Document:

Employment  Agreement of Shin Tanabe dated as of October 1, 2002

 Exhibit 10.21 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
 WITH

 SHIN TANABE 
  
 THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of October 1, 2002 by and between TDK Mediactive, Inc.
(“Employer”), and Shin Tanabe (“Executive”), with reference to the following facts: 
  
 RECITALS 
  
 A. Employer is in the video game business and operates throughout the world. 
  
 B. Employer and Executive desire to assure Employer of the services of Executive and to set forth the rights and duties of the parties. 
  
 NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 AGREEMENTS 
  
 1.
Employment. 
  
 (a) Employer hereby agrees to employ
Executive, and Executive hereby accepts and agrees to employment by Employer, on the terms and conditions set forth herein. 
  
 (b) Executive shall serve in the capacity of President and Chief Operating Officer of Employer. Executive shall perform such services and duties with
Employer as are usually associated with the position of a president and chief operating officer. Executive shall report directly to the Chief Executive Officer of Employer. Executive further agrees that, except during vacation periods or in
accordance with Employer’s personnel policies covering executive leaves and reasonable periods of illness or other incapacitation, Executive shall devote his full time and services to the business and interests of Employer. Notwithstanding the
foregoing, Executive shall also be permitted to serve on the boards of directors of other business corporations and may participate in charitable, cultural, professional, civic and business association activities. Executive shall perform the duties
of his office and those assigned to him by Employer’s Chief Executive Officer with fidelity, to the best of his ability, and in the best interests of Employer. 
  
 2. Term of Employment. 
  
 Executive’s term of employment by Employer pursuant to this Agreement shall commence as of October 1, 2002 (the “Effective Date”) and shall
continue thereafter for a period of two (2) years unless otherwise terminated pursuant to the provisions of Section 6 (the “Employment Term”). 

 3. Compensation & Duties. 
  
 (a) During the Employment Term, Employer shall pay Executive a base salary at the annual rate equal to $250,000. Said base
salary shall be payable in cash in equal installments on a semi-monthly basis, or in accordance with such other salary payment schedule as Employer may adopt for its Executives generally. 
  
 (b) During the Employment Term, Executive shall be entitled to the following benefits provided by Employer: (1) medical
insurance, providing coverage on terms no less beneficial than those afforded other senior executives of Employer from time to time; (2) participation in any pension, profit sharing or similar retirement plans as may be implemented by Employer on
terms no less beneficial than those afforded other senior executives of Employer from time to time; (3) a suitable office and furnishings; (4) participation in any bonus plan adopted by Employer for its senior executives at the level designated in
such plan or as otherwise determined by Employer’s Board of Directors; and (5) such other benefits as Employer may provide from time to time on terms no less beneficial than those afforded other senior executives of Employer. 
  
 (c) Employer shall add Executive to its standard Director and Officer
insurance and indemnification policies. Additionally, Employer shall enter into its standard form of indemnification agreement with Executive, whereby it will agree to indemnify him for losses, damages, claims and causes of action arising out of the
actions or inactions of the Board of Directors and/or the officers of Employer, subject to the terms and conditions set forth therein. 
  
 (d) Executive shall be granted options to purchase 350,000 shares of the common stock of Employer pursuant to the 1995 Stock Option Plan of Employer. The
purchase price of the common stock covered by the foregoing options shall be fixed as of January 28, 2003, which is the date that such grant was approved by the Compensation Committee of Employer’s Board of Directors, in accordance with the
provisions of such stock option plan. Such options shall vest as set forth below: 
  
 Options to purchase 116,667 shares of common stock shall vest as of January 28, 2004. 
  
 Options to purchase 116,667 shares of common stock shall vest as of January 28, 2005. 
  
 Options to purchase 116,666 shares of common stock shall vest as of January 28, 2006. 
  
 All such stock options, and all other stock options previously granted by
Employer to Executive, shall fully vest and be fully exercisable, upon the earlier of (1) the date upon which the fair market value of the common stock (determined as provided in the 1995 Stock Option Plan) is at least $3.50 per share, or (2) the
occurrence of any Change in Control (as defined below). 
  
 (e) If
requested by Employer, Executive shall cooperate with Employer to secure, for Employer, a key man life insurance policy on the life of the Executive in an amount of up to $1,000,000 to be paid to Employer upon the Executive’s death. 

 

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 (f) During the term of his employment hereunder, Employer shall purchase and keep in effect life
insurance in an amount of $1,000,000 on the life of Executive; provided that the total cost to Employer for such insurance shall not exceed $5,000 per annum. If $1,000,000 of coverage is not available for $5,000 per annum or less, Employer shall
purchase the maximum coverage available at a total cost to Employer not to exceed $5,000 per annum. Such life insurance will name as beneficiaries those individuals designated by Executive. 
  
 4. Executive Expenses. 
  
 Subject to such policies as may be maintained in effect from time to time by
Employer, Executive shall be entitled to reimbursement of amounts expended by Executive for the benefit of Employer, including professional dues and expenses, during the Employment Term, upon presentation of acceptable reports of such expenses.

