Document:

Exhibit 4.18

AGREEMENT

 

 

DATED 23RD NOVEMBER, 2004

(as
amended and restated by an amendment and restatement agreement dated 10th
October, 2005)

SEK 19,100,000,000

CREDIT
FACILITY

for

TELE2 SVERIGE AB

with

TELE2 AB (publ)

as

Original Guarantor

Arranged
by

ABN AMRO
BANK N.V.

CALYON BANK, STOCKHOLM BRANCH

CITIGROUP GLOBAL MARKETS LIMITED 

DNB NOR BANK ASA

NORDEA BANK AB (publ)

SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)

SOCIÉTÉ GÉNÉRALE

SVENSKA HANDELSBANKEN AB (publ)

THE ROYAL BANK OF SCOTLAND PLC

WESTLB AG, LONDON BRANCH

 

WITH

WESTLB AG, LONDON BRANCH

as Facility Agent

 

 

CONTENTS

	
  Clause

  	
   

  	
   

  	
   

  	
   

  
	
  1. 
 	
   

  	
  Interpretation

  	
   

  	
  1

  
	
  2.

  	
   

  	
  Facilities

  	
   

  	
  15

  
	
  3.

  	
   

  	
  Purpose

  	
   

  	
  16

  
	
  4.

  	
   

  	
  Conditions Precedent

  	
   

  	
  16

  
	
  5.

  	
   

  	
  Utilisation - Loans

  	
   

  	
  17

  
	
  6.

  	
   

  	
  Extension of Facility A Final Maturity Date

  	
   

  	
  18

  
	
  7.

  	
   

  	
  Optional Currencies

  	
   

  	
  18

  
	
  8.

  	
   

  	
  Repayment

  	
   

  	
  20

  
	
  9.

  	
   

  	
  Prepayment and cancellation

  	
   

  	
  20

  
	
  10.

  	
   

  	
  Interest

  	
   

  	
  24

  
	
  11.

  	
   

  	
  Terms

  	
   

  	
  26

  
	
  12.

  	
   

  	
  Market disruption

  	
   

  	
  26

  
	
  13.

  	
   

  	
  Taxes

  	
   

  	
  27

  
	
  14.

  	
   

  	
  Increased Costs

  	
   

  	
  29

  
	
  15.

  	
   

  	
  Mitigation

  	
   

  	
  29

  
	
  16.

  	
   

  	
  Payments

  	
   

  	
  30

  
	
  17.

  	
   

  	
  Guarantee and indemnity

  	
   

  	
  32

  
	
  18.

  	
   

  	
  Representations

  	
   

  	
  35

  
	
  19.

  	
   

  	
  Information covenants

  	
   

  	
  38

  
	
  20.

  	
   

  	
  Financial covenants

  	
   

  	
  41

  
	
  21.

  	
   

  	
  General covenants

  	
   

  	
  43

  
	
  22.

  	
   

  	
  Default

  	
   

  	
  48

  
	
  23.

  	
   

  	
  The Administrative Parties

  	
   

  	
  51

  
	
  24.

  	
   

  	
  Evidence and calculations

  	
   

  	
  56

  
	
  25.

  	
   

  	
  Fees

  	
   

  	
  56

  
	
  26.

  	
   

  	
  Indemnities and Break Costs

  	
   

  	
  58

  
	
  27.

  	
   

  	
  Expenses

  	
   

  	
  59

  
	
  28.

  	
   

  	
  Amendments and waivers

  	
   

  	
  59

  
	
  29.

  	
   

  	
  Changes to the Parties

  	
   

  	
  61

  
	
  30.

  	
   

  	
  Disclosure of information

  	
   

  	
  64

  
	
  31.

  	
   

  	
  Set-off

  	
   

  	
  65

  
	
  32.

  	
   

  	
  Pro rata sharing

  	
   

  	
  65

  
	
  33.

  	
   

  	
  Severability

  	
   

  	
  66

  
	
  34.

  	
   

  	
  Counterparts

  	
   

  	
  66

  
	
  35.

  	
   

  	
  Notices

  	
   

  	
  66

  
	
  36.

  	
   

  	
  Language

  	
   

  	
  69

  
	
  37.

  	
   

  	
  Governing law

  	
   

  	
  69

  
	
  38.

  	
   

  	
  Enforcement

  	
   

  	
  69

  

 

 

 

	
  Schedule

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Original Parties

  	
   

  	
  71

  
	
  2.

  	
   

  	
  Conditions precedent documents

  	
   

  	
  73

  
	
   

  	
   

  	
  Part 1    To be Delivered Before
  the First Request

  	
   

  	
  73

  
	
   

  	
   

  	
  Part 2    For an Additional
  Guarantor

  	
   

  	
  75

  
	
  3.

  	
   

  	
  Form of Request

  	
   

  	
  76

  
	
  4.

  	
   

  	
  Calculation of the Mandatory Cost

  	
   

  	
  77

  
	
  5.

  	
   

  	
  Form of Transfer Certificate

  	
   

  	
  80

  
	
  6.

  	
   

  	
  Existing Security

  	
   

  	
  82

  
	
  7.

  	
   

  	
  Form of Compliance Certificate

  	
   

  	
  83

  
	
  8.

  	
   

  	
  Form of Accession Agreement

  	
   

  	
  84

  
	
  9.

  	
   

  	
  Form of Resignation Request

  	
   

  	
  85

  

 

 

THIS AGREEMENT is dated 23rd
November, 2004 (as amended and restated on 10th October, 2005)

BETWEEN:

(1)                                  TELE2 SVERIGE AB (a
company incorporated under the laws of Sweden) of P.O. Box 62, S-164
94 Kista, Sweden (corporate identity number 556267-5164) (the Company);

(2)                                  TELE2 AB (publ) (a company
incorporated under the laws of Sweden) of P.O. Box 2094, S-10313,
Stockholm, Sweden (corporate identity number 556410-8917) (the Parent);

(3)                                  THE ENTITY listed in Schedule 1
(Original Parties) as original guarantor (in this capacity the Original Guarantor);

(4)                                  ABN AMRO BANK N.V., CALYON BANK, STOCKHOLM BRANCH, GITIGROUP GLOBAL
MARKETS LIMITED, DNB NOR BANK ASA, NORDEA BANK AB (publ), SEB MERCHANT BANKING,
SKANDINAVISKA ENSKILDA BANKEN AB (publ), SOCIÉTÉ GÉNÉRALE, SVENSKA
HANDELSBANKEN AB (publ), THE ROYAL BANK OF SCOTLAND PLC AND WESTLB AG, LONDON
BRANCH (in this capacity, each a Mandated
Lead Arranger and together, the Mandated Lead Arrangers);

(5)                                  THE FINANCIAL INSTITUTIONS
listed in Schedule 1 (Original Parties) as original lenders (the Original Lenders); and

(6)                                  WESTLB AG, LONDON BRANCH as
facility agent (in this capacity, the Facility Agent).

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

Accession
Agreement means a letter, substantially
in the form of Schedule 8 (Form of Accession Agreement), with such
amendments as the Facility Agent and the Company may agree (both acting
reasonably).

Additional
Guarantor means a member of the Group
which becomes a Guarantor after the Signing Date.

Administrative
Party means a Mandated Lead Arranger or the Facility
Agent.

Affiliate means a Subsidiary or a Holding Company of a person or any other
Subsidiary of that Holding Company.

Amendment and Restatement Agreement
means the amendment and restatement agreement relating to this Agreement dated
on or about 10th October, 2005.

Availability
Period means the Facility A Availability Period, the
Facility B Availability Period or the Facility C Availability Period.

 1
 

 

Break
Costs means the amount (if any) which a Lender is
entitled to receive under Clause 26.3 (Break Costs) as compensation if any
part of a Loan or overdue amount is repaid or prepaid.

Business
Day means a day (other than a Saturday or a
Sunday) on which banks are open for general business in London and Stockholm
and:

(a)                                  if on that day a payment in or a purchase of a currency (other than
euro) is to be made, the principal financial centre of the country of that
currency; or

(b)                                 if on that day a payment in or a purchase of euro is to be made, which
is also a TARGET Day.

Cash
Backed Loans means loans borrowed by a
member of the Group, the commercial effect of which is to provide funding from
one member of the Group to another member of the Group and where the lender(s) of
such loans have at all times security over cash for the aggregate principal
amount outstanding under the loan.

CIBOR means for a Term of any Loan or overdue amount in Danish Kroner:

(a)                                  the applicable Screen Rate; or

(b)                                 if no Screen Rate is available for Danish Kroner or Term of that Loan or
overdue amount, the arithmetic mean (rounded upward to four decimal places) of
the rates, as supplied to the Facility Agent as its request, quoted by the
Reference Banks to leading banks in the Copenhagen interbank market,

as
of 11.00 a.m. (Copenhagen time) on the Rate Fixing Day for the offering of
deposits in Danish Kroner for a period comparable to that Term.

Commitment means:

(a)                                  for an Original Lender, the amount set opposite its name in Schedule 1
(Original Parties) and the amount of any other Commitment it acquires and Facility A Commitment, Facility B Commitment
and Facility C Commitment shall be
construed accordingly; and

(b)                                 for any other Lender, the amount of any Commitment it acquires,

to
the extent not cancelled, transferred or reduced under this Agreement.

Compliance
Certificate means a certificate
substantially in the form of Schedule 7 (Form of Compliance Certificate)
setting out, among other things, calculations of the financial covenants.

Danish
Kroner means the lawful currency for the time being of
Denmark.

Dangerous
Substance means any emissions of
whatever form and any natural or artificial substance (whether in solid or
liquid form or in the form of a gas or vapour and whether alone or in
combination with any other substance) which, taking into account the
concentrations and quantities present and the manner in which it is being used
or handled, it is reasonably foreseeable will cause harm to man or any other
living organism or damage to the Environment (including any controlled,
special, hazardous, toxic, radioactive or dangerous waste).

 2
 

 

Default means:

(a)                                  an Event of Default; or

(b)                                 an event which would be (with the expiry of a grace period, the giving
of notice or the making of any determination under the Finance Documents or any
combination of them) an Event of Default.

Effective
Date has the meaning given to it in the Amendment
and Restatement Agreement.

EKN
Facilities means short term loan
facilities guaranteed by EKN and provided to members of the Group located in
Estonia, Latvia or Lithuania for an aggregate amount of not more than
US$15,000,000.

Environment means the media of air, water and land (wherever occurring) and in
relation to the media of air and water includes, without limitation, the air
and water within buildings and the air and water within other natural or
man-made structures above or below ground and any water contained in any
underground strata.

Environmental
Approval means any authorisation
required by an Environmental Law.

Environmental
Claim means any claim by any person in connection
with:

(a)                                  a breach, or alleged breach, of an Environmental Law;

(b)                                 any accident, fire, explosion or other event of any type involving an
emission or substance which is capable of causing harm to any living organism
or the environment; or

(c)                                  any other environmental contamination.

Environmental
Law means all legislation, regulations or orders
(insofar as such regulations or orders have the force of law) to the extent
that they relate to the protection or impairment of the Environment or the
control of Dangerous Substances (whether or not in force at the Signing Date)
which are capable of enforcement in any applicable jurisdiction by legal
process.

Environmental
Licence means any permit, licence, authorisation,
consent or other approval required by any Environmental Law.

EURIBOR means for a Term of any Loan or overdue amount in euro:

(a)                                  the applicable Screen Rate; or

(b)                                 if no Screen Rate is available for that Term of that Loan or overdue
amount, the arithmetic mean (rounded upward to four decimal places) of the
rates as supplied to the Facility Agent at its request quoted by the Reference
Banks to leading banks in the European interbank market,

as
of 11.00 a.m. (Brussels time) on the Rate Fixing Day for the offering of
deposits in euro for a period comparable to that Term.

euro and EUR means the single currency of
the Participating Member States.

Event of Default means an event specified as such in Clause 22 (Default).

 3
 

 

Existing Facility means the loan agreement dated 22nd August, 2001 (as amended) made
between, among others, the Company and WestLB AG, London branch (previously
CIBC World Markets plc) as facility agent.

Extension
Request has the meaning given to it in Clause 6
(Extension of Facility A Final Maturity Date).

Facility means a credit facility made available under this Agreement and when
designated:

(a)                                  Facility A means the revolving credit
facility with extension option described in Clause 2.1 (Facility A);

(b)                                 Facility B means the revolving credit
facility described in Clause 2.2 (Facility B); and

(c)                                  Facility C means the revolving credit
facility described in Clause 2.3 (Facility C).

Facility
A Availability Period means, subject to
Clause 6 (Extension of Facility A Final Maturity Date), the period from and
including the Signing Date up to and including the date falling one month prior
to the Facility A Final MaturityDate.

Facility
A Final Maturity Date means subject to
Clause 6 (Extension of Facility A Final Maturity Date), the date falling 364
days after the Signing Date.

Facility
A Increase means the amount by which
the Total Facility A Commitments are increased on the Effective Date, being SEK
2,000,000,000.

Facility
B Availability Period means the period
from and including the Signing Date up to and including the date falling one
month prior to the Facility B Final Maturity Date.

Facility
B Final Maturity Date means the date
falling 5 years after the Signing Date.

Facility
C Availability Period means the period
from and including the Effective Date up to and including the date falling one
month prior to the Facility C Final Maturity Date.

Facility
C Final Maturity Date means the date
falling 5 years after the Signing Date.

Facility Office means the office(s) notified
by a Lender to the Facility Agent:

(a)                                  on or before the date it becomes a Lender; or

(b)                                 by not less than five Business Days’ notice,

as
the office(s) through which it will perform its obligations under this
Agreement.

Fee
Letter means any letter entered into by reference to
this Agreement between one or more Administrative Parties and the Company
setting out the amount of certain fees referred to in this Agreement.

Final
Maturity Date means the Facility A Final
Maturity Date, the Facility B Final Maturity Date or the Facility C Final
Maturity Date.

Finance
Document means:

(a)                                  this Agreement;

 4
 

 

(b)                                 a Fee Letter;

(c)                                  an Accession Agreement;

(d)                                 a Resignation Request; or

(e)                                  any other document designated as such by the Facility Agent and the
Company.

Finance
Party means a Lender or an Administrative Party.

Financial
Indebtedness means any indebtedness in
respect of:

(a)                                  moneys borrowed and debit balances at banks;

(b)                                 any debenture, bond, note, loan stock or other debt security;

(c)                                  any acceptance credit;

(d)                                 receivables sold, assigned or discounted (other than to the extent there
is no recourse to the relevant party);

(e)                                  the acquisition cost of any asset to the extent payable before or after
the time of acquisition or possession by the party liable where the advance or
deferred payment is arranged primarily as a method of raising finance or
financing the acquisition of that asset;

(f)                                    any obligation under any lease which is required to be capitalised or
which is treated as a finance lease under GAAP;

(g)                                 any other transaction (including any forward sale or purchase agreement)
which has the commercial effect of a borrowing;

(h)                                 any currency swap or interest swap, cap or collar arrangements or any
other derivative instrument, calculated by reference to the mark-to-market
valuation of such transaction at the relevant time and in accordance with the
usual practice of the counterparty of such transaction; and

(i)                                     any guarantee, indemnity or similar assurance against the indebtedness
(of any nature specified in paragraphs (a) to (h) (inclusive) above)
of any person, calculated by reference to the outstanding amount of the
indebtedness guaranteed, indemnified or subject to such assurance at the
relevant time.

Fitch means Fitch Ratings Limited or any successor to its rating business.

GAAP means accounting principles and practices generally accepted in Sweden.

Group means the Parent and its Subsidiaries.

Guarantor means an Original Guarantor or an Additional Guarantor.

Holding
Company of any other person, means a company in
respect of which that other person is a Subsidiary.

IBOR means CIBOR, LIBOR, EURIBOR, NIBOR or STIBOR (as the case may be).

 5
 

 

Increased
Cost means:

(a)                                  an additional or increased cost;

(b)                                 a reduction in the rate of return from a Facility or on its overall
capital; or

(c)                                  a reduction of an amount due and payable under any Finance Document,

which
is incurred or suffered by a Finance Party or any of its Affiliates but only to
the extent attributable to that Finance Party having entered into any Finance
Document or funding or performing its obligations under any Finance Document.

 Lender means:

(a)                                  an Original Lender; or

(b)                                 any person which becomes a Lender after the  Signing Date.

LIBOR means for a Term of any Loan or overdue amount not denominated in Danish
Kroner, euro, Norwegian Kroner or Swedish Kronor:

(a)                                  the applicable Screen Rate; or

(b)                                 if no Screen Rate is available for the relevant currency or Term of that
Loan or overdue amount, the arithmetic mean (rounded upward to four decimal
places) of the rates, as supplied to the Facility Agent at its request, quoted
by the Reference Banks to leading banks in the London interbank market,

as
of 11.00 a.m. on the Rate Fixing Day for the offering of deposits in the
currency of that Loan or overdue amount for a period comparable to that Term.

Loan means, unless otherwise stated in this Agreement, the principal amount
of each borrowing under this Agreement or the principal amount outstanding of
that borrowing and when designated:

(a)                                  Facility A means a loan under Facility
A;

(b)                                 Facility B means a loan under Facility
B; and

(c)                                  Facility C means a loan under Facility
C.

Majority
Lenders means, at any time, Lenders:

(a)                                  whose share in the outstanding Loans and whose undrawn Commitments then
aggregate 662/3 per cent. or more of the aggregate of all the
outstanding Loans and the undrawn Commitments of all the Lenders;

(b)                                 if there is no Loan then outstanding, whose undrawn Commitments then
aggregate 662/3 per cent. or more of the Total Commitments; or

(c)                               if there is no Loan then outstanding and the Total Commitments have
been reduced to zero, whose Commitments aggregated 662/3 per cent. or more of the
Total Commitments immediately before the reduction.

 6
 

 

Mandatory
Cost means the percentage rate per annum
calculated by the Facility Agent under Schedule 4 (Calculation of the Mandatory
Cost).

Margin means:

(a)                                  for a Facility A Loan, 0.20 per cent. per annum; and

(b)                                 for a Facility B Loan or a Facility C Loan, the percentage rate per
annum calculated in accordance with the table in Clause 10.3(b) (Margin
adjustment) by reference to the pro forma calculation of the ratio of
Consolidated Total Net Debt to Consolidated EBITDA delivered to the Facility
Agent before the Effective Date pursuant to the Amendment and Restatement
Agreement under which the Effective Date occurred.

Material
Adverse Effect means a material adverse
effect on:

(a)                                  the business or financial condition of the Group taken as a whole;

(b)                                 the ability of any Obligor to perform any of its payment or other
material obligations under any Finance Document; or

(c)                                  the validity or enforceability of any material terms of any Finance
Document.

Material
Subsidiary means, at any time, a
Subsidiary of the Parent whose EBITDA then equals or exceeds 10 per cent. of
the Consolidated EBITDA of the Group.

For
this purpose:

(a)                                  the EBITDA of a Subsidiary of the Parent will be determined from its
financial statements (unconsolidated if it has Subsidiaries) upon which the
latest audited financial statements of the Group have been based;

(b)                                 if a Subsidiary of the Parent becomes a member of the Group after the
date on which the latest audited financial statements of the Group have been
prepared, the EBITDA of that Subsidiary will be determined from its latest
audited financial statements;

(c)                                  the EBITDA of the Group will be determined from its latest audited
financial statements, adjusted (where appropriate) to reflect the EBITDA of any
company or business subsequently acquired or disposed of; and

(d)                                 if a Material Subsidiary disposes of all or substantially all of its
assets to another Subsidiary of the Parent, it will immediately cease to be a
Material Subsidiary and the other Subsidiary (if it is not already) will
immediately become a Material Subsidiary; the subsequent financial statements
of those Subsidiaries and the Group will be used to determine whether those
Subsidiaries are Material Subsidiaries or not.

If
there is a dispute as to whether or not a company is a Material Subsidiary, a
certificate of the auditors of the Parent will be, in the absence of manifest
error, conclusive.

Maturity
Date means the last day of the Term of a Loan.

Moody’s means Moody’s Investors Service Limited or any successor to its rating
business.

Net
Proceeds means, in respect of a
disposal, the consideration received in cash by any member or members of the
Group in respect of the disposal to any person who is not a

 7
 

 

member
of the Group of all or any part of its business, undertaking or assets net of
all Taxes applicable on, or to any gain resulting from, the disposal and net of
all reasonable third party costs, fees or expenses incurred by continuing
members of the Group in arranging and effecting that disposal.

NIBOR means for a Term of any Loan or overdue amount in Norwegian Kroner:

(a)                                  the applicable Screen Rate; or

(b)                                 if no Screen Rate is available for Norwegian Kroner or the Term of that
Loan or overdue amount, the arithmetic mean (rounded upward to four decimal
places) of the rates, as supplied to the Facility Agent as its request, quoted
by the Reference Banks to leading banks in the Norwegian interbank market.

as
of 12.00 noon (Oslo time) on the Rate Fixing Day for the offering of deposits
in Norwegian Kroner for a period comparable to that Term.

Norwegian
Kroner means the lawful currency for the time being
of Norway.

Obligor means the Company or a Guarantor.

Original
Financial Statements means the audited
consolidated financial statements of the Parent for the year ended 31st
December, 2003.

Original
Obligor means the Company or the
Original Guarantor.

Participating
Member State means a member state of the
European Communities that adopts or has adopted the euro as its lawful currency
under the legislation of the European Community for Economic Monetary Union.

Party means a party to this Agreement.

Permitted
Acquisitions means:

(a)                                  acquisitions permitted under Clause 21.6(b)(vii) (Disposals);

(b)                                 the issue of shares or equivalent equity interests in a member of the
Group pro rata to its existing shareholders;

(c)                                  the acquisition of all outstanding shares in UTA Telekom AG (UTA) provided that the total consideration payable in
respect of such acquisition is not greater than EUR 220,000,000 (or its
equivalent in other currencies), as increased by any cash balances of UTA
remaining in UTA after the acquisition and as reduced by any Financial Indebtedness
of UTA remaining outstanding after the acquisition;

(d)                                 the acquisition of all outstanding shares in Versatel, pursuant to a
tender offer announced by Tele2 Netherlands B.V and Versatel on 18 July, 2005,
for a total consideration (net of proceeds received for the disposal referred
to in Clause 21.6(b)(x) (Disposals) at or before the time of the
acquisition)) not exceeding EUR 900,000,000, provided that the net
consideration may exceed this amount if the requirements of paragraph (g) below
are complied with;

(e)                                  the acquisition of all outstanding shares in Comunitel Global S.A. for a
total consideration not exceeding EUR 257,000,000;

 8
 

 

(f)                                    the acquisition of assets or businesses provided that the total
consideration payable by the Group in respect of such acquisition is not
greater than:

(i)                                     SEK 500,000,000 (or its equivalent) for any single transaction or
connected series of transactions; and

(ii)                                  SEK 1,000,000,000 (or its equivalent) in aggregate in any financial year
of the Group; and

(g)                                 any other acquisition of assets or businesses which are related to the
business of the Group, provided that:

(i)                                     no Default is outstanding or will occur as a result of the acquisition;
and

(ii)                                  the Company provides the Facility Agent with a certificate signed by two
authorised signatories of the Company within 10 Business Days of the relevant
acquisition, confirming that the Company would have been in compliance with the
financial covenants contained in Clause 20 (Financial covenants) if they had
been tested on the date of completion of the acquisition (the Completion Date) on a pro forma basis (for the purposes of
determining the calculation of Consolidated EBITDA only, by reference to the
Ratio Period in respect of which a Compliance Certificate has most recently
been given (or if no Compliance Certificate has been given, by reference to the
12 month period ending on the Completion Date), as if the acquisition had been
completed at the beginning of the relevant Ratio Period (or 12 month period))
and taking into account the effect of the payment of the consideration for the
acquisition and the incurrence of any Financial Indebtedness required to be
incurred by any member of the Group to finance the acquisition.

