman of the Board of Directors, Mr. Adam Chesnoff, stated, "We are pleased to have reached a new agreement with Orange further to our 17-year relationship with the brand and to have established a new framework for our future relationship with Orange."