  
 5. Confidential Information. 
  
 Executive specifically agrees that he will not at any time, whether during
or subsequent to the Employment Term, in any fashion, form or manner, unless specifically consented to in writing by Employer, either directly or indirectly use or divulge, disclose or communicate to any person, firm or corporation, any confidential
information of any kind, nature, or description concerning any matters affecting or relating to the business of Employer, except in the ordinary course of Employer’s business. All equipment, notebooks, documents, memoranda, reports, recipes,
formulas, files, samples, books, correspondence, lists, other written and graphic records, and the like, affecting or relating to the business of Employer, which Executive shall prepare, use, construct, observe, possess or control, shall be and
remain Employer’s sole property. The foregoing confidentiality obligation shall not apply to information that (i) Executive deems necessary to disclose pursuant to any governmental, judicial or regulatory investigation, proceeding or order;
(ii) is in the public domain through no fault of Executive; or (iii) is obtained by Executive from a source other than Employer which is not bound by a similar confidentiality obligation. 
  
 6. Termination with Cause. 
  

(a) The employment of Executive may be terminated at any time for Cause. As used herein, “Cause” shall mean: 
  
 (1) Executive’s continued willful and habitual neglect
of his duties following written notification of such neglect by Employer’s Chief Executive Officer and the failure of Executive to cure such neglect within thirty (30) days of such notice. 
  
 (2) Executive’s conviction of a felony or any other
conduct which, by its nature, would materially injure the reputation of Employer as determined by Employer’s Chief Executive Officer acting in good faith and upon reasonable grounds. 
  

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 (3) Executive’s incapacity to perform the duties required of him hereunder as a
result of mental or physical illness, which incapacity continues for a period of ninety (90) days. 
  
 (4) Death of the Executive. 
  
 (b) Termination of Executive’s employment shall not be in limitation of any other right or remedy Employer may have under this Agreement or in law or
equity. 
  
 (c) If Executive’s employment is terminated by
Employer for Cause, Employer shall pay Executive his full base salary, when due, through the Date of Termination (as defined below) at the rate in effect at the time Notice of Termination (as defined below) is given, plus all other amounts to which
Executive is entitled under any compensation plan of Employer at the time such payments are due, and Employer shall have no further obligations to Executive under this Agreement. 
  
 7. Termination without Cause; Termination with Good Reason; Change in Control. 
  
 (a) If Executive’s employment is terminated by Employer without Cause
before October 1, 2004, or if such employment is terminated by Executive for Good Reason (as defined below) following a Change in Control, Employer shall pay Executive the benefits set forth in Section 7(d). As used herein, “Good Reason”
shall mean any of the following: (i) a material and adverse change by Employer in the Executive’s assignments, duties or responsibilities; or (ii) a reduction in Executive’s salary or a material change in Executive’s benefits. As used
herein, a “Change in Control” shall be deemed to have occurred upon (1) the consummation of (x) any consolidation or merger of Employer in which Employer is not the continuing or surviving corporation or pursuant to which shares of
Employer’s common stock would be converted into cash, securities or other property, other than a merger of Employer in which the holders of Employer’s common stock immediately prior to the merger have the same proportionate ownership of
common stock of the surviving corporation immediately after the merger, or (y) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of Employer, (2) the
commencement of a tender offer for the common stock of Employer (other than by Employer) for all, or a majority of, the common stock of Employer, or (3) the approval by the stockholders of Employer of any plan or proposal for the liquidation or
dissolution of Employer. 
  
 (b) Any purported termination of
Executive’s employment by Employer or Executive must be communicated by written Notice of Termination to the other party pursuant to Section 10. Notice of Termination shall mean a notice that shall indicate the specific termination provision in
this Agreement. 
  
 (c) “Date of Termination” shall mean
the date specified in the Notice of Termination (which, in the ­case of a termination for Cause shall not be less than thirty (30) days from the date such Notice of Termination is given, and in the case of a termination for Good Reason shall not
be less than thirty (30) nor more than sixty (60) days from the date such Notice of Termination is given). 
  

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 (d) If Executive’s employment by Employer is terminated by Executive for Good Reason following a
Change in Control, or by Employer other than for Cause before October 1, 2004, then Executive shall be entitled to the benefits provided below: 
  
 (i) Employer shall pay to Executive his full base salary, when due, through the Date of Termination at the rate in effect at the time
Notice of Termination is given, plus all other amounts to which Executive is entitled under any compensation plan of Employer at the time such payments are due; 
  
 (ii) In lieu of any further salary payments to Executive for periods subsequent to the Date of Termination,
Employer shall pay as severance pay, at the time specified below, a lump sum severance payment (together with the payments provided herein below, the “Severance Payments”) equal to Executive’s annual base salary as in effect as of the
Date of Termination or the remaining balance due through the end of the term of the contract, whichever is less; 
  
 (iii) For a six (6) month period after such termination, Employer shall provide Executive with insurance benefits substantially similar to
those that Executive was receiving immediately prior to the Notice of Termination; and 
  
 (iv) Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or
otherwise nor shall the amount of any payment or benefit provided for in this Agreement be reduced by any compensation earned by Executive as a result of earnings from another employer, self-employment, or retirement benefits. 
  