Permitted
Securitisation means any securitisation of
receivables originated by a member of the Group provided that the programme
limits (being the maximum indebtedness that may be outstanding under the
relevant securitisation at any time) in respect of all such securitisations do
not exceed SEK 2,000,000,000 in aggregate at any time.

Project
Finance Indebtedness means any
indebtedness (in an aggregate principal amount for all members of the Group not
exceeding SEK 1,000,000,000 (or its equivalent) (excluding, for this purpose,
indebtedness incurred under sub-paragraph (a) below)) incurred by a debtor
to finance the ownership, acquisition, construction, development and/or
operation of an asset or connected group of assets in respect of which the
person or persons to whom such indebtedness is, or may be, owed have no recourse
whatsoever for the repayment of or payment of any sum relating to such
indebtedness other than:

(a)                                  recourse to the Parent in respect of a guarantee by the Parent in
relation to Financial Indebtedness of the Swedish Joint Venture Company where
the actual and contingent indebtedness of the Parent thereunder does not exceed
a principal amount which is the lower of:

(i)                                     50 per cent. of the principal amount of Financial Indebtedness of the
Swedish Joint Venture Company covered by the guarantee; and

(ii)                                  SEK 3,500,000,000; and/or

(b)                                 recourse to such debtor for amounts limited to the cash flow from such
asset; and/or

 9
 

 

(c)                                  recourse to such debtor generally, which recourse is limited to a claim
for damages (other than liquidated damages and damages required to be calculated
in a specified way) for breach of an obligation, representation or warranty
(not being a payment obligation, representation or warranty or an obligation,
representation or warranty to procure payment by another or an obligation,
representation or warranty to comply or to procure compliance by another with
any financial ratios or other test of financial condition) by the person
against whom such recourse is available; and/or

(d)                                 if such debtor has been established specifically for the purpose of constructing,
developing, owning and/or operating the relevant asset and such debtor owns no
other assets and carries on no other business, recourse to all of the material
assets and undertaking of such debtor and the shares in the capital of such
debtor and shareholder loans made to such debtor; and/or

(e)                                  recourse to the Company or a Guarantor in respect of guarantees given by
the Company or a Guarantor in respect of Project Finance Indebtedness provided
that the actual and contingent indebtedness of the Parent and the Guarantors
thereunder does not exceed SEK 500,000,000 in aggregate (excluding, for this
purpose, the guarantee given by the Parent under sub-paragraph (a) above).

Pro Rata
Share means:

(a)                                  for the purpose of determining a Lender’s share in a utilisation of a
Facility, the proportion which its Commitment under that Facility bears to all
the Commitments under that Facility; and

(b)                                 for any other purpose on a particular date:

(i)                                     the proportion which a Lender’s share of the Loans (if any) bears to all
the Loans;

(ii)                                  if there is no Loan outstanding on that date, the proportion which its
Commitment bears to the Total Commitments on that date; or

(iii)                               if the Total Commitments have been cancelled, the proportion which its
Commitment bore to the Total Commitments immediately before being cancelled.

Rate
Fixing Day means:

(a)                                  the first day of a Term for a Loan denominated in Sterling;

(b)                                 the second Business Day before the first day of a Term for a Loan
denominated in any other currency (other than euro); or

(c)                                  the second TARGET Day before the first day of a Term for a Loan
denominated in euro,

or
such other day as the Facility Agent determines is generally treated as the
rate fixing day by market practice in the relevant interbank market.

Reference
Banks means the Facility Agent, ABN AMRO Bank, N.V.
and The Royal Bank of Scotland plc and any other bank or financial institution
appointed as such by the Facility Agent under this Agreement.

 10

 

Repeating
Representations means the representations
which are deemed to be repeated under Clause 18.17 (Times for making
representations).

Reporting
Dates means 31st March, 30th June, 30th September and
31st December in each year (each, a Reporting Date).

Request means a request for a Loan, substantially in the form of Schedule 3 (Form of
Request).

Resignation
Request means a letter in the form
of Schedule 9 (Form of Resignation Request), with such amendments as the
Facility Agent and the Company may agree.

Rollover
Loan means one or more Loans:

(a)                                  to be made on the same day that a maturing Loan is due to be repaid;

(b)                                 the aggregate amount of which is equal to or less than the maturing
Loan;

(c)                                  in the same currency, and under the same Facility, as the maturing Loan;
and

(d)                                 to be made for the purpose of refinancing a maturing Loan.

S&P means Standard & Poor’s Rating Services, a division of The
McGraw-Hill Companies, Inc. or any successor to its ratings business.

Screen
Rate means:

(a)                                  for LIBOR, the British Bankers Association Interest Settlement Rate;

(b)                                 for EURIBOR, the percentage rate per annum determined by the Banking
Federation of the European Union;

(c)                                  for CIBOR page DKNA13;

(d)                                 for NIBOR, page NIBR; and

(e)                                  for STIBOR, page SIOR,

for
the relevant currency and Term displayed on the appropriate page of the
Telerate or, as the case may be, Reuters screen selected by the Facility Agent.
If the relevant page is replaced or the service ceases to be available,
the Facility Agent (after consultation with the Company and the Lenders) may
specify another page or service displaying the appropriate rate.

Security
Interest means any mortgage, pledge,
lien, charge, assignment, hypothecation or security interest or any other
agreement or arrangement having a similar effect.

Signing
Date means the date of this Agreement (being 23rd
November, 2004).

Sterling means the lawful currency for the time being of the U.K.

STIBOR means for a Term of any Loan or overdue amount denominated in Swedish
Kronor:

(a)                                  the applicable Screen Rate; or

 11
 

 

 

(b)                                 if no Screen Rate is available for Swedish Kronor or the Term of that
Loan or overdue amount, the arithmetic mean (rounded up to four decimal places)
of the rates, as supplied to the Facility Agent at its request, quoted by the
Reference Banks to leading banks in the Stockholm interbank market,

as
of 11.00 a.m. (Stockholm time) on the Rate Fixing Day for the offering of
deposits in Swedish Kronor for a period comparable to that Term.

Subsidiary means an entity of which a person has direct or indirect control or
owns directly or indirectly more than 50 per cent. of the voting capital or
similar right of ownership and control for
this purpose means the power to direct the management and the policies of the
entity whether through the ownership of voting capital, by contract or
otherwise.

Swedish
Joint Venture means the joint venture
between the Parent, the Company, Telia AB and Telia Mobile AB for the joint
exploitation of the Swedish UMTS licence initially granted to the Company.

Swedish Joint
Venture Company means the company(s) and/or
partnership(s) through which the Swedish Joint Venture is conducted, which
company(s) and/or partnership(s) have no assets or liabilities other
than pursuant to, or in connection with, the Swedish Joint Venture.

Swedish
Kronor and SEK means the
lawful currency for the time being of the Kingdom of Sweden.

TARGET
Day means a day on which the Trans-European
Automated Real-time Gross Settlement Express Transfer payment system is open
for the settlement of payments in euro.

Tax means any tax, levy, impost, duty or other charge or withholding of a
similar nature (including any related penalty or interest).

Tax
Deduction means a deduction or
withholding for or on account of Tax from a payment under a Finance Document.

Tax
Payment means a payment made by an Obligor to a
Finance Party in any way relating to a Tax Deduction or under any indemnity
given by that Obligor in respect of Tax under any Finance Document.

Term means each period determined under this Agreement by reference to which
interest on a Loan or an overdue amount is calculated.

Total
Commitments means the aggregate for the
time being of the Total Facility A Commitments, the Total Facility B
Commitments and the Total Facility C Commitments.

Total
Facility A Commitments means the aggregate
for the time being of the Facility A Commitments.

Total
Facility B Commitments means the aggregate
for the time being of the Facility B Commitments.

Total
Facility C Commitments means the aggregate
for the time being of the Facility C Commitments.

 12
 

 

 

Transfer
Certificate means a certificate,
substantially in the form of Schedule 5 (Form of Transfer Certificate),
with such amendments as the Facility Agent may approve or reasonably require or
any other form agreed between the Facility Agent and the Company.

U.K. means the United Kingdom.

UMTS means Universal Mobile Telecommunication System.

U.S.
Dollars and US$ means the
lawful currency for the time being of the United States of America.

Utilisation means a utilisation of a Facility.

Utilisation
Date means each date on which a Facility is
utilised.

Versatel means Versatel Telecom International N.V.

1.2                               Construction

(a)                                  The following definitions have the meanings given to them in Clause 20
(Financial covenants):

(i)                                     Consolidated Cash and Cash Equivalents;

(ii)                                  Consolidated EBITDA;

(iii)                               Consolidated Interest Expense;

(iv)                              Consolidated Total Debt;

(v)                                 Consolidated Total Net Debt;

(vi)                              Net Financial Expenses; and

(vii)                           Ratio Period.

(b)                                 In this Agreement, unless the contrary intention appears, a reference
to:

(i)                                     an amendment includes a supplement,
novation, restatement or re-enactment and amended will be
construed accordingly;

(ii)                                  assets includes present and future
properties, revenues and rights of every description;

(iii)                               an authorisation includes an
authorisation, consent, approval, resolution, licence, exemption, filing,
registration or notarisation;

(iv)                              disposal means a sale, transfer,
grant, lease or other disposal, whether voluntary or involuntary, and dispose will be construed accordingly;

(v)                                 indebtedness includes any obligation
(whether incurred as principal or as surety) for the payment or repayment of
money;

 13
 

 

 

(vi)                              know your customer requirements are the identification checks that a Finance
Party requests in order to meet its obligations under any applicable law or
regulation to identify a person who is (or is to become) its customer;

(vii)                           a person includes any individual,
company, corporation, unincorporated association or body (including a
partnership, trust, joint venture or consortium), government, state, agency,
organisation or other entity whether or not having separate legal personality;

(viii)                        a regulation includes any regulation,
rule, official directive, request or guideline (whether or not having the force
of law but, if not having the force of law, being of a type with which any
person to which it applies is accustomed to comply) of any governmental,
inter-governmental or supranational body, agency, department or regulatory,
self-regulatory or other authority or organisation;

(ix)                                a currency is a reference to the lawful currency for the time being of
the relevant country;

(x)                                   a Default being outstanding
means that it has not been remedied or waived;

(xi)                                a provision of law is a reference to that provision as extended,
applied, amended or re-enacted and includes any subordinate legislation;

(xii)                             a Clause, a Subclause or a Schedule is a reference to a clause or
subclause of, or a schedule to, this Agreement;

(xiii)                          a Party or any other person includes its successors in title, permitted
assigns and permitted transferees;

(xiv)                         a Finance Document or another document is a reference to that Finance
Document or other document as amended; and

(xv)                            a time of day is a reference to London time unless otherwise specified.

(c)                                  Unless the contrary intention appears, a reference to a month or months is a
reference to a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next calendar month or the calendar month
in which it is to end, except that:

(i)                                     if the numerically corresponding day is not a Business Day, the period
will end on the next Business Day in that month (if there is one) or the
preceding Business Day (if there is not);

(ii)                                  if there is no numerically corresponding day in that month, that period
will end on the last Business Day in that month; and

(iii)                               notwithstanding sub-paragraph (i) above, a period which commences
on the last Business Day of a month will end on the last Business Day in the
next month or the calendar month in which it is to end, as appropriate.

(d)                                 Unless expressly provided to the contrary in a Finance Document, a
person who is not a party to a Finance Document may not enforce any of its
terms under the Contracts (Rights of Third Parties) Act 1999 and,
notwithstanding any term of any Finance Document, no consent of any third party
is required for any variation (including any release or compromise of any
liability) or termination of any Finance Document.

 14
 

 

 

(e)                                  Unless the contrary intention appears:

(i)                                     a reference to a Party will not include that Party if it has ceased to
be a Party under this Agreement;

(ii)                                  a word or expression used in any other Finance Document or in any notice
given in connection with any Finance Document has the same meaning in that Finance
Document or notice as in this Agreement; and

(iii)                               any obligation of an Obligor under the Finance Documents which is not a
payment obligation remains in force for so long as any payment obligation of an
Obligor is or may be outstanding under the Finance Documents.

(f)                                    The headings in this Agreement do not affect its interpretation.

2.                                      FACILITIES

2.1                               Facility A

Subject
to the terms of this Agreement, the Lenders make available to the Company a
multicurrency revolving credit facility (with an extension option) in an
aggregate amount equal to the Total Facility A Commitments.

2.2                               Facility B

Subject
to the terms of this Agreement, the Lenders make available to the Company a
multicurrency revolving credit facility, in an aggregate amount equal to the
Total Facility B Commitments.

2.3                               Facility C

Subject
to the terms of this Agreement, the Lenders make available to the Company a
multicurrency revolving credit facility, in an aggregate amount equal to the
Total Facility C Commitments.

2.4                               Nature of a Finance Party’s rights and obligations

Unless
all the Finance Parties agree otherwise:

(a)                                  the obligations of a Finance Party under the Finance Documents are
several;

(b)                                 failure by a Finance Party to perform its obligations does not affect
the obligations of any other Party under the Finance Documents;

(c)                                  no Finance Party is responsible for the obligations of any other Finance
Party under the Finance Documents;

(d)                                 the rights of a Finance Party under the Finance Documents are separate
and independent rights;

(e)                                  a Finance Party may, except as otherwise stated in the Finance
Documents, separately enforce those rights; and

(f)                                    a debt arising under the Finance Documents to a Finance Party is a
separate and independent debt.

 15
 

 

 

3.                                      PURPOSE

3.1                               Facility A Loans

Each
Facility A Loan may only be used for the short term liquidity requirements of
the Group.

3.2                               Facility B Loans

Each
Facility B Loan may only be used:

(i)                                     to repay the Existing Facility and to pay any breakage or other costs
associated with such repayment;

(ii)                                  for the general corporate and working capital purposes of the Group; and

(iii)                               to finance the acquisition of all outstanding shares in UTA Telekom AG
(to the extent the acquisition falls within paragraph (c) of the
definition of Permitted Acquisition).

3.3                               Facility C Loans

Each
Facility C Loan may only be used:

(a)                                  to finance the acquisitions referred to in, and on the terms permitted
by, paragraphs (d) and (e) of the definition of Permitted
Acquisition; and

(b)                                 for the general corporate and working capital purposes of the Group.

3.4                               No obligation to monitor

No
Finance Party is bound to monitor or verify the utilisation of a Facility.

4.                                      CONDITIONS PRECEDENT

4.1                               Conditions precedent documents

A
Request may not be given until the Facility Agent has notified the Company and
the Lenders that it has received all of the documents and evidence set out in Part 1
of Schedule 2 (Conditions precedent documents) in form and substance
satisfactory to the Facility Agent. The Facility Agent must give this
notification to the Company and the Lenders promptly upon being so satisfied.

4.2                               Further conditions precedent

The
obligations of each Lender to participate in any Loan are subject to the
further conditions precedent that on both the date of the Request and the
Utilisation Date for that Loan:

(a)                                  the Repeating Representations are correct in all material respects; and

(b)                                 no Default or, in the case of a Rollover Loan, no Event of Default is
outstanding or would result from the Loan.

 16
 

 

 

4.3                               Maximum number

Unless
the Facility Agent agrees, a Request may not be given if, as a result, there
would be more than 15 Loans outstanding.

5.                                      UTILISATION - LOANS

5.1                               Giving of Requests

(a)                                  The Company may borrow a Loan by giving to the Facility Agent a duly
completed Request.

(b)                                 Unless the Facility Agent otherwise agrees, the latest time for receipt
by the Facility Agent of a duly completed Request is 11.00 a.m. (London
time) one Business Day before the Rate Fixing Day for the proposed borrowing.

(c)                                  Each Request is irrevocable.

5.2                               Completion of Requests

A
Request for a Loan will not be regarded as having been duly completed unless:

(a)                                  it identifies the Facility the Loan applies to;

(b)                                 the Utilisation Date is a Business Day falling within the Availability
Period for the relevant Facility;

(c)                                  the amount of the Loan requested is:

(i)                                     a minimum of SEK 100,000,000 (or an amount which complies with Clause 7
(Optional Currencies) and an integral multiple of 10,000,000 units of that
currency);

(ii)                                  the maximum undrawn amount available under the relevant Facility on the
proposed Utilisation Date; or

(iii)                               such other amount as the Facility Agent may agree;

(d)                                 the proposed currency and Term comply with this Agreement; and

(e)                                  it certifies that the Loans will be applied in accordance with Clause 3
(Purpose).

Only
one Loan may be requested in a Request.

5.3                               Advance of Loan

(a)                                  The Facility Agent must promptly notify each Lender of the details of
the requested Loan and the amount of its share in that Loan.

(b)                                 The amount of each Lender’s share of the Loan will be its Pro Rata Share
on the proposed Utilisation Date.

(c)                                  No Lender is obliged to participate in a Loan if, as a result:

(i)                                     its share in the Loans under a Facility would exceed its commitment for
that Facility; or

 17
 

 

 

(ii)                                  the Loans would exceed the Total Commitments.

(d)                                 If the conditions set out in this Agreement have been met, each Lender
must make its share in the Loan available to the Facility Agent for the Company
through its Facility Office on the Utilisation Date.

6.                                      EXTENSION OF FACILITY A FINAL MATURITY DATE

(a)                                  The Company may request that the Facility A Final Maturity Date be
extended for a period of 12 months by giving notice to the Facility Agent no
more than 40 days, and not less than 20 days, before the then current Facility
A Final Maturity Date (the Extension Request).

(b)                                 If one or more of the Lenders agree to the Extension Request (by notice
in writing to the Facility Agent) by the date falling 10 days before the
Facility A Final Maturity Date (each an Extending Lender),
the Facility A Final Maturity Date, in respect of the Facility A Commitment of
each Extending Lender, will be extended for a further period of 12 months and
the Facility A Final Maturity Date in respect of each Extending Lender will
accordingly be the Facility A Final Maturity Date as so extended.

(c)                                  Any request for an Extension Request is irrevocable.

(d)                                 The Company must pay to the Facility Agent, on the original Facility A
Final Maturity  Date, a fee in Swedish
Kronor of 0.025 per cent. flat on the amount of the Facility A Commitments of
the Extending Lenders (other than Facility A Commitments in respect of the
Facility A Increase)  on the original
Facility A Final Maturity Date (for distribution to the Extending Lenders pro
rata to each Extending Lender’s Facility A Commitment (other than Facility A
Commitments in respect of the Facility A Increase)).

(e)                                  No Lender is under any obligation to agree to an Extension Request.

7.                                      OPTIONAL CURRENCIES

7.1                               General

In this Clause:

Agent’s
Spot Rate of Exchange means the Facility
Agent’s spot rate of exchange for the purchase of the relevant currency in the
London foreign exchange market with Swedish Kronor as of 11.00 a.m. on a
particular day.

Swedish
Kronor Amount of a
Loan or part of a Loan means:

(a)                                  if the Loan is denominated in Swedish Kronor, its amount; or

(b)                                 if the Loan is denominated in an Optional Currency, its equivalent in
Swedish Kronor calculated on the basis of the Agent’s Spot Rate of Exchange one
Business Day before the Rate Fixing Day for that Term.

Optional
Currency means any currency (other
than Swedish Kronor) in which a Loan may be denominated under this Agreement.

7.2                               Selection

(a)                                  The Company must select the currency of a Loan in its Request.

 18
 

 

 

(b)                                 The amount of a Loan requested in an Optional Currency must be a minimum
amount of the equivalent of SEK 100,000,000 and, if required by the Facility
Agent, an integral multiple of 10,000,000 units of that currency.

(c)                                  Unless the Facility Agent otherwise agrees, the Loans may not be
denominated at any one time in more than six currencies.

7.3                               Conditions relating to Optional Currencies

(a)                                  A Loan may be denominated in an Optional Currency for a Term if:

(i)                                     that Optional Currency is readily available in the amount required and
freely convertible into Swedish Kronor in the London foreign exchange market on
the Rate Fixing Day and the first day of that Term; and

(ii)                                  that Optional Currency is euro, Danish Kroner, Norwegian Kroner,
Sterling, US Dollars or has been previously approved by the Facility Agent
(acting on the instructions of all the Lenders).

(b)                                 If the Facility Agent has received a request from the Company for a
currency to be approved as an Optional Currency, the Facility Agent must,
within five Business Days, confirm to the Company:

(i)                                     whether or not the Lenders have given their approval; and

(ii)                                  if approval has been given, the minimum amount (and, if required,
integral multiples) for any Loan in that currency.

7.4                               Revocation of currency

(a)                                  Notwithstanding any other term of this Agreement, if before 9.30 a.m.
on any Rate Fixing Day the Facility Agent receives notice from a Lender that:

(i)                                     the Optional Currency requested is not readily available to it in the
relevant interbank market in the amount and for the period required; or

(ii)                                  participating in a Loan in the proposed Optional Currency might
contravene any law or regulation applicable to it,

the
Facility Agent must give notice to the Company to that effect promptly and in
any event before 11.00 a.m. on that day.

(b)                                 In this event:

(i)                                     that Lender must participate in the Loan in Swedish Kronor; and

(ii)                                  the share of that Lender in the Loan and any other similarly affected
Lender(s) will be treated as a separate Loan denominated in Swedish Kronor
during that Term.

(c)                                  Any part of a Loan treated as a separate Loan under this Subclause will
not be taken into account for the purposes of any limit on the number of Loans
or currencies outstanding at any one time.

(d)                                 A Loan will still be treated as a Rollover Loan if it is not denominated
in the same currency as the maturing Loan by reason only of the operation of
this Subclause.

 19
 

 

 

7.5                               Optional Currency equivalents

The
equivalent in Swedish Kronor of a Loan or part of a Loan in an Optional
Currency for the purposes of calculating:

(a)                                  whether any limit under this Agreement has been exceeded;

(b)                                 the amount of a Loan;

(c)                                  the share of a Lender in a Loan;

(d)                                 the amount of any repayment or prepayment of a Loan; or

(e)                                  the undrawn amount of a Lender’s Commitment,

is
its Swedish Kronor Amount.

7.6                               Notification

The
Facility Agent must notify the Lenders and the Company of the relevant Swedish
Kronor Amount (and the applicable Agent’s Spot Rate of Exchange) promptly after
they are ascertained.

8.                                      REPAYMENT

(a)                                  The Company must repay each Loan in full on its Maturity Date.

(b)                                 Subject to the other terms of this Agreement, any amounts repaid under
paragraph (a) above may be re-borrowed.

9.                                      PREPAYMENT AND CANCELLATION

9.1                               Mandatory prepayment - illegality

(a)                                  A Lender must notify the Company promptly if it becomes aware that it is
unlawful in any jurisdiction for that Lender to perform any of its obligations
under a Finance Document or to fund or maintain its share in any Loan.

(b)                                 After notification under paragraph (a) above:

(i)                                     the Company must repay or prepay the share of that Lender in each Loan
made to it on the date specified in paragraph (c) below; and

(ii)                                  the Commitment of that Lender will be immediately cancelled.

(c)                                  The date for repayment or prepayment of a Lender’s share in a Loan will
be:

(i)                                     the last day of the current Term of that Loan; or

(ii)                                  if earlier, the date specified by the Lender in the notification under
paragraph (a) above and which must not be earlier than the last day of any
applicable grace period allowed by law.

