Procurement and Contracting Division

November 14, 2016

To: Participants - Tender No. 41612

Re: NOTICE #4 TO PARTICIPANTS

Tender No. 41612 For the Design, Manufacture and Supply of Track Motor Vehicles With Crane for Railways Ltd. (“Tender”)

This notice (this “ Notice ”) is being issued to Bidders in accordance with the provisions of Sections 22.5 and 23 of the General Terms and Conditions of the Tender Documents (the "General Terms ").

For the removal of doubt, unless otherwise explicitly stated herein, the Tender Documents remain unchanged and fully binding. It is hereby further clarified that throughout the Tender Process, ISR shall only be bound to the information submitted by ISR in writing, and no oral or other non-written response or information will bind ISR for any and all purposes.

Capitalized words and terms used herein and not otherwise defined shall have the same meaning ascribed to them in the Tender Documents.

Explanatory Note

Some of the questions required explanation and clarification rather than amendment to the Tender Documents and ISR has thus prepared responses in this Notice accordingly.

For the removal of doubt, with respect to any question or request not specifically addressed in this Notice, the Tender Documents remain unchanged .

Furthermore, ISR shall only be bound by the final version of the Tender Documents that will be executed by ISR.

Unless explicitly stated otherwise, all the references to the Tender Documents in ISR's answers refer to the Documents as published in ISR's website.

Israel Railways, P.O. Box 18085 61180, Israel, Phone: 972-3-6937570 ,Fax: 972-3-6937416 | www.rail.co.il | *5770

Procurement and Contracting Division

The General Terms and Conditions of the Tender Documents

Tender Documents

1. Question : ISR has been requested to extend the Delivery Time, as defined in Section 8 of the Tender Documents and Section 10.2 of the Agreement. Answer : The Delivery Time as defined in Section 8 of the Tender Documents and Section 10.2 of the Agreement shall be extended to 17 months.

2. Question : ISR has been requested to amend the Prerequisites set in Section 1 of the Tender Documents. Answer : ISR has reviewed the request and has decided not to accept it. Section 1 of the Tender Documents shall remain unchanged.

Agreement

3. Question : ISR has been requested to further specify the calculation of the Performance and Warranty Guarantee, as provided in Section 17.2 of the Agreement. Answer : The Performance and Warranty Guarantee is calculated as detailed in Section 17.2 of the Agreement, i.e. 10% of the TMVC Price as defined in Section 8.1 of the Agreement. With regards to the Initial Purchase Order, the TMVC Price shall be the price detailed in Section 3 of Annex B.

4. Question : ISR has been requested to further specify the calculation of the Liquidated Damages as per Section 15.1 of the Agreement. Answer : The Liquidated Damages are calculated in accordance with the TMVC Price, as defined in Section 8.1 of the Agreement, all as detailed in Section 15.1 of the Agreement. With regards to the Initial Purchase Order, the TMVC Price shall be the price detailed in Section 3 of Annex B.

5. Question : ISR has been requested to further clarify the definition of Site in Section 2.20 of the Agreement. Answer : Section 2.20 of the Agreement shall be amended as follows: ""Site" - Port of , on the track lines".

6. Question : ISR has been requested to clarify that once the TVMC is delivered on Site, ISR will provide a locomotive free of charge for transportation to the requested Workshop. Answer : Bidder is responsible for delivering the TMVC to the designated rails on Site. Once on rails, ISR will transport the TMVC to the workshop without additional payment.

Israel Railways, P.O. Box 18085 Tel Aviv 61180, Israel, Phone: 972-3-6937570 ,Fax: 972-3-6937416 | www.rail.co.il | *5770

Procurement and Contracting Division

Technical Specifications

1. Question : In view of the length of the platform and in order to comply with the visibility requirements according to UIC 641 and EN 14033, adding a secondary cabin close to the crane, used solely to drive the crane, would be an option. ISR has been requested to clarify the number of seats in the TMVC optional secondary cabin as abovementioned. Answer : One (1) seat would be sufficient in the optional secondary cabin, together with a communication system with the main cabin.

Please confirm receipt and acknowledgement of the above Notice, by completing the slip below, and returning it by fax to the undersigned at fax number: +972-3-6937416 or by e- mail: [email protected] .

Best Regards,

Nathalia Eisenfeld

International Procurement Coordinator

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To Nathalia Eisenfeld - Israel Railways Ltd.

Facsimile: +972-3-6937416

E-mail: [email protected]

We hereby confirm the receipt of Notice #4 (3 pages including this page) and its enclosures in Tender No. 41612, dated 14 November 2016, and hereby acknowledge the clarifications set forth therein.

______Name Company Sign

Israel Railways, P.O. Box 18085 Tel Aviv 61180, Israel, Phone: 972-3-6937570 ,Fax: 972-3-6937416 | www.rail.co.il | *5770