 8. Severable Provisions. 
  
 The provisions of this Agreement are severable, and if any one or more
provisions may be determined to be judicially unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable. 
  
 9. Successors; Binding Agreement. 
  
 Employer shall require any successor (whether direct or indirect, by purchase, merger, consolidation or other­wise) to all or substantially all of the
business and/or assets of Employer expressly to assume and agree to perform this Agreement in the same manner and to the same extent that Employer would be required to perform it if no such succession had taken place. 
  
 This Agreement shall inure to the benefit of and be enforceable by Executive
and Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive should die while any amount would still be payable to Executive hereunder had Executive continued
to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee or other designee or, if there is no such designee, to Executive’s estate.

  

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 10. Notices. 
  
 Any notice to be given to Employer under the terms of this Agreement shall be addressed to Employer at the address of its
principal place of business, and any notice to be given to Executive shall be addressed to him at his home address last shown on the records of Employer, or at such other address as either party may hereafter designate in writing to the other. All
Notices shall be in writing and shall be delivered personally, sent by United States certified or registered mail, return receipt requested, first class postage prepaid, or by private messenger or courier service. Any such notice shall be deemed to
have been received on the earlier of (i) two (2) business days after it is mailed or (ii) the date it is actually received. 
  
 11. Waiver. 
  
 Either party’s failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision,
or prevent that party thereafter from enforcing each and every other provision of this Agreement. 
  
 12. Title and Headings. 
  
 Titles and headings to sections in this Agreement are for the purpose of reference only and shall in no way limit, define or otherwise affect the
provisions of it. 
  
 13. Governing Law. 
  
 The parties hereto agree that it is their intention and covenant that this
Agreement and performance under it, and all suits and special proceedings that may ensue from its breach, be construed in accordance with and under the laws of the State of California, and that in any action, special proceeding, or other proceeding
that may be brought arising out of, in connection with or by reason of this Agreement, the laws of the State of California shall be applicable and shall govern to the exclusion of the law of any other forum, without regard to the jurisdiction in
which any action or special proceeding may be instituted. 
  
 14. Entire Agreement. 
  
 This Agreement, any
other written agreement executed concurrently therewith, and the documents referred to herein, shall be construed together and constitute the entire agreement between the parties pertaining to the subject matter hereof. Any prior agreements are
superseded. There are no warranties, conditions or representations (including any that may be implied by statute) and there are no agreements in connection with such subject matter except as specifically set forth or referred to in this Agreement.
No reliance is placed on any warranty, representation, opinion, advice or assertion of fact made by any party hereto or its directors, officers, Executives or agents, to any other party hereto or its directors, officers, Executives or agents, except
to the extent that the same has been reduced to writing and included as a term of this Agreement. Accordingly, there shall be no liability, either in tort or in contract, assessed in relation to any such warranty, representation, opinion, advice or
assertion of fact, except to the aforesaid. No 
  

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 amendment, change or variance from this Agreement shall be binding on either party unless executed in writing by both
parties. 
  
 15. Arbitration; Dispute Resolution

  
 Any disagreement, dispute, controversy or claim arising
out of or relating to this Agreement shall be settled by arbitration in accordance with the Commercial Arbitration Rules (the “Arbitration Rules”) of the American Arbitration Association (the “AAA”) (except as otherwise provided
in this Agreement) in Los Angeles, California. The arbitral tribunal shall consist of one arbitrator. In making any decision, the arbitrator shall apply and follow the substantive law of California. The parties to the arbitration jointly shall
directly appoint such arbitrator within thirty (30) days of initiation of arbitration. If the parties shall fail to appoint such arbitrator as provided above, such arbitrator shall be appointed by the AAA as provided in the Arbitration Rules.
Executive and Employer agree that the arbitral award may be enforced against the parties to the arbitration proceeding or their assets wherever they may be found and that a judgment upon the arbitral award may be entered in any court having
jurisdiction thereof. Employer shall pay all fees and expenses of the Arbitrator regardless of the result and shall provide all witnesses and evidence reasonably required by Executive to present Executive’s case. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written. 
  
 “EMPLOYER” 
  

		
	 By:
	 	 /s/    VINCENT J. BITETTI

	 	 	 Vincent J. Bitetti
 Chief Executive Officer

  
 “EXECUTIVE” 
  

		
	 By:
	 	 /s/    SHIN TANABE

	 	 	 Shin Tanabe
 President and Chief Operating Officer

  

 7<PAGE>

                                                                     Exhibit 4.5

Buenos Aires, 2 de abril de 2002.

Senores
Telecom Italia S.p.A.
Corso d'Italia 41 - Roma
Italia. Atencion Dr. Carlo Buora
------
y

France Cables et Radio S.A.
124 Rue Reamur, 75091
Paris, CEDEX 02
Francia. Atencion Ing. Laurent Mialet
-------

De mi consideracion:

Tengo el agrado de dirigirme a Uds. en mi caracter de Presidente de Telecom
Argentina STET-France Telecom S.A. (en lo sucesivo "Telecom Argentina" o "la
Sociedad"), con relacion al Contrato de Gerenciamiento (en adelante "el
Contrato"), suscripto el 9 de agosto de 1999 entre mi representada, por una
parte y por la otra Telecom Italia S.p.A. y France Cables et Radio S.A. (en
conjunto "los Operadores" y junto con Telecom Argentina "las Partes").