 20

 

 

9.2                               Mandatory Prepayment Upon Control Event

(a)                                  If a Control Event occurs:

(i)                                     the Company shall promptly notify the Facility Agent upon becoming aware
of such Control Event; and

(ii)                                  if the Majority Lenders so require, the Facility Agent shall, by not less
than 20 Business Days’ notice to the Company, cancel the Total Commitments and
declare all outstanding Loans, together with all accrued interest, fees and
other amounts outstanding under the Finance Documents immediately due and
payable, whereupon the Total Commitments will be cancelled and all such
outstanding amounts will become immediately due and payable.

(b)                                 For the purposes of this Clause 9.2:

(i)                                     a Control Event occurs if any person or
group of persons acting in concert (other than a Stenbeck Party) directly or
indirectly acquires, at any time after the Signing Date , beneficial ownership
of shares in the Parent to which attach more than the higher of:

(A)                              30 per cent. of the voting rights attaching to all of the issued share
capital of the Parent at that time; and

(B)                                the percentage of voting rights attaching to all of the issued share
capital of the Parent held by one or more Stenbeck Party at that time,

other
than with the prior written consent of the Majority Lenders (such consent not
to be unreasonably withheld). For these purposes, but without limitation, it
shall not be unreasonable for any Lender to withhold its consent if it confirms
to the Company that the Control Event, in its opinion, has caused or will cause
a deterioration in the credit quality of the Group, or has caused or will cause
any internal or regulatory limit applicable to that Lender to be breached;

(ii)                                  a Stenbeck Party is the estate of Mr Jan
Stenbeck or any of his siblings, uncles, aunts, children, grandchildren or
remoter issue or any spouse of any of the foregoing persons or the executors,
trustees or other legal representatives of the estate or any assets of any of
the foregoing persons; and

(iii)                               acting in concert means
acting together pursuant to an agreement or understanding (whether formal or
informal).

9.3                               Mandatory prepayment - disposals

(a)                                  If any member of the Group receives any Net Proceeds in respect of the
disposal of any of the assets, business or undertaking of any member of the
Group, the Company shall notify the Facility Agent of the receipt within 10
Business Days after the receipt and shall (if so requested in writing by the
Majority Lenders) apply, or shall procure that there is applied, an amount
equal to the Net Proceeds of such disposal in or towards prepayment of the
Loans in accordance with this Clause, provided that the foregoing requirement
to prepay or notify shall not apply where:

(i)                                     the Company notifies the Facility Agent within 10 Business Days after
the date of this disposal that Net Proceeds of such disposal are to be applied
in reinvestment in

 21
 

 

 

the
business of the Group, and those Net Proceeds are so reinvested within 180 days
of the date of disposal or, if later, of the date of receipt of the relevant
Net Proceeds; or

(ii)                                  the disposal is permitted by Clause 21.6(b)(i), (ii), (iv), (vi),(vii) or
(x) (Disposals); or

(iii)                               the disposal is permitted by Clause 21.6(b)(iii), (v), (viii) or (ix) 
(Disposals) and the Net Proceeds of the disposal, when aggregated with the Net
Proceeds of all other such disposals in the same financial year of the Group,
do not exceed SEK 1,000,000,000 (or its equivalent).

(b)                                 Any prepayment under this sub-clause must be made:

(i)                                     on or before the last day of the Term(s) of the Loan(s) to be
prepaid current at the time the relevant Net Proceeds were received; or

(ii)                                  if the Net Proceeds of the disposal are to be reinvested in the business
of the Group in accordance with paragraph (a)(i) above, at the end of the
180 day period within which such reinvestment must occur, if such reinvestment
has not occurred by then.

(c)                                  Any prepayment of the Loans under this sub-paragraph must be applied:

(i)                                     first, in prepayment of Facility B Loans and Facility C Loans, pro rata
between Facility B and Facility C; and

(ii)                                  secondly, in prepayment of Facility A Loans.

9.4                               Voluntary prepayment

(a)                                  The Company may, by giving not less than five Business Days’ prior
notice to the Facility Agent, prepay any Loan at any time in whole or in part.

(b)                                 A prepayment of part of a Loan must be in a minimum amount of
SEK 100,000,000 and an integral multiple of SEK 10,000,000.

9.5                               Automatic cancellation

(a)                                  Subject to Clause 6 (Extension of Facility A Final Maturity Date), the
Facility A Commitment of each Lender will be automatically cancelled at the
close of business on the Facility A Final Maturity Date.

(b)                                 The Facility B Commitment of each Lender will be automatically cancelled
at the close of business on the last day of the Facility B Availability Period.

(c)                                  The Facility C Commitment of each Lender will be automatically cancelled
at the close of business on the last day of the Facility C Availability Period.

9.6                               Voluntary cancellation

(a)                                  The Company may, by giving not less than three Business Days’ prior
notice to the Facility Agent, cancel the unutilised amount of the Total
Commitments in whole or in part.

(b)                                 Partial cancellation of the Total Commitments must be in a minimum
amount of SEK 100,000,000 and an integral multiple of SEK 10,000,000.

 22
 

 

 

(c)                                  Any cancellation in part will be applied against the Commitment of each
Lender pro rata.

9.7                               Involuntary prepayment and cancellation

(a)                                  If the Company is, or will be, required to pay to a Lender:

(i)                                     a Tax Payment;

(ii)                                  an Increased Cost; or

(iii)                               any amount under paragraph 3 of Schedule 4 (Calculation of the Mandatory
Cost),

the
Company may, while the requirement continues, give notice to the Facility Agent
requesting prepayment and cancellation in respect of that Lender.

(b)                                 After notification under paragraph (a) above:

(i)                                     the Company must repay or prepay that Lender’s share in each Loan made
to it on the date specified in paragraph (c) below; and

(ii)                                  the Commitment of that Lender will be immediately cancelled.

(c)                                  The date for repayment or prepayment of a Lender’s share in a Loan will
be:

(i)                                     the last day of the Term for that Loan; or

(ii)                                  if earlier, the date specified by the Company in its notification.

9.8                               Re-borrowing of Loans

Any
voluntary prepayment of a Loan may be re-borrowed on the terms of this
Agreement. Any mandatory or involuntary prepayment of a Loan may not be
re-borrowed.

9.9                               Miscellaneous provisions

(a)                                  Any notice of prepayment and/or cancellation under this Agreement is
irrevocable and must specify the relevant date(s) and the affected Loans
and Commitments. The Facility Agent must notify the Lenders promptly of receipt
of any such notice.

(b)                                 All prepayments under this Agreement must be made with accrued interest
on the amount prepaid. No premium or penalty is payable in respect of any
prepayment except for Break Costs.

(c)                                  The Majority Lenders may agree a shorter notice period for a voluntary
prepayment or a voluntary cancellation.

(d)                                 No prepayment or cancellation is allowed except in accordance with the
express terms of this Agreement.

(e)                                  No amount of the Total Commitments cancelled under this Agreement may
subsequently be reinstated.

(f)                                    Where there is a mandatory or involuntary prepayment of a Loan, the
relevant Commitments will, at the same time, be reduced by the same amount.

 23
 

 

 

(g)                                 If there are no Loans to be prepaid under a particular Facility, the
Commitments in respect of that Facility will be reduced by the amount of the
Loans which would have been prepaid under that Facility if they were
outstanding at that time.

10.                               INTEREST

10.1                        Calculation of interest

The
rate of interest on each Loan for each Term is the percentage rate per annum
equal to the aggregate of the applicable:

(a)                                  Margin;

(b)                                 IBOR; and

(c)                                  Mandatory Cost.

10.2                        Payment of interest

Except
where it is provided to the contrary in this Agreement, the Company must pay accrued
interest on each Loan made to it on the last day of each Term and also, if the
Term is longer than six months, on the dates falling at six-monthly intervals
after the first day of that Term.

10.3                        Margin adjustment

(a)                                  Subject to the following provision of this Clause 10.3, on and from
the Effective Date, the Margin in respect of each Facility B Loan and each
Facility C Loan shall be the percentage rate per annum calculated in accordance
with the table in paragraph (b) below by reference to the pro forma
calculation of the ratio of Consolidated Total Net Debt to Consolidated EBITDA
delivered to the Facility Agent before the Effective Date pursuant to the
Amendment and Restatement Agreement.

(b)                                 Subject to paragraph (c) below, the Margin in respect of Facility B
and Facility C will be adjusted (upwards or downwards) to the percentage rate
per annum specified below opposite the range into which the ratio of
Consolidated Total Net Debt to Consolidated EBITDA (as calculated under Clause
20.3 (Consolidated Total Net Debt to Consolidated EBITDA)), as shown in the
most recent Compliance Certificate, falls:

 

	
  Ratio of Consolidated Total Net Debt

  to Consolidated EBITDA

  	
   

  	
  Margin

  
	
   

  	
   

  	
   

  
	
  greater than or equal to 3.00:1

  	
   

  	
  0.50 per cent

  
	
   

  	
   

  	
   

  
	
  greater than or equal to 2.50:1

  (but less than 3.00:1)

  	
   

  	
  0.45 per cent.

  
	
   

  	
   

  	
   

  
	
  greater than or equal to 2.00:1

  (but less than 2.50:1)

  	
   

  	
  0.40 per cent.

  
	
   

  	
   

  	
   

  
	
  greater than or equal to 1.50:1

  (but less than 2.00:1)

  	
   

  	
  0.35 per cent.

  
	
   

  	
   

  	
   

  
	
  greater than or equal to 1.00:1

  (but less than 1.50:1)

  	
   

  	
  0.30 per cent.

  

 

 24
 

 

 

 

	
  less than 1.00:1

  	
   

  	
  0.25 per cent.

  

(c)                                  Any change in the Margin will in respect of Facility B and Facility C,
subject to paragraph (d) below, apply:

(i)                                     to each Facility B Loan and Facility C Loan made, or (if it is
outstanding) from the start of its next Term, after the date of receipt by the
Facility Agent of the relevant Compliance Certificate; and

(ii)                                  to the commitment fee payable under Clause 25.2 (Commitment Fee), with
effect from the date the relevant Compliance Certificate is delivered.

(d)                                 For so long as:

(i)                                     the Company is in default of its obligation under this Agreement to
provide a Compliance Certificate; or

(ii)                                  an Event of Default is outstanding,

the
Margin in respect of Facility B Loans and Facility C Loans will be the highest
applicable rate, being 0.50 per cent. per annum.

(e)                                  If the Margin has been calculated on the basis of a Compliance
Certificate but would have been higher if it had been based on the subsequent
financial statements of the Company the Margin will instead be calculated by
reference to the relevant financial statements of the Company. Any change will
have a retrospective effect. If, in this event, any amount of interest has been
paid by the Company on the basis of the Compliance Certificate, the Company
must immediately pay to the Facility Agent any shortfall in the amount which
would have been paid to the Lenders if the Margin had been calculated by
reference to the relevant financial statements.

10.4                        Interest on overdue amounts

(a)                                  If an Obligor fails to pay any amount payable by it under the Finance
Documents, it must immediately on demand by the Facility Agent pay interest on
the overdue amount from its due date up to the date of actual payment, both
before, on and after judgment.

(b)                                 Interest on an overdue amount is payable at a rate determined by the
Facility Agent to be one per cent. per annum above the rate which would have
been payable if the overdue amount had, during the period of non-payment,
constituted a Loan in the currency of the overdue amount. For this purpose, the
Facility Agent may (acting reasonably):

(i)                                     select successive Terms of any duration of up to three months; and

(ii)                                  determine the appropriate Rate Fixing Day for that Term.

(c)                                  Notwithstanding paragraph (b) above, if the overdue amount is a
principal amount of a Loan and becomes due and payable before the last day of
its current Term, then:

(i)                                     the first Term for that overdue amount will be the unexpired portion of
that Term; and

(ii)                                  the rate of interest on the overdue amount for that first Term will be
one per cent. per annum above the rate then payable on that Loan.

 25
 

 

 

After
the expiry of the first Term for that overdue amount, the rate on the overdue
amount will be calculated in accordance with paragraph (b) above.

(d)                                 Interest (if unpaid) on an overdue amount will be compounded with that
overdue amount at the end of each of its Terms but will remain immediately due
and payable.

10.5                        Notification of rates of interest

The
Facility Agent must promptly notify each relevant Party of the determination of
a rate of interest under this Agreement.

11.                               TERMS

11.1                        Selection

(a)                                  Each Loan has one Term only.

(b)                                 The Company must select the Term for a Loan in the relevant Request.

(c)                                  Subject to the following provisions of this Clause, each Term for a Loan
will be one, two, three or six months or any other period agreed by the Company
and the Lenders.

11.2                        No overrunning the Final Maturity Date

If a
Term would otherwise overrun the applicable Final Maturity Date, it will be
shortened so that it ends on the Final Maturity Date.

11.3                        Notification

The
Facility Agent must notify each relevant Party of the duration of each Term
promptly after ascertaining its duration.

12.                               MARKET DISRUPTION

12.1                        Failure of a Reference Bank to supply a rate

If
IBOR is to be calculated by reference to the Reference Banks but a Reference
Bank does not supply a rate by 12.00 noon (local time) on a Rate Fixing Day,
the applicable IBOR will, subject as provided below, be calculated on the basis
of the rates of the remaining Reference Banks.

12.2                        Market disruption

(a)                                  In this Clause, each of the following events is a market
disruption event:

(i)                                     IBOR is to be calculated by reference to the Reference Banks but no, or
only one, Reference Bank supplies a rate by 12.00 noon (local time) on the Rate
Fixing Day; or

(ii)                                  the Facility Agent receives by close of business on the Rate Fixing Day
notification from Lenders whose shares in the relevant Loan exceed 50 per cent.
of that Loan that the cost to them of obtaining matching deposits in the
relevant interbank market is in excess of IBOR for the relevant Term.

(b)                                 The Facility Agent must promptly notify the Company and the Lenders of a
market disruption event.

 26
 

 

 

(c)                                  After notification under paragraph (b) above, the rate of interest
on each Lender’s share in the affected Loan for the relevant Term will be the
aggregate of the applicable:

(i)                                     Margin;

(ii)                                  rate notified to the Facility Agent by that Lender as soon as practicable,
and in any event before interest is due to be paid in respect of that Term, to
be that which expresses as a percentage rate per annum the cost to that Lender
of funding its share in that Loan from whatever source it may reasonably
select; and

(iii)                               Mandatory Cost.

12.3                        Alternative basis of interest or funding

(a)                                  If a market disruption event occurs and the Facility Agent or the
Company so requires, the Company and the Facility Agent must enter into
negotiations for a period of not more than 30 days with a view to agreeing an
alternative basis for determining the rate of interest and/or funding for the
affected Loan.

(b)                                 Any alternative basis agreed will be, with the prior consent of all the
Lenders, binding on all the Parties.

13.                               TAXES

13.1                        General

In
this Clause Tax Credit means a credit against
any Tax or any relief or remission for Tax (or its repayment).

13.2                        Tax gross-up

(a)                                  Each Obligor must make all payments to be made by it under the Finance
Documents without any Tax Deduction, unless a Tax Deduction is required by law.

(b)                                 If an Obligor or a Lender is aware that an Obligor must make a Tax
Deduction (or that there is a change in the rate or the basis of a Tax
Deduction), it must promptly notify the Facility Agent. The Facility Agent must
then promptly notify the affected Parties.

(c)                                  If a Tax Deduction is required by law to be made by an Obligor or the
Facility Agent, the amount of the payment due from the Obligor will be
increased to an amount which (after making the Tax Deduction) leaves an amount
equal to the payment which would have been due if no Tax Deduction had been
required.

(d)                                 If an Obligor is required to make a Tax Deduction, that Obligor must
make the minimum Tax Deduction allowed by law and must make any payment
required in connection with that Tax Deduction within the time allowed by law.

(e)                                  Within 30 days of making either a Tax Deduction or a payment required in
connection with a Tax Deduction, the Obligor making that Tax Deduction must
deliver to the Facility Agent for the relevant Finance Party evidence
satisfactory to that Finance Party (acting reasonably) that the Tax Deduction
has been made or (as applicable) the appropriate payment has been paid to the
relevant taxing authority.

 27
 

 

 

13.3                        Tax indemnity

(a)                                  Except as provided below, the Company must indemnify a Finance Party
against any loss or liability which that Finance Party determines will be or
has been suffered (directly or indirectly) by that Finance Party for or on
account of Tax in relation to a payment received or receivable (or any payment
deemed to be received or receivable) under a Finance Document.

(b)                                 Paragraph (a) above does not apply to any Tax assessed on a Finance
Party under the laws of the jurisdiction in which:

(i)                                     that Finance Party is incorporated or, if different, the jurisdiction
(or jurisdictions) in which that Finance Party has a Facility Office and is
treated as resident for tax purposes; or

(ii)                                  that Finance Party’s Facility Office is located in respect of amounts
received or receivable in that jurisdiction,

if
that Tax is imposed on or calculated by reference to the net income received or
receivable by that Finance Party. However, any payment deemed to be received or
receivable, including any amount treated as income but not actually received by
the Finance Party, such as a Tax Deduction, will not be treated as net income
received or receivable for this purpose.

(c)                                  A Finance Party making, or intending to make, a claim under paragraph (a) above
must promptly notify the Company of the event which will give, or has given,
rise to the claim.

13.4                        Tax Credit

If
an Obligor makes a Tax Payment and the relevant Finance Party (in its absolute
discretion) determines that:

(a)                                  a Tax Credit is attributable to that Tax Payment; and

(b)                                 it has used and retained that Tax Credit,

the
Finance Party must pay an amount to the Obligor which that Finance Party
determines (in its absolute discretion) will leave it (after that payment) in
the same after-tax position as it would have been if the Tax Payment had not
been required to be made by the Obligor.

13.5                        Stamp taxes

The
Company must pay and indemnify each Finance Party against any stamp duty, stamp
duty land tax, registration or other similar Tax payable in connection with the
entry into, performance or enforcement of any Finance Document, except for any
such Tax payable in connection with the entry into a Transfer Certificate.

13.6                        Value added taxes

(a)                                  Any amount payable under a Finance Document by an Obligor is exclusive
of any value added tax or any other Tax of a similar nature which might be
chargeable in connection with that amount. If any such Tax is chargeable, the
Obligor must pay to the Finance Party (in addition to and at the same time as
paying that amount) an amount equal to the amount of that Tax.

 28
 

 

 

(b)                                 Where a Finance Document requires any Party to reimburse a Finance Party
for any costs or expenses, that Party must also at the same time pay and
indemnify the Finance Party against all value added tax or any other Tax of a
similar nature incurred by the Finance Party in respect of those costs or
expenses but only to the extent that the Finance Party (acting reasonably)
determines that it is not entitled to credit or repayment from the relevant tax
authority in respect of the Tax.

14.                               INCREASED COSTS

14.1                        Increased Costs

Except
as provided below in this Clause, the Company must pay to a Finance Party the
amount of any Increased Cost incurred by that Finance Party or any of its
Affiliates as a result of:

(a)                                  the introduction of, or any change in, or any change in the
interpretation, administration or application of, any law or regulation, in
each case occurring after the Signing Date; or

(b)                                 compliance with any law or regulation made after the Signing Date.

14.2                        Exceptions

The
Company need not make any payment for an Increased Cost to the extent that the
Increased Cost is:

(a)                                  compensated for under another Clause or would have been but for an
exception to that Clause; or

(b)                                 attributable to a Finance Party or its Affiliate wilfully failing to
comply with any law or regulation.

14.3                        Claims

(a)                                  A Finance Party intending to make a claim for an Increased Cost must
notify the Facility Agent of the circumstances giving rise to and the amount of
the claim, following which the Facility Agent will promptly notify the Company.

(b)                                 Each Finance Party must, as soon as practicable after a demand by the
Facility Agent, provide the Company with:

(i)                                     a certificate confirming the amount of its Increased Cost; and

(ii)                                  reasonable details of the basis of the computation of such claim.

15.                               MITIGATION

15.1                        Mitigation

(a)                                  Each Finance Party must, in consultation with the Company, take all
reasonable steps to mitigate any circumstances which arise and which result or
would result in:

(i)                                     any Tax Payment or Increased Cost being payable to that Finance Party;

 29
 

 

 

(ii)                                  that Finance Party being able to exercise any right of prepayment and/or
cancellation under this Agreement by reason of any illegality; or

(iii)                               that Finance Party incurring any cost of complying with the minimum
reserve requirements of the European Central Bank,

including
transferring its rights and obligations under the Finance Documents to an
Affiliate or changing its Facility Office.

(b)                                 Paragraph (a) above does not in any way limit the obligations of
any Obligor under the Finance Documents.

(c)                                  The Company must indemnify each Finance Party for all costs and expenses
reasonably incurred by that Finance Party as a result of any step taken by it
under this Subclause.

(d)                                 A Finance Party is not obliged to take any step under this Subclause if,
in the opinion of that Finance Party (acting reasonably), to do so might be
prejudicial to it.

15.2                        Conduct of business by a Finance Party

No
term of this Agreement will:

(a)                                  interfere with the right of any Finance Party to arrange its affairs
(Tax or otherwise) in whatever manner it thinks fit;

(b)                                 oblige any Finance Party to investigate or claim any credit, relief,
remission or repayment available to it in respect of Tax or the extent, order
and manner of any claim; or

(c)                                  oblige any Finance Party to disclose any information relating to its
affairs (Tax or otherwise) or any computation in respect of Tax.

16.                               PAYMENTS

16.1                        Place

Unless
a Finance Document specifies that payments under it are to be made in another
manner, all payments by a Party (other than the Facility Agent) under the
Finance Documents must be made to the Facility Agent to its account at such
office or bank:

(a)                                  in the principal financial centre of the country of the relevant
currency; or

(b)                                 in the case of euro, in the principal financial centre of a
Participating Member State or London,

as
it may notify to that Party for this purpose by not less than five Business
Days’ prior notice.

16.2                        Funds

Payments
under the Finance Documents to the Facility Agent must be made for value on the
due date at such times and in such funds as the Facility Agent may specify to
the Party concerned as being customary at the time for the settlement of
transactions in the relevant currency in the place for payment.

 

 30

 

16.3                        Distribution

(a)                                  Each payment received by the Facility Agent under the Finance Documents
for another Party must, except as provided below, be made available by the
Facility Agent to that Party by payment (as soon as practicable after receipt)
to its account with such office or bank:

(i)                                     in the principal financial centre of the country of the relevant
currency; or

(ii)                                  in the case of euro, in the principal financial centre of a
Participating Member State, London or Stockholm,

as
it may notify to the Facility Agent for this purpose by not less than five
Business Days’ prior notice.

(b)                                 The Facility Agent may apply any amount received by it for an Obligor in
or towards payment (as soon as practicable after receipt) of any amount due
from that Obligor under the Finance Documents or in or towards the purchase of
any amount of any currency to be so applied.

(c)                                  Where a sum is paid to the Facility Agent under this Agreement for
another Party, the Facility Agent is not obliged to pay that sum to that Party
until it has established that it has actually received it. However, the
Facility Agent may assume that the sum has been paid to it, and, in reliance on
that assumption, make available to that Party a corresponding amount. If it
transpires that the sum has not been received by the Facility Agent, that Party
must immediately on demand by the Facility Agent refund any corresponding
amount made available to it together with interest on that amount from the date
of payment to the date of receipt by the Facility Agent at a rate calculated by
the Facility Agent to reflect its cost of funds.

16.4                        Currency

(a)                                  Unless a Finance Document specifies that payments under it are to be
made in a different manner, the currency of each amount payable under the
Finance Documents is determined under this Clause.