En octubre de 2001, ante la seriedad de la crisis economica recesiva que afecta
a la Argentina desde tiempo atras y como parte del plan de reduccion de gastos e
inversiones destinado a minimizar los efectos de dicha crisis sobre la situacion
economico-financiera de la Sociedad, les solicitamos y obtuvimos de Uds. una
reduccion del 3% al 1,25% de la remuneracion acordada en el punto 2.7 del
Contrato ("el Management Fee"), durante el periodo comprendido entre el
1(degree) de octubre de 2001 y el 31 de marzo de 2002, sin afectacion de las
prestaciones a vuestro cargo ni de las clausulas del Contrato.

Tambien se convino que durante ese lapso se continuaria con la negociacion de
modificaciones al Contrato y en caso de acordarse las mismas, Telecom debia
someterlas a la consideracion de los organos societarios de administracion y
fiscalizacion pertinentes y, de ser aprobadas, a una Asamblea de Accionistas a
celebrarse a la brevedad posible.

<PAGE>

Finalmente se acordo que si para el 31 de marzo de 2002 las Partes no hubieran
acordado las modificaciones al Contrato, o si dichas modificaciones no hubieran
sido aprobadas por los organos societarios competentes, a partir del 1(degree)
de abril de 2002 dejaria de ser aplicable la reduccion del Management Fee
otorgada por los Operadores a la Sociedad.

Sin embargo, como es de vuestro conocimiento, a partir de diciembre del ano
2001, la Argentina se vio inmersa en una gravisima crisis politica y social y se
agudizaron las dificultades economicas y financieras que agobian al pais. En
efecto, los sucesivos cambios de Gobierno, la declaracion de default de la deuda
publica, la devaluacion del peso con abandono del regimen de convertibilidad, la
pesificacion de las tarifas de los servicios publicos y la derogacion de sus
clausulas de ajuste, como asi tambien las multiples normas financieras y
cambiarias limitativas de la disponibilidad de fondos y de las transferencias al
exterior, han agravado sensiblemente la recesion economica que sufre el pais y
han incrementando el indice de morosidad de los clientes, impactando
negativamente en la gestion de la Sociedad.

En este escenario extremadamente complejo que ofrece la realidad argentina
actual, la incertidumbre acerca de numerosas variables economicas y financieras
y los continuos cambios en las normas juridicas, han impedido a las Partes
llevar adelante la negociacion de las modificaciones al Contrato, tal como
estaba previsto.

A su vez, estando proxima a vencer la reduccion del Management Fee que los
Operadores otorgaron a la Sociedad y teniendo en consideracion la gravedad de la
crisis que sufre el pais y su impacto sobre la situacion de Telecom Argentina,
el Directorio de esta ha resuelto solicitar a los Operadores que a partir del
1(degree) de abril de 2002 y mientras dure la actual situacion de emergencia
economica declarada por la Ley No. 25.561, reduzcan las prestaciones bajo el
Contrato a aquellas que resulten necesarias para cumplir con vuestras
obligaciones como Operadores de la Sociedad, suspendiendo por el mismo plazo el
cobro del Management Fee.

Entre tanto, a partir del momento en que la situacion del pais y de la Sociedad
lo hagan posible, las Partes continuariamos las negociaciones tendientes a
acordar modificaciones al Contrato y, en su caso, se las someteria a las
aprobaciones de los organos societarios competentes. De este modo, una vez
superada la situacion actual, los Operadores reiniciarian la percepcion del
Management Fee en base a lo que se hubiera acordado en el curso de esas
negociaciones.

<PAGE>

Quedamos a la espera de vuestra conformidad acerca de lo solicitado en la
presente. En caso de contar con una respuesta afirmativa, procederemos a cursar
las informaciones legales que establecen las normas correspondientes (a la
Comision Nacional de Valores, a la Bolsa de Comercio de Buenos Aires y demas
mercados en que cotizan los titulos de Telecom Argentina).

Sin otro particular, les saludo muy atentamente,

                   Telecom Argentina STET-France Telecom S.A.

                            Ing. Juan Carlos Masjoan
                                   Presidente

<PAGE>

                                                              22 de mayo de 2002

Sr. Presidente de
Telecom Argentina Ste-France Telecom S.A.
Ing. Juan Carlos Masjoan
Presente
--------

                         Ref. Contrato de Gerenciamiento
                         -------------------------------

De nuestra consideracion:

Tenemos el agrado de dirigirnos a Ud. en su caracter de Presidente de Telecom
Argentina Stet-France Telecom S.A. (en adelante "Telecom Argentina" o "la
Sociedad"), con motivo de su carta de 2 de abril relacionada con el Contrato de
Gerenciamiento (en adelante "el Contrato") suscripto el 9 de agosto de 1999
entre Telecom Argentina por una parte y la otra Telecom Italia S.p.A ( en
adelante "TI") y France Cable et Radio S.A. ("FCR") (en conjunto denominados
"los Operadores" y junto con Telecom Argentina denominadas "las Partes".