(b)                                 Interest is payable in the currency in which the relevant amount in
respect of which it is payable is denominated.

(c)                                  A repayment or prepayment of any principal amount is payable in the
currency in which that principal amount is denominated on its due date.

(d)                                 Amounts payable in respect of Taxes, fees, costs and expenses are
payable in the currency in which they are incurred.

(e)                                  Each other amount payable under the Finance Documents is payable in
Swedish Kronor.

16.5                        No set-off or counterclaim

All
payments made by an Obligor under the Finance Documents must be made without
set-off or counterclaim.

 31
 

 

 

16.6                        Business Days

(a)                                  If a payment under the Finance Documents is due on a day which is not a
Business Day, the due date for that payment will instead be the next Business
Day in the same calendar month (if there is one) or the preceding Business Day
(if there is not) or whatever day the Facility Agent determines is market
practice.

(b)                                 During any extension of the due date for payment of any principal under
this Agreement interest is payable on that principal at the rate payable on the
original due date.

16.7                        Partial payments

(a)                                  If any Administrative Party receives a payment insufficient to discharge
all the amounts then due and payable by the Obligors under the Finance
Documents, the Administrative Party must apply that payment towards the
obligations of the Obligors under the Finance Documents in the following order:

(i)                                     first, in or towards payment pro
rata of any unpaid fees, costs and expenses of the Administrative Parties under
the Finance Documents;

(ii)                                  secondly, in or towards payment pro
rata of any accrued interest or fee due but unpaid under this Agreement;

(iii)                               thirdly, in or towards payment pro
rata of any principal amount due but unpaid under this Agreement; and

(iv)                              fourthly, in or towards payment pro
rata of any other sum due but unpaid under the Finance Documents.

(b)                                 The Facility Agent must, if so directed by the Majority Lenders, vary
the order set out in sub-paragraphs (a)(ii) to (iv) above.

(c)                                  This Subclause will override any appropriation made by an Obligor.

16.8                        Timing of payments

If a
Finance Document does not provide for when a particular payment is due, that
payment will be due within three Business Days of demand by the relevant
Finance Party.

17.                               GUARANTEE AND INDEMNITY

17.1                        Guarantee and indemnity

Subject
to any limitations set out in Clause 17.10 (Limitations) and/or in any
Accession Agreement, each Guarantor jointly and severally and irrevocably and unconditionally:

(a)                                  guarantees to each Finance Party punctual performance by the Company of
all its obligations under the Finance Documents;

(b)                                 undertakes with each Finance Party that, whenever the Company does not
pay any amount when due under any Finance Document, that Guarantor must
immediately on demand by the Facility Agent pay that amount as if it were the
principal obligor; and

(c)                                  indemnifies each Finance Party immediately on demand against any loss or
liability suffered by that Finance Party if any payment obligation guaranteed
by it is or

 32
 

 

 

becomes
unenforceable, invalid or illegal; the amount of the loss or liability under
this indemnity will be equal to the amount the Finance Party would otherwise
have been entitled to recover.

17.2                        Continuing guarantee

This
guarantee is a continuing guarantee and will extend to the ultimate balance of
all sums payable by the Company under the Finance Documents, regardless of any
intermediate payment or discharge in whole or in part.

17.3                        Reinstatement

(a)                                  If any discharge (whether in respect of the obligations of any Obligor
or any security for those obligations or otherwise) or arrangement is made in
whole or in part on the faith of any payment, security or other disposition
which is avoided or must be restored on insolvency, liquidation or otherwise
without limitation, the liability of each Guarantor under this Clause will
continue as if the discharge or arrangement had not occurred.

(b)                                 Each Finance Party may concede or compromise any claim that any payment,
security or other disposition is liable to avoidance or restoration.

17.4                        Waiver of defences

The
obligations of each Guarantor under this Clause will not be affected by any
act, omission or thing which, but for this provision, would reduce, release or
prejudice any of its obligations under this Clause (whether or not known to it
or any Finance Party). This includes:

(a)                                  any time or waiver granted to, or composition with, any person;

(b)                                 any release of any person under the terms of any composition or arrangement;

(c)                                  the taking, variation, compromise, exchange, renewal or release of, or
refusal or neglect to perfect, take up or enforce, any rights against, or
security over assets of, any person;

(d)                                 any non-presentation or non-observance of any formality or other
requirement in respect of any instrument or any failure to realise the full
value of any security;

(e)                                  any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of any person;

(f)                                    any amendment (however fundamental) of a Finance Document or any other
document or security; or

(g)                                 any unenforceability, illegality, invalidity or non-provability of any
obligation of any person under any Finance Document or any other document or
security.

17.5                        Immediate recourse

Each
Guarantor waives any right it may have of first requiring any Finance Party (or
any trustee or agent on its behalf) to proceed against or enforce any other
right or security or claim payment from any person before claiming from that
Guarantor under this Clause.

 33
 

 

 

17.6                        Appropriations

Until
all amounts which may be or become payable by the Obligors under the Finance
Documents have been irrevocably paid in full, each Finance Party (or any
trustee or agent on its behalf) may:

(a)                                  without affecting the liability of any Guarantor under this Clause:

(i)                                     refrain from applying or enforcing any other moneys, security or rights
held or received by that Finance Party (or any trustee or agent on its behalf)
in respect of those amounts; or

(ii)                                  apply and enforce them in such manner and order as it sees fit (whether
against those amounts or otherwise); and

(b)                                 hold in an interest-bearing suspense account any moneys received from
any Guarantor or on account of that Guarantor’s liability under this Clause.

17.7                        Non-competition

Unless:

(a)                                  all amounts which may be or become payable by the Obligors under the
Finance Documents have been irrevocably paid in full; or

(b)                                 the Facility Agent otherwise directs,

no
Guarantor will, after a claim has been made or by virtue of any payment or
performance by it under this Clause:

(i)                                     be subrogated to any rights, security or moneys held, received or
receivable by any Finance Party (or any trustee or agent on its behalf);

(ii)                                  be entitled to any right of contribution or indemnity in respect of any
payment made or moneys received on account of that Guarantor’s liability under
this Clause;

(iii)                               claim, rank, prove or vote as a creditor of any Obligor or its estate in
competition with any Finance Party (or any trustee or agent on its behalf); or

(iv)                              receive, claim or have the benefit of any payment, distribution or
security from or on account of any Obligor, or exercise any right of set-off as
against any Obligor.

Each
Guarantor must hold in trust for and immediately pay or transfer to the
Facility Agent for the Finance Parties any payment or distribution or benefit
of security received by it contrary to this Clause or in accordance with any
directions given by the Facility Agent under this Clause.

17.8                        Release of Guarantors’ right of contribution

If
any Guarantor ceases to be a Guarantor in accordance with the terms of the
Finance Documents:

(a)                                  that Guarantor will be released by each other Guarantor from any
liability whatsoever to make a contribution to any other Guarantor arising by
reason of the performance by any other Guarantor of its obligations under the
Finance Documents; and

 34
 

 

 

(b)                                 each other Guarantor will waive any right it may have by reason of the
performance of its obligations under the Finance Documents to take the benefit
(in whole or in part and whether by way of subrogation or otherwise) of any
right of any Finance Party under any Finance Document or of any other security
taken under, or in connection with, any Finance Document by any Finance Party.

17.9                        Additional security

This
guarantee is in addition to and is not in any way prejudiced by any other
security now or subsequently held by any Finance Party.

17.10                 Limitations

The
obligation of any Guarantor incorporated in Sweden in its capacity as a
Guarantor (each a Swedish Guarantor)
shall be limited, if (and only if) required by the provision of the Swedish
Companies Act (Aktiebolagslagen (1975:1385)) regulating (i) unlawful
financial assistance (Chapter 12, Section 7 (or its equivalent from time
to time)) and (ii) distribution of assets (Chapter 12, Section 2, (or
its equivalent from time to time)) and it is understood that the liability of
each Swedish Guarantor under this Clause only applies to the extent permitted
by the above mentioned provision of the Swedish Companies Act. The Company
shall procure that each member of the Group which becomes an Additional
Guarantor after the Signing Date has taken all steps open to that Additional
Guarantor (including, but not limited to, procuring that shareholder
resolutions are obtained) to eliminate or reduce, to the extent possible, any
limitation on that Additional Guarantor’s liability under this Clause.

18.                               REPRESENTATIONS

18.1                        Representations

The
representations set out in this Clause are made by each Obligor or (if it so
states) the Company to each Finance Party.

18.2                        Status

(a)                                  It is a limited liability company, duly incorporated and validly
existing under the laws of its jurisdiction of incorporation.

(b)                                 It and each of its Subsidiaries has the power to own its assets and
carry on its business as it is being conducted.

18.3                        Powers and authority

It
has the power to enter into and perform, and has taken all necessary action to
authorise the entry into and performance of, the Finance Documents to which it
is or will be a party and the transactions contemplated by those Finance
Documents.

18.4                        Legal validity

(a)                                  Subject to any general principles of law applying to companies generally
limiting its obligations and referred to in any legal opinion to be delivered
under Schedule 2 (Conditions precedent documents), each Finance Document to
which it is a party is its legally binding, valid and enforceable obligation.

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(b)                                 Each Finance Document to which it is a party is in the proper form for
its enforcement in the jurisdiction of its incorporation.

18.5                        Non-conflict

The
entry into and performance by it of, and the transactions contemplated by, the
Finance Documents do not conflict with:

(a)                                  any law or regulation applicable to it;

(b)                                 its or any of its Subsidiaries’ constitutional documents; or

(c)                                  any document which is binding upon it or any of its Subsidiaries or any
of its or its Subsidiaries’ assets,

(in
the case of paragraph (c) only) to an extent or in a manner which is
reasonably likely to have a Material Adverse Effect.

18.6                        No default

(a)                                  No Event of Default is continuing or will result from the making of any
Utilisation; and

(b)                                 no other event or circumstance is outstanding which constitutes a
default under any other agreement or instrument which is binding on it or any
of its Subsidiaries or any of its (or any of its Subsidiaries’) assets to an
extent or in a manner which has or is reasonably likely to have a Material
Adverse Effect.

18.7                        Authorisations

All
authorisations required by it in connection with the entry into, performance,
validity and enforceability of, and the transactions contemplated by, the
Finance Documents have been obtained or effected (as appropriate) and are in
full force and effect unless the failure to obtain or effect (as appropriate)
such authorisation could not reasonably be expected to have a Material Adverse
Effect.

18.8                        Financial statements

Its
audited financial statements most recently delivered to the Facility Agent
(which, in the case of the Parent at the Signing Date, are the Original Financial
Statements):

(a)                                  have been prepared in accordance with accounting principles and
practices generally accepted in its jurisdiction of incorporation, consistently
applied; and

(b)                                 fairly represent its financial condition (consolidated, if applicable)
as at the date to which they were drawn up,

except,
in each case, as disclosed to the contrary in those financial statements.

18.9                        No material adverse change

In
the case of the Parent only, as at the Signing Date there has been no material
adverse change in the consolidated financial condition of the Group since the
date to which the Original Financial Statements were drawn up.

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18.10                 Litigation

No
material litigation, arbitration or administrative proceedings are current or,
to its knowledge, pending or threatened, which have or, if adversely
determined, are reasonably likely to have a Material Adverse Effect.

18.11                 Pari passu ranking

As
at the Signing Date, its payment obligations under the Finance Documents rank
at least pari passu with the claims of all its other unsecured and
unsubordinated creditors, except for obligations mandatorily preferred by law
applying to companies generally.

18.12                 Taxes on payments

As
at the Signing Date, all amounts payable by it under the Finance Documents may
be made without any Tax Deduction.

18.13                 Stamp duties

As
at the Signing Date, no stamp or registration duty or similar Tax or charge is
payable in its jurisdiction of incorporation in respect of any Finance Document
to which it is a party.

18.14                 Immunity

(a)                                  The execution by it of each Finance Document constitutes, and the
exercise by it of its rights and performance of its obligations under each
Finance Document will constitute, private and commercial acts performed for
private and commercial purposes; and

(b)                                 it will not be entitled to claim immunity from suit, execution,
attachment or other legal process in any proceedings taken in its jurisdiction
of incorporation in relation to any Finance Document.

18.15                 No adverse consequences

(a)                                  It is not necessary under the laws of its jurisdiction of incorporation:

(i)                                     in order to enable any Finance Party to enforce its rights under any
Finance Document; or

(ii)                                  by reason of the execution of any Finance Document or the performance by
it of its obligations under any Finance Document,

that
any Finance Party should be licensed, qualified or otherwise entitled to carry
on business in its jurisdiction of incorporation; and

(b)                                 no Finance Party is or will be deemed to be resident, domiciled or
carrying on business in its jurisdiction of incorporation by reason only of the
execution, performance and/or enforcement of any Finance Document.

18.16                 Jurisdiction/governing law

(a)                                  Subject to any general principles of law applying to companies generally
and referred to in any legal opinion to be delivered under Schedule 2
(Conditions precedent documents), its:

 37
 

 

 

(i)                                     irrevocable submission under this Agreement to the jurisdiction of the
courts of England;

(ii)                                  agreement that this Agreement is governed by English law; and

(iii)                               agreement not to claim any immunity to which it or its assets may be
entitled,

are
legal, valid and binding under the laws of its jurisdiction of incorporation;
and

(b)                                 any judgment obtained in England will be recognised and be enforceable
by the courts of its jurisdiction of incorporation.

18.17                 Times for making representations

(a)                                  Save for the representation set out in Clause 18.9 (No material
adverse change) which is given by the Parent only, the representations set out
in this Clause are made by each Original Obligor on the Signing Date.

(b)                                 Unless a representation is expressed to be given at a specific date,
each representation is deemed to be repeated by:

(i)                                     each Additional Guarantor and the Company on the date that Additional
Guarantor becomes an Obligor; and

(ii)                                  each Obligor on the date of each Request and the first day of each Term.

(c)                                  When a representation is repeated, it is applied to the circumstances
existing at the time of repetition.

19.                               INFORMATION COVENANTS

19.1                        Financial statements

The
Parent shall supply to the Facility Agent in sufficient copies for all the
Lenders:

(a)                                  as soon as practicable (and in any event within 140 days of the end of
each financial year), the audited accounts of:

(i)                                     the Parent and its Subsidiaries on a consolidated basis; and

(ii)                                  the Company on an unconsolidated basis,

for
such financial year; and

(b)                                  as soon as reasonably practicable (and in any event within 60 days of
each Reporting Date), the quarterly reports of the Parent and its Subsidiaries
on a consolidated basis for the financial quarter ending on such Reporting
Date.

19.2                        Form of financial statements

(a)                                  The Parent must ensure that each set of financial statements supplied
under this Agreement gives (if audited) a true and fair view of, or (if
unaudited) fairly represents, the financial condition (consolidated or
otherwise) of the relevant person as at the date to which those financial
statements were drawn up.

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(b)                                 The Parent must notify the Facility Agent of any material change to the
manner in which its audited consolidated financial statements are prepared.

(c)                                  If requested by the Facility Agent, the Parent must supply to the
Facility Agent:

(i)                                     a full description of any change notified under paragraph (b) above;
and

(ii)                                  sufficient information to enable the Finance Parties to make a proper
comparison between the financial position shown by the set of financial
statements prepared on the changed basis and its most recent audited
consolidated financial statements delivered to the Facility Agent under this
Agreement.

(d)                                 If requested by the Facility Agent, the Parent must enter into
discussions for a period of not more than 30 days with a view to agreeing any
amendments required to be made to this Agreement to place the Parent and the
Lenders in the same position as they would have been in if the change had not
happened. Any agreement between the Parent and the Facility Agent will be, with
the prior consent of the Majority Lenders, binding on all the Parties.

(e)                                  If no agreement is reached under paragraph (d) above on the required
amendments to this Agreement, the Parent must ensure that its auditors certify
those amendments; the certificate of the auditors will be, in the absence of
manifest error, binding on all the Parties.

19.3                        Compliance Certificate

(a)                                  The Parent must supply to the Facility Agent a Compliance Certificate
with each set of its financial statements sent to the Facility Agent under this
Agreement.

(b)                                 A Compliance Certificate must be signed by two authorised signatories of
the Parent.

19.4                        Information - miscellaneous

The
Parent must supply to the Facility Agent, in sufficient copies for all the
Lenders if the Facility Agent so requests:

(a)                                  copies of all documents despatched by any Obligor to its creditors
generally or any class of them at the same time as they are despatched;

(b)                                 promptly upon becoming aware of them, details of any litigation,
arbitration or administrative proceedings which are current, threatened or
pending and which have or could reasonably be expected to, if adversely
determined, have a Material Adverse Effect;

(c)                                  promptly on request, a list of the then current Material Subsidiaries;
and

(d)                                 promptly on request, such further information in the possession of a
member of the Group regarding the financial condition and operations of the
Group or the Parent as any Finance Party through the Facility Agent may
reasonably request subject to compliance with any applicable law, regulation or
confidentiality undertaking.

19.5                        Notification of Default

(a)                                  Unless the Facility Agent has already been so notified by another
Obligor, each Obligor must notify the Facility Agent of any Default (and the
steps, if any, being taken to remedy it) promptly upon becoming aware of its
occurrence.

 39

 

(b)                                 Promptly on request by the Facility Agent, the Company must supply to
the Facility Agent a certificate, signed by two of its authorised signatories
on its behalf, certifying that no Default is outstanding or, if a Default is
outstanding, specifying the Default and the steps, if any, being taken to
remedy it.

19.6                        Year end

The
Parent must not change its financial year end.

19.7                        Use of websites

(a)                                  Except as provided below, the Parent may deliver any information under
this Agreement to a Lender by posting it on to an electronic website if:

(i)                                     the Facility Agent and the Lender agree;

(ii)                                  the Parent and the Facility Agent designate an electronic website for
this purpose;

(iii)                               the Parent notifies the Facility Agent of the address of and password
for the website; and

(iv)                              the information posted is in a format agreed between the Parent and the
Facility Agent.

The
Facility Agent must supply each relevant Lender with the address of and
password for the website.

(b)                                 Notwithstanding the above, the Parent must supply to the Facility Agent
in paper form a copy of any information posted on the website together with
sufficient copies for:

(i)                                     any Lender not agreeing to receive information via the website; and

(ii)                                  within ten Business Days of request any other Lender, if that Lender so
requests.

(c)                                  The Parent must promptly upon becoming aware of its occurrence, notify
the Facility Agent if:

(i)                                     the website cannot be accessed;

(ii)                                  the website or any information on the website is infected by any
electronic virus or similar software;

(iii)                               the password for the website is changed; or

(iv)                              any information to be supplied under this Agreement is posted on the
website or amended after being posted.

If
the circumstances in sub-paragraphs (i) or (ii) above occur, the
Parent must supply any information required under this Agreement in paper form
until the Facility Agent is satisfied that the circumstances giving rise to the
notification are no longer continuing.

19.8                        Know your customer requirements

(a)                                  Each Obligor must promptly on the request of any Finance Party supply to
that Finance Party any documentation or other evidence which is reasonably requested
by that Finance Party

 40
 

 

 

(whether
for itself, on behalf of any Finance Party or any prospective new Lender) to
enable a Finance Party or prospective new Lender to carry out and be satisfied
with the results of all applicable know your customer requirements.

(b)                                 An Obligor is only required to supply any information under paragraph (a) above,
if the necessary information is not already available to the relevant Finance
Party and the requirement arises as a result of:

(i)                                     the introduction of any change in (or in the interpretation,
administration or application of) any law or regulation made after the Signing
Date;

(ii)                                  any change in the status of an Obligor or, in the case of an Obligor
other than the Parent, any change in the composition of shareholders of an
Obligor where a shareholder is not an Obligor after the Signing Date; or

(iii)                               a proposed assignment or transfer by a Lender of any of its rights
and/or obligations under this Agreement to a person that is not a Lender before
that assignment or transfer.

(c)                                  Each Lender must promptly on the request of the Facility Agent supply to
the Facility Agent any documentation or other evidence which is reasonably
required by the Facility Agent to carry out and be satisfied with the results
of all applicable know your customer requirements.

20.                               FINANCIAL COVENANTS

20.1                        Definitions

In
this Clause:

Consolidated
Cash and Cash Equivalents means,
at any time:

(a)                                  cash in hand or on deposit with any acceptable bank;

(b)                                 certificates of deposit, maturing within one year after the relevant
date of calculation, issued by an acceptable bank;

(c)                                  any investment in marketable obligations issued or guaranteed by the
government of the United States of America, any Participating Member State at
the Signing Date, Sweden or the U.K. or by an instrumentality or agency of the
government of the United States of America any Participating Member State at
the Signing Date, Sweden or the U.K.;

(d)                                 open market commercial paper:

(i)                                     for which a recognised trading market exists;

(ii)                                  issued in the United States of America, any Participating Member State
at the Signing Date, Sweden or the U.K.;

(iii)                               which matures within one year after the relevant date of calculation;
and

(iv)                              which has a credit rating of at least A-1 by S&P, F2 by Fitch
or P-1 by Moody’s, or, if no rating is available in respect of the
commercial paper, the

 41
 

 

 

issuer of which has, in respect of its long-term debt
obligations, an equivalent rating;

(e)                                  Sterling bills of exchange eligible for rediscount at the Bank of
England and accepted by an acceptable bank (or any dematerialised equivalent);
or

(f)                                    any other instrument, security or investment approved by the Majority
Lenders,

in
each case, to which any member of the Group is beneficially entitled at that
time and which is capable of being applied against Consolidated Total Debt. For
this purpose an acceptable bank is a commercial
bank or trust company which has a rating of A or higher by S&P or Fitch or
A2 or higher by Moody’s or a comparable rating from a nationally recognised
credit rating agency for its long-term debt obligations or has been approved by
the Majority Lenders. Any cash collateral for a Cash Backed Loan will not
constitute cash for the purpose of this definition.

Consolidated
EBITDA means the consolidated profit for any period of
the Group:

(a)                                  before taking into account any
Net Financial Expenses, Taxes payable, dividends paid in that period by members
of the Group and any extraordinary gains or losses (including but not limited
to those arising on asset disposals and restructuring costs in connection with
any acquisition); and

(b)           before deducting any
depreciation or amortisation.

Consolidated
Interest Expense means net interest and
commissions payable by the Group on Consolidated Total Debt during any Ratio
Period.

Consolidated
Total Debt means, at any time, all
Financial Indebtedness of the Group, excluding 
Cash Backed Loans.

Consolidated
Total Net Debt means at any time
Consolidated Total Debt less Consolidated Cash and Cash Equivalents.

Net
Financial Expenses means, for any period, the
sum of all interest payable, fees payable and other recurring finance charges
accrued in respect of Consolidated Total Debt during that period, less any
interest receivable by the Group accrued during that period.

Ratio
Period means each period of twelve months ending on a
Reporting Date.

20.2                        Interpretation

(a)                                  Except as provided to the contrary in this Agreement, an accounting term
used in this Clause is to be construed in accordance with the principles
applied in connection with the Original Financial Statements.

(b)                                 Any amount in a currency other than Swedish Kronor is to be taken into
account at its Swedish Kronor equivalent calculated on the basis of:

(i)                                     the Facility Agent’s spot rate of exchange for the purchase of the
relevant currency in the London foreign exchange market with Swedish Kronor at
or about 11.00 a.m. on the day the relevant amount falls to be calculated;
or

 42
 

 

 

(ii)                                  if the amount is to be calculated on the last day of a Ratio Period, the
relevant rates of exchange used by the Group in, or in connection with, its
consolidated financial statements for that period.

(c)                                  No item must be credited or deducted more than once in any calculation
under this Clause.

20.3                        Consolidated Total Net Debt to Consolidated EBITDA

The
Parent must ensure that the ratio of Consolidated Total Net Debt (as at the end
of each Ratio Period) to Consolidated EBITDA, in respect of any Ratio Period,
is not greater than 3.5:1.

20.4                        Consolidated EBITDA to Consolidated Interest Expense

The
Parent must ensure that the ratio of Consolidated EBITDA to Consolidated
Interest Expense is not, in respect of any Ratio Period, less than 4.0:1.

21.                               GENERAL COVENANTS

21.1                        General

Each
Obligor agrees to be bound by the covenants set out in this Clause relating to
it and, where the covenant is expressed to apply to each member of the Group,
each Obligor must ensure that each of its Subsidiaries performs that covenant.

21.2                        Authorisations

Each
Obligor must promptly obtain, maintain and comply with the terms of any
authorisation required under any law or regulation to enable it to perform its
obligations under, or for the validity or enforceability of, any Finance
Document.

21.3                        Compliance with laws

Each
member of the Group must comply in all respects with all laws to which it is
subject where failure to do so has or is reasonably likely to materially impair
its ability to perform its obligations under the Finance Documents.

21.4                        Pari passu ranking

Each
Obligor must ensure that its payment obligations under the Finance Documents
rank at least pari passu with all its other present and future unsecured
payment obligations, except for obligations mandatorily preferred by law
applying to companies generally.

21.5                        Negative pledge

(a)                                  Except as provided below, no member of the Group may create or allow to
exist any Security Interest on any of its assets.

(b)                                 Paragraph (a) does not apply to:

(i)                                     any lien arising by operation of law in the ordinary course of business;

(ii)                                  any Security Interest created with the prior consent of the Majority
Lenders;

 43
 

 

 

(iii)                               any Security Interest granted in favour of insurance companies in
connection with pension arrangements for past and present employees of the
Group provided that the Financial Indebtedness subject to such Security
Interest does not exceed SEK 100,000,000 in aggregate;

(iv)                              any Security Interest created by a retention of title by any supplier
arising out of that suppliers’ standard conditions of supply of goods provided
the purchase price of the relevant asset is paid within twelve months of
delivery of that asset;

(v)                                 any Security Interest arising by a banker’s right of set-off arising by
operation of law in the ordinary course of business;

(vi)                              Security Interests existing in respect of assets or Subsidiaries at the
time of their acquisition and not created or increased in contemplation of the
relevant acquisition provided that these Security Interests are not extended to
any other assets of the Group and are discharged within six months of such
acquisition, to such an extent that any relevant Financial Indebtedness
outstanding and subject to Security Interests which have not been discharged
within six months of the relevant acquisition does not exceed SEK 300,000,000
in aggregate for all Security Interests permitted by this paragraph (vi);

(vii)                           until 20 Business Days after the first Utilisation Date, Security
Interests in respect of the Existing Facility;

(viii)                        any Security Interest over cash (to the extent contemplated by the
definition of Cash Backed Loans) to secure Financial Indebtedness permitted by
Clause 21.7(b)(iv) (Financial Indebtedness);

(ix)                                any Security Interest listed in Schedule 6 (Existing Security) except to
the extent the principal amount secured by that Security Interest exceeds the
amount stated in that Schedule;

(x)                                   any Security Interest which secures Project Finance Indebtedness, but
only to the extent that the Security Interest is created on an asset of the
project being financed by the relevant Project Finance Indebtedness (and/or on
the shares in, and/or shareholder loans to, the company conducting such project
where such company has no assets other than those relating to such project);

(xi)                                a pledge over the equipment financed by the EKN Facilities;

(xii)                             any Security Interest over cash deposited by members of the Group with
regulatory authorities or other governmental entities in connection with any
application for a UMTS licence and/or GSM licence.

(xiii)                          any Security Interest created in connection with a Permitted
Securitisation over the assets the subject of the Permitted Securitisation;

(xiv)                         any Security Interest over cash balances which arises under a cash
pooling arrangement permitted by Clause 21.7(b)(vii) (Financial
Indebtedness);

(xv)                            any Security Interest over assets of members of the Group (other than
the Company or any Guarantor) to secure Financial Indebtedness of such members
of the Group permitted by Clause 21.7(b)(ix) (Financial Indebtedness),
(provided that the recourse of the beneficiaries of such Security Interest(s) to
the Parent and/or the Company in

 44
 

 

 

respect
of all such Financial Indebtedness does not exceed SEK 500,000,000 (or its
equivalent) in aggregate); or

(xvi)                         any other Security Interest securing an aggregate principal amount which
does not exceed SEK 500,000,000 or its equivalent in any other currencies.

(c)                                  The Company shall procure that there is delivered to the Facility Agent
within 20 Business Days of the first Utilisation Date, written confirmation
from the relevant secured parties of the release and discharge of all Security
Interests in respect of the Existing Facility.

(d)                                 Except for the exceptions under sub-paragraph (b) above, no
member of the Group may:

(i)                                     sell, transfer or otherwise dispose of any of its assets on terms where
it is or may be leased to or re-acquired or acquired by a member of the Group
or any of its related entities;

(ii)                                  sell, transfer or otherwise dispose of any of its receivables on
recourse terms;

(iii)                               enter into any arrangement under which money or the benefit of a bank or
other account may be applied, set-off or made subject to a combination of
accounts; or

(iv)                              enter into any other preferential arrangement having a similar effect,

in
circumstances where the transaction is entered into primarily as a method of
raising Financial Indebtedness or of financing the acquisition of an asset.

21.6                        Disposals

(a)                                  Except as provided below, no member of the Group may, either in a single
transaction or in a series of transactions and whether related or not, dispose
of all or any part of its assets.

(b)                                 Paragraph (a) does not apply to:

(i)                                     disposals made in the ordinary course of business of the disposing
entity;

(ii)                                  disposals of cash raised or borrowed for the purpose for which it was
raised or borrowed or disposals of cash representing the proceeds of insurance
for the purpose of replacing the insured asset;

(iii)                               disposals of assets which are no longer required by the Group on an arm’s
length basis;

(iv)                              disposals of assets in exchange for other assets (other than cash or
cash equivalents) comparable or superior as to type, value and quality;

(v)                                 other disposals expressly permitted by this Agreement;

(vi)                              disposals of assets pursuant to any Permitted Securitisation;

(vii)                           disposals of assets by one member of the Group to another;

(viii)                        disposals on arm’s length terms of assets not otherwise permitted under
paragraph (i) to (vii) above, provided that the aggregate Net
Proceeds in respect of such disposals do not exceed SEK 1,000,000,000 (or its
equivalent in other currencies) in any financial year of the Group;

 45
 

 

 

(ix)                                disposals on arm’s length terms of assets not otherwise permitted under
paragraphs (i) to (viii) above, provided that the Company provides
the Facility Agent with a certificate signed by two authorised signatories of
the Company within 10 days of the relevant disposal, confirming that the
Company would have been in compliance with the financial covenants contained in
Clause 20 (Financial covenants) if they had been tested on the date of
completion of the disposal (the Completion Date)
on a pro forma basis (for the purposes of determining the calculation of
Consolidated EBITDA only, by reference to the Ratio Period in respect of which
a Compliance Certificate has most recently been given (or if no Compliance
Certificate has been given, by reference to the 12 month period ending on the
Completion Date), as if the disposal had been completed, and the consideration
for it had been received, at the beginning of the relevant Ratio Period (or 12
month period)); and

(x)                                   the disposal of Versatel
Deutschland Holding GmbH  contemporaneously with the acquisition
referred to in paragraph (d) of the definition of Permitted Acquisition,
provided that the net proceeds of such disposal are upon receipt applied in
full towards repayment of the Financial Indebtedness referred to in Clause
21.7(b)(x) (Financial Indebtedness).

21.7                        Financial Indebtedness

(a)                                  Except as provided below no member of the Group (other than the Company
or a Guarantor) may incur any Financial Indebtedness.

(b)                                 Paragraph (a) does not apply to:

(i)                                     until the first Utilisation Date, Financial Indebtedness under the
Existing Facility;

(ii)                                  Financial Indebtedness incurred hereunder or with the prior written
consent of the Majority Lenders;

(iii)                               Financial Indebtedness owed by a member of the Group to another member
of the Group;

(iv)                              Cash Backed Loans;

(v)                                 Financial Indebtedness in an aggregate amount not exceeding SEK
250,000,000 incurred under a financial lease of the electricity network of
Affärsverket Svenska Kraftnät dated 21st December, 1992 as amended;

(vi)                              Financial Indebtedness constituted by any Permitted Securitisation;

(vii)                           Financial Indebtedness incurred in connection with any cash pooling
arrangements, provided that such arrangements are operated on the basis that no
net overdraft, which exceeds SEK 100,000,000 in aggregate for all such
overdrafts, arises  within the cash pool;

(viii)                        Project Finance Indebtedness;

(ix)                                other Financial Indebtedness not otherwise permitted under paragraphs (i) to
(viii) above in an aggregate amount not exceeding SEK 2,500,000,000;

(x)                                   Financial Indebtedness of a Subsidiary of the Parent which is borrowed
from the purchaser under the disposal referred to in Clause 21.6(b)(x) (Disposals)

 46
 

 

 

contemporaneously
with completion of the acquisition referred to in paragraph (d) of the
definition of Permitted Acquisition and which is discharged contemporaneously
with completion of such acquisition and disposal; and

(xi)                                Financial Indebtedness of Versatel arising under its convertible bond
issues and which is outstanding at the date of completion of the acquisition
referred to in paragraph (d) of the definition of Permitted Acquisition,
provided that:

(A)                              the aggregate principal Financial Indebtedness under this sub-paragraph
(xi) is not increased after the date of that acquisition; and

(B)                                all such Financial Indebtedness has been irrevocably repaid in full on
or before the date falling six months after the date on which Versatel becomes
a member of the Group to the extent that Versatel has the right to repay such
Financial Indebtedness.

21.8                        Change of business

The
Parent must ensure that no substantial change is made to the general nature or
scope of the business of the Group from that carried on at the Signing Date.

21.9                        Mergers

(a)                                  Except as provided below, no Obligor may enter into any amalgamation,
demerger, merger or reconstruction (a Merger).

(b)                                 Paragraph (a) does not apply to:

(i)                                     any Merger:

(A)                              carried out on a solvent basis;

(B)                                where the Obligor is the surviving entity and that Obligor’s obligations
under the Finance Documents continue in full force and effect after the Merger;
and

(C)                                which, if carried out with an entity which is not a member of the Group
under a transaction covered by Clause 21.10 (Acquisitions), would comply with
the conditions in sub-paragraph (g)(ii) of the definition of
Permitted Acquisitions in Clause 1.1 (Definitions); or

(ii)                                  any Merger previously agreed to in writing by the Majority Lenders.

21.10                 Acquisitions

Except
for Permitted Acquisitions, no member of the Group may acquire all or any part
of the assets, property or business of any other person (other than a member of
the Group) or any assets that constitute a division or operating unit of the
business of any other person (other than another member of the Group).

21.11                 Environmental matters

(a)                                  Each member of the Group must ensure that it is, and has been, in
compliance with all Environmental Law and Environmental Approvals applicable to
it, where failure to do so has

 47
 

 

 

or
is reasonably likely to have a Material Adverse Effect or results in any
liability for a Finance Party.

(b)                                 Each Obligor must promptly upon becoming aware notify the Facility Agent
of:

(i)                                     any Environmental Claim current, or to its knowledge, pending or
threatened; or

(ii)                                  any circumstances reasonably likely to result in an Environmental Claim,

which
has or, if substantiated, is reasonably likely to either have a Material
Adverse Effect or result in any liability for a Finance Party.

21.12                 Insurance

Each
member of the Group must insure its business and assets with insurance
companies to such an extent and against such risks as companies engaged in a
similar business normally insure.

21.13                 Arm’s length terms

(a)                                  In this Clause, Major Shareholder means
any person or group of persons acting in concert which beneficially directly or
indirectly owns shares in the Parent to which attach 30 per cent. or more
of the voting rights attaching to all the issued share capital of the Parent.

(b)                                 No member of the Group will incur any liability to or for the benefit of
any Major Shareholder (or any Affiliate thereof) which are on terms no worse to
the relevant member of the Group than arm’s length terms in the ordinary course
of business.

(c)                                  Paragraph (b) above does not apply to dividends lawfully paid by
any member of the Group.

22.                               DEFAULT

22.1                        Events of Default

(a)                                  Each of the events set out in this Clause is an Event of Default.

(b)                                 In this Clause:

Material
Group Member means an Obligor or a
Material Subsidiary; and

Permitted Transaction means:

(i)                                     an intra-Group re-organisation of a Material Subsidiary on a solvent
basis; or

(ii)                                  any other transaction agreed by the Majority Lenders.

22.2                        Non-payment

An
Obligor does not pay on the due date any amount payable by it under the Finance
Documents in the manner required under the Finance Documents, unless the
non-payment:

(a)                                  is caused by technical or administrative error; and

(b)                                 is remedied within three Business Days of the due date.

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22.3                        Breach of other obligations

(a)                                  An Obligor does not comply with any term of Clause 20 (Financial
covenants); or

(b)                                 an Obligor does not comply with any other term of the Finance Documents
not already referred to in this Clause, unless the non-compliance:

(i)                                     is capable of remedy; and

(ii)                                  is remedied, in the case of Clauses 21.5 (Negative pledge), 21.6
(Disposals), 21.7 (Financial Indebtedness), 21.9 (Mergers) or 21.10
(Acquisitions) within seven Business Days and, in each other case, within
twenty one days of the earlier of the Facility Agent giving notice and the
Obligor becoming aware of the non-compliance.

22.4                        Misrepresentation

A
representation made or repeated by an Obligor in any Finance Document or in any
document delivered by or on behalf of any Obligor under any Finance Document is
incorrect in any material respect when made or deemed to be repeated, unless
the circumstances giving rise to the misrepresentation:

(a)                                  are capable of remedy; and

(b)                                 are remedied within 21 days of the earlier of the Facility Agent
giving notice and the Obligor becoming aware of the misrepresentation.

22.5                        Cross-default

Any
of the following occurs in respect of a member of the Group:

(a)                                  any of its Financial Indebtedness is not paid when due (after the expiry
of any originally applicable grace period);

(b)                                 any of its Financial Indebtedness:

(i)                                     becomes prematurely due and payable;

(ii)                                  is placed on demand; or

(iii)                               is capable of being declared by a creditor to be prematurely due and
payable or being placed on demand,

in
each case, as a result of an event of default (howsoever described); or

(c)                                  any commitment for its Financial Indebtedness is cancelled or suspended
as a result of an event of default (howsoever described),

unless
the aggregate amount of Financial Indebtedness falling within all or any of
paragraphs (a)-(c) above, in respect of any member or members of the
Group, is less than SEK 250,000,000 or its equivalent.

22.6                        Insolvency

Any
of the following occurs in respect of a Material Group Member:

 

 49

 

 

(a)                                  it is, or is deemed for the purposes of any law to be, unable to pay its
debts as they fall due or insolvent;

(b)                                 it admits its inability to pay its debts as they fall due;

(c)                                  it suspends making payments on any of its debts or announces an
intention to do so;

(d)                                 by reason of actual or anticipated financial difficulties, it begins
negotiations with any creditor for the rescheduling of any of its indebtedness;
or

(e)                                  a moratorium is declared in respect of any of its indebtedness.

If a
moratorium occurs in respect of any Material Group Member, the ending of the
moratorium will not remedy any Event of Default caused by the moratorium.

22.7                        Insolvency proceedings

(a)                                  Except as provided below, any of the following occurs in respect of a
Material Group Member:

(i)                                     any step is taken with a view to a moratorium or a composition,
assignment or similar arrangement with any of its creditors;

(ii)                                  a meeting of its shareholders, directors or other officers is convened
for the purpose of considering any resolution for, to petition for or to file
documents with a court or any registrar for, its winding-up, administration or
dissolution or any such resolution is passed;

(iii)                               any person presents a petition, or files documents with a court or any
registrar, for its winding-up, administration or dissolution;

(iv)                              an order for its winding-up, administration or dissolution is made;

(v)                                 any liquidator, trustee in bankruptcy, judicial custodian, compulsory
manager, receiver, administrative receiver, administrator or similar officer is
appointed in respect of it or any of its assets;

(vi)                              its shareholders, directors or other officers request the appointment
of, or give notice of their intention to appoint, a liquidator, trustee in
bankruptcy, judicial custodian, compulsory manager, receiver, administrative
receiver, administrator or similar officer; or

(vii)                           any other analogous step or procedure is taken in any jurisdiction.

(b)                                 Paragraph (a) does not apply to a petition for winding-up presented
by a creditor which is being contested in good faith and with due diligence and
is discharged or struck out within 30 days.

22.8                        Creditors’ process

Any
attachment, sequestration, distress, execution or analogous event affects any
asset(s) of a Material Group Member, having an aggregate value of at least
SEK 100,000,000 and is not discharged within 30 days.

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22.9                        Cessation of business

A
Material Group Member ceases, or threatens to cease, to carry on business
except:

(a)                                  as part of a Permitted Transaction; or

(b)                                 as a result of any disposal allowed under this Agreement.

22.10                 Effectiveness of Finance Documents

(a)                                  It is or becomes unlawful for any Obligor to perform any of its material
obligations under the Finance Documents.

(b)                                 Any Finance Document is not effective in accordance with its terms or is
alleged by an Obligor to be ineffective in accordance with its terms for any
reason.

(c)                                  An Obligor repudiates a Finance Document or evidences an intention to
repudiate a Finance Document.

22.11                 Ownership of the Obligors

An
Obligor (other than the Parent) is not or ceases to be a Subsidiary of the
Parent.

22.12                 Material adverse change

Any
event or series of events occurs which has or is reasonably likely to have a
Material Adverse Effect.

22.13                 Acceleration

If
an Event of Default is outstanding, the Facility Agent may, and shall if so
instructed by the Majority Lenders, by notice to the Company:

(a)                                  cancel all or any part of the Total Commitments; and/or

(b)                                 declare that all or part of any amounts outstanding under the Finance
Documents are:

(i)                                     immediately due and payable; and/or

(ii)                                  payable on demand by the Facility Agent acting on the instructions of
the Majority Lenders.

Any
notice given under this Subclause will take effect in accordance with its
terms.

23.                               THE ADMINISTRATIVE PARTIES

23.1                        Appointment and duties of the Facility Agent

(a)                                  Each Finance Party (other than the Facility Agent) irrevocably appoints
the Facility Agent to act as its agent under the Finance Documents.

(b)                                 Each Finance Party irrevocably authorises the Facility Agent to:

 51
 

 

 

(i)                                     perform the duties and to exercise the rights, powers and discretions
that are specifically given to it under the Finance Documents, together with
any other incidental rights, powers and discretions; and

(ii)                                  execute each Finance Document expressed to be executed by the Facility
Agent.

(c)                                  The Facility Agent has only those duties which are expressly specified
in the Finance Documents. Those duties are solely of a mechanical and
administrative nature.

23.2                        Role of the Mandated Lead Arrangers

Except
as specifically provided in the Finance Documents, no Mandated Lead Arranger
has any obligations of any kind to any other Party in connection with any
Finance Document.

23.3                        No fiduciary duties

Except
as specifically provided in a Finance Document, nothing in the Finance
Documents makes an Administrative Party a trustee or fiduciary for any other
Party or any other person. No Administrative Party need hold in trust any
moneys paid to it for a Party or be liable to account for interest on those
moneys.

23.4                        Individual position of an Administrative Party

(a)                                  If it is also a Lender, each Administrative Party has the same rights
and powers under the Finance Documents as any other Lender and may exercise
those rights and powers as though it were not an Administrative Party.

(b)                                 Each Administrative Party may:

(i)                                     carry on any business with an Obligor or its related entities (including
acting as an agent or a trustee for any other financing); and

(ii)                                  retain any profits or remuneration it receives under the Finance Documents
or in relation to any other business it carries on with an Obligor or its
related entities.

23.5                        Reliance

The
Facility Agent may:

(a)                                  rely on any notice or document believed by it to be genuine and correct
and to have been signed by, or with the authority of, the proper person;

(b)                                 rely on any statement made by any person regarding any matters which may
reasonably be assumed to be within his knowledge or within his power to verify;

(c)                                  engage, pay for and rely on professional advisers selected by it (including
those representing a Party other than the Facility Agent); and

(d)                                 act under the Finance Documents through its personnel and agents.

23.6                        Majority Lenders’ instructions

(a)                                  The Facility Agent is fully protected if it acts on the instructions of
the Majority Lenders in the exercise of any right, power or discretion or any
matter not expressly provided for in the Finance Documents. Any such
instructions given by the Majority Lenders will be binding on 

 52
 

 

 

all the Lenders. In the absence of instructions, the
Facility Agent may act as it considers to be in the best interests of all the
Lenders.

(b)                                 The Facility Agent may assume that unless it has received notice to the
contrary, any right, power, authority or discretion vested in any Party or the
Majority Lenders has not been exercised.

(c)                                  The Facility Agent is not authorised to act on behalf of a Lender
(without first obtaining that Lender’s consent) in any legal or arbitration
proceedings in connection with any Finance Document.

(d)                                 The Facility Agent may require the receipt of security satisfactory to
it, whether by way of payment in advance or otherwise, against any liability or
loss which it may incur in complying with the instructions of the Majority
Lenders.

23.7                        Responsibility

(a)                                  No Administrative Party is responsible for the adequacy, accuracy or
completeness of any statement or information (whether written or oral) made in
or supplied in connection with any Finance Document.

(b)                                 No Administrative Party is responsible for the legality, validity,
effectiveness, adequacy, completeness or enforceability of any Finance Document
or any other document.

(c)                                  Without affecting the responsibility of any Obligor for information
supplied by it or on its behalf in connection with any Finance Document, each
Lender confirms that it:

(i)                                     has made, and will continue to make, its own independent appraisal of
all risks arising under or in connection with the Finance Documents (including
the financial condition and affairs of each Obligor and its related entities
and the nature and extent of any recourse against any Party or its assets); and

(ii)                                  has not relied exclusively on any information provided to it by any
Administrative Party in connection with any Finance Document.

23.8                        Exclusion of liability

(a)                                  The Facility Agent is not liable or responsible to any other Finance
Party for any action taken or not taken by it in connection with any Finance
Document, unless directly caused by its gross negligence or wilful misconduct.

(b)                                 No Party (other than the Facility Agent) may take any proceedings
against any officer, employee or agent of the Facility Agent in respect of any
claim it might have against the Facility Agent or in respect of any act or
omission of any kind by that officer, employee or agent in connection with any
Finance Document. Any officer, employee or agent of the Facility Agent may rely
on this Subclause and enforce its terms under the Contracts (Rights of Third
Parties) Act 1999.

(c)                                  The Facility Agent is not liable for any delay (or any related consequences)
in crediting an account with an amount required under the Finance Documents to
be paid by the Facility Agent if the Facility Agent has taken all necessary
steps as soon as reasonably practicable to comply with the regulations or
operating procedures of any recognised clearing or settlement system used by
the Facility Agent for that purpose.

 53
 

 

 

(d)                              (i)             Nothing in this
Agreement will oblige any Administrative Party to satisfy any know your
customer                                  requirement in relation to the
identity of any person on behalf of any Finance Party.

(ii)                                  Each Finance Party confirms to each Administrative Party that it is
solely responsible for any know your customer requirements it is required to
carry out and that it may not rely on any statement in relation to those requirements
made by any other person.