En la citada nota, Telecom Argentina puntualiza la gravisima crisis economica y
social y las dificultades economicas y financieras que actualmente afectan a la
Argentina, senalando en particular los cambio de gobierno, la declaracion de
default de la deuda publica y el abandono del regimen de convertibilidad, lo que
ha conducido ademas a una pesificacion del sistema economico, incluyendo las
tarifas de los servicios publicos y la derogacion de las respectivas clausulas
de ajuste previstas contractualmente. Los Operadores tienen conocimiento de esa
situacion y continuan analizando detenidamente los graves efectos de la crisis
economica senalada en la citada carta, que ha originado la necesidad de que
Telecom Argentina declare a su vez la suspension de los pagos de su deuda
financiera en los terminos oportunamente informados a los organismos de control.

Por tales consideraciones, los Operadores no pueden permanecer ajenos a esa
situacion y por la presente expresan su conformidad para que, con excepcion de
lo previsto en los puntos 2.1, 2.2 y 2.3, se suspendan transitoriamente los
derechos y obligaciones de las partes previstos en el Articulo II del Contrato,
lo que incluye la compensacion fijada en el punto 2.7 del Contrato (el
"Management Fee") a partir de 1 de abril de 2002 y hasta el 31 de diciembre de
2002, sin perjuicio de las prestaciones especiales que sean requeridas por
Telecom de conformidad con lo previsto en el Articulo III del Contrato. De este
modo, ante esta situacion compleja y de extrema gravedad, en nuestro caracter de
Operadores conforme, con el decreto 62/90, sus modificaciones y normas
complementarias, confirmamos el proposito de prestar a Telecom toda la
cooperacion que razonablemente este a nuestro alcance, en especial para brindar
el mayor apoyo dentro de nuestras posibilidades a fin de cooperar con Telecom
para superar las actuales dificultades que la aquejan, recuperando unicamente
los costos de viajes y estadia relacionados con nuestra intervencion.

Les agradeceremos nos hagan conocer previamente el texto de las informaciones a
ser cursadas a los respectivos organismos de contralor.

<PAGE>

Quedamos a la espera de vuestra conformidad acerca de lo propuesto en la
presente, a cuyo fin les rogamos nos envien firmado el duplicado que se acompana
al efecto.

Saludamos a Uds. muy atentamente.

TELECOM ITALIA S.p.A                                       FRANCE CABLE ET RADIO
  Oscar Cristianci                                           Jean-Yves Gouiffes

<PAGE>

Buenos Aires,   23 de diciembre  de 2002.

Senores
Telecom Italia S.p.A.
Corso d'Italia 41 - Roma
Italia
Atencion: Dr. Carlo Buora

y

France Cables et Radio S.A.
124 Rue Reamur, 75091
Paris, CEDEX 02
Francia
Atencion: Ing. Laurent Mialet

De mi consideracion:

Tengo el agrado de dirigirme a Uds. en mi caracter de Gerente General de Telecom
Argentina STET-France Telecom S.A. (en lo sucesivo "Telecom Argentina" o "la
Sociedad"), con relacion al Contrato de Gerenciamiento (en adelante "el
Contrato"), suscripto el 9 de agosto de 1999 entre mi representada, por una
parte, y por la otra Telecom Italia S.p.A. y France Cables et Radio S.A. (en
conjunto "los Operadores" y junto con Telecom Argentina "las Partes").

Es de vuestro conocimiento la grave situacion financiera por la que viene
atravesando desde tiempo atras esta Sociedad, como consecuencia de la crisis que
afecta a la Republica Argentina, la que ha impactado adversa y
significativamente sobre el negocio de Telecom Argentina.

<PAGE>
                                                                               2

Por tales razones, las Partes hemos convenido que -con excepcion de lo previsto
en el Articulo II, puntos 2.1., 2.2. y 2.3.- se suspendan transitoriamente, a
partir del 1 de abril de 2002 y hasta el 31 de diciembre de 2002, los derechos y
obligaciones de las Partes previstos en el Articulo II del Contrato, lo que
incluye la suspension del cobro del Management Fee previsto en el punto 2.7 del
Contrato. Ello sin perjuicio de las prestaciones especiales que sean requeridas
por Telecom de conformidad con lo previsto especificamente en el Articulo III
del Contrato. Este acuerdo (en adelante "el Acuerdo Vigente") surge de los
terminos propuestos en vuestra nota de fecha 22 de mayo de 2002, que fue
aceptada por el Directorio de Telecom Argentina en reunion celebrada el 6 de
junio de 2002.

Como es de vuestro conocimiento, las dificultades financieras de la Sociedad,
derivadas de los factores macroeconomicos negativos antes mencionados, se fueron
profundizando y el Directorio de Telecom Argentina se ha visto en la necesidad
de declarar la suspension del pago del capital y de los intereses de su deuda
financiera, en tanto ha iniciado -con el apoyo de asesores juridicos y
financieros externos- un proceso de renegociacion de dicha deuda, habiendose
comenzado las conversaciones con los principales acreedores, a los que se les ha
presentado una primera propuesta.