23.9                        Default

(a)                                  The Facility Agent is not obliged to monitor or enquire whether a
Default has occurred. The Facility Agent is not deemed to have knowledge of the
occurrence of a Default.

(b)                                 If the Facility Agent:

(i)                                     receives notice from a Party referring to this Agreement, describing a
Default and stating that the event is a Default; or

(ii)                                  is aware of the non-payment of any principal, interest or fee payable to
a Finance Party (other than the Facility Agent or a Mandated Lead Arranger)
under this Agreement,

it
must promptly notify the other Finance Parties.

23.10                 Information

(a)                                  The Facility Agent must promptly forward to the person concerned the
original or a copy of any document which is delivered to the Facility Agent by
a Party for that person.

(b)                                 Except where a Finance Document specifically provides otherwise, the
Facility Agent is not obliged to review or check the adequacy, accuracy or
completeness of any document it forwards to another Party.

(c)                                  Except as provided above, the Facility Agent has no duty:

(i)                                     either initially or on a continuing basis to provide any Lender with any
credit or other information concerning the risks arising under or in connection
with the Finance Documents (including any information relating to the financial
condition or affairs of any Obligor or its related entities or the nature or
extent of recourse against any Party or its assets) whether coming into its
possession before, on or after the Signing Date; or

(ii)                                  unless specifically requested to do so by a Lender in accordance with a
Finance Document, to request any certificate or other document from any
Obligor.

(d)                                 In acting as the Facility Agent, the agency division of the Facility
Agent is treated as a separate entity from its other divisions and departments.
Any information acquired by the Facility Agent which, in its opinion, is
acquired by it otherwise than in its capacity as the Facility Agent may be
treated as confidential by the Facility Agent and will not be treated as information
possessed by the Facility Agent in its capacity as such.

(e)                                  The Facility Agent is not obliged to disclose to any person any
confidential information supplied to it by or on behalf of a member of the
Group solely for the purpose of evaluating 

 54
 

 

 

whether any waiver or amendment is required in respect
of any term of the Finance Documents.

(f)                                    Each Obligor irrevocably authorises the Facility Agent to disclose to
the other Finance Parties any information which, in its opinion, is received by
it in its capacity as the Facility Agent.

23.11                 Indemnities

(a)                                  Without limiting the liability of any Obligor under the Finance
Documents, each Lender must indemnify the Facility Agent for that Lender’s Pro
Rata Share of any loss or liability incurred by the Facility Agent in acting as
the Facility Agent, except to the extent that the loss or liability is caused
by the Facility Agent’s gross negligence or wilful misconduct.

(b)                                 The Facility Agent may deduct from any amount received by it for a
Lender any amount due to the Facility Agent from that Lender under a Finance
Document but unpaid.

23.12                 Compliance

Each
Administrative Party may refrain from doing anything (including disclosing any
information) which might, in its opinion, constitute a breach of any law or regulation
or be otherwise actionable at the suit of any person, and may do anything
which, in its opinion, is necessary or desirable to comply with any law or
regulation.

23.13                 Resignation of the Facility Agent

(a)                                  The Facility Agent may resign and appoint any of its Affiliates as
successor Facility Agent by giving notice to the other Finance Parties and the
Company.

(b)                                 Alternatively, the Facility Agent may resign by giving notice to the
Finance Parties and the Company, in which case the Majority Lenders may appoint
a successor Facility Agent.

(c)                                  If no successor Facility Agent has been appointed under paragraph (b) above
within 30 days after notice of resignation was given, the Facility Agent
may appoint a successor Facility Agent.

(d)                                 The person(s) appointing a successor Facility Agent must, if
practicable, consult with the Company prior to the appointment.

(e)                                  The resignation of the Facility Agent and the appointment of any
successor Facility Agent will both become effective only when the successor
Facility Agent notifies all the Parties that it accepts its appointment. On
giving the notification, the successor Facility Agent will succeed to the
position of the Facility Agent and the term Facility
Agent will mean the successor Facility Agent.

(f)                                    The retiring Facility Agent must, at its own cost, make available to the
successor Facility Agent such documents and records and provide such assistance
as the successor Facility Agent may reasonably request for the purposes of
performing its functions as the Facility Agent under the Finance Documents.

(g)                                 Upon its resignation becoming effective, this Clause will continue
to benefit the retiring Facility Agent in respect of any action taken or not
taken by it in connection with the Finance Documents while it was the Facility
Agent, and, subject to paragraph (f) above, it will have no further
obligations under any Finance Document.

 55
 

 

 

(h)                                 The Majority Lenders may, by notice to the Facility Agent, require it to
resign under paragraph (b) above.

23.14                 Relationship with Lenders

(a)                                  The Facility Agent may treat each Lender as a Lender, entitled to
payments under this Agreement and as acting through its Facility Office(s) until
it has received not less than five Business Days’ prior notice from that Lender
to the contrary.

(b)                                 The Facility Agent may at any time, and must if requested to do so by
the Majority Lenders, convene a meeting of the Lenders.

23.15                 Facility Agent’s management time

If
the Facility Agent requires, any amount payable to the Facility Agent by any
Party under any indemnity or in respect of any costs or expenses incurred by
the Facility Agent under the Finance Documents after the  Signing Date may include the cost of using
its management time or other resources and will be calculated on the basis of
such reasonable daily or hourly rates as the Facility Agent may notify to the
relevant Party. This is in addition to any amount in respect of fees or
expenses paid or payable to the Facility Agent under any other term of the
Finance Documents.

23.16                 Notice period

Where
this Agreement specifies a minimum period of notice to be given to the Facility
Agent, the Facility Agent may, at its discretion, accept a shorter notice
period.

24.                               EVIDENCE AND CALCULATIONS

24.1                        Accounts

Accounts
maintained by a Finance Party in connection with this Agreement are prima facie
evidence of the matters to which they relate for the purpose of any litigation
or arbitration proceedings.

24.2                        Certificates and determinations

Any
certification or determination by a Finance Party of a rate or amount under the
Finance Documents will be, in the absence of manifest error, conclusive
evidence of the matters to which it relates.

24.3                        Calculations

Any
interest or fee accruing under this Agreement accrues from day to day and is
calculated on the basis of the actual number of days elapsed and a year of 360
or 365 days or otherwise, depending on what the Facility Agent determines is
market practice.

25.                               FEES

25.1                        Facility Agent’s fee

The
Company must pay to the Facility Agent for its own account an agency fee in the
manner agreed in the Fee Letter between the Facility Agent and the Company.

 56
 

 

 

25.2                        Commitment fee

(a)                                  The Company must pay to the Facility Agent for each Lender a commitment
fee, in respect of that Lender’s Commitment, computed at the rate which is 35
per cent. of the applicable Margin at the time on the undrawn, uncancelled
amount of the Lender’s Commitment during the relevant Availability Period. For
this purpose, applicable Margin means, in
relation to a Facility, the Margin applicable to Loans borrowed under that
Facility.

(b)                                 Subject to (c) below, commitment fee will accrue from the Signing
Date  and accrued commitment fee is
payable quarterly in arrear. Accrued commitment fee is also payable to the
Facility Agent for a Lender on the date its Commitment is cancelled in full.

(c)                                  The commitment fee in respect of an amount of the Facilities equal to
the amount of the Existing Facility (the Deferred Amount)
will accrue from the date falling five days after the Signing Date. For this
purpose, the Deferred Amount will be split pro rata between Facility A and
Facility B.

25.3                        Participation fee

(a)                                  The Company must pay to the Facility Agent for each Lender with a
relevant Commitment as set out below, a participation fee computed at the rate
of:

(i)                                     in respect of Facility A Loans, 0.15 per cent. flat on each Lender’s
Facility A Commitment on the Signing Date;

(ii)                                  in respect of Facility B Loans, 0.20 per cent. flat on each Lender’s
Facility B Commitment on the Signing Date; and

(iii)                               in respect of Relevant Amounts (as defined below):

(A)                               0.20 per cent. of the Relevant Amount of each Lender whose Relevant
Amount on the Effective Date is SEK 300,000,000 
or more (but less than SEK 800,000,000);

(B)                                0.225% per cent. of the Relevant Amount of each Lender whose Relevant
Amount on the Effective Date is  SEK
800,000,000 or more (but less than SEK 1,000,000,000); and

(C)                                0.25% per cent. of the Relevant Amount of each Lender whose Relevant
Amount on the Effective Date is SEK 1,000,000,000 or more.

(b)                                 Participation fee in respect of Facility A and Facility B is payable on
the earlier of the first Utilisation Date and the date falling five Business
Days after the Signing Date.

(c)                                  Participation fee under sub-paragraph (a) (iii) above is
payable on the earlier of:

(i)                                      the first Utilisation Date to occur on or after the Effective Date; and

(ii)                                  the date falling five Business Days after the Effective Date.

(d)                                 In paragraph (a) and (c) above, the Relevant
Amount of a Lender is the sum of that Lender’s drawn and undrawn:

(i)            Facility C Commitment; and

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(ii)           Facility A Commitment in respect of
the Facility A Increase,

in
each case as at the Effective Date.

26.                               INDEMNITIES AND BREAK COSTS

26.1                        Currency indemnity

(a)                                  The Company must, as an independent obligation, indemnify each Finance
Party against any loss or liability which that Finance Party incurs as a
consequence of:

(i)                                     that Finance Party receiving an amount in respect of an Obligor’s
liability under the Finance Documents; or

(ii)                                  that liability being converted into a claim, proof, judgment or order,

in a
currency other than the currency in which the amount is expressed to be payable
under the relevant Finance Document.

(b)                                 Unless otherwise required by law, each Obligor waives any right it may
have in any jurisdiction to pay any amount under the Finance Documents in a
currency other than that in which it is expressed to be payable.

26.2                        Other indemnities

(a)                                  The Company must indemnify each Finance Party against any loss or
liability which that Finance Party incurs as a consequence of:

(i)                                     the occurrence of any Event of Default;

(ii)                                  any failure by an Obligor to pay any amount due under a Finance Document
on its due date, including any resulting from any distribution or
redistribution of any amount among the Lenders under this Agreement;

(iii)                               (other than by reason of negligence or default by that Finance Party) a
Loan not being made after a Request has been delivered for that Loan; or

(iv)                              a Loan (or part of a Loan) not being prepaid in accordance with this
Agreement.

The
Company’s liability in each case includes any loss or expense on account of
funds borrowed, contracted for or utilised to fund any amount payable under any
Finance Document or any Loan.

(b)                                 The Company must indemnify the Facility Agent against any loss or
liability incurred by the Facility Agent as a result of:

(i)                                     investigating any event which the Facility Agent reasonably believes to
be a Default; or

(ii)                                  acting or relying on any notice which the Facility Agent reasonably
believes to be genuine, correct and appropriately authorised.

26.3                        Break Costs

(a)                                  The Company must pay to each Lender its Break Costs.

 58
 

 

 

(b)                                 Break Costs are the amount (if any) determined by the relevant Lender by
which:

(i)                                     the interest (without taking into account the Margin) which that Lender
would have received for the period from the date of receipt of any part of its
share in a Loan or an overdue amount to the last day of the applicable Term for
that Loan or overdue amount if the principal or overdue amount received had
been paid on the last day of that Term;

exceeds

(ii)                                  the amount which that Lender would be able to obtain by placing an
amount equal to the amount received by it on deposit with a leading bank in the
appropriate interbank market for a period starting on the Business Day
following receipt and ending on the last day of the applicable Term.

(c)                                  Each Lender must supply to the Facility Agent for the Company details of
the amount of any Break Costs claimed by it under this Subclause.

27.                               EXPENSES

27.1                        Initial costs

The Company
must pay to each Administrative Party the amount of all costs and expenses
(including legal fees) reasonably incurred by it in connection with the
negotiation, preparation, printing, execution and syndication of the Finance
Documents.

27.2                        Subsequent costs

The
Company must pay to the Facility Agent the amount of all costs and expenses
(including legal fees) reasonably incurred by it in connection with:

(a)                                  the negotiation, preparation, printing and execution of any Finance
Document (other than a Transfer Certificate) executed after the Signing Date;
and

(b)                                 any amendment, waiver or consent requested by or on behalf of an Obligor
or specifically allowed by this Agreement.

27.3                        Enforcement costs

The
Company must pay to each Finance Party the amount of all costs and expenses
(including legal fees) incurred by it in connection with the enforcement of, or
the preservation of any rights under, any Finance Document.

28.                               AMENDMENTS AND WAIVERS

28.1                        Procedure

(a)                                  Except as provided in this Clause, any term of the Finance Documents may
be amended or waived with the agreement of the Company and the Majority Lenders.
The Facility Agent may effect, on behalf of any Finance Party, an amendment or
waiver allowed under this Clause.

 

 59

 

 

(b)                                 The Facility Agent must promptly notify the other Parties of any
amendment or waiver effected by it under paragraph (a) above. Any such
amendment or waiver is binding on all the Parties.

28.2                        Exceptions

(a)                                  An amendment or waiver which relates to:

(i)                                     the definition of Majority Lenders
in Clause 1.1 (Definitions);

(ii)                                  an extension of the date of payment of any amount to a Lender under the
Finance Documents;

(iii)                               a reduction in the Margin or a reduction in the amount of any payment of
principal, interest, fee or other amount payable to a Lender under the Finance
Documents;

(iv)                              an increase in, or an extension of, a Commitment or the Total
Commitments;

(v)                                 a release of an Obligor other than in accordance with the terms of this
Agreement;

(vi)                              a term of a Finance Document which expressly requires the consent of
each Lender;

(vii)                           the right of a Lender to assign or transfer its rights or obligations
under the Finance Documents; or

(viii)                        Clause 2.4 (Nature of a Finance Party’s rights and obligations), Clause
32 (Pro rata sharing) or this Clause,

may
only be made with the consent of all the Lenders.

(b)                                 An amendment or waiver which relates to the rights or obligations of an
Administrative Party may only be made with the consent of that Administrative
Party.

(c)                                  A Fee Letter may be amended or waived with the agreement of the
Administrative Party that is a party to that Fee Letter and the Company.

28.3                        Change of currency

If a
change in any currency of a country occurs (including where there is more than
one currency or currency unit recognised at the same time as the lawful
currency of a country), the Finance Documents will be amended to the extent the
Facility Agent (acting reasonably and after consultation with the Company)
determines is necessary to reflect the change.

28.4                        Waivers and remedies cumulative

The
rights of each Finance Party under the Finance Documents:

(a)                                  may be exercised as often as necessary;

(b)                                 are cumulative and not exclusive of its rights under the general law;
and

(c)                                  may be waived only in writing and specifically.

Delay
in exercising or non-exercise of any right is not a waiver of that right.

 60
 

 

 

29.                               CHANGES TO THE PARTIES

29.1                        Assignments and transfers by Obligors

No
Obligor may assign or transfer any of its rights and obligations under the
Finance Documents without the prior consent of all the Lenders.

29.2                        Assignments and transfers by Lenders

(a)                                  A Lender (the Existing Lender)
may, subject to the following provisions of this Subclause, at any time assign
or transfer (including by way of novation) any of its rights and obligations
under this Agreement to any other bank or financial institution or to a trust
fund or other entity which is regularly engaged in or established for the
purpose of making, purchasing or investing in loans, securities or other
financial assets (the New Lender).

(b)                                 The consent of the Company is required for any assignment or transfer
unless the New Lender is another Lender or an Affiliate of a Lender. The
consent of the Company must not be unreasonably withheld or delayed. The
Company will be deemed to have given its consent five Business Days after the
Company is given notice of the request unless it is expressly refused by the
Company within that time.

(c)                                  The Company may not withhold its consent solely because the assignment
or transfer might increase the Mandatory Cost.

(d)                                 The Facility Agent is not obliged to execute a Transfer Certificate
until it has completed all know your customer requirements to its satisfaction.
The Facility Agent must promptly notify the Existing Lender and the New Lender
if there are any such requirements.

(e)                                  A transfer of obligations will be effective only if either:

(i)                                     the obligations are novated in accordance with the following provisions
of this Clause; or

(ii)                                  the New Lender confirms to the Facility Agent and the Company in form
and substance satisfactory to the Facility Agent that it is bound by the terms
of this Agreement as a Lender. On the transfer becoming effective in this
manner the Existing Lender will be released from its obligations under this
Agreement to the extent that they are transferred to the New Lender.

(f)                                    Unless the Facility Agent otherwise agrees, the New Lender must pay to
the Facility Agent for its own account, on or before the date any assignment or
transfer occurs, a fee of euro 1,500.

(g)                                 Any reference in this Agreement to a Lender includes a New Lender but
excludes a Lender if no amount is or may be owed to or by it under this
Agreement.

29.3                        Procedure for transfer by way of novations

(a)                                  In this Subclause:

Transfer
Date means, for a Transfer Certificate, the later
of:

(i)                                     the proposed Transfer Date specified in that Transfer Certificate; and

 61
 

 

 

(ii)                                  the date on which the Facility Agent executes that Transfer Certificate.

(b)                                 A novation is effected if:

(i)                                     the Existing Lender and the New Lender deliver to the Facility Agent a
duly completed Transfer Certificate; and

(ii)                                  the Facility Agent executes it.

The
Facility Agent must execute as soon as reasonably practicable a Transfer
Certificate delivered to it and which appears on its face to be in order.

(c)                                  Each Party (other than the Existing Lender and the New Lender)
irrevocably authorises the Facility Agent to execute any duly completed
Transfer Certificate on its behalf.

(d)                                 On the Transfer Date:

(i)                                     the New Lender will assume the rights and obligations of the Existing
Lender expressed to be the subject of the novation in the Transfer Certificate
in substitution for the Existing Lender; and

(ii)                                  the Existing Lender will be released from those obligations and cease to
have those rights.

(e)                                  The Facility Agent must, as soon as reasonably practicable after it has
executed a Transfer Certificate, send to the Company a copy of that Transfer
Certificate.

29.4                        Limitation of responsibility of Existing Lender

(a)                                  Unless expressly agreed to the contrary, an Existing Lender is not
responsible to a New Lender for the legality, validity, adequacy, accuracy,
completeness or performance of:

(i)                                     any Finance Document or any other document; or

(ii)                                  any statement or information (whether written or oral) made in or
supplied in connection with any Finance Document,

and
any representations or warranties implied by law are excluded.

(b)                                 Each New Lender confirms to the Existing Lender and the other Finance
Parties that it:

(i)                                     has made, and will continue to make, its own independent appraisal of
all risks arising under or in connection with the Finance Documents (including
the financial condition and affairs of each Obligor and its related entities
and the nature or extent of any recourse against any Party or its assets) in
connection with its participation in this Agreement; and

(ii)                                  has not relied exclusively on any information supplied to it by the
Existing Lender in connection with any Finance Document.

(c)                                  Nothing in any Finance Document requires an Existing Lender to:

(i)                                     accept a re-transfer from a New Lender of any of the rights and
obligations assigned or transferred under this Clause; or

 62
 

 

 

(ii)                                  support any losses incurred by the New Lender by reason of the
non-performance by any Obligor of its obligations under any Finance Document or
otherwise.

29.5                        Costs resulting from change of Lender or Facility Office

If:

(a)                                  a Lender assigns or transfers any of its rights and obligations under
the Finance Documents or changes its Facility Office; and

(b)                                 as a result of circumstances existing at the date the assignment,
transfer or change occurs, an Obligor would be obliged to pay a Tax Payment or
an Increased Cost,

then,
unless the assignment, transfer or change is made by a Lender to mitigate any
circumstances giving rise to the Tax Payment, Increased Cost or a right to be
prepaid and/or cancelled by reason of illegality, the Obligor need only pay
that Tax Payment or Increased Cost to the same extent that it would have been
obliged to if no assignment, transfer or change had occurred.

29.6                        Additional Guarantors

(a)                                  The Company must, by giving not less than 10 Business Days’ prior notice
to the Facility Agent, notify the Facility Agent (which must promptly notify
the Lenders) of its intention to request one of its Subsidiaries to become an
Additional Guarantor.

(b)                                 If the accession of an Additional Guarantor requires any Finance Party
to carry out know your customer requirements in circumstances where the
necessary information is not already available to it, the Company must promptly
on request by any Finance Party supply to that Finance Party any documentation
or other evidence which is reasonably requested by that Finance Party (whether
for itself, on behalf of any Finance Party or any prospective new Lender) to
enable a Finance Party or prospective new Lender to carry out and be satisfied
with the results of all applicable know your customer requirements.

(c)                                  If one of the Subsidiaries of the Company is to become an Additional
Guarantor, then the Company must (following consultation with the Facility
Agent) deliver to the Facility Agent the relevant documents and evidence listed
in Part 2 of Schedule 2 (Conditions precedent documents).

(d)                                 The relevant Subsidiary will become an Additional Guarantor when the
Facility Agent notifies the other Finance Parties and the Company that it has
received all of the documents and evidence referred to in paragraph (a) above
in form and substance satisfactory to it. The Facility Agent must give this
notification as soon as reasonably practicable.

(e)                                  Delivery of an Accession Agreement, executed by the relevant Subsidiary
and the Company, to the Facility Agent constitutes confirmation by that
Subsidiary and the Company that the Repeating Representations are then correct.

29.7                        Resignation of a Guarantor

(a)                                  The Company may request that a Guarantor (other than the Parent) ceases
to be a Guarantor by giving to the Facility Agent a duly completed Resignation
Request.

(b)                                 The Facility Agent must accept a Resignation Request and notify the
Company and the Lenders of its acceptance if:

 63
 

 

 

(i)                                     a breach of Clause 21.7 (Financial Indebtedness) would not result from
the acceptance of the Resignation Request; and

(ii)                                  no demand for the payment of any money has been made in writing on that
Guarantor which is outstanding on the date the Facility Agent receives the duly
completed Resignation Request.

(c)                                  The Guarantor will cease to be a Guarantor when the Facility Agent gives
the notification referred to in paragraph (b) above.

(d)                                 A Guarantor may also cease to be a Guarantor in any other manner
approved by the Majority Lenders.

29.8                        Changes to the Reference Banks

If a
Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it
is an Affiliate) ceases to be a Lender, the Facility Agent must (in
consultation with the Company) appoint another Lender or an Affiliate of a
Lender to replace that Reference Bank.

30.                               DISCLOSURE OF INFORMATION

(a)                                  Each Finance Party must keep confidential any information supplied to it
by or on behalf of any Obligor in connection with the Finance Documents. However,
a Finance Party is entitled to disclose information:

(i)                                     which is publicly available, other than as a result of a breach by that
Finance Party of this Clause;

(ii)                                  in connection with any legal or arbitration proceedings;

(iii)                               if required to do so under any law or regulation;

(iv)                              to a governmental, banking, taxation or other regulatory authority;

(v)                                 to its professional advisers;

(vi)                              to the extent allowed under paragraph (b) below;

(vii)                           to another Obligor; or

(viii)                        with the agreement of the relevant Obligor.

(b)                                 A Finance Party may disclose to an Affiliate or any person with whom it
may enter, or has entered into, any kind of transfer, participation or other
agreement in relation to this Agreement (a participant):

(i)                                     a copy of any Finance Document; and

(ii)                                  any information which that Finance Party has acquired under or in
connection with any Finance Document.

However,
before a participant may receive any confidential information, it must agree
with the relevant Finance Party to keep that information confidential on the
terms of paragraph (a) above.

 64
 

 

 

(c)                                  This Clause supersedes any previous confidentiality undertaking given by
a Finance Party in connection with this Agreement prior to it becoming a Party.