Toda esta problematica fue considerada con Uds. en las reuniones mantenidas
durante el pasado mes de septiembre, en el curso de las cuales se acordo que
resulta necesario que las Partes formalicen una prorroga de los terminos y
condiciones del "Acuerdo Vigente" hasta el vencimiento del plazo del Contrato
previsto en el punto 7.2. del Contrato.

Al mismo tiempo, Telecom Argentina contara -como viene ocurriendo desde el 1 de
abril pasado- con el respaldo de los Operadores, a traves de las prestaciones
contempladas en el Contrato que no quedan alcanzadas por la suspension de
ciertos derechos y obligaciones del Articulo II.

<PAGE>
                                                                               3

Quedamos a la espera de vuestra conformidad acerca de lo solicitado en la
presente, en cuyo caso quedara instrumentada la prorroga del "Acuerdo Vigente"
en la forma indicada en esta propuesta. En tal caso, procederemos a cursar las
informaciones legales que establecen las normas correspondientes (a la Comision
Nacional de Valores, a la Bolsa de Comercio de Buenos Aires y demas mercados en
que cotizan los titulos de Telecom Argentina), sometiendo previamente al
conocimiento de Uds. el texto de dichas comunicaciones.

Sin otro particular, les saludo muy atentamente,

                                Por Telecom Argentina STET-France Telecom S.A.

                                                Carlos Felices
                                                Gerente General

<PAGE>

NOTA DE ACEPTACION
------------------

Buenos Aires, 27 de diciembre de 2002

Senores
Telecom Argentina-Stet France Telecom S.A.
Buenos Aires
Argentina

                Atencion: Sr. Gerente General Lic. Carlos Felices

De nuestra consideracion:

Tenemos el agrado de dirigirnos a Uds. A fin de hacerles saber que Telecom
Italia SpA ha recibido vuestra nota fechada el 23 de diciembre de 2002, en la
que nos proponen prorrogar el acuerdo instrumentado mediante nuestra carta del
22 de mayo de 2002, aceptada por Telecom Argentina-Stet France Telecom S.A.
("Telecom Argentina") el 6 de junio de 2002, definida en vuestra propuesta como
el "Acuerdo Vigente". Al respecto, nos complace hacerles saber que aceptamos la
referida propuesta en todos sus terminos.

Les enviamos junto con la presente una copia debidamente inicialada de vuestra
Nota del 23 de diciembre de 2002 a los fines de identificar la propuesta enviada
por Telecom Argentina y les agradeceremos que nos devuelvan debidamente firmada
como constancia de recepcion una copia de esta carta aceptacion.

Les saluda muy atentamente.

         Por Telecom Italia S.p.A.
         Oscar Carlos Cristianci
         Autorizado por Procura Speciale

<PAGE>

NOTA DE ACEPTACION
------------------

Paris, 30 de diciembre de 2002

Senores
Telecom Argentina-Stet France Telecom S.A.
Buenos Aires
Argentina

                Atencion: Sr. Gerente General Lic. Carlos Felices

De nuestra consideracion:

Tenemos el agrado de dirigirnos a Uds. A fin de hacerles saber que France Cables
et Radio S.A. ha recibido vuestra nota fechada el 23 de diciembre de 2002, en la
que nos proponen prorrogar el acuerdo instrumentado mediante nuestra carta del
22 de mayo de 2002, aceptada por Telecom Argentina-Stet France Telecom S.A.
("Telecom Argentina") el 6 de junio de 2002, definida en vuestra propuesta como
el "Acuerdo Vigente". Al respecto, nos complace hacerles saber que France Cables
et Radio S.A. acepta la referida propuesta en todos sus terminos.

Les enviamos junto con la presente una copia debidamente inicialada de vuestra
Nota del 23 de diciembre de 2002 a los fines de identificar la propuesta enviada
por Telecom Argentina y les agradeceremos que nos devuelvan debidamente firmada
como constancia de recepcion una copia de esta carta aceptacion.

Les saludamos muy atentamente.

         Por France Cables et Radio S.A.
         Ing. Laurent Mialet

<PAGE>

                                                     Buenos Aires, April 2, 2002

To Telecom Italia S.p.A.
Corso d'Italia 41 - Roma

Italy
-----

Attention: Dr. Carlos Buora

and

To France Cables et Radio S.A.
124 Rue Reamur, 75091
Paris, CEDEX 02

France
------

Attention: Eng. Laurent Mialet

Dear Sirs,

I write to you, in my capacity as President of Telecom Argentina STET-France
Telecom S.A. ("Telecom Argentina" or the "Company") in connection with the
Management Agreement (the "Agreement") entered into on August 9, 1999 by and
between the Company, party of the first part, and Telecom Italia S.p.A. and
France Cables et Radio S.A. (collectively, the "Operators" and together with
Telecom Argentina, the "Parties").

In October 2001, due to recessionary economic crisis that had been affecting
Argentina and as part of the plan to cut expenses and investments ultimately
intended to minimize the effects of the crisis on the economic-financial
position of the Company, we kindly asked and obtained from you a reduction from
3 to 1.25% of the fees agreed under point 2.7 of the Agreement (the "Management
Fee") effective from October 1, 2001, through March 31, 2002, without modifying
your consideration and the terms and conditions of the Agreement.

<PAGE>

We also agreed that during such term the parties would negotiate the amendments
to the Agreement and that, if such amendments were agreed, Telecom would submit
them to its management and auditing bodies and, if approved by them, to a
Shareholders' Meeting to be held as soon as practicable.

Finally, the Parties agreed that if they could not reach an agreement on the
amendments to the Agreement by March 31, 2002, or if such amendments were not
approved by the competent company authorities by such date, the Management Fee
reduction granted by the Operators to the Company would no longer be effective
as from April 1, 2002.

However, as you know, since December 2001 Argentina has been affected by a deep
political and social crisis and the economic and financial problems affecting
Argentina worsened. In other words, the change of government authorities, the
declaration of default on the public debt, the devaluation of the Argentine
Peso, the abandonment the currency board (convertibility), the pesofication of
public utility rates and abrogation of adjustment clauses, as well as the
multiple financial and currency exchange laws restricting availability of funds
and bank transfers abroad have severely aggravated the Argentine economic
recession and have increased the customer's arrearage with a negative impact on
the Company's bottom line.

Given this extremely complex Argentine context, the uncertainty over a number of
economic and financial variables, and the continuous amendments to the laws have
prevented the Parties from continuing with the renegotiation of the amendments
to the Agreement, as previously agreed.

As the Management Fee reduction granted by the Operators to this Company is
about to expire and considering the deep Argentine crisis and its impact on
Telecom Argentina's situation, Telecom Argentina's Board of Directors has
resolved to request that Operators reduce their consideration under the
Agreement, that they reduce their services only to those essential to comply
with their obligations as Operators of the Company and that

<PAGE>
collection of the Management Fee be suspended from April 2002 until termination
of the economic emergency declared by Law no. 25,561.

Meanwhile, as far as the Argentine and the Company's situation so permit, the
Parties will continue negotiations intended to amend the Agreement and, if
applicable, will submit such amendments to the approval of the competent company
authorities. Thus, upon termination of the present situation, Operators will
resume their collection of the Management Fee on the basis of the results of
such negotiations.

We look forward to your approval of the above. Upon your acceptance of this
proposal, we will send the mandatory legal notices (to the Comision Nacional de
Valores (Argentine Securities Commission), the Bolsa de Comercio de Buenos Aires
(Buenos Aires Stock Exchange) and to the other markets where Telecom's shares
are listed).

Sincerely,

Telecom Argentina STE-France Telecom S.A.

[Signed]

Eng. Juan Carlos Masjoan
President

<PAGE>

                                                                    May 22, 2002

To the President of
Telecom Argentina Stet-France Telecom S.A.
Eng. Juan Carlos Masjoan

                                                  Subject:  Management Agreement
                                                            --------------------

Dear Sir,

I write to you, in your capacity as President of Telecom Argentina Stet-France
Telecom S,A, ("Telecom Argentina"or the "Company"), in connection with your
letter dated April 2 related to the Management Agreement (the "Agreement")
entered into on August 9, 1999, by and between Telecom Argentina, party of the
first part, and Telecom Italia S.p.A ("TI") and France Cable et Radio S.A.
("FCR") (collectively, the "Operators" and together with Telecom Argentina, the
"Parties").

In such note, Telecom Argentina highlights the deep economic and social crisis
and the economic and financial problems affecting Argentina, making special
reference to the government changes, the declaration of default on public debt,
and the abandonment of the currency board (convertibility), which has included a
pesofication of the economic system, including public utility rates and
abrogation of adjustment clauses established in the concession agreements.
Operators know these problems and are still thoroughly analysing the serious
effects of the economic crisis mentioned in the letter. Such crisis has obliged
Telecom Argentina to declare the suspension of payments on its financial debt,
in the terms informed to the regulatory authorities.

The Operators do understand this situation and express their authorization for
the temporary suspension of the rights and obligations of the Parties under
Article II of the Agreement,

<PAGE>

including the compensation established in point 2.7 of the Agreement
("Management Fee") -and except for the provisions under points 2.1, 2.2 and 2.3-
from April 1, 2002, through December 31, 2002, notwithstanding the special
services that may be requested by Telecom in accordance with the provisions of
Article III of the Agreement. Thus, in consideration of the complex and serious
situation, we, in our capacity as Operators under Presidential Decree 62/90, as
amended and regulated, express our intention to use our best efforts to
cooperate with Telecom in overcoming the problems and, to that effect, we will
only recover travelling and accommodation expenses arising from our
intervention.

We would like to learn in advance the contents of the notices to be sent to the
regulatory authorities.

We look forward to your acceptance to our proposal and, for such purpose, we
kindly request that you remit the enclosed copy of this letter duly signed by
you.