31.                               SET-OFF

A
Finance Party may set off any matured obligation owed to it by an Obligor under
the Finance Documents (to the extent beneficially owned by that Finance Party)
against any obligation (whether or not matured) owed by that Finance Party to
that Obligor, regardless of the place of payment, booking branch or currency of
either obligation. If the obligations are in different currencies, the Finance
Party may convert either obligation at a market rate of exchange in its usual
course of business for the purpose of the set-off.

32.                               PRO RATA SHARING

32.1                        Redistribution

If
any amount owing by an Obligor under this Agreement to a Lender (the recovering Lender) is discharged by payment, set-off or any
other manner other than through the Facility Agent under this Agreement (a recovery), then:

(a)                                  the recovering Lender must, within three Business Days, supply details
of the recovery to the Facility Agent;

(b)                                 the Facility Agent must calculate whether the recovery is in excess of
the amount which the recovering Lender would have received if the recovery had
been received and distributed by the Facility Agent under this Agreement; and

(c)                                  the recovering Lender must pay to the Facility Agent an amount equal to
the excess (the redistribution).

32.2                        Effect of redistribution

(a)                                  The Facility Agent must treat a redistribution as if it were a payment
by the relevant Obligor under this Agreement and distribute it among the
Lenders, other than the recovering Lender, accordingly.

(b)                                 When the Facility Agent makes a distribution under paragraph (a) above,
the recovering Lender will be subrogated to the rights of the Finance Parties
which have shared in that redistribution.

(c)                                  If and to the extent that the recovering Lender is not able to rely on
any rights of subrogation under paragraph (b) above, the relevant Obligor
will owe the recovering Lender a debt which is equal to the redistribution,
immediately payable and of the type originally discharged.

(d)                                 If:

(i)                                     a recovering Lender must subsequently return a recovery, or an amount
measured by reference to a recovery, to an Obligor; and

(ii)                                  the recovering Lender has paid a redistribution in relation to that
recovery,

each
Finance Party must reimburse the recovering Lender all or the appropriate
portion of the redistribution paid to that Finance Party, together with
interest for the period while it held the 

 65
 

 

 

redistribution.
In this event, the subrogation in paragraph (b) above will operate in
reverse to the extent of the reimbursement.

32.3                        Exceptions

Notwithstanding
any other term of this Clause, a recovering Lender need not pay a
redistribution to the extent that:

(a)                                  it would not, after the payment, have a valid claim against the relevant
Obligor in the amount of the redistribution; or

(b)                                 it would be sharing with another Finance Party any amount which the
recovering Lender has received or recovered as a result of legal or arbitration
proceedings, where:

(i)                                     the recovering Lender notified the Facility Agent of those proceedings;
and

(ii)                                  the other Finance Party had an opportunity to participate in those
proceedings but did not do so or did not take separate legal or arbitration
proceedings as soon as reasonably practicable after receiving notice of them.

33.                               SEVERABILITY

If a
term of a Finance Document is or becomes illegal, invalid or unenforceable in
any jurisdiction, that will not affect:

(a)                                  the legality, validity or enforceability in that jurisdiction of any
other term of the Finance Documents; or

(b)                                 the legality, validity or enforceability in other jurisdictions of that
or any other term of the Finance Documents.

34.                               COUNTERPARTS

Each
Finance Document may be executed in any number of counterparts. This has the
same effect as if the signatures on the counterparts were on a single copy of
the Finance Document.

35.                               NOTICES

35.1                        In writing

(a)                                  Any communication in connection with a Finance Document must be in
writing and, unless otherwise stated, may be given:

(i)                                     in person, by post, fax, e-mail or any other electronic communication
approved by the Facility Agent; or

(ii)                                  if between the Facility Agent and a Lender and the Facility Agent and
the Lender agree, by e-mail or other electronic communication.

(b)                                 For the purpose of the Finance Documents, an electronic communication
will be treated as being in writing.

(c)                                  Unless it is agreed to the contrary, any consent or agreement required
under a Finance Document must be given in writing.

 66
 

 

 

35.2                        Contact details

(a)                                  Except as provided below, the contact details of each Party for all
communications in connection with the Finance Documents are those notified by
that Party for this purpose to the Facility Agent on or before the date it
becomes a Party.

(b)                                 The address and facsimile number of the Company are:

Tele2 Sverige AB

Box
62

S-164
94 Kista

Sweden

Facsimile:               +46
8 56 26 42 01

Attention:              Håkan Zadler

with a copy to be sent to:

Banque Invik S.A.

7,
avenue J.P. Pescatore

P.O. Box
285

L-2012
Luxembourg

Facsimile:               +
352 27 751 272

Attention:              Head of Corporate Finance

or
such other as the Company may notify to the Facility Agent by not less than
five Business Days’ notice.

(c)                                  The address and facsimile number of the Facility Agent are:

WestLB AG, London Branch

Woolgate
Exchange

25
Basinghall Street

London  EC2V 5HA

Facsimile:
              +44 20 7020 7620

Attention:              Agency Dept.

or
such other as the Facility Agent may notify to the other Parties by not less
than five Business Days’ notice.

(d)                                 The address and facsimile number of the Parent are:

Tele2 AB

Skeppsbron
18

PO
Box 2094

S-103
13 Stockholm

Sweden

Facsimile:               +
46 856 26 0040

Attention:              Lars-Johan Jarnheimer

with
a copy to be sent to:

 67
 

 

 

Banque Invik S.A.

7,
avenue J.P. Pescatore

P.O. Box
285

L-2012
Luxembourg

Facsimile:               +352
27 751 272

Attention:              Head of Corporate Finance

or
such other as the Parent shall notify to the Facility Agent by not less than
five Business Days’ notice.

(e)                                  Where a Party nominates a particular department or officer to receive a
communication, a communication will not be effective if it fails to specify
that department or officer.

35.3                        Effectiveness

(a)                                  Except as provided below, any communication in connection with a Finance
Document will be deemed to be given as follows:

(i)                                     if delivered in person, at the time of delivery;

(ii)                                  if posted, five days after being deposited in the post, postage prepaid,
in a correctly addressed envelope;

(iii)                               if by fax, when received in legible form; and

(iv)                              if by e-mail or any other electronic communication, when received in
legible form.

(b)                                 A communication given under paragraph (a) above but received on a
non-working day or after business hours in the place of receipt will only be
deemed to be given on the next working day in that place.

(c)                                  A communication to the Facility Agent will only be effective on actual
receipt by it.

35.4                        Obligors

(a)                                  All communications under the Finance Documents to or from an Obligor
must be sent through the Facility Agent.

(b)                                 All communications under the Finance Documents to or from an Obligor
(other than the Company) must be sent through the Company.

(c)                                  Each Obligor (other than the Company) irrevocably appoints the Company
to act as its agent:

(i)                                     to give and receive all communications under the Finance Documents;

(ii)                                  to supply all information concerning itself to any Finance Party; and

(iii)                               to sign all documents under or in connection with the Finance Documents.

(d)                                 Any communication given to the Company in connection with a Finance
Document will be deemed to have been given also to the other Obligors.

(e)                                  The Facility Agent may assume that any communication made by the Company
is made with the consent of each other Obligor.

 68
 

 

 

36.                               LANGUAGE

(a)                                  Any notice given in connection with a Finance Document must be in
English.

(b)                                 Any other document provided in connection with a Finance Document must
be:

(i)                                     in English; or

(ii)                                  (unless the Facility Agent otherwise agrees) accompanied by a certified
English translation. In this case, the English translation prevails unless the
document is a statutory or other official document.

37.                               GOVERNING LAW

This
Agreement is governed by English law.

38.                               ENFORCEMENT

38.1                        Jurisdiction

(a)                                  The English courts have exclusive jurisdiction to settle any dispute in
connection with any Finance Document.

(b)                                 The English courts are the most appropriate and convenient courts to
settle any such dispute and each Obligor waives objection to those courts on
the grounds of inconvenient forum or otherwise in relation to proceedings in
connection with any Finance Document.

(c)                                  This Clause is for the benefit of the Finance Parties only. To the
extent allowed by law, a Finance Party may take:

(i)                                     proceedings in any other court; and

(ii)                                  concurrent proceedings in any number of jurisdictions.

38.2                        Service of process

(a)                                  Each Obligor not incorporated in England and Wales irrevocably appoints
Tele2 (UK) Communications Limited as its agent under the Finance Documents for
service of process in any proceedings before the English courts.

(b)                                 If any person appointed as process agent is unable for any reason to act
as agent for service of process, the Company (on behalf of all the Obligors) must
immediately appoint another agent on terms acceptable to the Facility Agent. Failing
this, the Facility Agent may appoint another agent for this purpose.

(c)                                  Each Obligor agrees that failure by a process agent to notify it of any
process will not invalidate the relevant proceedings.

(d)                                 This Clause does not affect any other method of service allowed by law.

38.3                        Waiver of immunity

Each
Obligor irrevocably and unconditionally:

 69
 

 

 

(a)                                  agrees not to claim any immunity from proceedings brought by a Finance Party
against it in relation to a Finance Document and to ensure that no such claim
is made on its behalf;

(b)                                 consents generally to the giving of any relief or the issue of any
process in connection with those proceedings; and

(c)                                  waives all rights of immunity in respect of it or its assets.

This Agreement has been entered into on the date
stated at the beginning of this Agreement.

 

 70

 

SCHEDULE 1

ORIGINAL
PARTIES

 

	
  Name of Original Guarantor

  	
   

  	
  Registration number

  (or equivalent, if any)

  	
   

  
	
  Tele2 AB (publ)

  	
   

  	
  556410-8917

  	
   

  

 

Commitments

 

	
  Name of Original Lender

  	
   

  	
  Facility A Commitments

  (SEK)

  	
   

  
	
  ABN AMRO Bank N.V.,
  Stockholm branch

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Citibank International
  plc

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Crédit Agricole Stockholm Branch of Calyon Bank SA, France

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DnB NOR Bank ASA

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank AB (publ)

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SEB Merchant Banking,
  Skandinaviska Enskilda Banken AB (publ)

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Société Générale

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Svenska Handelsbanken
  AB (publ)

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Royal Bank of
  Scotland plc

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WestLB AG, London
  Branch

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Facility A Commitments

  	
   

  	
  SEK 5,000,000,000

  	
   

  

 

	
  Name of Original Lender

  	
   

  	
  Facility B Commitments

  (SEK)

  	
   

  
	
  ABN AMRO Bank N.V.,
  Stockholm branch

  	
   

  	
  400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Citibank International
  plc

  	
   

  	
  400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Crédit Agricole Stockholm Branch of Calyon Bank SA, France

  	
   

  	
  400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DnB NOR Bank ASA

  	
   

  	
  400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank AB (publ)

  	
   

  	
  400,000,000

  	
   

  

 

 71
 

 

 

	
  SEB Merchant Banking,
  Skandinaviska Enskilda Banken AB (publ)

  	
   

  	
  400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Société Générale

  	
   

  	
  400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Svenska Handelsbanken
  AB (publ)

  	
   

  	
  400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Royal Bank of
  Scotland plc

  	
   

  	
  400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WestLB AG, London
  Branch

  	
   

  	
  400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Facility B Commitments

  	
   

  	
  SEK 4,000,000,000

  	
   

  

 

	
  Name of Original Lender

  	
   

  	
  Facility C Commitments

  (SEK)

  	
   

  
	
  ABN AMRO Bank N.V.,
  Stockholm branch

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Citibank International
  plc

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Coöperatieve Centrale
  Raiffeisen-Boerenleenbank B.A.

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Crédit Agricole Stockholm Branch of Calyon Bank SA, France

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Danske Bank A/S
  Denmark, Sweden Branch

  	
   

  	
  1,000,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DnB NOR Bank ASA

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  HSBC Bank plc

  	
   

  	
  1,000,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ING Bank N.V.

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank AB (publ)

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SEB Merchant Banking,
  Skandinaviska Enskilda Banken AB (publ)

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Société Générale

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Svenska Handelsbanken
  AB (publ)

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Royal Bank of
  Scotland plc

  	
   

  	
  800,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WestLB AG, London
  Branch

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Facility C Commitments

  	
   

  	
  SEK 10,100,000,000

  	
   

  

Note: The Commitments set out in this Schedule 1 are subject to
adjustment in accordance with Clause 3(c) (Commitments) of the Amendment
and Restatement Agreement.

 72

 

SCHEDULE 2

CONDITIONS
PRECEDENT DOCUMENTS

PART 1

TO BE DELIVERED
BEFORE THE FIRST REQUEST

Original Obligors

1.                                       A copy of the constitutional documents of each Original Obligor.

2.                                       A copy of a resolution of the board of directors of each Original
Obligor approving the terms of, and the transactions contemplated by, this
Agreement.

3.                                       A specimen of the signature of each person authorised on behalf of an
Original Obligor to execute or witness the execution of any Finance Document or
to sign or send any document or notice in connection with any Finance Document.

4.                                       A certificate of an authorised signatory of the Company certifying that
each copy document specified in Part 1 of this Schedule is correct,
complete and in full force and effect as at a date no earlier than the Signing
Date.

5.                                       Evidence that the agent of the Original Obligors under the Finance
Documents for service of process in England and Wales has accepted its
appointment.

Legal opinions

1.                                       A legal opinion of Allen & Overy LLP legal advisers in England
to the Mandated Lead Arrangers and the Facility Agent, addressed to the Finance
Parties.

2.                                       A legal opinion of  Setterwalls,
legal advisers in Sweden to the Mandated Lead Arrangers and the Facility Agent,
addressed to the Finance Parties.

Other documents and evidence

1.                                       Evidence that all fees and expenses then due and payable from the
Company under this Agreement have been or will be paid by the first Utilisation
Date.

2.                                       Evidence that the Existing Facility will be prepaid and cancelled in
full, on or by the first Utilisation Date.

3.                                       A release agreement signed by Nordea Bank AB (publ) (in its capacity as
security agent under the Existing Facility), WestLB AG, London Branch (in its
capacity as facility agent under the Existing Facility) and each obligor under
the Existing Facility confirming that the guarantees given under the Existing
Facility and the Security Interests arising in connection with the Existing
Facility will be released subject to the satisfaction of the conditions
specified therein.

4.                                       The Original Financial Statements.

5.                                       A structure chart of the Group.

 73
 

 

 

6.                                       Evidence that if a Compliance Certificate had been delivered on 30th
September, 2004 (in respect of the Ratio Period ending on that date), the ratio
of Consolidated Total Net Debt on that date to Consolidated EBITDA for the
Ratio Period ending on that date would have been less than 1.00:1.

7.                                       A copy of any other authorisation or other document, opinion or
assurance which the Facility Agent has notified the Company is necessary or
desirable in connection with the entry into and performance of, and the
transactions contemplated by, any Finance Document or for the validity and
enforceability of any Finance Document.

 74
 

 

 

PART 2

FOR AN
ADDITIONAL GUARANTOR

Additional Guarantors

1.                                       An Accession Agreement, duly executed by the Company and the Additional
Guarantor.

2.                                       A copy of the constitutional documents of the Additional Guarantor.

3.                                       A copy of a resolution of the board of directors of the Additional
Guarantor approving the terms of, and the transactions contemplated by, the
Accession Agreement.

4.                                       A specimen of the signature of each person authorised on behalf of the
Additional Guarantor to execute or witness the execution of any Finance
Document or to sign or send any document or notice in connection with any
Finance Document.

5.                                       A certificate of an authorised signatory of the Additional Guarantor

(a)                                  certifying that each copy document specified in Part 2 of this
Schedule is correct, complete and in full force and effect as at a date no
earlier than the date of the Accession Agreement;

(b)                                 confirming that guaranteeing the Total Commitments in full would not
breach any limit in its memorandum or articles of association binding on it.

6.                                       If available, a copy of the latest audited accounts of the Additional
Guarantor.

7.                                       Evidence that the agent of the Additional Guarantor under the Finance
Documents for service of process in England and Wales has accepted its
appointment.

Legal
opinions

A legal opinion of:

(a)                                  legal advisers to the Agent in the jurisdiction of incorporation of the
Additional Guarantor addressed to the Finance Parties; and.

(b)                                 Allen & Overy LLP, legal advisers in England to the Facility
Agent, addressed to the Finance Parties.

Other documents and evidence

1.                                       Evidence that all expenses due and payable from the Company under this
Agreement in respect of the Accession Agreement have been paid.

2.                                       A copy of any other authorisation or other document, opinion or
assurance which the Facility Agent has notified the Company is necessary or
desirable in connection with the entry into and performance of, and the
transactions contemplated by, the Accession Agreement or for the validity and
enforceability of any Finance Document.

 75
 

 

 

SCHEDULE 3

FORM OF
REQUEST

To:          WESTLB
AG, London Branch as Facility Agent

From:      Tele2
Sverige AB

Date:       [                               ]

TELE2 SVERIGE AB - SEK
19,100,000,000 Credit Agreement

dated 23rd November, 2004 (as amended and restated on 10th October, 2005 (the Agreement)

1.                                       We refer to the Agreement. This is a Request.

2.                                       We wish to borrow a Loan on the following terms:

(a)                                  Utilisation Date:
[                               ]

(b)                                 Amount/currency:
[                                         ]

(c)                                  Term:
[                                         ].

(d)                                 The Loan is to be a [Facility A/Facility B/Facility C] Loan.

3.                                       Our payment instructions are:
[                                    ].

4.                                       We confirm that:

(a)                                  each condition precedent under the Agreement which must be satisfied on
the date of this Request is so satisfied; and

(b)                                 the Loan will be applied in accordance with Clause 3 (Purpose) of the
Agreement.

5.                                       This Request is irrevocable.

By:

Tele2 Sverige AB

 76
 

 

 

SCHEDULE 4

CALCULATION
OF THE MANDATORY COST

1.                                      General

(a)                                  The Mandatory Cost is to compensate a Lender for the cost of compliance
with:

(i)                                     the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces any of its
functions); or

(ii)                                  the requirements of the European Central Bank.

(b)                                 The Mandatory Cost is expressed as a percentage rate per annum.

(c)                                  The Mandatory Cost is the weighted average (weighted in proportion to
the percentage share of each Lender in the relevant Loan) of the rates for the
Lenders calculated by the Facility Agent in accordance with this Schedule on
the first day of a Term (or as soon as possible after then).

(d)                                 The Facility Agent must distribute each amount of Mandatory Cost among
the Lenders on the basis of the rate for each Lender.

(e)                                  Any determination by the Facility Agent pursuant to this Schedule will
be, in the absence of manifest error, conclusive and binding on all the
Parties.

2.                                      For a Lender lending from a Facility Office in the U.K.

(a)                                  The relevant rate for a Lender lending from a Facility Office in the
U.K. is calculated in accordance with the following formulae:

for a Loan in Sterling:

	
  AB + C(B - D) + E x 0.01

  	
  per cent. per annum

  
	
  100 - (A + C)

  

for any other Loan:

	
  E x 0.01

  	
  per cent. per annum

  
	
  300

  

where on the day of application of the formula:

A                                      is the percentage of that Lender’s eligible liabilities (in excess of
any stated minimum) which the Bank of England requires it to hold on a
non-interest-bearing deposit account in accordance with its cash ratio
requirements;

B                                        is the percentage rate of LIBOR for the relevant Term;

C                                        is the percentage (if any) of that Lender’s eligible liabilities which
the Bank of England requires it to place as an interest bearing special
deposit;

D                                       is the percentage rate per annum payable by the Bank of England on
interest bearing special deposits; and

 77
 

 

 

E                                         is calculated by the Facility Agent as being the average of the rates of
charge under the fees rules supplied by the Reference Banks to the
Facility Agent under paragraph (d) below and expressed in pounds per £1
million.

(b)                                 For the purposes of this paragraph 2:

(i)                                     eligible liabilities and
special deposit(s) have the
meanings given to them at the time of application of the formula pursuant to
the Bank of England Act 1988 or (as appropriate) by the Bank of England;

(ii)                                  fees rules means the then
current rules on periodic fees in the Supervision Manual of the FSA
Handbook or any other law or regulation as may then be in force for the payment
of fees for the acceptance of deposits;

(iii)                               fee tariffs means the fee tariffs
specified in the fees rules under fee-block Category A1 (Deposit
acceptors) (ignoring any minimum fee or zero rated fee required pursuant to the
fees rules but applying any applicable discount rate); and

(iv)                              tariff base has the meaning given to it
in, and will be calculated in accordance with, the fees rules.

(c)                                  (i)                                     In the application of the formulae, A, B, C and D are included as
figures and not as percentages, e.g. if A = 0.5% and B = 15%, AB is calculated
as 0.5 x 15. A negative result obtained by subtracting D from B is taken as
zero.

(ii)                                  Each rate calculated in accordance with a formula is, if necessary,
rounded upward to four decimal places.

(d)                                 If requested by the Facility Agent, each Reference Bank must, as soon as
practicable after publication by the Financial Services Authority, supply to
the Facility Agent the rate of charge payable by that Reference Bank to the
Financial Services Authority under the fees rules for that financial year
of the Financial Services Authority (calculated by that Reference Bank as being
the average of the fee tariffs applicable to that Reference Bank for that
financial year) and expressed in pounds per £1 million of the tariff base of
that Reference Bank.

(e)                                  Each Lender must supply to the Facility Agent the information required
by it to make a calculation of the rate for that Lender. In particular, each
Lender must supply the following information on or prior to the date on which
it becomes a Lender:

(i)                                     the jurisdiction of its Facility Office; and

(ii)                                  any other information that the Facility Agent reasonably requires for
that purpose.

Each
Lender must promptly notify the Facility Agent of any change to the information
supplied to it under this paragraph. If a Lender fails to supply the
information under this sub-paragraph (e) the Facility Agent will assume
that the Lender has not incurred a Mandatory Cost under this paragraph 2 (For a
Lender lending from a Facility Office in the U.K.).

(f)                                    The percentages of each Lender for the purposes of A and C above and the
rates of charge of each Reference Bank for the purpose of E above are
determined by the Facility Agent based upon the information supplied to it
under paragraphs (d) and (e) above. Unless a Lender notifies the
Facility Agent to the contrary, the Facility Agent may assume that the Lender’s
obligations in respect of cash ratio deposits and special deposits are the same
as those of a typical bank from its jurisdiction of incorporation with a
Facility Office in the U.K.

 78
 

 

 

(g)                                 The Facility Agent has no liability to any Party if its calculation over
or under compensates any Lender. The Facility Agent is entitled to assume that
the information provided by any Lender or Reference Bank under this Schedule is
true and correct in all respects.

3.                                      For a Lender lending from a Facility Office in a Participating Member
State

(a)                                  The relevant rate for a Lender lending from a Facility Office in a
Participating Member State is the percentage rate per annum notified by that
Lender to the Facility Agent. This percentage rate per annum must be certified
by that Lender in its notice to the Facility Agent as its reasonable
determination of the cost (expressed as a percentage of that Lender’s share in all
Loans made from that Facility Office) of complying with the minimum reserve
requirements of the European Central Bank in respect of Loans made from that
Facility Office.

(b)                                 If a Lender fails to specify a rate under paragraph (a) above, the
Facility Agent will assume that the Lender has not incurred any such cost.

4.                                      Changes

(a)                                  The Facility Agent may, after consultation with the Company and the
Lenders, determine and notify all the Parties of any amendment to this Schedule
which is required to reflect:

(i)                                     any change in law or regulation; or

(ii)                                  any requirement imposed by the Bank of England, the Financial Services
Authority or the European Central Bank (or, in any case, any successor
authority).