Sincerely,

[Signed]

Telecom Italia S.p.A.
Oscar Cristianci

[Signed]

France Cables et Radio S.A.
Jean Yves Gouiffes

<PAGE>

                                                 Buenos Aires, December 23, 2002

To Telecom Italia S.p.A.
Corso d'Italia 41 - Roma

Italy
-----

Attention: Dr. Carlos Buora

and

To France Cables et Radio S.A.
124 Rue Reamur, 75091
Paris, CEDEX 02

France
------

Attention: Eng. Laurent Mialet

Dear Sirs,

I write to you in my capacity as General Manager of Telecom Argentina
STET-France Telecom S.A. ("Telecom Argentina" or the "Company") in connection
with the Management Agreement (the "Agreement") entered into on August 9, 1999,
by and between the Company, party of the first part, and Telecom Italia S.p.A.
and France Cables et Radio S.A. (collectively, the "Operators" and together with
Telecom Argentina, the "Parties").

As you know, our Company has been going through difficult financial times, due
to the crisis affecting the Argentine Republic. Such crisis has had a negative
and material impact on the business of Telecom Argentina.

<PAGE>

Therefore, the Parties have agreed to temporarily suspend -except for the
provisions contained in points 2.1, 2.2 and 2.3 of Article II- the rights and
obligations under Article II of the Agreement from April 1, 2002, through
December 31, 2002, which suspension shall include collection of the Management
Fee established in point 2.7 of the Agreement, notwithstanding the special
services required by Telecom in accordance with the terms and conditions
expressly provided under Article III of the Agreement. This agreement (the
"Effective Agreement") arises from the terms proposed in your note dated May 22,
2002, accepted by the Board of Directors of Telecom Argentina at their meeting
held on June 6, 2002.

As you know, the financial problems of the Company, arising from the
abovementioned macroeconomic negative factors, have worsened and Telecom
Argentina's Board of Directors had no other choice but to declare the suspension
of principal and interest servicing on its financial debt. However, Telecom
Argentina has commenced -assisted by external legal and financial advisors- the
renegotiation its debt, mainly with its main creditors, who have already
received a preliminary proposal.

All the above was discussed at the meetings held with you during September, when
we agreed that it was necessary that the Parties extend the term of the
"Effective Agreement" until the expiration date of the Agreement established in
point 7.2 thereof.

Telecom Argentina will continue to be supported by the Operators (who have been
providing their support since April 1, 2002) by means of the consideration
established in the Agreement and that is not included in the suspension of the
rights and obligations under Article II.

We look forward to your approval to this request. If approved, the "Effective
Agreement" shall be extended in the manner established in this proposal and we
will send the mandatory legal notices (to the Comision Nacional de Valores
(Argentine Securities Commission), the Bolsa de Comercio de Buenos Aires (Buenos
Aires Stock Exchange) and to the other

<PAGE>

markets where Telecom's shares are listed); provided, however, that the text of
such notices shall be sent to you before sending such notices.

Sincerely,

Telecom Argentina STET-France Telecom S.A.

[Signature]

Carlos Felices
General Manager

<PAGE>

LETTER OF ACCEPTANCE
--------------------

                                                        Paris, December 27, 2002

To Telecom Argentina-STET France Telecom S.A.
Buenos Aires
Argentina
Attention: Mr. Carlos Felices - General Manager

Dear Sir,

We would like to advise your that Telecom Italia SpA has already received your
note dated December 23, 2002, whereby you propose us to extend the agreement
memorialized through our letter dated May 22, 2002, accepted by Telecom
Argentina-STET France Telecom S.A. ("Telecom Argentina") on June 6, 2002,
defined in your proposal as the "Effective Agreement". In respect to the above,
please note that Telecom Italia SpA accepts in full the abovementioned proposal.

Enclosed you will find a duly initialled copy of your Note dated December 23,
2002, for the purpose of identifying the proposal sent by Telecom Argentina and
would be grateful if you could remit us a duly signed copy of this letter of
acceptance as return receipt.

Sincerely,

[Signature]

By Telecom Italia SpA
Oscar Carlos Cristianci
Authorized by Procura Speciale

<PAGE>

LETTER OF ACCEPTANCE
--------------------

                                                        Paris, December 30, 2002

To Telecom Argentina-STET France Telecom S.A.
Buenos Aires
Argentina
Attention: Mr. Carlos Felices - General Manager

Dear Sir,

We would like to advise your that France Cables et Radio S.A. has already
received your note dated December 23, 2002, whereby you propose us to extend the
agreement memorialized through our letter dated May 22, 2002, accepted by
Telecom Argentina-STET France Telecom S.A. ("Telecom Argentina") on June 6,
2002, defined in your proposal as the "Effective Agreement". In respect to the
above, please note that Cables et Radio S.A. accepts in full the abovementioned
proposal.

Enclosed you will find a duly initialled copy of your Note dated December 23,
2002, for the purpose of identifying the proposal sent by Telecom Argentina and
would be grateful if you could remit us a duly signed copy of this letter of
acceptance as return receipt.

Sincerely,

[Signature]

France Cables et Radio S.A.
Eng.  Laurent Mialet

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