(b)                                 If the Facility Agent, after consultation with the Company, determines
that the Mandatory Cost for a Lender lending from a Facility Office in the U.K.
can be calculated by reference to a screen, the Facility Agent may notify all
the Parties of any amendment to this Agreement which is required to reflect this.

 79

 

SCHEDULE 5

FORM OF
TRANSFER CERTIFICATE

To:          WESTLB
AG, London Branch as Facility Agent

From:      [THE
EXISTING LENDER] (the Existing Lender) and [THE NEW LENDER] (the New Lender)

Date:       [                         ]

TELE2 SVERIGE AB - SEK
19,100,000,000 Credit Agreement

dated 23rd November, 2004 (as amended and restated on 10th October, 2005) (the Agreement)

We refer to the Agreement. This is a Transfer
Certificate.

1.                                       The Existing Lender transfers by novation to the New Lender the Existing
Lender’s rights and obligations referred to in the Schedule below in accordance
with the terms of the Agreement.

2.                                       The proposed Transfer Date is [     ].

3.                                       The administrative details of the New Lender for the purposes of the
Agreement are set out in the Schedule.

4.                                       This Transfer Certificate is governed by English law.

 80
 

 

 

THE SCHEDULE

Rights and obligations to be
transferred by novation

[insert relevant details, including applicable
Commitment (or part)]

Administrative details of the New
Lender

[insert details of Facility Office, address for
notices and payment details etc.]

[EXISTING LENDER]                                                                          [NEW LENDER]

By:                                                                                                           By:

The Transfer Date is confirmed by the Facility Agent
as
[                  ].

WESTLB AG, LONDON BRANCH

By:

 81
 

 

 

SCHEDULE 6

EXISTING
SECURITY

 

	
  Member(s) of the Group creating
  security

  	
   

  	
  Details of security

  	
   

  	
  Maximum principal amount secured

  
	
  St Petersburg
  Telecom, Oblcom and Rostov Cellular Communication

  	
   

  	
  Equipment in the Russian Federation charged in
  favour of Skandinaviska Enskilda Banken

  	
   

  	
  EUR 30,400,000

  
	
  Tango S.A.

  	
   

  	
  Retention of title over UMTS equipment leased

  	
   

  	
  SEK 30,000,000

  
	
  Tele2 St
  Petersburg Holding AB

  	
   

  	
  Pledge over shares in St Petersburg Telecom and
  Oblcom

  	
   

  	
  Together with the pledge over shares in Tele2 St
  Petersburg Holding AB (detailed below), SEK 24,000,000

  
	
  The Company

  	
   

  	
  Pledge over shares in Tele2 St Petersburg Holding AB

  	
   

  	
   

  
	
  The Company

  	
   

  	
  Cash deposited as security for a deferred purchase
  price of up to £10,000,000

  	
   

  	
  SEK 70,000,000

  
	
  The Company

  	
   

  	
  Equipment leased under a financial lease with
  Affarsverket Svenska Kraftnät, Vattenfall and Sydkraft

  	
   

  	
  SEK 141,000,000

  

 

 82
 

 

 

SCHEDULE 7

FORM OF
COMPLIANCE CERTIFICATE

To:          WESTLB
AG, London Branch as Facility Agent

From:      Tele2
AB (publ)

Date:       [                              
]

TELE2 SVERIGE AB - SEK
19,100,000,000 Credit Agreement

dated 23rd November, 2004 (as amended and restated on 10th October, 2005)(the Agreement)

1.                                       We refer to the Agreement. This is a Compliance Certificate.

2.                                       We confirm that as at [relevant testing date]:

(a)                                  Consolidated EBITDA was [      ]; and

Consolidated Total Net Debt is
[               ];
therefore, the ratio of Consolidated Total Net Debt to Consolidated EBITDA was
[    ] to 1;

(b)                                 Consolidated EBITDA was
[            ] and
Consolidated Interest Expense was
[           ];
therefore, the ratio of Consolidated EBITDA to Consolidated Interest Expense
was [    ] to 1; and

(c)                                  on the basis of (a) above, the applicable Margin in respect of
Facility B Loans and Facility C Loans is [     ] per
cent. per annum.

3.                                       We set out below calculations establishing the figures in paragraph 2
above:

[                        ].

4.                                       We confirm that the following companies were Material Subsidiaries at
[relevant testing date]:

[       ].

5.                                       [We confirm that no Default is outstanding as at [relevant testing
date].(1)

(1)             If
this statement cannot be made, the certificate should identify any Default that
is outstanding and the steps, if any, being taken to remedy it.

Tele2 AB (publ)

By:

 83
 

 

 

SCHEDULE 8

FORM OF
ACCESSION AGREEMENT

To:          [WestLB,
London Branch] as Facility Agent

From:      Tele2
Sverige AB and [Proposed Guarantor]

Date:       [                        ]

TELE2 SVERIGE AB - SEK
19,100,000,000 Credit Agreement

dated 23rd November, 2004 (as amended and restated on 10th October, 2005)(the Agreement)

We refer to the Agreement. This is an Accession
Agreement.

[Name of company] of [address/registered office]
agrees to become an Additional Guarantor and to be bound by the terms of the
Agreement as an Additional Guarantor.

Our obligation as an Additional Guarantor shall be
limited in accordance with
[                ](2).

(2)           Insert
limitation language agreed between the Company and the Facility Agent (both
acting reasonably).

This Accession Agreement is governed by English law.

Tele2 Sverige AB

By:

[PROPOSED GUARANTOR]

By:

 84
 

 

 

SCHEDULE 9

FORM OF
RESIGNATION REQUEST

To:          WestLB
AG, London Branch as Facility Agent

From:      Tele2
Sverige AB and [relevant Guarantor]

Date:       [                       ]

TELE2 SVERIGE AB - SEK
19,100,000,000 Credit Agreement

dated 23rd November, 2004 (as amended
and restated on 10th October, 2005)(the Agreement)

1.                                       We refer to the Agreement. This is a Resignation Request.

2.                                       We request that [resigning Guarantor] be released from its obligations
as a Guarantor under the Agreement.

3.                                       We confirm that a breach of Clause 21.7 (Financial Indebtedness) would
not result from the acceptance of this Resignation Request.

4.                                       We confirm that as at the date of this Resignation Request no demand for
the payment of any money has been made in writing on that Guarantor which is
outstanding.

5.                                       This Resignation Request is governed by English law.

 

	
  Tele2 Sverige AB

  	
  [Relevant Guarantor]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

The Facility Agent confirms that this resignation
takes effect on
[                     ].

WestLB AG, London Branch

By:

 

 85Exhibit
4.1

THIS NOTE HAS NOT
BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”). THE SECURITIES ARE RESTRICTED AND MAY NOT
BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION FROM SUCH
REGISTRATION REQUIREMENTS.

	
  No.[      ]

  	
  $[          ] Principal Amount

  
	
   

  	
   

  
	
  Original Issuance:                  , 2006

  	
   

  

 

FERMAVIR
PHARMACEUTICALS, INC.

12% NOTE
DUE JANUARY 1, 2007

THIS NOTE is
issued by FermaVir Pharmaceuticals, Inc., a
Florida limited liability company (the “Company”),
and is part of an issue of an aggregate of up to $300,000 principal amount of
Notes due January 1, 2007 (the “Notes”).

FOR VALUE
RECEIVED, the Company promises to pay to [Holder],
or permitted assigns (the “Holder”),
the principal sum of             
Thousand and 00/100 (US $[     ,000]) Dollars] on January 1, 2007
(the “Maturity Date”) and
to pay simple interest on the principal sum outstanding at the rate of 12% per
annum. Accrual of interest shall commence on the date of initial issuance set
forth the above (“Original Issuance”) and
continue daily on the basis of a 360 day year until payment in full of the
principal sum has been made or duly provided for. If the Maturity Date is not a
business day in the State of New York, then such payment shall be made on the
next succeeding business day. Subject to the provisions of Section 3
below, principal and accrued interest on this Note are payable in cash on the
Maturity Date, at the address last appearing on the Note Register of the
Company as designated in writing by the Holder from time to time. The Company
will pay the principal of and any accrued but unpaid interest due upon this
Note on the Maturity Date, less any amounts required by law to be deducted, to
the registered holder of this Note as of the fifth day prior to the Maturity
Date and addressed to such holder at the last address appearing on the Note
register maintained by or on behalf of the Company (the “Note
Register”). The forwarding of such check representing
immediately available funds shall constitute a payment of principal and interest
hereunder and shall satisfy and discharge the liability for principal and
interest on this Note to the extent of the sum represented by such check, plus
any amounts so deducted.

This Note is
subject to the following additional provisions:

1.            Withholding
and Issuance Taxes. The Company shall be entitled to withhold
from all payments of principal of, and interest on, this Note any amounts
required to be withheld under the applicable provisions of the United States
income tax laws or other applicable laws at the time of such payments, and
Holder shall execute and deliver all required documentation in

 

 

connection
therewith.

2.            Transfer
of Note. This Note has been issued subject to investment
representations of the original purchaser hereof and may be transferred or
exchanged only in compliance with the Securities Act of 1933, as amended (the “Securities Act”), and other
applicable state and foreign securities laws. The Holder shall deliver written
notice to the Company of any proposed transfer of this Note. In the event of
any proposed transfer of this Note, the Company may require, prior to issuance
of a new Note in the name of such other person, that it receive reasonable
transfer documentation including legal opinions that the issuance of the Note
in such other name does not and will not cause a violation of the Securities
Act or any applicable state or foreign securities laws.  Prior to due presentment for transfer of this
Note, the Company and any agent of the Company may treat the person in whose
name this Note is duly registered on the Company’s Note Register as the owner
hereof for the purpose of receiving payment as herein provided and for all
other purposes, whether or not this Note be overdue, and neither the Company
nor any such agent shall be affected by notice to the contrary. This Note has
been executed and delivered pursuant to the Securities
Purchase Agreement dated as of ____________, 2006 between the Company and the
original Holder (the “Purchase Agreement”),
and is subject to the terms and conditions of the Purchase Agreement, which
are, by this reference, incorporated herein and made a part hereof. Capitalized
terms used and not otherwise defined herein shall have the meanings set forth
for such terms in the Purchase Agreement.

3.            Redemption.

(a)          Redemption
at the Option of the Company. At any time after the initial
issuance of the Notes, the Company, upon notice delivered to the holders of the
then outstanding Notes in the manner provided in Subsection 3(b), may redeem
the outstanding principal of the Notes, in whole or in part, pro rata or by lot
for the consideration equal to 106% of the principal amount called for
redemption (the “Optional Redemption Price”).

(b)          Notice
of Redemption.

(i)             Notice of redemption pursuant to
Subsection 3(a) (the “Optional Redemption
Notice”) shall be provided by the Company to the Holder in
writing (by registered mail or overnight courier at the Holder’s last address
appearing in the Note Register not less than five (5) nor more than thirty
(30) days prior to the date stipulated by the Company for the redemption of the
Notes (the “Optional Redemption Date”), which notice shall specify the Optional
Redemption Date and refer to Subsection 3(a) and this Subsection 3(b).

(ii)            The Optional Redemption Notice shall
specify the amount of principal being redeemed from the registered Holder, and
the amount of accrued interest allocable thereto .

(c)          Mandatory Redemption.
If, prior to the Maturity Date, the Company shall have received gross proceeds
from the sale of any securities (not including additional Notes) after the
Original Issuance, which in the aggregate exceeds two times the then
outstanding principal amount of Notes, the Company will, within one day,
provide the Holder notice that all Notes

 

 2
 

 

shall be redeemed
for a price equal to the outstanding principal and all accrued and unpaid
interest (the “Redemption Price”) which shall be immediately due and payable
five (5) days after such notice is or should have been given.

(d)          Surrender
of Notes. Upon any redemption of this Note pursuant to
Subsection 3(a) or 3(c), the Holder shall either deliver the Note by hand
to the Company at its principal executive offices or surrender the same to the
Company at such address by express courier. Payment of the Optional Redemption
Price or Redemption Price , as the case may be, shall be made by the Company to
the Holder against receipt of the Notes by wire transfer of immediately
available funds to such account(s) as the Holder shall specify in writing
to the Company. Provided the Company has either paid or set aside available
funds for sufficient to pay the Redemption Price (and in the latter case, set
aside funds are in a segregated account identified to the Holder from which the
Redemption Price will be paid on or after the Redemption Date upon demand of
the Holder), from and after the Redemption Date, the Holders rights as a holder
of this Note shall cease, except the right to receive the Redemption Price.

4.            Notices.
In case at any time:

(a)          the Company shall declare any dividend
upon its members payable in cash or stock or make any other pro rata
distribution to the holders of its Common Stock; or

(b)          the Company shall offer for
subscription pro  rata to the holders of its equity any additional
equity interest of any class or other rights; or

(c)          there shall be any capital
reorganization or reclassification of the equity of the Company, or a
consolidation or merger of the Company with or into, or a sale of all or
substantially all its assets to, another entity or entities; or

(d)          there shall be a voluntary or
involuntary dissolution, liquidation or winding up of the Company; then, in any
one or more of said cases, the Company shall give, by first class mail, postage
prepaid, or by telex or facsimile or by recognized overnight delivery service,
addressed to the Holder at the address of the Holder as shown on the books of
the Company, (i) at least 10 days’ prior written notice of the date on
which the books of the Company shall close or a record shall be taken for such
dividend, distribution or subscription rights or for determining rights to vote
in respect of any such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding up and (ii) in the case of any
such reorganization, reclassification, consolidation, merger, sale,
dissolution, liquidation or winding up, at least 10 days’ prior written notice
of the date when the same shall take place. Such notice in accordance with the
foregoing clause (i) shall also specify, in the case of any such dividend,
distribution or subscription rights, the date on which the holders of Equity
shall be entitled thereto and (ii) shall also specify the date on which
the holders of Equity shall be entitled to exchange their Equity for securities
or other property deliverable upon such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up, as the
case may be.

5.            Event
of Default. Each of the following shall constitute an “Event of Default”:

 

 3
 

 

(a)          the Company shall default in the
payment of principal or interest on this Note and same shall continue for a
period of five (5) days; or

(b)          any of the material representations or
warranties made by the Company herein, in the Purchase Agreement, or in any
agreement, certificate or financial or other written statements heretofore or
hereafter furnished by the Company in connection with the execution and
delivery of this Note or the Purchase Agreement, shall be false or misleading
in any material respect at the time made, and such default is not cured within
14 days of receipt of written notice specifying the nature of the
misrepresentation; or

(c)          the Company shall (i) make an
assignment for the benefit of creditors or commence proceedings for its
dissolution; or (ii) apply for or consent to the appointment of a trustee,
liquidator or receiver for its or for a substantial part of its property or
business; or

(d)          a trustee, liquidator or receiver
shall be appointed for the Company or for a substantial part of its property or
business without its consent and shall not be discharged within sixty (60) days
after such appointment; or

(e)          any governmental agency or any court
of competent jurisdiction at the instance of any governmental agency shall
assume custody or control of the whole or any substantial portion of the
properties or assets of the Company and shall not be dismissed within sixty
(60) days thereafter; or

(f)           any final money judgment, writ or
warrant of attachment, or similar process in excess of Two Hundred Thousand
($200,000) Dollars in the aggregate shall be entered or filed against the
Company or any of its properties or other assets and shall remain unpaid,
unvacated, unbonded or unstayed for a period of sixty (60) days or in any event
later than five (5) days prior to the date of any proposed sale
thereunder; or

(g)          bankruptcy, reorganization, insolvency
or liquidation proceedings or other proceedings for relief under any bankruptcy
law or any law for the relief of debtors shall be instituted by or against the
Company and, if instituted against the Company, shall not be dismissed within
sixty (60) days after such institution or the Company shall by any action or
answer approve of, consent to, or acquiesce in any such proceedings or admit
the material allegations of, or default in answering, a petition filed in any
such proceeding.

6.            Acceleration and Remedies

(a)          Acceleration
of Maturity. If any Event of Default shall have occurred and be
continuing, the Holder or Holders of at least 50.1% in aggregate principal
amount of outstanding Notes may, by notice to the Company, declare the entire
outstanding principal balance of the Notes, and all accrued and unpaid interest
the thereon, to be due and payable immediately, and upon any such declaration
the entire outstanding principal balance of the Notes, if any, and said accrued
and unpaid interest shall become and be immediately due and payable, without
presentment, demand, protest or other notice. whatsoever, all of which are
hereby expressly

 

 4
 

 

waived, anything in the Notes or in this Agreement to the contrary
notwithstanding; provided that if an Event of Default under paragraph (d) or
(g) of Section 5 with respect to the Company or any Subsidiary shall
have occurred, the outstanding principal amount of all of the Notes, and all
accrued and unpaid interest thereon, shall immediately become due and payable
in cash, without any declaration and without presentment, demand, protest or
other notice whatsoever, all of which are hereby expressly waived, anything in
the Notes or this Agreement to the contrary notwithstanding.

(b)          Other
Remedies. If any Event of Default shall have occurred and be
continuing, from and including the date of such Event of Default to but not
including the date such Event of Default is cured or waived, interest will accrue
at an annual default rate of 16% and, any Holder of 25% in aggregate principal
amount of outstanding Notes may enforce its rights by suit in equity, by action
at law, or by any other appropriate proceedings, whether for the specific
performance (to the extent permitted by law) of any covenant or agreement
contained in the Purchase Agreement or the Notes or in aid of the exercise of
any power granted this Agreement or the Notes, and any Holder may enforce the
payment of any Note held by such Holder and any of its other legal or equitable
rights.

(c)          Conduct
No Waiver; Collection Expenses. No course of dealing on the part
of any Holder, nor any delay or failure on the part of any Holder to exercise
any of its rights, shall operate as a waiver of such right or otherwise
prejudice such Holders rights, powers and remedies. If the Company fails to
pay, when due, the principal or the premium, if any, or the interest on any
Note, the Company will pay to each Holder, to the extent permitted by law, on
demand, all costs and expenses incurred by such Holder in the collection of any
amount due in respect of any Note hereunder, including reasonable legal fees
incurred by such Holder in enforcing its rights hereunder.

(d)          Annulment
of Acceleration. If a declaration is made in accordance with
paragraph 6(a), then and in every such case, the Holder or Holders of at least
50.1% in aggregate principal amount of outstanding Notes may, by an instrument
delivered to the Company, annul such declaration and the consequences thereof, provided
that at the time such declaration is annulled:

(i)             no judgment or
decree has been entered for the payment of any monies due on the Notes or
pursuant to the Purchase Agreement;

(ii)            all arrears of
interest on the Notes and all other sums payable on the Notes and pursuant to
this Agreement (except any principal of or interest or premium on the Notes
which has become due and payable by reason of such declaration) shall have been
duly paid; and

(iii) every
other Event of Default shall have been duly waived or otherwise made good or
cured;

provided,
however, that only the Holder of the Note or Notes making the
declaration permitted by the of paragraph 6(b) may annul such declaration;
and provided,  further, that no such annulment shall extend to or
affect any subsequent Event of Default or impair any right consequent thereon.

 

 5
 

 

(e)          Remedies
Cumulative. No right or remedy conferred upon or reserved to the
Holders of Notes is intended to be exclusive of any other right or remedy, and
every right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now and hereafter existing under applicable law.
Every right and remedy given by the Purchase Agreement or by applicable Law to
the Holders of Notes may be exercised from time to time and as often as may be
deemed expedient by the Holders.

7.            No
Recourse to Stockholders, etc. No recourse shall be had for the
payment of the principal of, or the interest on, this Note, or for any claim
based hereon, or otherwise in respect hereof, against any incorporator,
shareholder, employee, officer or director, as such, past, present or future,
of the Company or any successor corporation, whether by virtue of any statute
or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of
the consideration for the issue hereof, expressly waived and released.

8.            No
Rights as Stockholder. No provision of this Note shall be
construed as conferring upon the Holder the right to vote or to receive
dividends or to consent or receive notice as a stockholder in respect of any
meeting of stockholders or any rights whatsoever as a stockholder of the
Company, unless and to the extent converted in accordance with the terms
hereof.

9.            Definitions.
As used in this Note,

(a)          “Affiliate”
and “Associate” shall have the
respective meanings ascribed to such terms in Rule 12b-2 of the
General Rules and Regulations under the Exchange Act.

(b)           “Beneficially Owned” with respect to
any securities shall mean having “beneficial ownership” of such securities (as
determined pursuant to Rule 13d-3 under the Exchange Act), including
pursuant to any agreement, arrangement or understanding, whether or not in
writing.

(c)          “Original
Issuance” means the Closing Date as set forth in the
Purchase Agreement.

(d)          “Purchase
Agreement” shall mean the several agreements under which the
Holders of the Notes have purchased the Notes from the Company.

10.          Loss,
Theft, Destruction of Note. Upon receipt of evidence
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Note and, in the case of any such loss, theft or destruction, upon receipt
of indemnity reasonably satisfactory to the Company (which shall not include
the posting of any bond), or, in the case of any such mutilation, upon
surrender and cancellation of this Note, the Company shall make, issue and
deliver, in lieu of such lost, stolen, destroyed or mutilated Note, one or more
new Notes of like tenor. This Note shall be held and owned upon the express
condition that the provisions of this Section 12 are exclusive with
respect to the replacement of mutilated, destroyed, lost or stolen Notes and
shall preclude any and all other rights and remedies notwithstanding any law or
statute existing or

 

 6
 

 

hereafter enacted
to the contrary with respect to the replacement of negotiable instruments or
other securities without the surrender thereof.

11.          Record
Owner. The Company may deem the person in whose name this Note
shall be registered upon the registry books of the Company to be, and may treat
such person as, the absolute owner of this Note for the purpose of conversion
of this Note and for all other purposes, and the Company shall not be affected
by any notice to the contrary. All such payments and such conversion shall be
valid and effective to satisfy and discharge the liability upon this Note to
the extent of the sum or sums so paid or the conversion so made.

12.          Construction.
This Note shall be deemed to be jointly drafted by the Company and the
initial Holders of the Notes and shall not be construed against any person as
the drafter hereof.

13.          Amendments.
The terms of the outstanding Notes may be amended as to the Holder and its
respective successors and assigns, and the Company may take any action herein
prohibited, or omit to perform any act required to be performed by it, if the
Company shall obtain the written consent of the registered holders of not less
than a majority of the outstanding principal amount of the Notes. This
Agreement may not be waived, changed, modified, or discharged orally, but only
by an agreement in writing signed by the party or parties against whom
enforcement of any waiver, change, modification or discharge is sought or by
parties with the right to consent to such waiver, change, modification or
discharge on behalf of such party.

14.          Failure
or Indulgence Not Waiver. No failure or delay on the part of the
Holder of this Note in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof (except to the extent that such power, right
or privilege must, in accordance with the terms of this Note, be exercised
within a specified period of time and such period of time has lapsed without
such power, right or privilege being exercised), nor shall any single or
partial exercise of any such power, right or privilege preclude other or
further exercise thereof or of any other right, power or privilege.

15.          Governing
Law. This Note shall be governed by and construed in accordance
with the laws of the State of New York. Each of the parties consents to the
jurisdiction of the United States District Court for the Eastern or Southern
District of New York or the state courts of the State of New York located in
Nassau County, New York in connection with any dispute arising under this
Agreement and hereby waives, to the maximum extent permitted by law, any
objection, including any objection based on forum non conveniens, to the
bringing of any such proceeding in such jurisdictions.

 

 7
 

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed by an officer
thereunto duly authorized.

	
  Dated:

  	
   

  	
  , 2006

  	
  FERMAVIR PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Geoffrey W. Henson

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  

 

 8

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